Real Estate Information

The February TMO for Triangle MLS (all areas/properties) and Chapel Hill/Carrboro have been issued. This overview shows the total market overview for the area. Below is the breakdown of properties for the Chapel Hill/Carboro area.

 Below is the total market overview breakdown for all areas.

In Business Week today, an article focusing on the housing market indicated that Billionaire Warren Buffett said the U.S. residential real estate slump will end by about 2011, predicting that’s how long it will take demand for homes to catch up with the supply.

In his annual letter to shareholders of his Berkshire Hathaway Inc, he wrote: “Within a year or so, residential housing problems should largely be behind us,”  “Prices will remain far below ‘bubble’ levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits.”

The current real estate market has left one in five U.S. mortgage holders owing more than their houses are worth. In addition, record foreclosures last year flooded a real estate market already stocked with unsold property, causing new construction to fall to the lowest in at least 50 years.

“People thought it was good news a few years back when housing starts -- the supply side of the picture -- were running about two million annually,” said Buffett, the chairman and chief executive officer of Omaha, Nebraska-based Berkshire. “But household formations -- the demand side -- only amounted to about 1.2 million.”

Berkshire, which owns a real-estate brokerage, a business that constructs pre-fabricated houses and units that make products used in homebuilding, has suffered amid the slump. Profit at Clayton Homes, the pre-fab housing business, fell about 9 percent to $187 million before taxes, while earnings at carpet manufacturer Shaw Industries fell 30 percent. “High-value houses and those in certain localities where overbuilding was particularly egregious” will take longer to recover, he wrote.

Buffett joked that curbing home construction was the best of three ways to reduce supply. The other two, he said, would be to explode homes in a “tactic similar to the destruction of autos that occurred with the ‘cash-for-clunkers’ program” or “speed up householder formations by, say, encouraging teenagers to cohabitate, a program not likely to suffer from a lack of volunteers.”

When most people hear the word toxins, they tend to think of pollution, not dangerous chemical inside their home,  The reality is that there are many toxic products that you may be exposed to on a daily basis right in your own home. If you or someone in your home has allergies or asthma, these toxins can make it even more difficult to breathe. Below are a a list of simple changes that you can make to make your home free of these chemicals.

Cleaners: Many of the cleaning products that are sold at the store contain toxins and irritants that can cause breathing difficulties, such as bleach and ammonia. You may use cleaners on a daily basis contain many powerful cleaning agents that contain toxins that can cause problems. The good news is that there are many alternatives on the market today that do just as a good of job cleaning but are much more safer to both the environment but to those that live in your home!

Paint: Paint has traditionally been  high odor substance that contains potential toxins. There are many 'green' paint options available today that are not only low odor but that have no cancer causing toxins (also called VOCs). Look for paints that have been certified by Green Seal.  Benhamin Moore also has a Natua line of paints that are just as rich and durable, just water based and much safer.

Air Fresheners:  Eventhought they smell great, items like air fresheners, candles and fragrances contain synthetic components that can cause irritation to the lungs. In addition to irritants some can contain a chemical called 'phthalates', which has been shown to cause birth defects, hormone disruption and reproduction problems. Look for alternative candles or scents that have essential oils instead of synthetic fragrances.

Furniture: Many people don't think of furniture as being toxic but if your furniture is old and worn it main contain flame retardants called PBDE's that can cause serious health problems. These chemicals can effect brain, nervous or reproduction problems. Be informed that stain repellents on furniture can also contains toxic chemicals such as formaldehyde. Do your research before putting any repellent on your furniture.

Some additional tips that can help you to clean up the air in your home:

• Open windows whenever possible - even if it is just for a few hours. This allows toxins to escape and fresh air to circulate.
• Add houseplants - they help filter the air and add a sense of life to any home.
• Switch to natural household cleaners. They tend to be better for those with asthma and are much safer for you and the environment.
• Use a bagless vacuum cleaner with a HEPA filter

The Department of Housing and Urban Development (HUD)announced that effective February 1, 2010, they will relax FHA rules that prohibit insuring mortgages on homes that are owned by the seller for less than 90 days. This is a positive move, one that can help to expedite the rehabilitation and resale of foreclosure properties.

This news comes at a time where recent tighter lending requirements have made FHA financing the only option for some buyers. The 90-day policy has kept some homebuyers from being able to purchase affordable homes. In addition this has also prevented the quick resale of foreclosed properties, which affects the ability of communities to stabilize and rebuild.

