Our Listings are Selling Like Hotcakes!!

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As of this writing, 75% of our listings this year are either SOLD or UNDER CONTRACT! Compare this to the market average where currently only 35% of total MLS listings are under contract or sold this year.
What are we doing differently? Well, to begin with, we have fine tuned our marketing plan and attribute the success to three distinct factors:

1) Expert area & market knowledge
2) Staging and professional photography
3) Broad & aggressive marketing

More importantly, we have recently expanded our team and are pleased to introduce, Patti Bachner, who has come to us from Ryan Homes as a top producer in new home sales. Patti is dedicated exclusively to the marketing of our listings and she’s clearly producing amazing results based on these recent stats. Thanks Patti!!!

If you or someone you know is thinking about selling, please give us a call right away. There’s still time to get your home ready and sold in 2012 while the market is hot. We can’t keep enough in inventory right now and need more homes to sell! Call or email us to discuss your home selling needs.

CALL FOR ACTION: Charlotte Mandating Registration of Rental Properties

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If you OWN A HOME YOU RENT OUT in Charlotte or have an interest in investment property, PLEASE READ THIS AND TAKE ACTION:
Charlotte City council has instituted a Rental Property Ordinance that requires ANYONE that owns a home that is rented in the City of Charlotte to register their rental property with CMPD. Under the ordinance, you will be required to post a notice inside the home with your contact info like you see on the back of a door in hotel rooms. If you do not comply with this ordinance, you can be charged with a misdemeanor. EVEN IF YOU ONLY OWN ONE RENTAL HOME, you are subject to this ordinance.
Also, the ordinance holds that if a crime happens to take place on your property through no fault of your own, you can be faced with fines and subject to a probationary period. Basically, the city is trying to hold landlords responsible for the actions of their tenants!!
This ordinance is absolutely ridiculous. It is a blatant disregard to your property & privacy rights.
PLEASE check out the call for action below and send an email to EACH of our city council members.
http://rebiccharlotte.wordpress.com/call-to-action-tell-city-council-you-oppose-mandatory-rental-property-registration/If they keep this ordinance in place, we cannot re-elect these people to our city council. This affects all of us and our property values. Your help is absolutely necessary. Your voice can be heard. This city is not as big as it might seem. Thank you!!!!

Even the Skeptics Say the Worst is Over!

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Over the past few years and in the middle of the worst recession many have ever seen, many said that the real estate market will never be like it was in 2006 and 2007. Its funny how when things are great, those same people think it will stay that way forever and when things get bad, those same people say it will never get better. Well, you don’t have to listen to the predictions and wonder anymore, at least in Charlotte, North Carolina. Just look at the numbers.

Charlotte home sales are strong. Pending sales, which are an indicator of closings in the next 30-60 days, are even stronger. It is only natural that the price apreciation will follow. In my daily business, I talk with lots and lots of other practitioners and I haven’t encountered anyone recently that hasn’t gotten very busy, very fast. Homes are selling and there have been more an more cases of multiple offers. If we weren’t spurned by the last four years with expectations of higher prices, some might say we are experiencing a real estate boom. I’m not afraid to admit that I personally believe that a boom is here and that pent up demand which has been building for years is finally starting to be released to the market. I will even go as far as predicting that we will see people starting to get into the market very soon out of fear of missing the next boom.

Today, I’m sending out my monthly E-Newsletter with the market stats for March. The data will compare March 2012 to the prior month and again to the same month last year. Here’s a quick summary of the results:

- Home sales are up 32% from last month and up 12% from last year
- Average sales price is up 20% from last month, but down 5% from last year
- Median sales price is up 17% from last month and up 6% from last year
- Days on market is down 5% from last month and down 8% from last year
- Pending home sales are up 11% from last month and up 27% from last year
- Supply is up 5% from last month, but down 23% from last year
- Mortgage rates are about even from last month, but down about a point from last year

There is nothing but positive news in the data above. All indicators point to improvement in the market in Charlotte, North Carolina. The most exciting news is that pending home sales are up 27% from this time last year. The last time we saw pending sales at that level was in July 2007, which was just about the peak of the market in our area. It’s hard to be skeptical of the Charlotte market at this point.

Our prices are still at a low on average, but the deals are becoming harder and harder to find as demand increases. Interest rates are certainly at record lows. Both of these factors have pushed home affordability to all-time highs. But as the economy grows, rates and prices will both rise and I believe that the latter is already happening right under our noses.

Pending Home Sales Back at 2007 Levels!!

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In the past seven days our listings have averaged 2.3 showings each. That average is up nicely from this same time last year. In general, I think the public is becoming more aware that both the economy and the housing markets are slowly showing signs of improvement. Most sellers still want to know when prices are going to start appreciating again. That’s the million dollar question.

