Friday, September 26, 2008
Lake Norman Market Conditions
74 homes sold in August with sales prices that were 94.96% of asking price. The average sales price was $540,800. The typical home stayed on the market for 137 days with an average price per s/f of $175.76. We will continue to see growth as more people relocate to the Lake Norman Area to enjoy all that the lake has to offer. Visit our website at www.TheChristyAllenTeam.com to learn more about Lake Norman or call me on my cell at 704-281-8889 with specific questions. Based solely on information from the Carolina Multiple Listing Services, Inc. for the period 08/01/08 through 08/31/08 for MLS Area 13.
Thursday, September 18, 2008
Charlotte home sales plunge continues
The number of Charlotte-area houses, townhouses and condos sold last month through the Carolina Multiple Listing Services dropped 34.5 percent compared with August 2007, the steepest plunge yet in more than a year of declines.
There were 2,469 homes sold in August, according to the MLS, which accounts for nearly all existing home sales within about a 50-mile radius and roughly one-fourth of new home sales. Through August, MLS sales were down 28 percent, compared with the first eight months last year.
The average sales price last month fell 4.5 percent, to $230,472, the MLS said today.
The number of pending sales was down 20.3 percent, a sign weak sales will continue as the nation's historic housing slowdown drags on.
Nationwide, the number of contracts signed in July was down 6.8 percent, compared with a year ago, according to the pending home sales index released today by the National Association of Realtors.
The Charlotte area posted record results in 2006 as the housing downturn began elsewhere. The regional decline began last year, and rate of drop off has outpaced national levels this year.
There were 2,469 homes sold in August, according to the MLS, which accounts for nearly all existing home sales within about a 50-mile radius and roughly one-fourth of new home sales. Through August, MLS sales were down 28 percent, compared with the first eight months last year.
The average sales price last month fell 4.5 percent, to $230,472, the MLS said today.
The number of pending sales was down 20.3 percent, a sign weak sales will continue as the nation's historic housing slowdown drags on.
Nationwide, the number of contracts signed in July was down 6.8 percent, compared with a year ago, according to the pending home sales index released today by the National Association of Realtors.
The Charlotte area posted record results in 2006 as the housing downturn began elsewhere. The regional decline began last year, and rate of drop off has outpaced national levels this year.
Friday, April 4, 2008
Charlotte Area Real Estate Only Market Prices +
Home prices in many cities continued to plunge by record levels in January as sellers cut their asking bids and rising foreclosures took their toll -- except in Charlotte, new data showed Tuesday.
While the spring selling season usually gives the market a bounce, some analysts say any notable improvement may not come until well into the summer. U.S. home prices fell 10.7 percent in January, and the Standard & Poor's/Case-Shiller home price index of 20 cities saw the steepest decline in the index's two-decade history.
Worst-hit were Las Vegas and Miami, both reporting 19.3 percent drops, as the regions are still paying the price for rampant speculation and overbuilding during the boom years. Those cities and 14 others, including Phoenix, San Diego and Detroit, posted record lows.
Only Charlotte squeaked by as a gainer in the Case-Shiller index, with a 1.8 percent rise in January compared to a year earlier.
Bob Morgan, president of the Charlotte Chamber, said the news is a positive reflection on the Charlotte area's economy.
"I think it says we're very fortunate in Charlotte that we're continuing to attract new jobs and that our population is growing," he told the Observer.
Real estate agents and local officials cited Charlotte's history of more modest house price growth during the boom years as reasons the market was holding up now.
"We've never seen the huge double-digit appreciation," said Dot Munson, president of the Charlotte Regional Realtor Association. "We have less of a correction to make than most other markets."
That's not to say Charlotte, with roughly 1.7 million people in its metropolitan area, isn't feeling the same pressures as the rest of the nation.
"You have to try a little harder to sell more of your listings, but homes are selling," said Kristi Lee, a broker at Urban Realty LLC. "Depending on the day, the phone does not ring. Other days, it is ringing off the hook."
Nationally, the overall downbeat figures come on the heels of data released Monday showing that the median price of existing homes being sold in February fell in the largest year-over-year drop since at least 1999.