This temporary waiver will be in effect for a period of one year, unless extended or withdrawn by the FHA. "FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."

To ensure FHA borrowers are protected from inflated prices, the policy has certain restrictions, including:

• All transactions must be arms-length and there can be no identity of interest between the buyer and seller.
• If the sales price of the property is 20 percent or more above the seller's acquisition cost, the lender must meet specific conditions for the waiver to apply.
• The waiver is limited to forward mortgages, and cannot be used under the Home Equity Conversion Mortgage (HECM) purchase program.

Read more specifics on this waiver, visit the HUD.gov release.

As USA Today stated It was — note the past tense — the worst housing recession anyone but survivors of the Great Depression can remember. 

Regarding an article in USA Today today The housing market is beginning to stablize, with the exception of foreclosure and many areas are now recovering according to a spate of data released in the past two weeks. Nationwide, home resales in June are up 9% from January, on a seasonally adjusted basis. Sales of new homes have climbed 17% during the same period. And construction, while still anemic, has risen almost 20% since the beginning of the year.

The real estate market in the South remains one of extremes.

Taken as a whole, home resales in the 17-state region rose 10% in the first half of this year on a seasonally adjusted basis, and are off just 4% from June of last year, according to the National Association of Realtors.

"Generally speaking, the rate of decrease, both in sales and prices, has started to bottom," says the University of North Carolina's Cumbie. "But that doesn't mean it's going to come roaring back."

Mass layoffs at Bank of America and Wachovia, for example, have taken their toll in their home state of North Carolina. Home price declines in Charlotte accelerated this year, and home resales in June were off nearly 30% from last year.

Home and apartment construction, a key economic engine, will also vary widely across the region. Parts of the South, notably Florida and Atlanta, were vastly overbuilt during the housing boom. So construction in the region rose a meager 7% in the first half of the year, the lowest of the four regions, according to the Commerce Department.

There was little reason for builders to start laying new foundations. New-home sales fell 2% from January to June, the only region in the country to post a decline.

"In the longer term, I'm confident that the real estate market is going to shift where buyers are coming out not only because of attractive interest rates and low prices, but because more people are getting jobs," says Les Simmonds, president of L.G. Simmonds Real Estate Corp. in Longwood, Fla. an Orlando suburb. "But, as we speak, it's not right. It's going to take more time."

Southeast states: Alabama, Arkansas, Delaware, D.C., Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia

Data compares June vs. January and June vs. June 2008:

• Home resales: up 10%; down 4 percent

• Median price: $163,200 up 14%; down 12 percent

• New-home sales: down 2%; down 34 percent

• New home construction: up 7%; down 44 percent

• Mortgage delinquencies as of March: 12.7 percent

Regional outlook: The southern market has several characteristics that could help it recover, Cumbie says. The population continues to grow and businesses continue to move into the region. But the weight of foreclosures and job losses stretching into next year could delay any meaningful recovery.

To read this article in it's entirity - USA Today Nowhere to go but up? Housing begins slow rebound

To receive a full market analysis on your home's value in today market, please contact me.  You might be surprised.

In a measure to help bring stability to home values and accelerate the sale of vacant properties, HUD takes action to speed resale of foreclosed properties to new owners. HUD hopes to improve home values and conditions in communities where foreclosure activity is high. HUD Secretary Shaun Donovan announced last month that a temporary policy will  expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. As part of the  Obama administration's commitment to addressing foreclosure, $2 billion in the Neighborhood Stabilization Program grants will be given to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

Currently, the FHA prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties. In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days.

This new policy change will allow homebuyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will help homes to resale quickly and thus stabilize real estate prices and help to revitalize neighborhoods and communities.

This new policy waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To view specific conditions and other details of this new temporary policy, the details are available on HUD's website.

A recent article from Marketwatch announces that the U.S. Economy grew at 5.7% in the 4th quarter.  This will strongly fuel perceptions that recovery is underway.

With consistent negative new reports on the worst recession in generations, the U.S. economy grew at the fastest pace in six years during the fourth quarter of 2009.

According to data released last week by the Commerce Department, the real gross domestic product increased at a 5.7% seasonally adjusted annual rate in the final three months of the year.  The 5.7% increase was in line with the 5.4% gain expected by economists surveyed by MarketWatch. Even with this increased growth, the economy shrank 2.4% in 2009, the worst drop since the 10.9% decline in 1946.

