Tina Abraham Broker, SRS, Realtor Wilmington North Carolina Real Estate

The Week in Review

....your Wilmington Connection

November 9, 2008

Hooray! The Elections are over....Now we can all get back to making plans for the upcoming year. Thinking of buying? Waiting for....? the bottom to drop out? Don't wait too long house price are hovering about the same they were 5 years ago....that's right 2003 prices. Dont even think of waiting....spring is around the corner...and prices will start bumping up again. Have a look at what is out there.

Home borrowing limit stops climbing amid slump

As housing prices climbed over the first half of the decade, so did the amount a buyer could finance and still get the best mortgage rates.

That borrowing limit, for a so-called conforming loan, rose from $252,700 in 2000 to $417,000 this year.

Now, because home prices have stopped climbing, the

limit on most borrowing has too. So, next year the limit on conforming loans will remain $417,000 in most areas of the country, including Southeastern North Carolina, according to information from the Federal Housing Finance Agency, which has regulated mortgage companies Fannie Mae and Freddie Mac since their rescue in September.

Conforming loans are bought by Fannie and Freddie and now are backed by the U.S. government. Loans above $417,000, called jumbo loans, are not bought by Fannie and Freddie and, as a result, are considered riskier by investors and carry higher interest rates.

The rate Friday on a 30-year, fixed conforming mortgage was just over 6 percent, while that on a jumbo was about 7.5 percent.

Wilmington to invest $7 million in private development near convention center

City Council on Wednesday evening approved a development agreement with Riverfront Holdings II, LLC, which plans to build hotels, a marina, office and retail space and condominiums on the Northeast Cape Fear River just north of the city's convention center site over the next 20 years.

The vote came after a public hearing during the regular City Council meeting, but no one spoke in favor of or against the request, and the hearing was quickly closed.

Steve Shuttleworth, of Riverfront Holdings, told council members that the four-phase, $750 million project would eventually include 24 buildings, three hotels, office and retail space, 908 residential units, about 200 boat slips and 4,430 parking spaces.

Under the agreement, the city agrees to provide some street and utility improvements, and pay a percentage of the cost of the bulkhead around the marina. The city will also extend the Riverwalk through the Riverfront Holdings property at a cost of an estimated $4.3 million. The developer will provide the land to build it on.

...until next week in The Week in Review

Tina

The Week in Review

...your Wilmington Connection

November 2, 2008

Wow! Halloween is gone and Thanksgiving is on the way. The air is cooler and so is the real estate market. But never fear, a turn around is near. If you are planning on buying better take advantage soon, no matter what kind of market we are in prices always tend to hold strong or inch up more towards the spring which is the start the busiest time for real estate. Let me know if you are considering on purchasing and lets get you started.

Half of U.S. Homeowners Still Do Not Think Their Home's Value Has Decreased

Months of government bailouts and stock market volatility brought Americans' perception of the values of their own homes closer to reality than it was last quarter, but surprisingly half of U.S. homeowners still believe their home is insulated from the nation's home value declines, according to the Zillow Q3 Homeowner Confidence Survey(1).

This quarter, 49% of homeowners said they think their own home's value has increased or stayed the same over the past year. However, nearly three-quarters (74%) of homes have lost value in the past 12 months, according to preliminary analysis of Zillow's Q3 Real Estate Market Reports, which will be released Nov. 12.

Perception-Reality Gap Shrinks in Third Quarter, but Many Still Show "Not My Home" Sentiment

Homeowners are not quite as confident as they were in the second quarter, when 62% said their homes either increased in value or remained the same, but a significant gap between the reality of home values and homeowners' perceptions persists. This is despite the timing of the survey - it was fielded from Oct. 7 to 9, during the worst week in stock market history.

Zillow's Home Value Misperception Index(2), which measures homeowners' perceptions of their home's value over time, shrank to 16 in the third quarter from 32 in the second quarter. An index of zero would mean homeowners' perceptions were in line with actual values.

Homeowners in the South and West had the most accurate perceptions of home values. In the South, where 67% of homes decreased in value, the Misperception Index was 13. In the West, where 85% of homes declined in value, the Misperception Index was also 13. Northeasterners' perceptions were most out of line with reality: 71% of homes there lost value, and the Misperception Index was 20.