There is no question in my mind that a healthy market is on its way in the very near future and may have already arrived. Although healthy does not necessarily equal 2006 prices. This week we are publishing our monthly E-Newsletter with the real estate stats for February. Here’s a brief summary when comparing February 2012 with the prior month and again to the same period last year:

- Home sales are up 1.4% from last month and up 25% from last year.
- Average home price is down 2% from last month and down 9% from last year.
- Median home price is up 1% from last month and down 6% from last year.
- Average days on market is up 1% from last month and up 6% from last year.
- Pending home sales are up 18% from last month and up 28% from last year.
- Housing supply is up 7% from last month, but down 23% from last year.
- Mortgage rates are at record lows downs slightly from last month and down a full point from last year.

The most compelling data in the summary above is the huge jump in pending home sales. They are up 18% from last month which indicates that the spring selling season has begun. But they are also up 28% from last year which tells us that the spring sales are going to be far stronger than they were last year. Currently, there are 2146 pending single family sales in Mecklenburg County. In April of 2010, we saw that number very briefly because of the surge in demand related to the home buyer tax credits. (That was government stimulated and didn’t last.) The last time we saw pending sales like we have today was back in the summer of 2007 which was still a booming market in Charlotte. As these pending sales convert to closings, inventories will continue on a downward path which should eventually translate to rising prices.

Home prices are at a low point right now. But all the signals indicate improvement and we should start to see appreciation in the next year or so. The low prices and AMAZINGLY low intererest rates, coupled with a healthy outlook for the years to come makes now a tremendous time to buy. It is also a great time to trade up. As a trade up buyer, you will be selling for a historically low price, but should be able to make it up (and then some) on the higher priced purchase.

January Charlotte Market Stats

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Our listings have been showing at an average rate of about 2.1 each over the past week. Traffic is up, so is demand and buyers are buying. The spring selling season is almost here and due in part to the warm winter weather we’ve had, the busy season might already be here.

Today we sent out our Monthly E-Newsletter and we reported the housing stats for Mecklenburg County in January. When comparing January to the prior month and to the same period last year, here’s a sneak peak:

- Home sales were down from last month, but up 20% from last year.
- Average sales price was down 3% from last month and down 6% from last year.
- Median sales price down 9% from last month and down 1% from last year.
- Average time on market is up 2% from last month and up 7% from last year.
- Pending home sales are UP 19% from last month and UP 30% from last year.
- Housing supply is up 5% from last month, but down 23% from last year.
- Mortgage rates are about even from last month, but way down from last year.

The most encouraging data here is that pending home sales are still way up both from last month and from last year. Pending home sales is an indicator of what will close in the next 30-60 days. The huge increase in this statistic all but guarantees that home sales will be way up this spring when compared to last year. It takes increased demand for prices to rise. So the increase in sales this spring is the next step towards rises prices.

This year I am really feeling a greater sense of urgency for anyone looking to trade up. I believe that this rising demand will begin to impact prices in the next 1-2 years. So not only will the house you are selling rise in value, but so too will the house you are buying. If you are trading up, now is a great time to make that move before the more expensive home becomes even more expensive! The busy selling season generally runs from March through July. That makes right now the perfect time to be getting a home ready to list to maximize the time on market.

Charlotte Real Estate Full Steam Ahead!

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Over the past two weeks, our listings have averaged 2.5 showings each per week. Its January, but yet the market isn’t acting like any typical January that I’ve known for the past 5 years. Traffic is strong, demand is up, and buyers are making offers.

I still hear a whole lot of hedging about the market and the economy in the media. After four brutal years of recession, many people are afraid to be wrong about an improving economy. But as I talk to buyers, sellers, fellow realtors, I always challenge everyone to help me see what bad news is still left out there. But I haven’t been able to find any! The financial markets are improving, the economy is improving, consumer condfidence is up, rates are still low, and real estate is selling!

Last week I did a listing presentation in a great section of Dilworth. It was the first one in a very long time where the neighborhood sales pace vs current inventory indicated that area is officially experiencing a SELLERS market. Dilworth has always been a hot neighborhood and ahead of the curve. To me its an indication that we will see similar results begin to occur all around Charlotte in the coming year.

For five years now, real estate professionals continue to say that there “is no better time to buy”. I’d argue that the best opportunity to buy may have already passed. We’ve made it through the bottom and we are well on the way back to a prosperous economy. To be sure, prices are still amazingly affordable and we probably won’t see huge price appreciation for awhile. But the screaming deals seem to be fading into history and the market volatility is shrinking.

Today I released the Mecklenburg County Real Estate stats for December in my monthly E-Newsletter. Here’s a quick summary when comparing December 2011 to the previous month and then to the same period last year:

- Home sales were up 17% from last month and 3% from last year.

