Lake Gaston Real Estate Update - End of Sept

The news about the economy and housing is confusing but remains positive.  The Pending Home Sales Index declined 2.6 percent in August over July.  The data, compiled by The National Association of REALTORS, reflects properties under contract but not closed. 

The housing market is “The lone bright spot in the economy.” That is according to The September UCLA Anderson Forecast, a new economic report just released. Low interest rates, slightly increased sales prices and reports of a steady economy are helping.

The Federal Housing Finance Agency reports that US home prices have increased 3.7 percent from a year ago.  S&P/Case-Shiller released a report also showing home prices on the rise for the fourth consecutive month. They are at their highest levels in nearly two years.  They report home prices in their 20 major city index are up 1.2 percent compared to a year earlier.  According to the Zillow Home Value Index home values have declined 0.1 percent in August from July but up 1.7 percent from August 2011. 

According to Fiserv, an analytics firm, home prices still have a long way to go before returning to the peaks experienced during the housing boom.  In a recent report, they explained that from 2007 to 2012, home prices nationwide fell by a third on average.  Home prices are rising now and many economists predict continuance. However, Fiserv’s projecting we may not return to peak levels until 2023, if then.

For the Lake Gaston real estate market; in September 2012 we closed 17 waterfront homes, 12 off-shore homes, 3 waterfront lots and 1 off-shore lot for a total value of $8,274,750 compared to 18 total properties in September of last year for a total value of $3,660,004.   Our overall sales (lots and homes) total 226 units and $58,569,715 for the first nine months of 2012 compared to 173 units and $53,065,871 in the first nine months of 2011 or an increase of 10.4% in sales dollars and a 30.6% increase in units.  To put these numbers in perspective, the first nine months of 2008 we experienced closed sales of $74,067,882 and in 2007 the same period yielded $103,061,740 in sales.  We currently have 19 waterfront homes under contract, waiting to close, along with 9 off-shore homes and 7 waterfront lots. All of these sales numbers are from our Multiple Listing Service and do not reflect private sales which will have minimum impact.

Moving Forward

After the Presidential Election, the cloud of confusion over the housing market should drop. Some surveys say as many as twenty-five percent of Americans are holding off on major buys until they know who will hold the President-elect position.

As employment strengthens so should the housing market.  A huge part of our recovery relies on folks getting mortgage approval. With the new Dodd-Frank Wall Street Reform Act banks and financial institutions are, to some degree, paralyzed.  Regulators are forcing banks to increase capital requirements and urging them to reduce risks.  For banks to sell their loans in the secondary market, the loans must meet the new requirements.  Banks who lend without meeting the new requirements risk having to buy back their loans from Fannie or Freddie.  One banker stated “We don’t process a loan for credit anymore: we process the loan for Dodd-Frank compliance.”

There is no doubt the mortgage industry needed different regulation.  One could say our industry received a cleansing, by reducing (or eliminating) the abusive lenders in the subprime market.  The housing collapse has definitely created awareness.  We are seeing better quality lenders, REALTORS, appraisers and people that are more conscientious.

Barney Watson with RE/MAX On The Lake and can be reached at 252-532-3274 or www.barneywatson.com

Lake Gaston Real Estate Update

The news about the economy and housing remains positive.  The National Association of REALTORS reports the Pending Home Sales Index rose 2.4 percent in July over June.  The data reflects properties under contract but not closed.  The index is at the highest level since April 2010.  This marks the fifteenth consecutive month of improvement in contract activity.

The National Association of Homebuilders also reports their builder sentiment index increased two points to its highest level since March 2007.  Across America consumers appear upbeat and are investing in their homes. Home Depot the nation’s largest home improvement retailer reports; sales of paint, bathroom accessories and kitchen installations helped improve their net income in the second quarter by 12 percent.

According to the Commerce Department new home sales in the United States rose 3.6 percent in July. This matched a two-year high reached earlier this year and it is the latest sign of a steady recovery in the housing market. This news and the improving employment numbers are great for the economy. Though new homes represent only a small portion of the overall housing market, they have a disproportionate impact on the job market.  The National Association of Home Builders statistics show: Each new home built creates an average of three jobs for a year and produces about $90,000 in tax revenue.

For the Lake Gaston real estate market; we had 32 waterfront homes close in August for a total value of $7,642,790 compared to 37 in August of last year for a total value of $11,191,867.  We had 7 offshore homes close this August compared to 8 in August of 2011.  Waterfront lot sales are increasing.  The first eight months of 2012 we have closed on 33 waterfront lots compared to 14 in 2011.  Our overall sales (lots and homes) total $49,763,465 for the first eight months of 2012 compared to $49,405,867 in the first eight months of 2011 or an increase of 0.7%.  To put these numbers in perspective, the first eight months of 2007 we experienced closed sales of $91,928,326.  We mentioned pending sales earlier in the article.  We currently have 29 waterfront homes under contract, waiting to close, along with 16 off-shore homes and 11 waterfront lots. All of these sales numbers are from our Multiple Listing Service and do not reflect private sales which will have minimum impact.

