Quietly, the market has been shifting. Hidden below the headlines of foreclosures and debt debates, is the reality that the market is improving. Buyers are starting to find that getting a "good deal" is harder to find and that there are less homes available because the reality is that there are less homes on the market. There are good deals that pop up, sure. There is still some level of supply of foreclosures but it seems that the market has stabilized on some level. It's the first good news for home owners that we've seen in a while. Less supply means that prices SHOULD stabilize if buyers keep purchasing. Eventually the tide will turn on buyers who are sitting on the sidelines. When momentum returns to the housing market, buyers won't know it until the best deals are gone.
The other day I overheard an oddly familiar story. The story was about a new listing which had 2 qualified offers in one day. Inspiration. Hope. Memories of the good old days soon began to come back like a long-lost friend. Back in the heyday it was a common occurrence to hear of multiple offer situations shortly after a home was listed.
At the peak of the real estate market, the supply of homes was somewhere in the range of three months. As a buyers agent, the scarcity of homes meant that it was common to be one of multiple offers on a property within a few days of the listing coming on the market. Those were the “good ol’ days” of real estate where money flowed like honey. Today a multiple offer situation seems like a relic of a bygone era. Like an old friend coming back around after years of absence, the days of the multiple offers is becoming a more common theme than most people might expect.
The New Year started a new era in residential real estate in North Carolina with the introduction of a new purchase contract that fundamentally changes the nature of real estate transactions. Gone are the contracts filled with contingencies and multiple loopholes built on ambiguous terms, which make the real estate process contentious. The new contract is far from perfect, but it fundamentally changes the nature of transactions.
Everyone wants to know what 2011 is going to look like. As far as real estate is concerned, there are some basic drivers of the economy to consider as we build an outlook on the year ahead. The most basic drivers of the economy are supply and demand for homes. The following takes a look at supply and demand in Charlotte real estate markets.
The increase in foreclosures over the last years has created stockpiles of properties on banks’ books. In order to help liquidate these properties, some lenders have resorted to an old fashioned methodology to sell these homes. Selling real estate via auction is a methodology that has typically been reserved for estate sales and during sellers’ market when high demand can create bidding wars. In today’s economy, banks and their auctioneers attempt to create artificial demand to get top dollar for their homes. If you are thinking that a real estate auction is a good way to pick up a cheap property, there are some things you need to be aware of.
Real estate investments can be broken down into four different categories which have divergent amounts of monthly cash flow and projected future value. Typically, you expect to see a trade-off in real estate between the amount of money you can make monthly and an increase in future value. The type of investment you seek out should match your investment goals. If you are putting together your investment strategy, the following should help you define what you want your investments to do.
TV has popularized the renovation concept to a degree which is truly mind blowing. If you have ever renovated a property, you understand the difficulties which you often face aren’t nearly as exciting as TV. For an investor with know-how and savvy the renovation and resale prospects are still alive, but it takes more nerve and skill than ever before to pull it off. The following are some guidelines for home renovations for the aspiring house flippers.
A lot of people have been turned off to in real estate over the last two-three years. There is no doubt that the financial damage of the real estate meltdown and the rampant unemployment that is the result of it all are bad for society. However, there are a number of trends that are happening in the economy which are positive signs for investors in real estate.
Today’s real estate market is ripe with opportunities for investment. When looking at investment opportunities in the market, there are three primary methods which people finance the purchase of the properties.
People have always been interested in finding a “good deal” on a home. As much as the economy has changed over the last years, today’s economy is no different. The challenge facing investors in today’s market is understanding what makes a good deal. It might be easy to assume that a bank-owned property or foreclosed property is automatically a good deal. The following advice will help guide you as you search for your “Good Deal”.
A self-proclaimed investor was bragging at a party about being a real estate investor. He spoke with much enthusiasm about his cash flow on the one property he owned with a partner. After some interesting discussions about investment strategies, he revealed that he didn’t own the home where he lived and it quickly became obvious this guy was no true investor. True real estate investors start their careers by owning their own home.
A little publicized program has been implemented to streamline the short sale process to prevent foreclosure and to assist home owners in the process. In 2009, the government rolled out the Home Affordable Modification Program (HAMP) which was intended to keep home owners in their houses through modification of their loan terms. It was thought that unfavorable loan conditions were the primary reason home owners were losing their homes to foreclosure and this effort was meant to curtail the number of foreclosures. Unfortunately, approximately half of the people who receive loan modification still lost their homes to foreclosure.
One of the most popular catchphrases in the media regarding the current housing market is the short sale. A few years ago a short sale was a concept that was nearly non-existent. It was a process that few knew about and fewer actually experienced. Since the decline of the market, the short sale has been touted as the great alternative to foreclosure. The reality, though, is that the short sale process is difficult, painful, slow, and unpredictable. Before the intricacies of a short sale can be discussed, it’s important to understand how the process works.
The Uptown real estate market slowed significantly over the last year along with the rest of the market in the country. Consistent with the change in the economy, the real estate market has been impacted by the loss of "wealth" that has occurred in numerous markets. One noticeable difference in the real estate market is the shift that has occurred in how people finance their homes. Since 2006, 371 major lenders have gone out of business for reasons ranging from bankruptcy to governmental take-over(typically due to near bankruptcy conditions). The tightening of the credit markets has resulted in fewer loan programs being available to individuals looking to purchase a home. The result has been a significant shift in how people are purchasing their homes.