"Home prices continue to fall, decelerate and reach record lows across the nation," said David Blitzer, index committee chairman at S&P. "No markets seem to be completely immune from the housing crisis."
Blitzer said all 20 cities S&P tracks have seen falling prices for five consecutive months when compared to the prior month. What's more, the declines are growing in severity, with 13 of the 20 cities reporting their biggest single monthly decline in January.
Pava Leyrer, president of Heritage National Mortgage in Detroit, said the tightening of loan standards has compounded the problems of too much inventory, foreclosures and worries over the economy.
"It's just a spiral that will end up taking this year to get out of," Leyrer said.
While the vast majority of homes in the U.S. are not in danger of foreclosure, the housing slump has raised concerns about a recession and has had ripple effects across the economy as consumers spend less in other areas and banks tighten lending requirements.
Areas with the biggest drops in home prices...
• Las Vegas: -19.3 percent
• Miami: -19.3 percent
• Phoenix: -18.2 percent
• San Diego: -16.7 percent
... and those holding up the best:
• Charlotte: +1.8 percent
• Portland: -0.5 percent
• Seattle: -1.3 percent
• Dallas: -3.3 percent
While the spring selling season usually gives the market a bounce, some analysts say any notable improvement may not come until well into the summer. U.S. home prices fell 10.7 percent in January, and the Standard & Poor's/Case-Shiller home price index of 20 cities saw the steepest decline in the index's two-decade history.
Worst-hit were Las Vegas and Miami, both reporting 19.3 percent drops, as the regions are still paying the price for rampant speculation and overbuilding during the boom years. Those cities and 14 others, including Phoenix, San Diego and Detroit, posted record lows.
Only Charlotte squeaked by as a gainer in the Case-Shiller index, with a 1.8 percent rise in January compared to a year earlier.
Bob Morgan, president of the Charlotte Chamber, said the news is a positive reflection on the Charlotte area's economy.
"I think it says we're very fortunate in Charlotte that we're continuing to attract new jobs and that our population is growing," he told the Observer.
Real estate agents and local officials cited Charlotte's history of more modest house price growth during the boom years as reasons the market was holding up now.
"We've never seen the huge double-digit appreciation," said Dot Munson, president of the Charlotte Regional Realtor Association. "We have less of a correction to make than most other markets."
That's not to say Charlotte, with roughly 1.7 million people in its metropolitan area, isn't feeling the same pressures as the rest of the nation.
"You have to try a little harder to sell more of your listings, but homes are selling," said Kristi Lee, a broker at Urban Realty LLC. "Depending on the day, the phone does not ring. Other days, it is ringing off the hook."
Nationally, the overall downbeat figures come on the heels of data released Monday showing that the median price of existing homes being sold in February fell in the largest year-over-year drop since at least 1999.
"Home prices continue to fall, decelerate and reach record lows across the nation," said David Blitzer, index committee chairman at S&P. "No markets seem to be completely immune from the housing crisis."
Blitzer said all 20 cities S&P tracks have seen falling prices for five consecutive months when compared to the prior month. What's more, the declines are growing in severity, with 13 of the 20 cities reporting their biggest single monthly decline in January.
Pava Leyrer, president of Heritage National Mortgage in Detroit, said the tightening of loan standards has compounded the problems of too much inventory, foreclosures and worries over the economy.
"It's just a spiral that will end up taking this year to get out of," Leyrer said.
While the vast majority of homes in the U.S. are not in danger of foreclosure, the housing slump has raised concerns about a recession and has had ripple effects across the economy as consumers spend less in other areas and banks tighten lending requirements.
Areas with the biggest drops in home prices...
