Category Archives: National Housing Market

13,780 Homes Sold Yesterday

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Photo courtesy of KCM Blog

The KCM Crew tells us…

“To all those who have declared the real estate market dead, we want you to know that over 13,780 houses sold yesterday, 13,780 will sell today and 13,780 will sell tomorrow.”

This number is the comes from information reported by the National Association of Realtors in their recent Existing Home Sales Report. In the report NAR says annualized sales now stand at 5.03 million. Divide that number by the number of days in the year and we see that more than 13,000 (on average) homes sell every day.

NAR also reported that sales had increased 7.7% over the month before and 18.6% over the year before.

“We realize that these numbers are below the record for homes sold in 2006. We also know that we may never see those numbers again (and that is probably a good thing). But to say that the current real estate market is dead or that houses are not selling is totally inaccurate. We have over 13,000 pieces of evidence to prove that.”-KCM Crew

76% of Vacation Home Owners Say Now is a Great Time to Buy

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“As you probably know, the sluggish, morose economy continues to drag down the travel industry…But there is one segment of the industry that is still showing a heartbeat:  vacation home rentals.”- SecondSheltersBlog

For this reason, 76% of vacation homeowners say that now is a great time to buy a second home. According to a recent report by HomeAway, more than 2/3 of owners with vacation homes in resort areas, where summer is the peak season, reported occupancy rates of 76% or higher.

The average weekly rental rate was $1,685 or $241 a night, compared to the average hotel room rate of $101.90 with only 68% occupancy.

“While various segments of the travel industry are experiencing a general weakness, the latest HomeAway Vacation Rental Marketplace Report shows that rentals of vacation homes clearly experienced strong results this summer, with continued strength expected as we approach the year-end holiday travel period,” says Brian Sharples, chief executive officer of HomeAway.

For more information about vacation home sales on the Outer Banks, contact one of our agents at Coldwell Banker Seaside Realty.

Luxury and Vacation Homes are Selling

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Despite the current conditions in the real estate market, the KCM Blog says that Luxury and Vacation homes are selling.

“It has been a trying time for most segments of the real estate industry. However, two areas that are showing improvement are the luxury home and vacation home markets. It seems that people in these segments are again beginning to purchase.”

KCM’s bottom line: If you are in a position to move-up to the home of your dreams or have been thinking about a vacation home for the family, now might be the time to make the move.

Contact a Coldwell Banker Seaside Realty agent for more information on Vacation Homes on the Outer Banks of North Carolina.

Consumer Confidence Driving the Economic Bus

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Jim Gillespie, CEO of Coldwell Banker Real Estate, gives us his thoughts on consumer fear and its impact on the housing recovery…

It’s all about consumer confidence.  If you didn’t think that American nerves are rattled by the recession, continued high unemployment figures and the recent Capitol Hill squabbling, you don’t have to look further than two recent reports involving housing for proof.

We are a skittish nation right now.

The National Association of Realtors reported  that the number of existing homes sold in July was down 3.5 percent from June.

And the median price was $174,000 in July which is down 4.4 percent from a year ago.  For buyers that is good news.  And there is more good news.

Freddie Mac’s weekly mortgage report showed that 30-year fixed-rate mortgages averaged 4.15 percent, the lowest EVER.

Let’s review: prices are down and mortgage rates are the best ever.  Sounds like a smart time to buy a home.  So what’s wrong?  Why aren’t people buying?

I firmly believe it’s those two words – “consumer confidence” – that is driving the economic bus right now.

I have said before and I’ll say it again.  For those with a job and financial viability, today is the smartest time in my 36 years in real estate to buy a home.

Along with the already mentioned lower prices and interest rates, most towns have quite a few homes to choose from.  And, don’t forget, affordability levels are near at their highest levels ever.

Yet many are choosing to remain renters.  The National Association of Realtors recently reported there  were 16 million renters who could afford to buy a home, up from 11 million in 2000.