We are seeing new home construction of custom-built homes over the entire Lake Gaston area.  A decreasing inventory of quality pre-owned homes and an increase of waterfront lot sales adds up to buyers opting to build in order to get their dream home.

Now is a great time to buy or sell in the Lake Gaston area.  When selling, remember to price your property correctly the first time. Buyers are looking for a good value, a property priced according to the current market conditions.  The economy is improving and consumer confidence is increasing. We are starting to see buyers that were on the sidelines are coming forth searching for their vacation or investment property.  Remember if you buy and sell property in the same type of market you will win every time.  

You can reach Barney at http://www.barneywatson.com or email: barney@barneywatson.com

LAKE GASTON REAL ESTATE MARKET UPDATE

By: Barney Watson REALTOR - Broker with RE/MAX On The Lake

We continue to hear positive news about the housing market across America.  A recent article in the Wall Street Journal stated in certain markets housing prices are on the rise.  In many markets foreclosures have slowed which helps create slightly higher prices. Sold foreclosures reduce the amount of inventory on the market.  Interest rates remaining at record low levels are also helping the housing market gain momentum.  National Association of REALTORS also reports new housing starts are on the rise.  The home builder index (XHB) shows a gain of 25.94% YTD and other home builder stocks have nice year-to-date gains as well.

The Consumer Confidence Index increased to 65.9 in July from 62.7 in June. These levels are well below the 90.0 level which indicates a healthy economy.  The index fell to a record low of 25.3 in February 2009.  Most consumers have a better view of the job market as well, maybe not immediate but within six months.  U.S. Consumer spending remains flat while income levels increased slightly.

 

In July of 2012 there were 21 properties in the lake area closed for a total of $6,284,950.  In July of 2011 there were 20 properties closed for a total of $7,894,000.  The first seven months of 2012 we have experienced a total of 154 closed transactions totaling $41,010,200 as compared to 118 transactions in the same period of 2011 totaling $38,214,000 or up 7.3%.  Leading in sales are waterfront homes with 80 sold this year for a total of $30,526,675 in 2012.  The first seven months of 2011 we saw 65 waterfront homes sold for a total of $33,075,250.

The average selling price of a waterfront home on Lake Gaston in the first seven months of 2012 was $381,583 as compared to $508,850 in 2011 and $462,394 in 2010.  We have seen buyers purchase lower priced waterfront properties in need of repair and/or major remodel.   Another factor in the decrease of the average selling price is the difficulty in some cases to obtain financing.  Lenders are very cautious in processing mortgage loans.

Currently the lake area inventory of waterfront homes is on the decline.  Buyers continue to search for value in properties, not necessarily bargains but the most value available for the amount they have to spend. 

Most buyers begin their search for Lake Gaston property on the internet before they decide on a REALTOR.  Buyers have more tools available such as county websites, mapping sites, educational blogs and MLS sites than ever before.   A property listing must hold the buyer’s attention or it loses out.  Mostly, when a buyer finds a property they like, they will begin to research that property.  They easily find the assessed value, date bought and purchase price.  They can go to sites such as Google Earth to check out the neighborhood.  Zillow, a real estate website which offers clients a “Zestimate” on the property.  Other real estate websites offer similar features.  Sometimes buyers have a predetermined value of various lake properties.  An experienced, educated REALTOR can bring them up-to-date on the current market conditions.

When selling, setting the price correctly in the beginning is vital.  The National Association of REALTORS and local market statistics have confirmed an interesting trend….Homes that have price reductions take three times longer to sell and normally bring less than market price.  Buyers are not looking at overpriced listings.  What’s the only reason a property does not sell?  Answer is Price.  Incorrect pricing equals a longer marketing time.  A longer marketing time equals less money in your pocket.

So far 2012 is shaping up to be a fantastic year in real estate at Lake Gaston, we are excited about our future.

Barney Watson with RE/MAX On The Lake can be reached at 252-532-3274 or at www.barneywatson.com.   

Lake Gaston Real Estate Market Update Jan - June 2012

Lake Gaston Real Estate Market Update

By: Barney Watson – Broker / REALTOR® with RE/MAX On The Lake

The Lake Gaston real estate market showed a positive increase in business for June. There were 33 closed transactions, totaling $9,189,250, compared to 16 closed transactions totaling $3,559,000 in June 2011. Most closings went under contract in May. Our overall Lake Gaston market of homes and land is up 34.0% in unit sales and 10.5% in dollar volume compared to the same six months of 2011. Waterfront homes are up 22.2% in units and down 3.7% in dollar volume. Waterfront lots are up 177.8% in unit sales and up 208.2% in dollar volume. We also saw an increase in offshore homes.

