Lake Gaston real estate closings in December were down slightly from November but remain positive. In December, there were 22 transactions closed totaling $4,031,750. The closings included 7 waterfront homes, 5 offshore homes, 4 waterfront lots and 6 offshore lots. These totals were slightly behind our December 2011 figures. During the same period in 2011, there were 27 transactions closed totaling $7,388,250. For the same period in 2010, there were 24 transactions closed totaling $7,199,894.
In 2012 there were 304 transactions closed, in the four quads of Lake Gaston, totaling $76,458,050 in land and home sales. Using these figures compared to the same period in 2011, we see a 30.5% increase in unit sales and an increase in dollar volume of 12.8%. Most of our sales remain in waterfront homes which makeup $58,022,700 of the total dollar sales or roughly 76%. These numbers represent sales through REALTORS® with listings in our Multiple Listing Service and do not include private sales.
To put these numbers in perspective, in 2007 there were 573 transactions closed totaling $134,798,305. We are heading in the right direction but have a slow recovery ahead of us. I hope the slight increases will not slow down the growth in housing and jobs. We should see an increase in consumer confidence as we have put much of the “unknown” behind us.
The National Association of REALTORS® (NAR) reported that Pending Home Sales across the United States increased again in November. This is the third month straight that we have seen an increase and pending home sales have reached the highest level since April 2010. NAR also reports Existing-Home Sales rose 5.9% in November and are at the highest levels since November 2009. The November REALTORS® Confidence Index Survey suggests a projected growth in home prices in North Carolina this year to be between 0.5% and 2.0%. Virginia shows an increase between 1.5% and 2.0%.
We made it through the “fiscal cliff” fine. The interest deduction for primary and secondary homes remains intact. The Mortgage Forgiveness Debt Relief Act of 2007 extended through 2013. This act allows struggling homeowners the ability to avoid paying taxes on forgiven mortgage debt from short sales and loan modifications. Homeowners “upside down in their property” have an alternative to foreclosure now. We did see long-term capital gain taxes increase slightly from 15% to 20% beginning in 2013 and the addition of the 3.8% Medicare Tax for high income individuals.
The Federal Government has issued stiff penalties to lenders because of alleged mortgage loan fraud. In the wake of the 2008 financial crisis, several large banks will pay $8.5 Billion to settle charges of wrongfully foreclosing on millions of homeowners. Bank of America will pay an additional $10 Billion to Fannie Mae to settle claims resulting in mortgage-backed investments that soured during the housing crash. The figure includes $3.6 Billion in cash and repurchase $6.75 Billion in loans they sold to the agency.
Most stock analyst predict one sweet spot in the stock market in 2013 will be in housing. Most of the home builders stock realized nice profits in the last 12 months such as Pulte Homes (+171%), DR Horton (+59%), Beazer Homes (+30%) and XHB the Homebuilders ETF which is up 53%.
We are very optimistic about the economic growth in the Lake Gaston area in 2013. As the economy grows and confidence increases we should see an increase in consumer spending.
You can reach Barney Watson at Email: barney@barneywatson.com or Web:http://www.barneywatson.com
