The Week in Review Wilmington NC December 27, 2008

The Week in Review

….your Wilmington Connection

December 27, 2008

We are approaching the end of another year….did you accomplish what you wanted? Never fear another year is around the corner. If one of your goals was to purchase an investment property, now is the best time. With interest rates extremely low and of course propery prices have dropped. But remember spring is around the corner and prices tend to climb a little. So start looking now. Let me know if I can be of some help, we can set up a search and have your properties sent right to you.

Great News for Wilmington

Wilmington named AmongTop Six Cities Where Housing Values have Climbed

News reports have been packed with stories about declining home values, but a recent government report shows that the situation is not nearly so dire as some reports make it sound.

Despite big loses in some areas of the country, the majority of markets continue to show growth in home value over the last five years.

According to the third-quarter survey released by the Federal Housing Finance Agency, out of 292 metropolitan markets, 273 showed positive net home values in the last five years. Only 19 percent were negative.

While home values declined 4 percent on average in the last year, values were up nearly 29 percent over the past five years.

According to the Federal Housing Finance Agency, markets that gained the most over the last five years were:
Honolulu: up 78.7 percent
Virginia Beach: 72.6 percent
Flagstaff, Ariz.: 66.5 percent
Bellingham, Wash.: 65.6 percent
Wilmington, N.C.: 62.1 percent
Baltimore: 60.6 percent

 

Source: The National Association of REALTORS

 

Project paves the way for Brunswick airport growth

Officials will be ringing in the New Year with a relocated Airport Road and a traffic light at its intersection with Long Beach Road. The light is the final step to realigning the road that runs behind the airport in Oak Island.

The new road is necessary to make way for a runway extension that will stretch over the current Airport Road route. The road should be open in the first or second week of January.

“We’re doing this because of the demand for aircraft business,” airport director Howie Franklin said. Franklin and business owners at the airport are hoping to get the rest of the funding needed to expand the airport runway from 4,300 feet to 5,505 feet and add a new hangar.

That extra length will make room for more planes and executive jets, which in turn will fuel the local economy, Franklin said.

A 2006 state study predicts after the expansion the airport will bring $52.1 million to the local economy. The expansion would double the airport’s overall economic impact in Brunswick County and add 132 jobs, according to the study. Franklin said those dollars and jobs include more business at the airport and surrounding hotels, restaurants and shops.

Historic Low Mortgage Rates

 

Mortgage rates remained low last week and many states saw sub-5.00% rates for the first time in recent history. The weekly average rates for 30-year fixed mortgages declined to 4.96%, down from 5.15% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by leading real estate website Zillow.com(R). Rates for 15-year fixed mortgages decreased to 4.91%, down from 5.00% and 5-1 adjustable rate mortgages decreased significantly to 5.54% from 5.94%.

Mortgage Type Average Rate Average Rate % Change
Week ending 12/21/08 Week ending 12/14/08
30-year fixed 4.96% 5.15% -3.7%
15-year fixed 4.91% 5.00% -1.8%
5-1 ARM 5.54% 5.94% -6.7%

Rates for 30-year fixed mortgages remained fairly steady on Monday evening with the average rate on Zillow Mortgage Marketplace at 5.11%.

 

.…until next week in The Week in Review

Tina

How an experienced realtor can help avoid buying a money pit.

An experienced realtor knows the warning signs of a home purchased that is bound to be a money pit. Over time and through the inspections that an experienced realtor will have conducted, help them know what to watch for in order to protect their clients.

 

These things are the areas that when you are looking at paint and carpet your realtor will be looking at foundations and roofs. Here is a basic explanation of the inspections that will help keep your investments safe.

 

These inspections cover areas of the house and property such as appliances, utility meters, electrical wiring, plumbing, fuse and circuit breaker boxes, furnaces, water heater, sinks, toilets, bath tubs, central air, or swamp coolers, and any other electrical or water system that is part of the property.

