Real Estate Outlook: Housing Rebounding – Get IN NOW!

The big economic news for housing this week is all about sales.

Housing sales and pending sales contracts are up, dramatically in the North Carolina area, and a rebounding real estate sector could soon start stimulating the broader economy.

Federal Reserve Chairman Ben Bernanke told Congress last week that essentially the worst is over, the housing market is stabilizing, and we're heading out of recession in the second half of the year. Pending home sales soared by 6.7 percent in April, the third straight month of significant increases, and the highest pending sale total for any month in the past seven years.

This is all great and fantastic news for the economy, and it means that YOU need to react and get into the game.

Low prices nationwide, combined with mortgage rates at near-record lows, have pushed the National Association of Realtors' Affordability Index into record territory. In April the index hit its second highest market ever, based median household income and the monthly payments needed to buy the median cost home.

On the mortgage front, applications to purchase homes continued to rise last week -- up by 4.3 percent -- according to the Mortgage Bankers Association.

But here's the sobering news: It's becoming increasingly clear that low mortgage rates are not going to be around forever. That is not a bad thing, it just means that you need to take advantage of the low rates now. Average thirty year fixed rates took their biggest jump in half a year last week on bond market jitters. The average rate for 30 year fixed topped five and a quarter percent, up from 4.8 percent the week before. And 15 year rates went to 4.8 percent from 4.4 percent.

So, if you are seriously considering getting off the sidelines - now that prices are back to pre-boom levels in some markets and sales are on the upswing, jump in sooner rather than later, if you want the lowest mortgage rates. Trust us, it is time to buy! Contact Rich Ferretti at Jamison Realty with any questions, and let’s get to house-hunting!

Rich Ferretti
Mint Hill Realty
Charlotte, NC
Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com

Pointers for Purchasing a House that Will Maintain Value

Dear Rich –

We are relocating to the Carolinas and are looking at different communities in which to buy. We’re unfamiliar with the region and want to make sure our house holds (and hopefully increases in) value. What should we be looking for to make sure we’re making a good investment?

The Aldens

Dear Aldens,

When you buy any home, the first thing to consider is whether it suits your taste, your needs and your budget, and whether you love the feel of the community. Buying a house for investment purposes alone is a mistake, unless it’s exclusively an investment and you don’t intend to live there.

With that said, some points to consider are:

-->Whether or not you have children in school, be sure the schools are academically sound;
-->All houses in the neighborhood should be well-maintained. Houses that are in disrepair bring down the value of the neighborhood
-->Don’t be tempted to purchase the biggest, most expensive house on the block.
-->Consider the location. Is it in a desirable community?
-->Look for a house on a street where you’re not backing on to a high traffic thoroughfare and parents wouldn’t fear having children play in the yard.
-->Are there highways, an airport or factory very close by that produce noise or pollution?
-->Are there highways close enough to provide easy access for commuters?
-->Are there nearby amenities, such as a post office, supermarkets, drug stores, a park and malls?
-->How are the taxes compared to comparable nearby communities?
-->Are the services covered by the taxes comparable to nearby communities also?

If the house you want to purchase adheres to these guidelines, and especially purchasing now when values are low, your house should maintain and probably increase in value, depending on how long you live there.

At Jamison, we serve families relocating to the Carolinas all the time and would be happy to help find your dream home here. Please give our relocation office a call at 704-846-3663 or rich@richferretti.com.


Best regards,
Rich Ferretti

Want more information about the Charlotte area real estate market? Check out www.richferretti.com

Home Values

HOME VALUES

Too often I think we focus on the negative—making the bad worse with worry and panic. We forget what real value is while we watch an imaginary index bounce around on charts and tickers.

The housing market showed an increase in sales recently. As I drank my coffee this morning I heard the morning news delightfully announced this and then immediately announce that this was before the stock market slid dramatically this month and the increase would likely not be repeated in the results that come out in November.

And that may be true, but I would like to focus for a moment on the positive… more houses were sold last month than the month before. That is good. And the reason is that houses were on sale…a good deal. Everyone likes a sale. And that is great for the people who want to make an investment in property. Right now is a good time to buy.

Now, I can play the negative game too… this all means some people had to sell at less than they wanted to. And with the clarity that comes from my morning caffeine consumption, I can tell you in all sincerity that this is the way the market goes. And it always does. And at some point things will flip again and it will be a great time to sell.

However, when it comes right down to it, most of us buy our homes to live in them. We choose a floor plan we like on property that suits our needs. We choose a part of town that we want live. Buying a house is a deeply personal decision and the way you value your home shows that. If you are the person who bought a house in the last few years and have now seen the property value of that home depreciate, then hold tight. You still have a place that is yours, suits your needs, and keeps the rain out and the heat in. The value of a home is not only the “book value” of what you could sell it for at this very moment, but rather that plus the value it has for you in the family memories, convenience, location, the way it feels when you walk in the door after a long day at work, and the comfort and security you feel when you crawl into bed at the end of the night. Your house is called a “home” for a reason. And that goes way beyond the fair market value—it is the REAL value. The REAL value of real estate in Charlotte right now is high. The REAL value is in how we feel about our great homes, our wonderful communities, neighborhoods and school systems. The REAL value is our friendly neighbors and the sense of belonging that we get when we own a home. As long as your house is a home you can’t let the newspaper or the stock market, or the “experts” tell you what the value of your home is… only you can determine that.

Rich Ferretti
Charlotte Home Specialist
www.richferretti.com

Want more information about the Charlotte area real estate market? Check out www.richferretti.com

Home Values in Charlotte to Rise

Dear Rich,

I am new to the Charlotte area and I am concerned about my home value. I see that values across the country have gone down and I am wondering if my investment is safe.

Kaitlin in Charlotte.

Dear Kaitlin,

Real estate should be an easy investment. With home values that have steady risen in most places and dramatically jumped in others. Yet with a suffering housing market, many people around the country are rethinking this investment, and for some, the downturn has already had a significant effect.

And yet, in a recent article, Forbes.com places Charlotte, NC as #2 for places where home prices are likely to rise. Great news for the tens of thousands of people who have moved to this area in the last few years!

To determine these numbers, Forbes.com took projections for housing stars from the NAHB and job-growth figures from moody’s economic.com for the 100 largest metro areas in the US. The estimates are based on the cost structures of business in the respective cities and the composition of the local economies.

Other cities in the countries with projected rising housing prices are Albuquerque,NM, San Antonio TX, Portland OR, and Austin TX., But rest assured, your investment in Charlotte is expected to rise.

Best of luck,

Rich Ferretti

Want more information about the Charlotte area real estate market? Check out www.richferretti.com