Real Estate Information

We always like to keep you in "the know" about what's happening in and around the Charlotte area.  Here's what's happening in the month of March...

• An Evening With The Master Chefs will be held at Quail Hollow Club on the 6th at 7:00pm.  Top chefs from throughout the Southeast will gather in one kitchen to prepare signature dishes presented in a spectacular fashion.  With fine culinary delights you need fine wine...seven courses of wine accompany each delectable presentation.  A fabulous live and silent auction will cap off the evening.  This exclusive event costs $225.00 and is a black tie event.  For more information please call 704-321-7852.
• Don't miss the Dropkick Murphys at the Fillmore Charlotte on the 8th at 7:30.  Head out and celebrate St. Patrick's Day just a wee early this year lads...  Please call 877-598-8698 for more information on this event.
• The Ballantyne Chamber Orchestra proudly presents Mozart Overture to Idomeneo Sinfonia Concertante for Winds and HaydnSymphony No. 102 on the 12th at South Mecklenburg Presbyterian Church.  The show starts at 7:30pm, and is a concert event not to be missed!  Please call 704-651-5275 for more information on this event.
• The 14th Annual Charlotte St. Patrick's Day Parade will be held Uptown on Saturday, March 13th from 11:00am-1:00pm.  The parade steps off at 11:00am and marches down Tryon Street, beginning at 9th Street and ending at 3rd Street.  There are over 100 units participating in the parade featuring pipe and drum bands, Irish dancers, floats, animals and more!  Please call 803-802-1678 for more information!

We always like to keep you in "the know" about what's happening in and around the Charlotte area.  Here's what's happening in the month of February...

• Former Grateful Dead members Bob Weir and Phil Lesh will be preforming at the Bojangles Coliseum on the 10th at 7:00pm.  Please call Ticketmaster at 800-745-3000 for more information on this event and to reserve your tickets today!
• Swan Creek Vineyards will host For The Love Of Chocolate...And Wine! on the 13th form 11:00am-5:00pm.  Enjoy a different chocolate concoction at each vineyard paired with wine.  Please call 336-835-9463 for more information on this decadent affair.
• The 9th Annual Charlotte Bartender's Ball will be held at the Blake Hotel from 7:00pm-12 midnight.  Admission includes open bar with top-shelf liquors and a full line of beer, catered food, and entertainment ALL night!  Please call 704-614-2405 for more information.
• The Black Eyed Peas are coming to Time Warner Cable Arena on the 20th at 7:30pm.  Please call Ticketmaster at 800-745-3000 to reserve your seats!

Q.  What are "walkability" scores?

A.  CEOs For Cities, (a national network of urban leaders), commissioned a study released in August 2009 that explored the relationship between home values and walkability in various U.S. metropolitan areas.

Walkability is defined by the Walk Score algorithm, which calculates the closest amenities to a U.S. address.  Scores range from 0 (car dependent) to 100 (most walkable).

The results showed that the walkability of cities translated into increased home values in 13 of the 15 housing markets studied.  In the typical metropolitan area, a one-point increase in Walk Score was associated with an increase in values ranging from $700 to $3,000 depending on the market.  The gains were larger in more dense markets like Tucson and Fresno.

Houses with above-average levels of walkability command a premium of about $4,000 to $34,000 over houses with average levels in typical metropolitan area.

Walk Score is an approximation.  It does not consider factors such as public transit, crime and topography.  Lots of real estate agents, however, are adding the Walk Score to their listings.

If you have any questions, or need capable and trustworthy representation, please call Joy Setzer at 704-241-8831 or Chelci Setzer at 704-605-9546 today!

Q.  What's the latest on the first-time homebuyer tax credit?

A.  The tax credit for qualified first-time homebuyers was extended to this spring.  Some of the original features are the same, including:
*  First-time Buyers can get a credit of as much as 10% of the purchase price, up to $8,000.  The home must be your principal residence for the next three consecutive years.
*  If you don't pay enough tax to offset the credit, you can get a tax refund. 
*  You can't purchase the home from your ancestors (parents, grandparents, etc.) or your lineal descendants (children, grandchildren, etc.).

