Posts from — December 2009

Sales of existing homes exceeded expectations of economists in November. 

The number of existing homes sold is at its highest level in 2 years.  The continued rise is thanks in large part to lower interests rates, decreased listing prices and government incentives. 

“Housing is in recovery mode,” Aaron Smith, a senior economist at Moody’s Economy.com said before the report.  “The combination of the homebuyers’ tax credit, good affordability and looser credit conditions going forward will continue moderate gains in housing.” 

In addition, the U.S. economy has grown at a 2.2 percent annual rate in the third quarter. 

It was recently reported that the number of foreclosures in the month of November decreased 8 percent from November 2008.  This is the fourth consecutive month that the foreclosure rates have decreased. Default notices on properties have also been on the decline.

States with the highest foreclosure rates are:

• Nevada
• Florida
• California
• Arizona
• Idaho
• Michigan
• Illinois
• Utah
• Maryland
• New Jersey

Four states account for more than 50 percent of actual foreclosures: California, Florida, Illinois, and Michigan.

Below are some great statistics on the local Outer Banks real estate market for November provided by The OBX Team.

OBX housing market overall:

·         100 residential homes in the Outer Banks sold.

·         November had an increase of 5 and 3 units sold from September and October respectively.

·         An additional 42 homes sold November 2009 compared to November 2008.

OBX distressed sales (foreclosures and short sales):

·         Distressed sales made up 27% of the total sales

·         17 foreclosed homes were sold in the month of November, along with 10 short sales for a total of 27 transactions.

·         Down from distress homes being 34% of the total sales in the month of October.

 The OBX Team is a group of three Realtors from Coldwell Banker Seaside Realty that is ready to handle all of your buying and selling needs. 

New Construction has risen 8.9% in November to around 574,000 units. 

The estimated number was predicted to be 563,000 units based on economists that were surveyed by marketwatch.  There has also been reports of jumps in multifamily housing despite seeing some very low numbers for October. 

“We now expect both starts and permits to rally significantly further over the next few months, though the big test for the market will come in the spring,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics. “We also expect the tax credit, currently due to expire on Jun 30, to be extended through the year-end. It’s popular, relatively cheap, and it is an election year,” he added in a note to clients.

The Obama Administration set guidelines for financially troubled borrowers to sell their homes last week.  The government created these guidelines to encourage the use of short sales. 

To put it simply using a definition from the Wall Street Journal, a short sale is a transactions in which the borrower with lender approval sells the home for less than what is owed on the loan. Short Sales are often less damaging to a neighborhood’s property values than a foreclosure would be.  The program makes it easier for borrowers to voluntarily transfer ownership of properties through a “deed in lieu” of foreclosure. 

This plan will award borrowers $1500 from the government if they sell their home for less than they owe on it.  This is the newest addition to Obama’s $75 billion foreclosure prevention plan. 

Call 252-261-3800 or email sales@seasiderealty.com to speak with a short sales specialist.

1. Fewer Showings – Yes there are less buyers, but those buyers that are left are usually very serious about making a purchase.

2. Less Competition – Most people wait until spring and summer to list their home, which means during the winter you will have far less competition than at any other time of the year.

3. Homes Show Better During the Holidays- Buyers love homes that can tell a story. The holidays are a great time to show homes because the home is usually dressed up for holiday celebrations.

4. January is the Biggest Transfer Month- Did you know that more corporate moves happen during the month of January than at any other time of year? This may be a great reason to list your home during the winter!

5. Timing – By putting the home on the market during the winter you may be able to more easily hit your moving goals!

6. More Time to Get Top Dollar – By starting to market your home early you may be able to secure a higher price.

7. Great Time to Shop – If your home sells quickly you will be able to shop for your next home during the winter; this is a great time to find a bargain

8. More Advertising- Because most agent and offices have less inventory during the winter your home may be advertised more often than during the spring months.

9. More Attention – Most agents will be able to devote more specialized attention to your needs during the winter because they have less clients to manage.

10. The Market – Today’s interest rates are at forty-year lows. This gives buyers more spending power, and will be even more important when you begin shopping for your next home!

Pending sales of existing home sales have unexpectedly increased to to highest level in 3.5 years. 

The National Association of Realtors said that its pending home sales index has also risen at a rate of 3.7%.  This will be the ninth month in a row that the index has shown an increase.  The Association also reports that they have not seen consecutive increases of this nature since 2001. Experts predicted that existing home sales would decrease .8%. 

“The [tax] credit is helping unleash a pent-up demand from a large pool of financially qualified renters,” said NAR economist, Lawrence Yun.

Home prices have risen for the second consecutive quarter. Prices still remain 9% lower than last year, according to a report that was issued last week, but nationwide, prices rose 3.1% in the 3rd quarter.

“We have seen broad improvement in home prices for most of the past six months,” says David Blitzer, Chairman of the Index Committee at Standard & Poor’s.

Prices are still below a year ago, down 8.9% compared with the third quarter of 2008.  Nevertheless, that’s an improvement from the double-digit price decreases the index had been reporting; the second quarter year-over-year decline was 14.7%. Prices had dropped 19% year-over-year during the first quarter of 2009. 

Stopping the home price slide is an important factor in any economic recovery. Falling prices increase the number of “underwater” homeowners, those who owe more on their mortgage balances than their homes are worth. Increasing prices are a sign that the housing market is making a slow but steady comeback.