The beginning of the economic recovery may currently be under way. Even though no official reports or numbers have shown this recovery, the first step of the recovery is here. Reports of agents active in the market say that the first time home buyers are out shopping and buying homes. These first time buyers are the essential component of real estate recovery. Their demand for homes creates the possibility for more homes to be purchased by the next category of buyers. Similar to the food chain seen in nature, there is a food chain in the real estate market. Understanding the food-chain of real estate is important to understanding the economic process that is beginning to take effect in the market.
With nearly 50,000 people moving to the area every year, it is good to know the Charlotte area and the breakdown of who lives here. Since Charlotte has been the focus of some recent positive publicity in the national news for our real estate market, let’s take a look at the greater Charlotte area called Mecklenburg County…statistically.
So you're thinking about purchasing some real estate, but you don't know what to do. The great debate wages. You think you want a house, but you aren't sure. You think you might want a condo too. Maybe you should buy both...or maybe you should ask yourself these 3.3 questions:
The home buying process can be scary for those who have never been through the process and have little knowledge about it. Just like all other great tasks, the preparation is important. Getting ready to purchase a home is really the most important step in the whole buying process. If you prepare properly, you can save yourself a lot of stress, time, and money. In your preparation there are 3.3 things to focus in on:
Once you’ve decided how much you want to afford, where and what you want, and who you want to help, the fun begins. A lot of people don't see the next step as being fun but looking through potential homes is an exciting and adventurous time. Unfortunately, the "Tour Homes" step is one that frequently results in confusment, discouragement, or being just overwhelmed. In order to avoid those pitfalls and make the most of your home tours, follow these 3.3 simple steps:
So you and your agent have found a home that fits your needs, that is in your budget, and that is in a neighborhood you enjoy...what now? Well there are some things that need to happen so that you can move into your new home. You guessed it, there are 3.3 things that need to happen before you can move into your new home:
Congratulations! You have purchased your new home. You have moved in and now you are enjoying your new home. Your housewarming party was a blast and your friends love your new home. Owning a home is fun and exciting. There are 3.3 things to remember when you are living in your own home:
A large percentage of this real estate craze that has gone on is just fear of a bigger problem. The problem that is causing this mix-up in the market is a real problem that is very basic. There are people who are in over their head. Let's not worry about who is to blame for the actual problem that we have. The focus here is how to avoid getting in over your head.
There is no denying that lenders have put the squeeze on buyers looking for loans. The days of no income, no assets, no credit...no problem are over. The largest and most influential factor a persons ability to get a loan is their credit or FICO (Fair Isaac Corporation) score.
The greatest value in a home is an unquantifiable unmeasurable factor called Emotional Appeal. Emotional Appeal might sound like an Intervention, but it is about the attractiveness of a home and the degree in which a home makes a person say, "I gotta have it!"
If you were to describe 2008 in one word, you wouldn’t get much argument if you described this year as uncertain. Lots of great things have happened this year, but they seem to have been forgotten in most of our minds. if you only paid attention to the news, this year has been filled with job cuts, negative earnings, and that dirty nasty F word (Foreclosure).
The subject of Radon gas is, perhaps, one of the most misunderstood and distorted subjects impacting the selling of real estate today. While there have been a numerous reports regarding the presence of Radon in condominiums and homes around the city, there has been little explained about the reality of Radon beyond its existence. Consequently, fear and misunderstanding have spread.
(BrokerAgentNews.com-- by Karen Deis) Around this time every year, the National Association of Realtors® publishes a report on the home buying and home selling habits, ethnicity, age, income and demographics of different areas of the country. This survey has been published for over 12 years (that I know of) and while it is written specifically for the real estate industry, the information is invaluable for both loan officers and agents because it helps identify niche markets and trends, so you can target where it might be best to spend your marketing efforts and advertising dollars.I can also assure you that not many people even know that this survey exists. This article gives you all the facts but more importantly, interprets them for you, so you know exactly what to do next.
The two most important factors in selling real estate are simultaneously simple and complex. Although the old real estate adage is, “Location, Location, Location”, the factors that determine whether a property sells or not is Price and Condition. The price tag and the quality and appearance of the home determine, more than any other factors, how long it takes for a property to sell and the amount received. The simple aspect is that the price determines how much you get for it. That’s exactly how things work, right? The gas station says $3.57, people pay $3.57. I ask $200k, people pay $200k. Right?
One of the greatest parts of being a homeowner is the ability to customize your home. Most people have limited “handyman skills” and most might be considered “Unhandy”. For those of you who would be lost in replacing a garage disposal or even changing an electrical outlet, here are some easy projects for the unhandy-man (or woman).
One of the most popular building trends of the last decade is “Green” development. A green development has less to do with the exterior colors, which coincidentally seldom contain any green, as it does environmentally friendly building techniques. The goal is to build developments which have a reduced impact on the environment. Does “Green” development really accomplish what they set out to do OR is it a marketing ploy conducted to charge a premium on a perceived value?
