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Here is the latest real facts about North Carolina Real Estate from the North Carolina Association of Realtors for July/August 2010.  There are lots of interesting statistics providing a look at numbers you do not normally hear from the mass media.  Hope you enjoy!

For The Record July-August 2010.pdf

Until next time, drink lots of fluids in the summer heat and be sure to make every day a great day!

Small Is ‘In’, Formal Spaces ‘Out’

By Melissa Dittmann Tracey, REALTOR® Magazine

The sagging economy is influencing home design as more home owners favor smaller indoor and outdoor spaces that are often cheaper to maintain. Forget the formal spaces that are rarely used. Home owners nowadays don’t want to waste space and want to use every square inch of their home.

Home sizes and lots continue to decrease as preferences grow for low maintenance property improvements, according to the American Institute of Architects Home Design Trends Survey for the first quarter of 2010.

“We continue to move away from the McMansion chapter of residential design, with more demand for practicality throughout the home,” AIA Chief Economist Kermit Baker said in a public statement about the survey results. “There has been a drop off in the popularity of upscale property enhancements such as formal landscaping, decorative water features, tennis courts, and gazebos.”

Instead, slightly more home owners than in 2009 say they want open space layouts, informal spaces, a finished basement or attic, and a single-floor plan, according to the survey.

Large, expansive homes, once on top of many home owners’ wish-lists, are being replaced with a preference for more flexible, open and informal layouts that are more conducive for families, Baker said.

But how can you ensure that small space doesn’t feel too cramped? I recently spoke with Jennie Norris, president of the International Association of Home Staging Professionals, who had several tips on how you can Make Small Spaces Bigger. Read some of her tips to get ideas.

Sales Slow but Remain Above Last Year

With the scheduled closing deadline for the home buyer tax credits, existing-home sales slowed in June but remained at relatively elevated levels, according to the National Association of REALTORS®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8 percent higher than the 4.89 million-unit pace in June 2009.

Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said. “Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.74 percent in June from 4.89 percent in May; the rate was 5.42 percent in June 2009.

The national median existing-home price for all housing types was $183,700 in June, which is 1.0 percent higher than a year ago. Distressed homes were at 32 percent of sales last month, compared with 31 percent in May; it was also 31 percent in June 2009.

NAR President Vicki Cox Golder said softer home sales expected this summer don’t tell the whole story. “Despite these market swings, total annual home sales are rising above 2009 and we’re looking for overall gains again this year as well as in 2011,” she said. “Conditions have become more balanced in much of the country, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value REALTORS® bring to buyers and sellers in this market.”

A parallel NAR practitioner survey shows first-time buyers purchased 43 percent of homes in June, down from 46 percent in May. Investors accounted for 13 percent of sales in June, little changed from 14 percent in May; the remaining purchases were by repeat buyers. All-cash sales were at 24 percent in June compared with 25 percent in May.

Total housing inventory at the end of June rose 2.5 percent to 3.99 million existing homes available for sale, which represents an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May.

“The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” Yun said. Raw unsold inventory remains 12.7 percent below the record of 4.58 million in July 2008.

Single-family home sales fell 5.6 percent to a seasonally adjusted annual rate of 4.70 million in June from a level of 4.98 million in May, but are 8.5 percent above the 4.33 million pace in June 2009. The median existing single-family home price was $184,200 in June, up 1.3 percent from a year ago.

Single-family median existing-home prices were higher in 10 out of 19 metropolitan statistical areas reported in June in comparison with June 2009. In addition, existing single-family home sales rose in 12 of the 19 areas from a year ago while two were unchanged.

Existing condominium and co-op sales slipped 1.5 percent to a seasonally adjusted annual rate of 670,000 in June from 680,000 in May, but are 20.5 percent higher than the 556,000-unit pace in June 2009. The median existing condo price was $180,100 in June, which is 1.4 percent below a year ago.

Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 960,000 in June and are 17.1 percent above June 2009. The median price in the Northeast was $244,300, down 1.2 percent from a year ago.

Existing-home sales in the Midwest dropped 7.5 percent in June to a pace of 1.23 million but are 11.8 percent higher than a year ago. The median price in the Midwest was $155,900, down 0.1 percent from June 2009.

In the South, existing-home sales fell 6.5 percent to an annual level of 2.01 million in June but are 11.0 percent above June 2009. The median price in the South was $163,600, unchanged from a year ago.

