Lake Gaston Real Estate Update End of Jan 2013

by: Lake Gaston Real Estate Specialist Barney Watson (Broker/Realtor with Re/Max On The Lake)

If you are thinking about selling your Lake Gaston property this year, then now is the time to begin. I recommend interviewing several full-time local REALTORS® to start.  A good working relationship, one with an open line of communication, between the REALTOR® and client is important.  All Lake Gaston agents have access to the current market statistics, which your agent should discuss with you. Ask for a written copy of these statistics.  It should reflect what the agent told you. With your own copy, you can review the data at your leisure. Ask for comparable properties that have sold in the last 6 to 8 months. Sales before this period do not reflect the current market.  Always remember the market changes throughout the year. You may need to adjust your asking price during the listing period. Once you receive an offer on your property, the lender will order an appraisal for the new buyer. The offer will fall through if the property does not appraise for the contract price. Your property will go back on the market if this happens. Remember buyers do not look at overpriced properties and experienced REALTORS® are reluctant to show overpriced listings.

There is no doubt the real estate market is on the road to recovery.  Nevertheless, the improvement in the housing market has not treated all home sellers equally.  Some well-priced properties in good condition are going under contract within weeks while others are taking longer.  Please keep in mind the housing market is coming out of the worst recession since the Great Depression.  This is never far from most buyers’ minds.  However, plenty agree this is a great time to buy correctly priced real estate.

Sellers often comment, “We can always come down on our price after we receive an offer.”  I have heard this a thousand times. Buyers will not waste their time making an offer on an overpriced property.  Overpriced property sends a signal to the buyer the seller is unrealistic.  Most experienced agents will not waste their client’s time to look at overpriced listings.

Remember, the market decides the selling price of a property – neither the seller nor the REALTOR®. Again, make sure you and your agent discuss current written market statistics before deciding on a listing price.

Lack of showings will point to an overpriced property. Most buyers will view showings several times before making an offer.  Let your real estate agent know you want feedback from all showings, the good and the not so good.  This information is valuable and may help you in adjusting the asking price.

In January we closed 16 properties for a total of $5,061,650 as compared to 11 properties in January 2012 totaling $3,127,000.  We are seeing an increase in potential buyer activity.

If you are thinking of selling your Lake Gaston property, now is a good time to get started with the process of choosing the right REALTOR®.

Listen to Barney's Video about the real estate market for the Lake Gaston NC & VA area.

Lake Gaston Real Estate Year End Update

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

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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