Housing Market Gaining Strength??

Home Prices Rise Again, This Time on the Low End

Matt York/Associated Press

A new home in Phoenix. Recently, the biggest price gains appear to have been among the least expensive homes.

By SHAILA DEWAN and NELSON D. SCHWARTZ

Published: September 25, 2012

The housing market continues to gather strength, and the biggest gains in price now appear to be among the least expensive homes, whose values fell the most in the downturn and have weighed against any would-be recovery.

Over all, the Standard & Poor’s Case-Shiller index showed an annual gain of 1.2 percent in the price of single-family homes across 20 cities in July, according to data released Tuesday. In addition, all 20 cities showed price increases from the previous month, the third monthly gain in a row, supporting the idea that the nation’s housing market has bottomed out and, some analysts said, contributing to an unexpected bump in consumer confidence.

Luxury homes lost less value in the housing crisis and began to rebound more quickly, but lower-price homes are catching up, rising slightly faster in value than homes in the middle and upper tiers, according to an analysis of the Case-Shiller data by Patrick Newport and Michelle Valverde of IHS Global Insight, a private research firm in Lexington, Mass.

The typical lower-price home rose at an annualized rate of 1 percent from June to July on a seasonally adjusted basis. The middle tier posted a one-month gain of 0.4 percent, and the highest tier inched up by 0.1 percent.

In the last three months, Mr. Newport said, the lowest tier has been rising in value more than twice as fast as the other two categories. For the least expensive homes, “prices just shot up too fast on the way up and then went down more sharply,” he said. “We’re seeing the correction from that.”

Lake Norman, NC

Source: Picture from City Data

Did You Know........................................

Lake Norman was built from 1959-1964

The area of the lake at full pond elevation is 32,510 acres

Length --- 33.6 miles

Width   --- 9 miles

Shore Length-------520 miles

Maximum Depth------110 feet

Average Depth-----33.5

Capacity-------3.4 trillion gallons of water

Why wouldn't you want to live along this fantastic lake and enjoy the sunsets.

Presidential Election Prompts Home Buyers to Wait-and-See

Daily Real Estate News
Tuesday, September 25, 2012

A quarter of Americans say they want to put off purchasing a home until they know who the next president will be, according to a poll conducted on behalf of MortgageMarvel.com of more than 2,500 adults.

“It’s understandable that a considerable number of people say the upcoming election would give them pause for thought,” says Rick Allen, chief operating officer of Mortgage Marvel. “There has been speculation that tax policies could change depending upon who wins. Some have even indicated that the longstanding deduction for mortgage interest could be eliminated. It appears that mortgage interest rates will remain low for the foreseeable future, so there’s no pressure on people to act before rates rise. In such an environment, I can see that cautious people would take a wait-and-see attitude before making a home purchase.”

On a regional basis, people in the South had the highest percentage of those who said they’d delay buying a home because of the uncertainty surrounding the presidential election. Meanwhile, Americans in the West had the largest percentage of people who said the upcoming election has no effect on their home purchase decisions.

Source: “Study Shows 25 Percent of Americans Would Delay Home Purchase Until After Election,” RISMedia (Sept. 24, 2012)

What is your Quote?

What does this picture say to you?

Obama said after the debate ..... " I am President and I did very well in last night's debate..........now it is time for dinner"

Charlotte Lack Of Inventory

Why the lack of homes listed for sale?
Fear
Economic stagnation
Political upheaval

People are paralyzed because their personal circumstances have been worn down over the past 4 years. Every recession in the past has experienced a quick recovery --- not this time. In fact, it is entirely possible that we will enter a double dip recession. No wonder people entrench where they are and hope to ride out the turmoil. Plan for the worst and pray for the best.


What is your answer as to why inventory of homes for sales is decreasing?

Charlotte Home Prices

We will watch the median sales price as the inventory of available homes remains low. I expect the median price continue to rise.

Charlotte Real Estate Market

The lack of inventory and the increase in closed sales is a problem for buyers but great news for sellers! Home prices are rising due to this phenomena. It is clear to me that the Charlotte market lags the national trends but in this case, the local market has changed quickly and the local market will continue to shift to a sellers market. I would expect the election, holiday months and winter continue to effect the real estate market. 

Remember, the Fed has stated that interest rates will remain low through 2015! However, what is their definition of "low". Interest rates will start to rise and counteract inflation. What happens to your buying power if interest rates are increased by 1%???