And for those who aren’t ready to own, are unsure of their job status and/or not sure they want to remain in a home for at least a few years, renting is a great option.  After all, home ownership is not for everyone.

But for those who are considering buying a home, do some soul searching and decide if it’s only confidence in the economy – or lack thereof – that’s holding you back.

Americans Realize the Value of Homeownership

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Even in difficult times, Americans still realize the value of homeownership

The KCM (Keeping Current Matters) Crew reported on the Fannie Mae National Housing Survey, a survey asking the American public a multitude of questions concerning today’s housing market. “Each quarter, we like to pull out some of the findings we deem most interesting. Here they are for the most recent report:”

Most Important Reasons to Buy a Home

When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:

  • It means having a good place to raise children and provide them with a good education
  • You have a physical structure where you and your family feel safe
  • It allows you to have more space for your family
  • It gives you control of what you do with your living space (renovations and updates)

The Home as an Investment

Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:

  • 65% of the general population (and 67% of homeowners) believe that homeownership is a ‘safe’ investment.
  • 56% believe that homeownership has more potential as an investment than any other traditional asset class.
  • 69% think that now is a good time to buy a home (this number has increased in each of the last two quarters)

Rent vs. Buy

We are always interested in the difference people see in renting vs. owning.

  • 63% of renters have aspirations to someday own their own home
  • 72% of renters think that owning is superior to renting
  • 95% of homeowners see homeownership as a positive experience (4% see it as a negative experience) while 82% of renters see renting as a positive experience (17% see it as a negative experience)
  • 96% of homeowners live in a single family residence while 46% of renters live in a multi-unit building

To Buy or To Rent?

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Coldwell Banker Seaside Realty offers 4 questions to consider when deciding whether to BUY or RENT a home.

“To buy or to rent?” Recent graduates, young couples, relocating professionals and others have all asked themselves this question at one point or another. While each option has its benefits, the decision to purchase an apartment, condominium or house as opposed to renting, is complex and based on a number of factors. According to a survey from October 2010 from the National Association of Realtors, nearly eight out of 10 respondents believe buying a home today is a good financial decision. The question that remains is whether or not now is the right time to purchase a home for you.

For most people, deciding to purchase a home is the largest financial decision of their lifetime. Before making the jump into homeownership, potential home buyers should consider the “soft” lifestyle issues as well as the “hard” financial ones. The professionals at Coldwell Banker Seaside Realty have provided the following four financial and lifestyle questions to consider when determining if buying a home is the right decision for you:

  1. Do you have a steady income? At or near the top of every potential homebuyer’s mind is whether or not they can afford to buy a home right now. Buying a home remains a sound financial decision for those with documented income and a good credit history, and a steady income can provide a strong backbone for the initial down payment and future mortgage payments. The “Affordability Radar” tool on coldwellbanker.com is a great way to begin this planning and assess “how much home you can afford.  Don’t hesitate to speak with a real estate professional even before you’re ready to buy a home. Along with a financial planner, a real estate professional can help you answer and uncover questions about the cost of homeownership.
  2. Do you plan to stay in a home for an extended period of time? With proper planning, a home purchase has historically proven to be one of the strongest investments one can make. Along those lines, it’s imperative to understand that investing in a home is much different than investing in a stock portfolio. Homes typically appreciate in value over time while the owner builds his or her equity through monthly mortgage payments. If you anticipate staying in a home for only one or two years, it doesn’t necessarily mean buying is not for you, but you are less likely to see a significant financial return on your investment.
  3. Do you plan to sell a house in order to buy a house? A local real estate professional can help you understand current local market conditions and will help you make smart decisions when listing a home on the market. If you do not currently own a home that needs to be sold prior to purchasing a new one, now is a particularly smart time to buy. Even with lenders becoming increasingly more thorough in their approval process, mortgage financing is still widely available for those with a steady income and solid credit. High inventories and low interest rates give first-time homebuyers a tremendous amount of opportunity and flexibility in markets across the U.S.
  4. How do your other options compare? For renters, calculating month-to-month housing expenses is as easy as inquiring about the monthly rent and average utilities. The calculation gets a bit more complicated when considering the monthly cost of owning a home. A real estate professional can help you understand a range of financial considerations from annual property taxes to the tax incentives for owning a home.