 

A home is a significant investment that should be a positive experience. However in a situation that the home you purchase has flooding issues, power problems, phone line changes, pipes that are rotted, or any other miscellaneous problem can result in being an on going living nightmare.

 

With this is mind knowing what and who to have completed these inspections with your best interest in mind it very important. You can also review the appraisal that was completed on the home. Your realtor will be able to show you several options that would be able to protect you from these types of issues.

 

There are organizations that help realtors know which inspectors are really making sure the house is up to code. One that is a great resource is NACHIS their web site is located at http://foresighthomeinspection.biz/?D=12. This is the type of contacts your realtor will have to make sure you are getting the best home for your money. No one wants to make a huge investment into something that is going to continue to be a money pit.

 

Some homes have incurable defects. This is a situation that is beyond the standard repair of the home. Some defects are worse than others. If you have never lived next to a train track, be prepared for noise at all times of day and night. This is a form of a defect. Another defect is a freeway that has traffic all the time day and night. Those are defects that we can learn to deal with, however there are some defects that will affect the home and living experience on a much grander scale.

 

There are what is called economic obsolesce. This term is used primarily by appraisers and realtors when there is a bad floor plan, very poor location, located near hazardous things like high voltage power lines, or a city dump. There are also defects that can be very expensive and dangerous that your realtor or agent can make sure you are not stuck with.

 

For example: You find the most charming home, it is a beautiful cottage style, 70 years old, remodeled from what you can see. The neighborhood is safe for kids, with a peaceful back yard with trees and flowers. It is perfect. Or so you thought, three months into the stay, the bad plumbing has problems due to weather, or something, and then your house is filled with sewage. We are not talking water. Now the previous owners new this, they covered it up.

 

The appraisal they have been completed by a family friend who really did not look that close and there was not a good inspection completed. Now you moved your entire family and there is raw sewage all over your carpets and floors. What can you do. The cost for the repairs will be in the range of $10,000 and you have to have the repair done in order to live in the home at all.

 

The pipes out in the yard and into the street are bad. There is no way around it. The responsibility is now yours. This is why you need to have the support of a realtor on your side, making sure this does not become your problem.

 

When you are looking to purchase a home, it is important to have a buyer’s agent or realtor there with you through the process to make sure you are not buying a home that will cost you in the long run.

 

Remember that it does not cost you any extra money to have a realtor or buyer’s agent help you. This is because the commission will be paid in most cases with the commission from the purchase of the house. Therefore there really is no reason not to have the help you need to make a good decision.

The Week in Review Wilmington NC, December 21, 2008

 

 

The Week in Review

…your Wilmington Connection

December 21, 2008

Wishing you and your family every happiness this Holiday Season and prosperity in the New Year.

With the New Year around the corner…..everyone has the same question in mind. What will happen to the real estate market? Are we at the bottom? When will it bounce back. Some say late next year other analyst say not till 2011.

Local Home Sales

The average price of homes closed here in November was $252,331, while the median price – the point at which half of homes sold for more and half for less – was $194,000. Those figures compared with $273,460 and $205,000, respectively, in November 2007.

The figures for the first 11 months of 2008 showed a drop in average price of 5.5 percent compared with the same period in 2007, while the median price was down 3.7 percent. Prices, however, are only of homes sold and do not necessarily reflect the value of homes here in general, although they are one indication.

The number of homes on the market continued to drop in November, but “foreclosure problems are exacerbating inventory. I don’t have any numbers, “but the feeling I get – and it’s from bankers – is that the rate is increasing but is not as great here as elsewhere.” The numbers certainly are not as great as California, Nevada, Florida and other areas of the country.

Take your own look at the data at www.wrar.com. In the left column, click on “local area information,” then “statistical reports for residential real estate sales from the Wilmington MLS.”

 

Positive signs in Cape Fear area

Wilmington’s economy is diversified, but real estate and construction are a major part of the equation here. So anything positive on that front is as welcome as a single week without a major delay on the Cape Fear Memorial Bridge.