New features include:
*  A buyer must have a contract before May 1, 2010 and the sale must close before July 1, 2010.
*  Income limits have been raised.  Check sites such as www.irs.gov or www.federalhousingtaxcredit.com for details.
*  If you buy after November 6, 2009, the credit is available if the home will be your principal residence and the price is less than or equal to $800,000.
*  Repeat Buyers who lived in one residence for five consecutive years of the last eight can qualify for a tax credit of as much as 10% of the purchase price, up to $6,500.
*  For purchases after November 6, 2009, you can't claim the credit if you buy the home from a spouse or spouse's family members.

Thanks for the question!

We always like to keep you in "the know" about what's happening in and around the Charlotte area.  Here's what's happening in January 2010!

• Panthers vs. Saints on the 3rd at Bank of America Stadium.  Kick off is at 1:00pm., so bundle up and come out to support the team!  Please call Ticketmaster or the Stadium Ticket Office for ticket availability.

• Band Of The Irish Guards is coming to the Belk Theater on the 12th at 7:30pm.  The Band Of The Irish Guards And The Royal Regiment Of Scotland have a variety of professional ensembles that include a Concert Band, Marching Band, Salon Orchestra, Dance Band, Fanfare Trumpeters and several other smaller ensembles.  The Guards will perform both traditional folk tunes and other familiar songs.  And of course, don't forget the bagpipes!  Please call 704-372-1000 to reserve your tickets today!

• Jerry Seinfeld makes a stop at Ovens Auditorium for TWO shows!  Please call 1-800-745-3000 to reserve your tickets for either the 7:00 or 9:30 show.

Existing Home Sales - Up 24% from last year

• Existing home sales recorded another strong gain in October with many Buyers rushing to beat the deadline for the first-time buyer tax credit scheduled to expire at the end of November. Sales surged 10.1 percent to 6.1 million units over September sales of 5.54 million and are 23.5 percent above the 4.94 million-unit level seen last year. Sales activity is at the highest level since February 2007 when it reached 6.55 million.

Median Home Price - Very favorable

• Low home prices are contributing to extremely favorable affordability conditions. Existing-home price was $173,100 in October, 5 percent higher from its low in January but still 7.1 percent below October 2008. Distressed properties, which accounted for 30 percent of all transactions in October, continue to hold down the median home price, as they typically sell for 15 to 20 percent less than traditional homes.

Inventory - Lowest level in more than 2.5 years

• “We are getting closer to a general balance between Buyers and Sellers,” according to Lawrence Yun, NAR chief economist. The supply of homes is now at the lowest level in more than two and a half years. Total housing inventory at the end of October fell 3.7 percent to 3.57 million existing homes available for sale, representing a seven-month supply at the current sales pace, down from September’s eight-month supply. Compared to a year ago, there are now 15 percent fewer homes on the market.

Mortgage Rates – Back at 4.78%

• Remaining at attractive levels for people looking to buy a home or refinance, historically low interest rates are boosting the market. Rates for 30-year fixed loans fell to 4.95 percent in October from 5.06 percent the month before. During the week ended November 25, rates again dropped to the low 4.78 percent reached in the spring. As the economy enters its recovery phase and concerns over inflation come back, mortgage rates are expected to go up.

Affordability – Best since 1970s

• Unprecedented interest rates, low home prices, as well as the first-time buyer tax credit are lifting the housing market. All these factors combined are “adding to the buying power of the typical family, with affordability conditions this year at the highest on record dating back to 1970,” according to Lawrence Yun, NAR chief economist. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 15 percent.