The current market is perfect for homebuyers. There are great homes priced right, a huge selection and low interest rates make purchasing a home now seem like the right way to go. But how do you know if you are ready to take that leap and become a homeowner? Below are some things that can help you know if you are ready!

• Your have your finances in order. Becoming a homeowner, especially in a difficult economy can be financially challenging. If you have created a budget and stick with it you are on the right path. Having good money-management skills are a must-have so that when you do own a home you will be able to have a smooth financial flow for monthly home expenses.
• You have a sizable down payment of at least 20%. While this is a large amount of money to come up with it is important to have as you will start out with having some equity. There are options out there for zero or low money down loans but if you have to sell your home before you expect you can potentially loose money and you will also need to pay for PMI (priviate mortage insurance).
• You have a steady source of income. Of course in a recession there is no real thing as job security but when you buy a home you are going to be required to have a reliable source of income to cover not only mortgage payments but all the other monthly and unexpected expenses that come along with homeownership. It is important to look at how stable your source of income is as well as having an emergency savings fund where you will have enough funds to cover these expense in case of a loss of a job or other emergency.
• Your debt and credit are clean. Having a good credit score will help to not only get a home loan but will also get you a lower interest rate on your mortgage. Hold off on any large purchases such as cars before applying for a loan as this could effect your rating. Also review your credit report for free at annualcreditreport.com before even applying for the loan to check for any errors.
• You are ready for the responsibility. In addition to the financial aspect of homeownership, you need to be sure you are ready for the other things that come along. Things like lawn care, upkeep as well as unexpected repairs need to be considered as part of owing a home. 

Before the days of radio and television, patrons of the arts would regularly invite entertainers into their homes to delight small gatherings of special guests. In those sophisticated environs, the parlor room became the stage, and the audience looked on, mere inches from the artists.

 Once a month in the elegant setting of the Siena Hotel in Chapel Hill, NC, magician Joshua Lozoff recreates the intimate and exclusive experience of this parlor entertainment. Combining original creations with magic learned in his travels around the world, Joshua shares personal stories, fascinating illusions, and most importantly, his love for the classic art of magic.You won't see anyone sawed in half, and there's nary a rabbit nor top hat to be found, but you will have an evening of mystery, humor and wonder that you won't soon forget!

The monthly Parlor Magic shows at the Siena Hotel in Chapel Hill are going wonderfully. Each show is selling out (seating is very limited, to preserve the intimacy and spontaneity of the evening), and folks seem to be having a great time exploring mystery and wonder with him for the evening. He has added late shows in February and March. Both still have a few seats left.

And... they have extended the run through May! That's two more opportunities to experience the magic. These will be the last dates in this series of shows, so purchase your tickets now before it's sold out.

Once you purchase a home, most people dream of the day they make their final mortgage payment. Paying off your mortgage if you are able to is a good idea for the obvious reasons, you will save thousands of dollars in interest. If you obtained a 30 year loan you will most likely pay more than twice the purchase price of the home before you actually own it.

Another top reason for paying off your mortgage is the satisfaction of actually owning your home. In addition, the mortgage payment is typically the highest of a household's monthly expense, so not having to worry about that each month can bring peace of mind, especially in the case of a loss of a job or retirement. 

Some financial advisors do however advise that paying off your mortgage is a bad financial move. Some arguments that the money should be invested as to gain a  higher return in the long run. While this advise might sound good in theory there is no guarantee that a higher return can be achieved. 

Paying off your mortgage has many benefits, but the question many homeowners ask is "How?", especially in a difficult economy. Below are some strategies you can use to help you get to your payoff goal!

• Keep an eye on interest rates and, if they fall, consider refinancing. If you can reduce your interest rate, shorten the term of your loan or both, refinancing can be an excellent strategy. 
• Overpay a fixed amount every month. Even if you can afford to pay an 5-20% of your total payment, it can add up to be 1-2 extra payments a year.
• Biweekly mortgage payment plans. By paying half of your monthly mortgage payment every two weeks, you end up making the equivalent of an extra payment every year.  Instead of making 12 monthly payments, you’ll make 52/2 = 26 biweekly payments — the equivalent of 13 monthly payments. This will shave years off your mortgage. Moreover, if you’re paid on a biweekly basis, this approach might match your budgeting process better than monthly payments.

In a difficult economy paying your regular monthly obligations can be difficult, and it can be very challenging to try to make any additional payments. They key is to make an attempt, every little bit counts and gets you closer to your goal!