Existing-home sales in the West dropped 9.3 percent to an annual pace of 1.17 million in June but are 0.9 percent higher than a year ago. The median price in the West was $221,800, up 1.5 percent from June 2009.

Source: NAR-July 22, 2010

Area home sales up for 10th-straight month

By Wayne Faulkner
Wayne.Faulkner@StarNewsOnline.com

Published: Wednesday, July 14, 2010 at 8:28 p.m.
Last Modified: Wednesday, July 14, 2010 at 8:28 p.m.

Home sales in the Wilmington area rose in June, the 10th-straight month that sales have shown year-over-year gains.

Sales of homes in areas covered by the Wilmington Regional Association of Realtors – New Hanover and Pender counties, and parts of Brunswick – rose to 507 last month, compared with 416 in June 2009, according to WRAR figures released Wednesday.

Year-over-year gains began last September, but they reflect comparisons to very weak sales as the nation fell deeper into the recession.

Still, if the trend continues it could indicate that the market here has bottomed and even is modestly rebounding.

Prices of homes sold, however, continued to lag those of a year earlier, according to WRAR statistics.

The average price of homes sold in June was $238,610, down from $256,616 in June 2009.

The median price – meaning half sold for more and half for less – was $188,000 last month compared with $195,205 a year earlier.

Prices are only for homes sold – that is, deals closed – in June and do not necessarily reflect housing prices as a whole. They are, however, an indication of the market's strength.

Prices may be weighed down because of the number of so-called distressed sales – foreclosures and short sales – which have increased steadily over the last year.

You know you have made a great relocation choice when the place you have chosen to make your new home makes the latest Relocate America Top 100 Cities list.  Click on the link below to see the cities throughout the United States that made the Top 100 and be sure to click around on the site for lots of other interesting information.

http://www.relocateamerica.com/top-100-cities/

If you would like more information on the many things the Greater Wilmington, NC area has to offer, be sure to give me a call at 910.228.9893.  Now, that is what I call Making Real Estate Easy! 

RISMEDIA, July 7, 2010—Most families with young children live within a mile of a public elementary school. The most common home heating fuel in the U.S. is gas. Only a third of American homes have a working carbon monoxide detector. These are just some of the findings of a comprehensive national sample of the more than 130 million residential housing units released recently by the U.S. Department of Housing and Urban Development.

HUD’s 2009 American Housing Survey (AHS) provides one of the most thorough views inside the homes of millions of Americans and reveals everything from the square footage of the unit to how many homes have front porches, garages or even usable fireplaces. First conducted in 1973, the survey’s long-term design allows analysts to trace the characteristics of U.S. housing units and their occupants. For example, the 2009 survey reveals that significantly more American homes are larger and have more bedrooms and bathrooms than homes 37 years ago. In addition, homes of 1973 were significantly less likely to have central air conditioning and other amenities considered commonplace today.

“This important survey provides us a clear picture of the American home and its occupants,” said Dr. Raphael Bostic, HUD’s Assistant Secretary for Policy Development and Research. “The housing crisis makes clear the need for continued collection of high quality housing data to help us understand housing markets. The numbers behind this survey not only provide valuable information on the composition of our housing stock, but they also help us monitor the mortgage markets, measure worst-case housing needs and inform our policy choices.”

The 2009 AHS includes enhanced data for five metropolitan areas: Chicago, Detroit, Philadelphia, New York and Northern New Jersey. For the first time ever, the AHS also includes data on disability status of household members. The new AHS also includes two independent metropolitan surveys of New Orleans and Seattle. Last conducted in 2004, the New Orleans survey in particular will provide an in-depth progress report of the redevelopment of the metro area following the hurricanes of 2005.

There are 130,112,000 residential housing units in the U.S.; 86% of these are occupied. The median age of ‘the American home’ is 36 years, though the survey finds that homes newly constructed since the 2007 AHS are generally larger, more expensive, have more bedrooms and bathrooms and are more likely to include amenities such as central air conditioning. Some of the other key findings of the 2009 AHS include: 68% of U.S. homes are owner-occupied; 51% are located in suburban areas; 29% in central cities; and 20% outside metropolitan areas; and 18% are located in the Northeast; 23% in the Midwest; 37% in the South; and 22% in the West.