  New Fannie Mae Policies

In many markets dominated by distressed properties, Buyers jumped off the fence in droves and as a result the number of homes for sale in the first tier of the market decreased significantly. When a new foreclosure becomes available for sale, it often is snapped up by investors with cash on hand, leaving the average home buyer looking for a place to live out of luck.       

Fannie Mae introduced a new “First Look” initiative to address this and aid in the stabilization of neighborhoods.

1. During the first 15 days a Fannie Mae REO is on the market, only Buyers who will live in the home and public entities committed to the best interests of the community may purchase it.
2. Buyers will have 45 days to close, up from 30 days.
3. Earnest money requirement may be reduced.

This will hopefully give the average home buyer a greater chance of purchasing foreclosures and provide support to hard-hit neighborhoods, because owner-occupants are more invested in the long-term vitality of a community whereas investors typically are more invested in their monetary return from the property.       

Increased Credit Scores

Fannie Mae is raising its minimum credit score from 580 to 620. This risk management measure will help protect Fannie Mae from future defaults and foreclosure by raising their standard and accepting less risky loans.              

While risk management is a sound and healthy approach for an entity that the economy depends on, this underscores the importance that potential home Buyers check their credit report early in the process, allowing more time to clear up any errors.         

Earlier this year, Experian, one of three major credit-reporting bureaus, began exclusively providing complete credit report information when purchased directly from Experian or obtained from the government annual credit report.

FHA Signals Efforts to Manage Risk

In an effort to secure its financial health, the Federal Housing Administration plans to require borrowers to have more “skin in the game” soon. Over the past three years, FHA’s market share has boomed from about 2 percent of all new loans to about 30 percent of all new loans this year and 20 percent of refinances. The escalading volume that the administration is currently handling calls for stricter requirements as evidenced by FHA’s capital ratios falling to nearly 0.5 percent well below the minimum of 2 percent.

The agency is still analyzing the levels and time frames it wishes to tighten its standards but they expect to:

1. Increase minimum down payments
2. Increase minimum credit scores
3. Increase insurance premiums
4. Lower the amount of seller concessions

As one of the major players in the mortgage market, the health of FHA is imperative to the housing market and flow of credit to home Buyers, as well as to the health of the overall economy. Taking measures to safeguard the agency from needing a government tax payer-funded bailout is a notable risk management measure.

According to a research study, the typical first-time buyer put down 3.5 percent this year. Those who want to take advantage of the tax credit before the April 30 contract, June 30 closing deadline may want to beef up their savings and check their credit report now in anticipation of any changes.

Q.  We are looking to buy a home soon.  What are some signs of overall quality that I should be looking for?

A.  It is always advisable to have a professional inspector look at a home before you purchase it, but you can do some of the legwork beforehand.  You will need to look at the overall structure, the basic systems, and for any signs of previous damage.  Here are some specifics to check:

• Walls - Be sure they are straight and show no signs of bowing.
• Sturdy Floor - Test for signs of improper flexing.
• Sound Roof - Does it appear to be relatively new and well maintained?
• Quality Fixtures - Pay particular attention to the baths and kitchen.
• Electrical System - Look for adequate outlets and in the main box for a minimum of 100 amps of service.
• Heating And Cooling System - Are all rooms connected, and is the system adequate?
• Insulation - Look for a minimum of R-19 in the roof.  The walls can be less, but they need to be well insulated.
• Quality Workmanship - Look at the fine details.  They will give you a lot of insight.
• Water Damage - Be sure water is draining properly outside, and that there are no signs of interior damage.

If these items look good to you and you are interested in the home, it is time to hire an inspector to take a more thorough look.  They can often find "hidden" problems you may have missed.  An inspector usually charges $300-$500.  You can call the American Society of Home Inspectors at 847-290-6012 for a registered inspector in your area.  It is also wise to ask friends, family, and your realty professional for inspectors they trust.  If you are in the market for a home and need caring competent representation, please call either Joy Setzer at 704-241-8831 or Chelci Setzer at 704-605-9546 today!