Here are some other positive economic signs amid the gloom:

Average mortgage rates fell to their lowest point nationwide – an average 5.19 percent – since the government mortgage firm Freddie Mac began tracking them 37 years ago. Rates have fallen to such a point – one Wilmington firm was quoting a 30-year, fixed-rate loan at around 4.37 percent last week – that refinancers are seeing a way to cut their house payments by a chunk.

For example, a $200,000 mortgage at the early January rate of 6.07 percent would equal a monthly payment of about $1,208 before adding in property taxes and insurance. At 4.375 percent, it falls to about $998.

Builders and real estate agents, of course, are hoping that those same rates will attract buyers into the moribund market here. It’s debatable whether “it’s never been a better time to buy a home,” but first-time buyers can benefit from the new $7,500 U.S. tax rebate to help with the down payment, according to Donna Girardot, executive officer of the Wilmington-Cape Fear Home Builders Association.

.…until next week in the Week in Review

Tina

 

 

Immediate Release HGTV – Wilmington NC realtor My house is worth What?

Wilmington NC Realtor featured on National TV Show HGTV’s MY House is Worth What?

Come November 30^th , there could be an influx of new residents as Seasoned Realtor Tina Abraham with Keller Williams Realty helps put Wilmington in the national spotlight, highlighting Wilmington as an fantastic coastal town.

Wilmington NC (Press Release) November 18, 2008 – The episode which airs Sunday evening (November 30^th, 2008) at 7pm on HGTV, gives the Wilmington community, an opportunity to remind prospective buyers around the country of the very best qualities of the region. Tina sees this as a powerful opportunity to remind prospective buyers of the benefits of buying a home here. “This is the perfect opportunity to “shout out” the great things Wilmington has to offer,” says Tina, “….Wilmington is a great place to relocate for outdoor amenities like boating, year round golf, and of course the beach.

This could not have come at a better time as the market’s economic downturn has played a key role in the sales, buying and building of homes across the 3 counties. Wilmington, like many communities in the Greater Wilmington area, has seen a significant reduction on market value with quite a few of recent foreclosures. “This could be a great shot in the arm for Wilmington,” says Tina optimistically.”….it’s a real opportunity to bring buyers here!”

Having been in the real estate business for years in London, England and the last 3 years here in Wilmington, Tina is of Keller Williams Top Producers. Excited about (the place she calls) her hometown in the national spotlight, Tina lets her enthusiasm show; “This could mean great things for Wilmington!” The episode (episode # 1112) will be posted via a streaming link on Tina Abraham’s website; www.tinaabraham.com starting December 30, 2008. But until then…. Don’t miss the first show November 30^th at 7pm on HGTV! or check out here when is the next one.

The Week in Review Wilmington NC December 7, 2008

The Week in Review

…..your Wilmington Connection

December 7, 3008

Keller Williams had their 2nd Annual Fashion Victims Ball last night.It was a success with alot of hard work for our team. First it’s hard to believe we raised so much money by looking so awful. and wow…..its hard to believe that clothes like that exist. Smile.

Currently in the Wilmington area there are 2728 properties on the market, at the moment about 9 % are under contract which equates to 256. Homes are still getting about 95% of their list price. The 1 million above are actually only getting 92% of their list price. In the last six months 1276 homes have sold. with an overall average days on market being 200.

What Will 2009 Bring?

 

With 2009 rapidly approaching, we must consider the changes that have occurred in our market, and plan for what we will experience in the coming year. While 2009 will be a difficult year for many, it will also bring unprecedented opportunities for the few who choose to adapt now, before it’s too late.

Prices may continue to fall a little, but dramatic price drops such as those we saw between 2006 and 2008 are unlikely.

Affordability will drive an increase in existing-home sales. Proper pricing, as always, is essential.

 

Mortgage defaults will remain elevated as job and economic growth slows and the next significant wave of mortgages reset.

Onward and Upward !

Thank you to those who sent a response to my HGTV stint on My House is Worth What? The comments were a joy to read. You can catch the program again. Click here to find out when.

 

.…until next week in The Week in Review

Tina