• Las Vegas: -19.3 percent
• Miami: -19.3 percent
• Phoenix: -18.2 percent
• San Diego: -16.7 percent
... and those holding up the best:
• Charlotte: +1.8 percent
• Portland: -0.5 percent
• Seattle: -1.3 percent
• Dallas: -3.3 percent
Thursday, February 28, 2008
Renovating home's exterior pays off
Most homeowners expect the value of their homes will increase when they spend money on remodeling. However, this is often not the case. The recent Cost vs. Value Report prepared by Remodeling magazine in conjunction with the National Association of Realtors makes this point abundantly clear.The Cost vs. Value Report was based on a survey of more than 100,000 appraisers, real estate sales agents and brokers in 65 different markets around the country. The survey included information about construction costs and specifications for 29 mid- to high-range projects. Those who participated in the survey were asked to estimate the percent returned on resale for each project.In general, the value of remodeling was down in 2007 compared to 2006. This was attributed to rising renovation costs and a slower rate of home-price appreciation. Also revealed in the report is a trend toward renovation projects that improve the exterior of a home. Nationally, of those projects that paid back more than 80 percent of the cost on resale, only one -- a minor kitchen remodel that returned 83 percent -- was an interior renovation. It's noteworthy that since a minor kitchen remodel was added to the survey in 2004, it has consistently ranked amongst the highest-value projects.Other high-returning exterior upgrades included: upscale siding using fiber-cement material; a wood deck addition; mid-range vinyl siding replacement; and mid-range to upscale window replacement. All of these improvements returned in the 81 to 88 percent range.Nationally, the maximum percent returned on a renovation project was 88 percent. However, the Pacific region (Alaska, California, Hawaii, Oregon and Washington) bucked the trend with six projects paying back more than 100 percent of the amount spent for renovations. These included: a wood deck addition; a minor kitchen remodel; fiber-cement siding replacement; wood window replacement; and upscale wood and vinyl window replacement.According to the Cost vs. Value Report, there is a wide range of payback on renovation projects to be expected from different regions. For example, a bathroom remodel recouped 69 percent nationally. In the Mid-Atlantic region the return was 60.7 percent, but it was 84.1 percent in the Pacific region.HOUSE HUNTING TIP: Given current real estate market conditions and regional variability in the amount you can expect to recoup on a remodel, it's wise to know your local area well before embarking on a major project. Check costs with a local contractor and talk to a local agent whose opinion you trust before you start, particularly if you have resale in mind.Just as it isn't wise to buy a home if you plan to move again soon, it's also not smart to do a major renovation unless you plan to stay put for awhile. The more you spend, the more money you could lose unless you own the property long enough to benefit from years of appreciation.Homeowners who are planning to fix up their homes for sale in the near future can gain insight from the results of the Cost vs. Value Report. First impressions have always been an important element in selling homes. So, put some effort in improving the exterior appearance of your home and yard. If your home has limited outdoor living, adding a wood deck can overcome this deficiency.It may seem ridiculous to improve the kitchen for someone else when you could never seem to find the time to fix it up for yourself. But, since minor kitchen remodels have such a high rate of return, it's a project well worth considering if your kitchen is dated.THE CLOSING: It could make the difference between selling or not in the current challenging home-sale market.
Tuesday, February 19, 2008
Charlotte Empty Nesters
The Atlanta developer who partnered in the late 1990s with Bank of America to build Gateway Village in uptown Charlotte is back with a new project.
This time, Cousins Properties is partnering 50-50 with Charlotte's First LandMark, USA on Glenmore Garden Villas, townhomes targeting empty nesters at McKee and Kuykendall roads in south Charlotte.
It's not that urban redevelopment is cooling. It's just that major developers are confirming what smaller, niche builders have known for some time.
Empty nesters are a driving force and a lucrative market. And their numbers are growing.
The National Association of Home Builders says 40 percent of households will be led by someone 55 or older by 2012.
"It isn't any secret that the graying of America is upon us," said Max Williams, whose WKB Properties Inc. has developed six empty-nester condo projects in Charlotte over the past 14 years.
"The major players probably are going to start paying more attention to that market," he said.
In Charlotte, empty nesters are credited with helping start the uptown condo boom back in the mid-1990s, and they touched off a wave of infill development in neighborhoods such as Dilworth, Myers Park and Eastover.
The Next Big Thing for townhome and condo builders might well be determining what empty nesters want, finding an accommodating site and designing a home to suit their specific needs.
"If you have a master bedroom down and the luxury amenities to go along with it, you will get 75 to 80 percent empty nesters," said multifamily housing analyst Emma Littlejohn of The Littlejohn Group.
Location is important.
"Look around the city, and you will see that these projects are strategically placed near established neighborhoods where they have a built-in audience," Littlejohn said.
