June 7, 2008
Lynnsy Logue The Real Estate Lady® and Condo CanDo® in Charlotte, NC
Home prices back to earth…and the Charlotte Scene
Housing turmoil has yielded one benefit: more reasonable prices. Homes in just eight U.S.metropolitan areas were overpriced by 35 percent or more as of the first quarter of 2008, down from a peak of 53 in the second quarter of 2006, according to a study by Global ln sight and National City Corp. The median price of a U,S. home slipped at an annual 6.7 percent rate in the first Quarter due to weak demand, rising foreclosures and fewer sales of high-priced homes. This marked the third consecutive quarterly decline for home prices. California, Florida and Michigan were the hardest hit areas, accounting for 45 of the 50 biggest metro-area price declines, while several regions in the Northwest were still overvalued.The study based its regional valuations on factors such as current and historic home prices, interest rates, household incomes and population density. The study’s authors doubt the housing slump is over, given cost pressures on consumers and tight credit markets, which make mortgages less accessible. “There is also excess supply that needs to be absorbed, plus the rate of foreclosures entering the market needs to slow down before housing can begin to pull out of its current downward trend”, says Jeanine Cataldi, senior economist and manager of Global Insight’s Regional Real Estate Service.
So what I am reading here is:
1. More reasonable prices.
2. Qualified buyers, this is a good time to purchase.
3. Do your homework when looking at a sales price
4. Ask about number of foreclosures in immediate area and next quadrants
5. Ask about the number of building permits in the last quarter
6. FHA seems to be capturing the mortgage business…and VA where applicable
7. Excess supply needs absorption
8. Foreclosures need to slow down
From my own vantage point, builders who have inventory are more willing to negotiate closing cost, purchase price and most recently for one of my buyers, paying off the termination of an apartment lease.
And if the government is more and more involved in mortgages, make sure to allow time for reviews and delays. It is the government.
In Charlotte, one of our biggest challenges is for the folks needing to sell their homes in other parts of the country so they make a purchase here. And there other good markets around the country as well. Here is a chart comparing 01-06-07 to the same period 08.
Off we go into another week with interviews on our podcasts and photos on the blogs.
Lynnsy Logue The Real Estate Lady® and Condo CanDo® in Charlotte, NC
Lynnsy Logue The Real Estate Lady® and Condo CanDo® in Charlotte, NC
Home prices back to earth…and the Charlotte Scene
Housing turmoil has yielded one benefit: more reasonable prices. Homes in just eight U.S.metropolitan areas were overpriced by 35 percent or more as of the first quarter of 2008, down from a peak of 53 in the second quarter of 2006, according to a study by Global ln sight and National City Corp. The median price of a U,S. home slipped at an annual 6.7 percent rate in the first Quarter due to weak demand, rising foreclosures and fewer sales of high-priced homes. This marked the third consecutive quarterly decline for home prices. California, Florida and Michigan were the hardest hit areas, accounting for 45 of the 50 biggest metro-area price declines, while several regions in the Northwest were still overvalued.The study based its regional valuations on factors such as current and historic home prices, interest rates, household incomes and population density. The study’s authors doubt the housing slump is over, given cost pressures on consumers and tight credit markets, which make mortgages less accessible. “There is also excess supply that needs to be absorbed, plus the rate of foreclosures entering the market needs to slow down before housing can begin to pull out of its current downward trend”, says Jeanine Cataldi, senior economist and manager of Global Insight’s Regional Real Estate Service.
So what I am reading here is:
1. More reasonable prices.
2. Qualified buyers, this is a good time to purchase.
3. Do your homework when looking at a sales price
4. Ask about number of foreclosures in immediate area and next quadrants
5. Ask about the number of building permits in the last quarter
6. FHA seems to be capturing the mortgage business…and VA where applicable
7. Excess supply needs absorption
8. Foreclosures need to slow down
From my own vantage point, builders who have inventory are more willing to negotiate closing cost, purchase price and most recently for one of my buyers, paying off the termination of an apartment lease.
And if the government is more and more involved in mortgages, make sure to allow time for reviews and delays. It is the government.
In Charlotte, one of our biggest challenges is for the folks needing to sell their homes in other parts of the country so they make a purchase here. And there other good markets around the country as well. Here is a chart comparing 01-06-07 to the same period 08.
Off we go into another week with interviews on our podcasts and photos on the blogs.
Lynnsy Logue The Real Estate Lady® and Condo CanDo® in Charlotte, NC
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