“There is no one right decision when it comes to renting versus buying a home,” said Gordon Jones, president of Coldwell Banker Seaside Realty. “Each individual should take the time to look at their personal and financial situation to decide what will work best for their needs and lifestyle.”

Founded in Kitty Hawk, NC in 1990, Coldwell Banker Seaside Realty is a dynamic full service real estate company, servicing the entire Albemarle region. More than 50 licensed agents provide both residential and commercial buying/selling assistance in Northeast North Carolina. Offices located in Kitty Hawk and Elizabeth City, NC. More information can be found on the Coldwell Banker Seaside Realty website at www.ColdwellBankerOBX.com. Each Office is Independently Owned and Operated. Coldwell Banker and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC.

Why Not Own It? 5 Reasons to Purchase a Home Now

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For most people, deciding to purchase a home is the largest financial decision of their lifetime. Rather than sitting on the fence, why not own it?, asks Coldwell Banker Real Estate. Mortgage rates are near historic lows and with home prices more affordable, right now is the perfect time to speak with a professional real estate agent and seize the opportunity to achieve the American Dream of homeownership.

According to a recent survey from the National Association of Realtors, nearly eight out of 10 respondents believe buying a home today is a good financial decision.  Based on this, the professionals at Coldwell Banker Seaside Realty have provided the following five reasons why now is an optimal time to get off the fence and consider owning the fence instead (and the home within it)!

  1. Homes are More Affordable – Home prices remain more affordable than ever before in markets across the country.  According to the Freddie Mac House Price Index, current housing prices are down 27 percent on average across the nation from peak values five years ago.  Coldwell Banker Real Estate showcased affordability levels in its 2011 Home Listing Report, which ranked more than 2,300 markets.
  1. Rates are Low – Mortgage interest rates remain near historical lows, which can mean lower monthly payments and/or shorter lending terms. Coldwell Banker Real Estate recently launched an online First-Time Home Buyer Resource Center that features content and tools to help educate potential first-time home buyers.

  1. Homeownership is Still the American Dream – Lifestyle changes such as marriage, having children and starting a new job are some of the most common reasons that people decide to purchase a new home. But the American Dream of homeownership is much more than just a piece of property, it’s a home. According to a recent Coldwell Banker survey of more than 300 consumers who purchased their home in the last year, 67 percent said the market afforded them the opportunity to buy a home sooner than expected and half said they found a home in a more desirable neighborhood than expected.

  1. Financing is Available – Though many people decide they want to purchase a new home based on lifestyle factors, the financial aspect of purchasing a home needs to be top-of-mind.  A potential homebuyer should conduct the necessary research to prepare for the home buying process. Today’s borrower needs to have stable employment of at lease two years; sufficient income to cover the monthly mortgage payment and living expenses; adequate savings to make at least a 3.5 percent down payment; and, in general, a credit score of at least 620.

  1. Timing is Everything – “Timing is everything,” a saying used to describe just about anything, is incredibly true when it comes to home buying.  When preparing to purchase a home, take the time to research other factors that could affect the home buying process.  For example, according to new loan limits published by FHFA and HUD, conforming loan limits will be reduced on October 1, 2011, which will decrease the availability and affordability of mortgage credit for many home buyers in 42 states.

Founded in Kitty Hawk, NC in 1990, Coldwell Banker Seaside Realty is a dynamic full service real estate company, servicing the entire Albemarle region. More than 50 licensed agents provide both residential and commercial buying/selling assistance in Northeast North Carolina. Offices located in Kitty Hawk and Elizabeth City, NC. More information can be found on the Coldwell Banker Seaside Realty website at www.ColdwellBankerOBX.com. Each Office is Independently Owned and Operated.  Coldwell Banker and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC.

