Charlotte’s Economic Indicators Look Anemic
Posted by Lisa in Charlotte Market Statistics on May 29th, 2009
Economic indicators are like test results after a check-up with your doctor. You may feel well but the results could tell you differently. The Charlotte Observer published today a list of leading economic indicators for Charlotte as of March and April of 2009.
Charlotte may say it feels well but the test results were not pretty. Here are some of the results:
- Foreclosure filings in April were up 100% year over year although foreclosures in general were down 49% in March year over year
- Unemployment Rate was up 110% in March year over year
- Building Permits were down 52% in April year over year
- Bankruptcy Filings were up 56% in March year over year
- Average home prices were down 14% in March year over year
I do agree with the various pundits and believe “the bottom” albeit for real estate, the stock market, or the economy is around the corner - maybe as soon as the end of the year. But…the 10 million dollar question still remains….how long will it take for Charlotte to show it really feels well again?
Let me know what you think…
Ciao Bella
Late on Mortgage Payments Can Affect Your Listing
Posted by Lisa in Mortgage Information on May 12th, 2009
Prior to all this mortgage “mess” and the onslot of all these distressed home sales a broker’s fiduciary duty to his client of loyalty and obedience prohibited him or her from disclosing any confidential information about the seller unless it was a material fact affecting the property or the client’s ability to perform under the contract. The fact that a seller was behind on his/her mortgage was NOT a material fact and did NOT have to be disclosed unless a foreclosure proceeding had been filed with the Clerk of Court.
Today…all bets are off and the NC Real Estate Commission has changed the playing rules. They have ruled that it is a material fact if the seller is behind in his or her mortgage because the seller no longer has the unilateral right to convey clear and marketable title to a buyer. The seller will now need a third person (i.e., mortgage holder) who is not a party to the contract to consent to the sale.
What does this mean if you are a seller? Real estate brokers have a duty to discover and disclose material facts affecting a property which now includes mortgage delinguency. They are bound by the rules of the Real Estate Commisssion to disclose this fact to prospective buyers and buyer agents before any offer is extended. So sellers don’t be offended if your listing agent asks to see your latest mortgage statement they are just doing their job.
Wells Fargo Layoffs hit Uptown Charlotte
Posted by Lisa in Charlotte Businesses on May 6th, 2009
Wells Fargo announced yesterday that they will be laying off 548 employees in uptown Charlotte as they continue to integrate with Wachovia. The investment banking division will be hit the hardest which is no real surprise. Wells also indicated that there would be more layoffs after this round as other business segments begin to integrate over the next 2 to 3 years. The 548 seems to pale in comparison to the 2,900 jobs lost in the investment banking and mortgage divisions in both Bofa and Wachovia this past February.
What does this all mean? Well if you remember it was the influx of all the investment bankers from the North that really put this town on the map and really got our real estate market in gear. Where they will go…who knows. I am sure some will stay and wait it out and some will head home. As for the Charlotte real estate market…I think it will suffer from this loss. The big players, the big money helped the Charlotte economy and real estate. I really hope this economy turns around fast and the Wells and Bofa’s of the world start firing it up again. Charlotte…we need it!
Ciao Bella
Charlotte Real Estate Statistics March 2009
Posted by Lisa in Charlotte Market Statistics on May 4th, 2009
Average closing price for homes sold in Charlotte was up 4.4% in the month of March.
Average list price of homes sold in Charlotte was 5.4% higher for the month of March.
Average number of new listings for March was up 12.7%.
Average Days on Market for listed homes in Charlotte remained steady at 114 days.
Mortgage rates continue their decline ending the month at 4.85%.
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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Lisa Wilkins
Lisa brings unique credentials and extraordinary skills and talents to the residential real estate market. She is a licensed real estate broker in North Carolina and South Carolina, and is a member of the National Association of REALTORS®. more>>>