Archive for category Charlotte Real Estate

Keys to Housing Recovery

Posted by Lisa in Charlotte Real Estate on July 26th, 2009

I keep reading article after article about the housing recovery or lack thereof.  The importance is obvious.  Without the rebound of the housing market there will be no rebound of the economy.  It is that simple.

I have maintained from the beginning of my blog that we will probably see a “bottom” in the housing market sometime by the end of 2009 but the actual recovery will be slow and will take several years to play itself out. 

Why you ask? 

  1. Supply vs Demand:  Too many sellers not enough buyers.  The only way to change that is to get the first-time home buyers back out in force.
  2. Distressed Properties:  Too many short sales and foreclosures putting undue price pressure on the market.  It took us several years to “leverage-up” and it will take us several years to “leverage-down”.  
  3. Credit Availability:  Lenders are still very reticent to make loans with any type of risk exposure.  Moreover, the appraisal process known for its uncanny ability to match the contract price on any deal has now become a very tricky proposition.  Maybe the lenders are putting pressure on the appraisers but never before have we seen appraisals come back below the contract price than we have here recently.
  4. Unemployment:  Unemployment continues to rise into the double digits.  As long as people do not feel secure in their jobs they are not going to make one of  the largest purchases in their lifetimes.

 

The housing market continues to be plagued with problems of declining prices, rising mortgage rates, unemployment not to mention a myriad of other factors weighing heavy on its recovery.  The end is near however the recovery is still uncertain.

 

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Charlotte Commercial Real Estate Woes

Posted by Lisa in Charlotte Real Estate on April 21st, 2009

General Growth Properties, the company that owns Carolina Place Mall in Pineville filed for bankruptcy protection under Chapter 11 siting tough economic times, tightening of credit and high debt levels as its major contributors.  The company, the second largest shopping mall owner in the country, was in the process of developing the new 1.3 million-square-foot mall in Mint Hill off of Lawyers road and I-485.  The mall was slated to open in the spring of 2007 but for a variety of reasons, including a significant decline in consumer spending, work has been suspended on the project.

This news does not surprise me at all.  All along we have been hearing about all the troubles the Charlotte residential real estate market has been having and it was only a matter of time before the commercial markets would follow.   When you think about what precipitated all the residential woes, over building (too much supply), over extending (too much debt) and over confidence (too much belief in the consumers ability to continue to spend), it was foreseeable that the commercial markets would have the same problems.  The bottom line is that we are going to see more and more of this as the year unfolds and we will need to flush all the residential and commercial problems out before we hit a sustainable bottom.

Ciao Bella

 

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Foreclosures in NC Back on the Rise

Posted by Lisa in Charlotte Real Estate on April 17th, 2009

The Charlotte Observer reported foreclosures on the rise once again in the state of North Carolina.  Filings for the month of March as compared to a year ago were up 11 % across the state while filings in the Mecklenburg county area rose 40%. 

The slowdown we experienced over the last several months was in part due to the “moratorium” placed on foreclosures compliments of the government (Fannie Mae and Freddie Mac), the major banks and the new North Carolina law requiring lenders to give borrowers a 45 day notice before starting the foreclosure process.

What does this mean for you?  The rise in foreclosures continues to put pressure on the already battered housing market.  Why?…

  • Foreclosures put price pressure on existing  homes because they typically sell well below market value. 
  • Foreclosures usually are not in the greatest of shape (theory being if you can’t pay your mortgage you are probably not keeping the house up) and as such they can discourage potential buyers of existing homes from buying in that neighborhood.
  • Foreclosures put more pressure on the already ailing banks which may force them to alter future lending practices.  This translates into tighter mortgage standards and less money for potential buyers.

 

Although this is not a good sign it is not a surprising one.  As I said in an earlier blog we are not out of the woods yet in real estate – but the bottom may very well be in sight.  Until then, if you need help or have questions about foreclosures in North Carolina please check out NC Foreclosure Help.

Ciao Bella

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First-Time Home Buyers Credit Compared

Posted by Lisa in Charlotte Real Estate on April 16th, 2009

I have found a super chart (compliments of Realtor.org ) that highlights all the major changes for the first time home buyers credit between the July 2008 version and the most recent one in January 2009. See Chart.   All of you first time home buyers (i.e., anyone who has not owned a home within the last 3 years) really need to take a look at this.

The major highlights include:

  1.  Increased credit amount from $7,500 to $8,000
  2.  NO repayment required in the 2009 version
  3.  Buyers who utilize the program can still obtain downpayment assistance from NC Bond and House Charlotte

With mortgage rates down in the 4’s this quite possibly is “an offer you just can’t refuse”.  If you have any questions about the chart or the credit itself please email or call me.  I would love to help you better understand this incredible offer.

Ciao Bella

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