- Average sales price was flat from last month and down 1.6% from last year.

- Medial sales price was up 7% from last month and up 7% from last year.

- Average time on market is down 3% from last month and up 11% from last year.

- Pending home sales are down 3% from last month, but up 18% from last year.

- Supply is down 7% from last month and down 24% from last year.

- Mortgage rates were at 3.96% which is just slightly below last month, but well below last year.

The most compelling stats from last month are the increase in pending home sales over last year in combination with the inventory which is down 24% from last year. Increased pending home sales indicate an upswing in demand and the lower supply means fewer homes coming on the market in relation to what’s selling. If this trend continues, we may see a quick shift across Charlotte from buyers market to sellers market. Sellers: you’ve been waiting a very long time for this day to come and it might just arrive this year.

New Year to Bring New Market

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Last week I wrote about the fundamental data sequence that needs to occur in order for the market to shift back to a sellers market. To recap: First the number of sales increases, then the supply of housing falls, then prices can begin to go back up.

Well, home sales are rising and supply is falling. Below is a graph of the quarterly housing supply in Mecklenburg County over the past 5 years:

Note that the last time inventory was as low as it is right now was back in March 2008. Remember that when inventory is at a six months supply the market is considered to be in balance. When it is below six months, then you have a sellers market. When it exceeds six months, it is a buyers market. We are clearly still experiencing a buyers market, but the trend is surely heading in the direction of balance. When that happens, we can expect to see prices begin to rise shortly thereafter.

Remember when the market was hot and no one thought the market would crash the way it did. Everyone one thought prices would continue to rise forever and the general media never warned us about what could be coming. Now the tables have turned and all we hear is that prices will continue to fall and will never go back to where they were. Funny how quickly we forget.

I prefer to focus on the data, the stats, and the trends. From where I sit, all I can see is recovery; 2011 started out scary to put it lightly but as the year progressed, sales picked up momentum and have only mildly dropped off due to seasonality this holiday season. Personally, I haven’t been this busy this time of year since 2006. I’m encouraged and extremely fired up for a better market in 2012. So for now, I’m thanking my lucky starts, preparing to enjoy some time with family over the holidays, and pumped to start off the new year with a bang.

Happy holidays to all of you, my valued clients, friends, family and fans. See you in 2012.

Sellers Market Coming to Charlotte in 2012?

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This past week our listings saw an average of 1.3 showings each. That traffic is certainly slower than we’d like to see during normal times, but then we are in the midst of the holiday season. I certainly see no cause for concern and I’m nothing but positive about the Charlotte real estate market heading into 2012. As 2011 draws to a close, lets recap a few fundamentals stats and their path over the course of the great recession.

During the boom years, the first thing that peaked was the number of home sales and that happened in mid 2006. As home sales increased, the inventory (or supply) of housing fell in direct proportion to sales but lagged by a few months. Supply hit a low point at the beginning of 2007 and at that time we were in a true ‘buyer’s market’ with only 4.7 months supply. (A six month supply is considered a balanced market.) When supply hit bottom, prices began their final push to peak. Average home price hit a high point in the summer of 2007 in Charlotte, but it hovered around that point and peaked again in September 2008 right before the market crashed.

After the financial system had its meltdown, real estate buyers went into panic mode and the number of home sales plummetted. Just as the supply dropped during the boom due to increased sales, supply began to rise as sales fell off. Housing supply hit a high point in summer of 2009 and prices followed suit.

Both 2009 and 2010 were quite confusing for real estate analysis because we had a government tax credit that created false demand. During the period that the tax credits were in effect, we saw abnormal sales spikes, small changes in supply, and minor price increases. When the credits expired, the market went back to where it was before the tax credits were implemented.

That brings us to 2011. The first half of 2011 was not much better than 2009 or 2010. However, during the second half of 2011, Charlotte saw a significant increase in home sales over the same periods from last year. In turn, supply has steadily fallen. As of this writing, supply has fallen to levels not seen since April of 2008, well before the finanicial market meltdown. We have not seen any price appreciation yet and we may not for awhile because of the higher than normal supply of distressed homes. But there is no doubt in my mind that the worst is over and we can just about see the light at the end of the tunnel.

Technically speaking, we can’t consider ourselves in a buyers market until supply drops below the six month level. That may not happen in 2012, but keep in mind that supply was at 12.8 months in April of this year and in just eight months it has fallen to just barely under 9 months supply.

There is still a lot of negative talk out there and after almost four years of recession its understandable why people are skeptical. But the truth is that we have just experienced a very ugly low point in normal market cycles. But it takes the low points to make the high ones possible and I’m pretty certain that another high point is not too far away.