Re/Max turns to consolidation amid housing slump

Re/Max Coastal Properties plans to consolidate its four Wilmington-area offices into one to remain profitable amid the region's home-sales slump.

The franchise, owned by Bob McWaters, also plans to trim its roster of agents, said Danny McPherson, chief financial officer of Re/Max Coastal. He cited the area's 52 percent drop in total dollar sales as well as the company's 15 percent decline, both since 2005.

The firm currently has its corporate and commercial offices at 2018 Eastwood Road, plus sales offices downtown at 112 Market St., in Carolina Beach at 1300 Lake Park Blvd., and in Leland at 9111 Ocean Highway E.

Proposed international port may need new partner

The economy's slide means the N.C. State Ports Authority might have to find a new private partner for its proposed N.C. International Terminal.

CenterPoint Properties of Oak Brook, Ill., reached a preliminary agreement with the Authority in June for the $2.3 billion port near Southport. But because of the depressed housing market and a struggling economy, members of CalEast Global Logistics, which owns CenterPoint, have limited capital, ports authority CEO Tom Eagar said Wednesday, after giving a presentation on port plans to the Southport-Oak Island Chamber of Commerce and its members at Surf Cinemas on Long Beach Road.

.....until next week in The Week in Review

Tina

The Week in Review

...your Wilmington Connection

October 26, 2008

Spooky....Happy Halloween.!....Homes still selling under Economic cloud... understand while there are 27 states that are considered to be in a recesssion North Carolina is not one of them. People are still buying in Wilmington. This week in Wilmington there has been some movement in the housing market, currently there are 2845 homes on the market and 285 are currently under contract. In the last six months there have been 1161 homes sold and on average selling at 95% of their list price. Of course homes with the price range of 300 are selling quicker with an average of 100 days on the market.

Thinking of selling your home? Email me and I can get you a no obligatory market analysis.

A Wall Street Alternative: 5 Timely Reasons to Invest in Vacation Property

There are plenty of great deals to be had. Thanks to the aftermath of the real estate bubble, home prices are down right now across the board. That means in many vacation markets, you can pick up a beach condo or a mountain cabin at a decent price. And that means that if you've been kicking yourself for not buying a vacation home back before prices escalated beyond all reason, you've got a reprieve-that in some markets homes are back to 2000 prices.
"Housing bubble or no housing bubble, you're not going to get bargain basement prices on, say, a cottage right on the ocean-but if you're willing to buy a few rows back, you'll likely find that prices have fallen substantially," notes Karpinski. "Because houses aren't flying off the shelf, there's less pressure on you to make a quick decision. You can afford to take your time, do your research, and refine your plan."
Interest rates are attractive right now. Recently, the Federal Reserve cut interest rates by half a percentage point in an effort to shore up America's faltering economy. And rates have been reasonably low for awhile, following earlier rate cuts toward the beginning of the year. That's good news for anyone (anyone with good credit, that is) who's in the market for a mortgage.
Add the lower interest rates to the lower housing prices, and it's clear that now is the time to buy, Of course, for the sake of our nation's economy, we want the real estate market to pick up, but from an individual buyer's perspective, the combination of lots of houses for sale, low prices, and falling interest rates is hard to beat.
If you're worried about investing in a sluggish real estate market, relax. Recent reports indicate housing is on the rebound. Last week the National Association of Realtors® reported that, "The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in August, jumped 7.4%...and is 8.8 percent higher than August 2007."

Gateway rezoning appears destined for approval

Make room for the upscale residential and retail development, Wilmington Gateway LLC wants to rezone about 10 vacant acres on Surry Street from industrial to riverfront mixed use. The rezoning request is on the agenda for the council meeting at 6:30 p.m. Tuesday in the City Council Chambers at City Hall, 102 N. Third St.
When council considered the Gateway rezoning in January, it remanded it back to the Planning Commission with a number of recommendations.
The current 11-story Gateway plan, which has been modified significantly from earlier proposals, includes 260 condominiums, a restaurant, 40 boat slips and first-floor retail space, which might include a small food market, coffee shop and hair salon, developer Ron Pickett said Monday.
Pickett said the alternative to Gateway is expanded industrial use on the riverfront.
But some downtown residents made last-minute appeals Monday, urging council members to support the project only if they impose conditions recommended by the Planning Commission in September. Conditions include limiting the average building height to 110 feet, creating a "varied skyline" to make the building appear smaller and permanently dedicating land north of the Cape Fear Memorial Bridge as public open space.