Unit size
-The median size of an occupied home is 1,800 square feet (compared to 1,610 in 1985, the earliest year this information was collected), with owner-occupied units being larger than renter-occupied ones. Newer Homes are also usually larger, with a median size of 2,300 square feet.
-Median lot size for single-family homes, including mobile homes, is 0.27 acres (compared to 0.36 acres in 1973) with owner-occupied units generally having more land than renter-occupied ones.

Rooms
-Most homes (53%) have six or more rooms, with owner-occupied units generally having more rooms than renter-occupied ones. In 1973, only 39% of homes had six or more rooms. Newly constructed homes generally have more rooms – 65% have six or more rooms.
-Most homes have three or more bedrooms (64% compared to just 48% in 1973). -New homes generally have more bedrooms – 80% of them have three or more bedrooms.
-More than half of U.S. homes (51%) have two or more bathrooms compared to just 19% in 1973. Again new units have more bathrooms, with 89% of them having two or more bathrooms.

Equipment
-All units have a refrigerator and kitchen sink and almost all homes (99%) have a cooking stove or range. Overall, 98% of units have a full kitchen.
-The most commonly used cooking fuel is electricity (60%) followed by piped gas (35%).
-Two-thirds of the homes (66%) have a dishwasher, 51% have a disposal in the kitchen sink and 3% have a trash compactor. New units are more likely to have these amenities.
-More than eight in ten homes have a washing machine (84%) and clothes dryer (81%).
-About two-thirds of U.S. homes (65%) have central air-conditioning and another 21% have window units – new units are more likely to have central air-conditioning (89%). By contrast, only 17% of U.S. homes had central A/C in 1973 although 30% contained window units.
-About nine in 10 homes (93%) reported a smoke detector while 36% reported having a working carbon monoxide detector.

Heating
-About two-thirds of U.S. homes use warm-air furnace for heating; 12% use an electric heat pump; and 11% use steam or hot water system.
-The most commonly used home heating fuel is piped gas (51%) followed by electricity (34%), though new units are more likely to use electricity.

Plumbing
-Almost all units (99%) have complete plumbing facilities.
-The most commonly used fuel for heating water is piped gas followed by electricity.
-More than eight in ten units (88%) receive water from a public system or private company, and the remaining units received water from wells.
-More than nine in ten households rated their water as being safe.
-Eight in ten units use the public sewage disposal system and 20% use a septic tank, cesspool or chemical toilet.

Amenities
-Most homes have a telephone (98%), porch, deck, balcony or patio (85%) and a garage or carport (66%).
-About half (48%) have a separate dining room and three in ten units (30%) report two or more living rooms or recreation rooms.
-About one-third (35%) have a usable fireplace.
-New construction is more likely to have all these amenities.

Neighborhood
-95% of units are located close to a grocery or drug store, and 97% of residents with access were satisfied with the stores near them.
-Slightly more than half of U.S. homes (54%) are located near public transportation, with about seven in ten of the residents (71%) living in these units saying that they live within a 10 minute walk to such transportation. However, just 17% of households living near public transportation report using it for commuting or school.
-Most communities (90%) do not have secured entrances, though new construction is more likely to be in secured communities. Residents, overall, were satisfied with police protection in their communities (91%).
-Most residents reported that their neighborhoods did not have vandalized buildings (88%), barred windows (84%), and trash, litter or junk (89%). However, 40% of residents said that their streets needed repairs.
-Nearly half the households (45%) had access to community amenities such as a community center or clubhouse, trails, golf, daycare, shuttle bus or private beach or park area.
-Noise from traffic was a problem reported by almost one-quarter of residents (23%), though fewer residents of new construction found this to be a problem (15%).
-Six in ten households with children under the age of 14 years (60%) said that there was a public elementary school within one mile of their homes.
-Less than one in ten households with someone 55 years or older (7%) reported living in an age-restricted community.

For more information, visit www.hud.gov.

Many Small Banks Wary of Lending

Smaller banks used to be a great source for home buyers and those looking to refinance their loan into a better deal, but with more small and regional banks facing financial problems, this resource is disappearing.

More than 700 banks are on the FDIC’s confidential “troubled bank” list, up from 50 troubled banks a few years ago.

John Dugan, U.S. Treasury’s comptroller of the currency, says that the banks that are in trouble have similar issues -- excessive concentrations in commercial real estate lending, especially construction and development lending. Smaller banks held about half of the defaulting commercial real estate loans.

Source: HousingWatch.com, Bendix Anderson (06/08/2010)