For example:
Providence Partners' high-density $400,000-range houses in Chardon Village are attracting attention at Boyce and Sardis roads; WKB Properties' The Village of St. Andrews is selling condos for $250,000 to $325,000 in Matthews near Glenmore Garden Villas; and an empty-nester product is planned at Harbour Place in Davidson.
Williams said WKB, which has sold 85 percent of its 114 condos at St. Andrews, has completed 700 units in south Charlotte.
But it's not just south Charlotte anymore.
"All around the perimeter you are going to see this continue as developers try to serve empty nesters," Littlejohn said.
The market has matured from the early days of primarily high-end condos, and sales are occurring in all price ranges as newcomers move to Charlotte for the lifestyle and proximity to family.
Glenmore Garden Villas is hitting today's prime empty nester niche -- the under $500,000 home, Littlejohn said.
"This is the real sweet spot -- the $350,000 to $450,000 price range," she said. "I call it the `boutique' market."
First LandMark and Cousins Properties' 2,899-square-foot, three-bedroom townhomes are priced from $389,900, definitely in that sweet spot.
And master bedroom suites are right where empty nesters prefer them: downstairs. The 16-acre community will include such lifestyle amenities as fountains, gardens, lounging areas, a pool and a cabana.
In such projects, it's important, analysts say, for empty nesters to feel like they are downsizing without downgrading.
Glenmore Garden Villas, for example, will include optional upgrades such as Viking and Bosch appliances and jetted garden tubs and frameless shower doors.
Of course, exterior and yard maintenance are included in home owners association dues.
"You might not want to leave your church, your friends and your lifestyle, but you do want to get out of the house and yard maintenance," said Charlotte real estate consultant Karla Knotts of Land Matters.
Williams said WKB's prime buyer lives within a five-mile radius of the condo and "wants to shop at the same Harris Teeter, bank at the same Bank of America and attend the same church they've been going to for 25 years."
First LandMark and Cousins Properties were confident enough in their $35 million project to start site work about two months ago on speculation without any signed contracts.
They plan to open sales Saturday and complete the 24-unit first phase this summer.
Speculative building is riskier, but it could work in the project's favor, Knotts said, by reducing the waiting time for buyers to move in.
Typically, developers presell units until they reach a specific number -- usually 50 percent or more -- required by their lenders to secure financing and start construction.
The empty-nester niche might be attracting more attention from large developers these days because empty nesters are more financially able to buy.
Many house hunt with savings nest eggs, inheritances and cash from the sale of a previous home.
And, too, said First LandMark President Tim Hose, a 1997 change in the capital gains tax law allows homeowners to sell their more expensive houses without having to "trade up."
The overall housing market could be better. Charlotte is reflecting a national downturn caused in part by the subprime lending crisis and tightening lending standards.
Empty nester buyers are affected, WKB's Williams said, if they are trying to sell a house in a city where the market is stagnant.
But conditions in Charlotte appear to be showing signs of improvement, according to analyst Knotts.
"I'm hearing from builders that January and February sales were good and inventory is declining," she said.
Hose said he and his associates at Cousins Properties believe their townhomes are poised to do well in what they see as an under-served market niche.
"If this were entry-level housing, we wouldn't be building it," he said.
This time, Cousins Properties is partnering 50-50 with Charlotte's First LandMark, USA on Glenmore Garden Villas, townhomes targeting empty nesters at McKee and Kuykendall roads in south Charlotte.
It's not that urban redevelopment is cooling. It's just that major developers are confirming what smaller, niche builders have known for some time.
Empty nesters are a driving force and a lucrative market. And their numbers are growing.
The National Association of Home Builders says 40 percent of households will be led by someone 55 or older by 2012.
"It isn't any secret that the graying of America is upon us," said Max Williams, whose WKB Properties Inc. has developed six empty-nester condo projects in Charlotte over the past 14 years.
"The major players probably are going to start paying more attention to that market," he said.
In Charlotte, empty nesters are credited with helping start the uptown condo boom back in the mid-1990s, and they touched off a wave of infill development in neighborhoods such as Dilworth, Myers Park and Eastover.
The Next Big Thing for townhome and condo builders might well be determining what empty nesters want, finding an accommodating site and designing a home to suit their specific needs.