Clients ask, “Will we ever see a normal market again?” I’m not sure anyone knows what normal is. Our total sales, through June of this year, were $33,225,500. Back in 2007 our first six months sales totaled $64,824,776. I don’t know if we’ll ever see those days again? Currently the Lake Gaston market is heading in the right direction. Buyer activity is steady and I’m still optimistic.

It's hard keeping a positive attitude when negativity claims the news. This week I saw several news agencies commenting on a report made to Congress by the Government Accountability Office. The report looked at two programs in the Federal Housing Administration during 2009. The mortgage insurance program and the First Time Home Buyers Credits, both part of the governments “Recovery and Reinvestment Act” aimed at easing the mortgage crisis for homeowners. The Government Accountability Office said, “In 2009 the Federal Housing Administration insured more than $1.44 billion in mortgages for 6,327 borrowers who at the same time had delinquent tax debt and benefited from the Recovery Act. According to Internal Revenue Service records these borrowers had an estimated $77.6 million in unpaid federal taxes as of June 30, 2010.” 

One article explained that a person can be a deadbeat taxpayer and still be legal to receive help from the Federal Housing Administration it depends on the program applied for. Tax debtors can receive help from the First Time Home Buyers Program, but not from the mortgage insurance program. With this group of 6,327 people examined, about half had received help from the mortgage insurance program, according to the report or audit. Still the Government Accountability Office noted they could not determine, “the proportion of borrowers who were ineligible” because of tracking each applicant. So they tracked a sampling of eight borrowers. They said, “We found that five of our eight selected borrowers were not in valid repayment agreements at the time they obtained Federal Housing Administration mortgage insurance.” The Government Accountability Office said deadbeat taxpayers can be three times more likely to default on their loans and that can put the Federal Housing Administration at an increased risk.

What’s the resolve? The Internal Revenue Service and the Federal Housing Administration need to improve procedures and communicate better. . . . Well, that’s nothing new! I sure hope they start listening soon.

Yes, the housing market across the US is showing improvement, but I feel more help from our Federal Government would help us along. Most analysts agree that a solid economic recovery won’t happen until there is improvement in the housing market and unemployment.

Here, on Lake Gaston, we should count our blessings each day. Lake Gaston is a great place to live, raise a family, vacation and invest in!

Barney can be reached at 252-532-3274 or visit him at www.barneywatson.com.

Lake Gaston Real Estate Update

By Barney Watson – Broker / Realtor^®  with RE/MAX^® On The Lake

 

January 1 through May 31, 2012 real estate sales are up 17.9% in units and down 8.2% in dollar volume, when compared to the same period in the prior year. The figures reflect a combination of homes and lots sold in the Lake Gaston area. 

Waterfront home sales are down 2.0% in units and down 22.8% in dollar volume.  Waterfront lot sales are finally showing signs of recovery and off-shore home sales are showing improvement as well. Off-shore lots lag behind, generating slim demand over the last four years.  Also noted, new construction and home remodels are increasing for the Lake Gaston area.

Our 2012 buyer activity has been steady, but as summer approaches we are hopeful for an increase.  What are buyers looking for? The amount of inventory currently on the market has buyers searching for a good value.  They look for a property that’s priced correctly, in good condition and meets their overall needs. Buyers seeking waterfront property focus on the view, water depth and the useable water frontage.  The number one, most important, issue for all buyers is always correct pricing.

With improving consumer confidence and low interest rates I remain optimistic.  2012 will turn out to be a good year for the Lake Gaston market.

Barney can be reached at 252-532-3274 or visit him at http://www.barneywatson.com/

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Review of 2011 & Forecast for Lake Gaston Real Estate 2012

Jan 30, 2012


The Lake Gaston real estate market continues to improve. We have experienced an increase in buyer activity in the last six weeks or so. Waterfront homes sales increased in 2011, but off-shore property and waterfront lots have lagged behind.

Year End figures showed: 120 waterfront homes and 58 off-shore homes sold in 2011, for a total of just over sixty-one million dollars. Waterfront homes sales were up 11.1% in units and 11.4% in dollar volume over 2010. Off-Shore homes lagged behind, the same period of 2010, down 22.7% in units and down 33.4% in dollars. Our total real estate market, homes and land was down 7.6% in units and up 4.1% in dollars over 2010. We currently have 23 homes in our MLS under contract which total slightly over 7.6 million dollars.

Together with the interest rates staying at ridiculously low levels and consumer confidence increasing slightly, we are anticipating a fantastic year for real estate in 2012 at Lake Gaston. Yesterday the Federal Reserve announced they anticipate leaving rates low through 2014.