Landscaped roof blends pretty and practical
The Fortunas are the first in Wilmington to sprout a residential green roof, which soaks up some of the rainwater and keeps their roof a lot cooler than tar tops.
Steve Mott, owner of Mott Landscaping, planned and planted the Fortunas' roof on the building.
Mott, who has completed classes in green roof design and installation, also transformed part of the roof of his business into a green roof. And while the trees and greenery thriving on Carrabba's Italian Grill may be seen as a green roof, it is not in the traditional sense.

....until next week in The Week in Review
Tina

The Week in Review

....your Wilmington Connection

October 11, 2008

Currently in Wilmington there are 2771 homes on the market. There are 323 which are currently under contract and 1489 homes have sold in the last 6 months. Thats about 12%. The price range $250,000 and under are fairing the best with 8 months of inventory on the market. Whereas the higher priced homes are suffering with almost a year and a half and upwards. Homes are selling but patience is needed.

Federal Dollars to fund Holden Beach Sand

The estimated damage to Holden's beach also constituted the biggest chunk of the $14 million in statewide damage to public infrastructure attributed to the storm and helped push the state over the threshold to seek federal help.

Gov. Mike Easley is seeking a federal disaster declaration that would enable federal grants to be used to repair the damage, including to Holden's beach.

But the damage to the town's beach has raised some eyebrows, both for the amount of sand Holden officials claim was washed away and the estimated cost to replace it.

Hanna wasn't a particularly big or strong tropical systems, bringing rain but not much else to Southeastern North Carolina.

Pending Home Sales Up Strongly

Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates, according to the National Association of Realtors

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in August, jumped 7.4 percent to 93.4 from an upwardly revised reading of 87.0 in July, and is 8.8 percent higher than August 2007 when it stood at 85.8. The index is at the highest level since June 2007 when it stood at 101.4.

Lawrence Yun, NAR chief economist, said home buyers were responding to improved affordability. "What we're seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington, D.C., region," he said. "It's unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we're hopeful most of the increase will translate into closed existing-home sales."The PHSI in the West surged 18.4 percent to 109.5 in August and remains 37.8 percent above a year ago. In the Northeast the index jumped 8.4 percent to 79.8 and is 2.0 percent higher than August 2007. The index in the Midwest rose 3.6 percent to 84.5 in August and is 6.6 percent above a year ago. In the South, the index increased 2.3 percent to 96.0 but is 2.1 percent below August 2007.

Yun notes the unusual timing of contract activity in August. "Home buyers in July were hampered by overly stringent lending criteria in the months before the government takeover of Fannie and Freddie," he said. "August shows some unleashing of pent-up demand before the credit crisis accelerated in September."He cautioned that the sampling size for pending home sales is smaller than the track on existing-home sales, so there is more volatility in the forward-looking series. "We need to see just how much of this gain holds up.

....until next week in The Week in Review

Tina

The Week in Review

....your Wilmington Connection

October 4, 2008

This week in Wilmington....welcome to the annual Riverfest.

Almost as soon as it began in October of 1979, Riverfest became the seasonal little sister to the Azalea Festival, which of course is held in the spring.

But Riverfest is far from little anymore, with multiple stages, nearly 200 food and craft vendors, a budget of $80,000 and, of course, the thousands and thousands of people it draws annually to downtown Wilmington. Many visitors from out of town realize that Wilmington is the ideal place to live with great year round temperatures and a lifestyle that many can only dream about.

What about home prices?
In theory, repairing the credit markets could lower mortgage rates and make loans more available for home buyers. That boost in demand could help pull the housing market out of its deepest recession since the 1930s.

But it won't help reduce the backlog of unsold homes - especially foreclosed, bank-owned homes that are being dumped on the market at fire-sale prices. Every time a bank sells a house cheaply to get it off their books, that price becomes the neighborhood's new market rate.

It's also harder for a lender to extend a loan for willing buyers in neighborhoods where home prices are still falling. That means buyers have to put up more money, reducing the number of eligible buyers.

Why isn't more being done to stop foreclosures?
Good question. Congress has been debating this issue for more than a year.

. ....until next week in The Week in Review

Tina