"If you have a master bedroom down and the luxury amenities to go along with it, you will get 75 to 80 percent empty nesters," said multifamily housing analyst Emma Littlejohn of The Littlejohn Group.
Location is important.
"Look around the city, and you will see that these projects are strategically placed near established neighborhoods where they have a built-in audience," Littlejohn said.
For example:
Providence Partners' high-density $400,000-range houses in Chardon Village are attracting attention at Boyce and Sardis roads; WKB Properties' The Village of St. Andrews is selling condos for $250,000 to $325,000 in Matthews near Glenmore Garden Villas; and an empty-nester product is planned at Harbour Place in Davidson.
Williams said WKB, which has sold 85 percent of its 114 condos at St. Andrews, has completed 700 units in south Charlotte.
But it's not just south Charlotte anymore.
"All around the perimeter you are going to see this continue as developers try to serve empty nesters," Littlejohn said.
The market has matured from the early days of primarily high-end condos, and sales are occurring in all price ranges as newcomers move to Charlotte for the lifestyle and proximity to family.
Glenmore Garden Villas is hitting today's prime empty nester niche -- the under $500,000 home, Littlejohn said.
"This is the real sweet spot -- the $350,000 to $450,000 price range," she said. "I call it the `boutique' market."
First LandMark and Cousins Properties' 2,899-square-foot, three-bedroom townhomes are priced from $389,900, definitely in that sweet spot.
And master bedroom suites are right where empty nesters prefer them: downstairs. The 16-acre community will include such lifestyle amenities as fountains, gardens, lounging areas, a pool and a cabana.
In such projects, it's important, analysts say, for empty nesters to feel like they are downsizing without downgrading.
Glenmore Garden Villas, for example, will include optional upgrades such as Viking and Bosch appliances and jetted garden tubs and frameless shower doors.
Of course, exterior and yard maintenance are included in home owners association dues.
"You might not want to leave your church, your friends and your lifestyle, but you do want to get out of the house and yard maintenance," said Charlotte real estate consultant Karla Knotts of Land Matters.
Williams said WKB's prime buyer lives within a five-mile radius of the condo and "wants to shop at the same Harris Teeter, bank at the same Bank of America and attend the same church they've been going to for 25 years."
First LandMark and Cousins Properties were confident enough in their $35 million project to start site work about two months ago on speculation without any signed contracts.
They plan to open sales Saturday and complete the 24-unit first phase this summer.
Speculative building is riskier, but it could work in the project's favor, Knotts said, by reducing the waiting time for buyers to move in.
Typically, developers presell units until they reach a specific number -- usually 50 percent or more -- required by their lenders to secure financing and start construction.
The empty-nester niche might be attracting more attention from large developers these days because empty nesters are more financially able to buy.
Many house hunt with savings nest eggs, inheritances and cash from the sale of a previous home.
And, too, said First LandMark President Tim Hose, a 1997 change in the capital gains tax law allows homeowners to sell their more expensive houses without having to "trade up."
The overall housing market could be better. Charlotte is reflecting a national downturn caused in part by the subprime lending crisis and tightening lending standards.
Empty nester buyers are affected, WKB's Williams said, if they are trying to sell a house in a city where the market is stagnant.
But conditions in Charlotte appear to be showing signs of improvement, according to analyst Knotts.
"I'm hearing from builders that January and February sales were good and inventory is declining," she said.
Hose said he and his associates at Cousins Properties believe their townhomes are poised to do well in what they see as an under-served market niche.
"If this were entry-level housing, we wouldn't be building it," he said.
Friday, February 15, 2008
Charlotte Jan Real Estate Market Increase
Charlotte area home sales posted an increase last month, a turnaround from steady declines that worsened last fall as the nation's mortgage mess hit home.
The number of houses, townhouses and condos sold within about a 50-mile radius rose 5 percent compared with January of 2007, according to figures released Tuesday by the Carolina Multiple Listing Services. That's the first monthly gain since February last year and a big jump from declines of 20 percent and more in the last three months.
"It kind of got busy the second half of January," said Bob Hecht, owner of Century 21 Hecht Realty in Denver. "This is not going to be a record-setting year for real estate but I think it will still be a good year."