NAR Real Estate Outlook

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This past week our listings saw an average of 2.1 showings each. This same time last year the average was about 1.5 showings per listing. We are well into November and while I am typically preparing for a slowdown this time of year, there is no sign of that yet. In fact, I am busier than ever.

As a practicing Realtor, I can honestly say that 2006 was the last time I was this busy with activity in November. Remember 2006? Of course its easy to be busy and not have any sales going on. That’s not the case. Maria and I had closed about 25 sales year to date at the end of October. We have 11 closings in escrow for November and December and we are confident that we’ll add a few more to that before the year is over. Needless to say, we are thrilled. (By the way, several of those closings involved multiple offers on a single property.)

I wish I could say that its just me and that I’m the world’s greatest Realtor bucking the trends in a sour economy. But the truth is that whenever my sales are sluggish, I talk to my peers and I hear the same thing. When sales pickup, its the same story. The media is still reporting gloom and doom but out in the trenches, its a different story. Oh, what a great time it is to buy.

Last week I had the opportunity to hear Dr. Lawrence Yun, Chief Economist of the National Association of Realtors, speak to our local association about the national outlook for real estate. Much of what he said supported what I’ve been blogging about for months now. But he shared even more great data that have gotten me even more fired up about real estate. Here are a few key bullets points that I found to be compelling…..feel free to email me for more details.

1) Home prices vs rent ratios have quickly shifted to the point where it is less expensive to buy than it is to rent. There are a number of reasons for this. But the important point here is that smart money is buying real estate because it produces a cash return on investment. If a landlord’s rental income covers expenses and there’s still money left over, there is profit. What’s the return on a savings account right now?

2) Back in 2002 when the market was “normal”, Fannie Mae mortgages written in that year had a default rate of 3.1% (after 18 months). This means that 3.1% of the mortgages made that year defaulted in that time period. In 2007, that default rate skyrocketed to 28.7%!! That is why there are so many foreclosures in inventory right now. However, the default rate for mortgages made in 2009 was only 1.9% which is far below what it was in normal times. Again, there’s good reason why this has happened. More importantly, this means that in a few years the foreclosures will dry up and homeowners will be rock solid. This is very likely to lead to a very strong economy in the not too distant future.

3) Inflation is on the rise for sure. Real estate has always been a hedge against inflation plain and simple.

I believe that we are on the brink of a tremendous upward trend in real estate both nationally and in Charlotte. Yes, there is still foreclosure inventory yet to be released to the market. That could hold prices down for a while longer. I also think that there is a lot of cash out there waiting to be invested, but consumer confidence is still low. To me, this just means that there is still opportunity to buy low before things take off again. Oh, there is opportunity right now but how much longer will it last?

September Charlotte Market Stats

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This past week our listings saw an average of 1.6 showings each. Showing traffic is about the same as it was this time last year. The difference is that it seems more of the lookers are actually buying this time around.

This week we’ll publish our monthly E-Newsletter and will report the Charlotte real estate market stats for September. When comparing to the prior month and then to the same month last year, here’s a quick summary of how things look:

- Home sales are down 15% from the prior month, but UP 27% from last year.
- Average sales price is down 6% from the prior month and down 11% from last year.
- Median home price is down 11% from the prior month and down 11% from last year.
- Average time on market is up 3% from the prior month, but down 3% from last year.
- Pending home sales are down 5% from the prior month, but UP 14% from last year.
- Supply is down to 9.9 months which is 5% below the prior month and 18% below last year.
- Mortgage rates are hitting rock bottom. Currently around 4.1% they are down both from last month and last year.

I feel like I have a secret. The general buzz is still that the real estate market is in the dumps. I don’t see that. Sure, prices are still down and the numbers above show that they are still falling. But real estate follows supply and demand just like anything other product and the numbers above clearly show signs of strong improvement.

First of all, the number of home sales is way up from last year. Additionally, pending home sales are also way up from last year which means that the pattern of better than last year sales almost certain to continue in the next couple months. So, it is clear that demand is up.

On top of the increased demand, we see that supply is dropping. In fact, my latest stats show that supply is down to 9.9 months which is the lowest it has been since December of 2008. This is huge news for Charlotte real estate. Basically, this tells us that demand is up and supply is down. The result of that ultimately means increasing prices. Yes, that will take some time but we are absolutely heading in the right direction.

As a practicing Realtor, I can thankfully say that I’ve been busier in the last two months than I have been in a few years. Sales seem to come in waves, but I am definitely riding one right now. My ego would love to believe that I’m the only one experiencing this wave, but in my experience, whenever I get busy I find that other agents around me are in the same boat. Such is definitely true this time around.

There’s no telling what the economic and polictical climates will bring over the next few months and even years. But right now, the numbers are showing positive signs. So grab your boards and get ready to ride the next wave with me.