7 Tips For First Time Sellers

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MSN Real Estate has seven tips for first time home sellers.

1.Price it realistically from the start… take advantage of that sweet spot by pricing the house competitively right out of the gate

2.Be prepared to lose some money… the truth is that your house is worth what buyers are willing to pay, and not a penny more.

3.Promote, promote, promote… One question to ask as you interview real-estate agents: How will you reach the home’s target market?

4.Throw in some extras… Offering some extra appliances that otherwise would have caused you headaches to move, could sweeten the pot for the buyer to agree to buy at full asking price.

5.Clear the clutter… Keeping your house clean is important in every sale. But first-timers are likely selling smaller houses, and clutter can mean the difference between cozy and cramped.

6.Appeal to Lazy Buyers… The last thing a new homeowner wants is a to-do-list. Get the home ready before it hits the market.

7. Put upgrade money where it counts… If you want to spend some money to make your house memorable, ask someone who knows what will improve the market value. Most professionals will tell you fresh carpet and new paint are the biggest ‘bang for your buck’.

For more tips on selling your home, contact one of our agents at Coldwell Banker Seaside Realty or visit us online at www.coldwellbankerobx.com.

In The News: Gen Y to Lead ‘Massive Increase in Housing Demand’

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Generation Y, with its 77.4 members (15-32 year olds), will drive to housing market recovering in the next 10 years, according to economists with the University of Southern California Lusk Center for Real Estate.

Gen Y is much larger, more diverse and educated than the generations that have come before, with 60% attending college.

Stan Ross, Lusk Center Chairman of the Board, says that “baby boomers and Gen Y comprise 50 percent of the population and will soon be part of the largest U.S. wealth transfer ever.”

However, Ross points out “these kids are concerned. They have watched the stock market, financial markets, and economy wipe out their parents’ retirement plans. As a result, they will choose lower-risk investment strategies.”

To read the article on RealtorMag click here.

Single Ladies Outnumber Single Guys in the Real Estate Market

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Single ladies dive into the real estate market

The National Association of Realtors reports that last year unmarried women made up 20 percent of all home buyers, where single guys accounted for 12 percent. Single women have become a major force in the real estate market.

According to the Joint Center for Housing Studies, there are three main reasons why single women are buying homes in record numbers.

  1. To relocate closer to a job or family
  2. Because they need more space
  3. And the number 1 reason: because they have a strong desire to nest

TODAY.com has some helpful tips for being a savvy solo home shopper. “For starters, it’s no longer ‘location, location, location.’ It’s now ‘location, condition and price.’”

Location- Obviously, location is still important. Try to buy in the best neighborhood you can afford. But also take your passions and hobbies into consideration before investing. If you love the nightlife that a big city has to offer, consider living right in town, with restaurants and bars within walking distance. But if you’re an outdoorsy type, a more suburban — or even rural — setting would put you closer to the weekend activities you love. Since many home-buying single women also are mothers, it’s also important to consider a school district’s reputation and the safety of the area.

Condition- For many solo buyers, a property’s condition is of equal importance to its location. I purchased a brand-new condo almost 20 years ago, and reveled in the fact that I didn’t need to call a repairman for almost 10 years. Old cottages in the woods may sound charming but can be money pits. Gray says, “I know it’s boring, civil-engineering stuff, but before you buy, find out about drainage. Will your basement flood in winter rains?” And don’t be afraid to poke around at the foundation, especially when you’re buying an older home. Spending a few dollars on a professional inspector can save heartache down the line.

Price- Where the rule of thumb used to be buy the most expensive house you can so that you can realize more of a return, nowadays you should carefully consider your monthly mortgage payment. Experts say it should not exceed 28 percent of your pre-tax monthly income. And stop thinking of a house as an investment and just think of it as a home (and perhaps also a tax write-off).

For more tips, read the entire article here.