Tighter lending standards and rising foreclosures have quashed sales, pushing the country toward recession. National home sales figures for January won't be released until later this month. Economists and other experts have said the housing market likely won't begin to recover until at least the second half of the year.
Charlotte has weathered the crisis better than many markets, but builders have cut back sharply as sales hit double-digit declines. Still, the region benefits from job growth and an influx of newcomers. Lower interest rates also have likely helped spur sales.
"We've seen that slowly everybody started to kind of get a grip," said Charlotte Epley, a Realtor with Newport Properties, which focuses on the Lake Norman area. "We don't have a bad market. It's just not the super market that we've had."
In hard hit areas, home prices have been tumbling. Charlotte has been one of the few areas still seeing home price increases as of November, the latest figures available from national indexes.
The average area price slipped slightly in January, to $218,610 from $219,270 a year earlier, but prices were up a little from December, according to MLS figures, which account for nearly all existing home sales and about one-quarter of new home sales.
"You can't play the market like you might have," said Epley, who said Newport is getting more calls and more people looking at houses. "You can get a decent price but not way up there."
The number of houses, townhouses and condos sold within about a 50-mile radius rose 5 percent compared with January of 2007, according to figures released Tuesday by the Carolina Multiple Listing Services. That's the first monthly gain since February last year and a big jump from declines of 20 percent and more in the last three months.
"It kind of got busy the second half of January," said Bob Hecht, owner of Century 21 Hecht Realty in Denver. "This is not going to be a record-setting year for real estate but I think it will still be a good year."
Tighter lending standards and rising foreclosures have quashed sales, pushing the country toward recession. National home sales figures for January won't be released until later this month. Economists and other experts have said the housing market likely won't begin to recover until at least the second half of the year.
Charlotte has weathered the crisis better than many markets, but builders have cut back sharply as sales hit double-digit declines. Still, the region benefits from job growth and an influx of newcomers. Lower interest rates also have likely helped spur sales.
"We've seen that slowly everybody started to kind of get a grip," said Charlotte Epley, a Realtor with Newport Properties, which focuses on the Lake Norman area. "We don't have a bad market. It's just not the super market that we've had."
In hard hit areas, home prices have been tumbling. Charlotte has been one of the few areas still seeing home price increases as of November, the latest figures available from national indexes.
The average area price slipped slightly in January, to $218,610 from $219,270 a year earlier, but prices were up a little from December, according to MLS figures, which account for nearly all existing home sales and about one-quarter of new home sales.
"You can't play the market like you might have," said Epley, who said Newport is getting more calls and more people looking at houses. "You can get a decent price but not way up there."
Monday, February 11, 2008
Lake Norman Area Information
Lake Norman's 520 miles of beautiful shoreline, easy access to major interstate arteries and the resource of talented business professionals make the region one of the fastest-growing and sought after places for companies and their employees to reside. From businesses to education, medical to recreational, the Chamber ensures that its members are an integral and successful part of the region’s growth.Corporate Headquarters – Companies such as Ingersoll-Rand, Lowe’s, Microban and GE Polymerland have chosen Lake Norman for their corporate headquarters or the sites of major portions of their operations.Retail – From department stores and other national retail names to the eclectic mix of shops and eateries along the Lake Norman region, the retail environment is strong and growing, providing a complete shopping experience right where you live and work.NASCAR – The Lake Norman region is home to Mooresville, which is known as Race City USA™. An industry that has seen tremendous growth in the last decade, a number of the racing teams and related companies do business and live at the lake.Medical – With the region’s population growing steadily each year, the need for medical care is always important for the community. With a regional hospital conveniently located right off of Interstate 77 and another hospital under construction, and many medical care practices; medical care is close to home.
College – Lake Norman is home to Davidson College, in Davidson, North Carolina. Davidson is a nationally recognized, highly selective independent liberal arts college that was founded in 1837 by Presbyterians. Today, Davidson enrolls approximately 1,600 men and women.
College – Lake Norman is home to Davidson College, in Davidson, North Carolina. Davidson is a nationally recognized, highly selective independent liberal arts college that was founded in 1837 by Presbyterians. Today, Davidson enrolls approximately 1,600 men and women.
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