Wilmington NC Real Estate Guide

Wilmington NC Real Estate

Good news – Our Unit Sales and Average sold price are up, mortgage rates are at an all time low. Lawrence Yun – NAR Chief Economist has noted that the tax credit has broadly stabilized home prices. “Without the tax credit, there will be more aggressive price negotiations between buyers and sellers. The key test on whether the housing market can stand on its own without stimulus medicine will depend critically on private sector job creation in the second half of the year. We’ll also keep a close eye on market conditions on the Gulf Coast. If jobs come back as expected, the pace of homes sales should pick up later this year and reach a sustainable level of activity given very favorable affordability conditions,” Yun said. We have a lot of opportunities for growth in our area.

We have 10 months of growth in sold units over the same time frame from a year ago. June had an increase in sold units over May and an increase in the average sold price of 8.2%. The median price saw an increase of .8% over last month. Our pending index is down about 18.7% from last month. It appears that about May 3rd our pending index peaked (see chart), this coincides with April 30th deadline for first time homebuyers to be under contract. The other adjustment is the fact that Realtors have to report transactions to the MLS within 3 days.

In the month of June we saw an increase of 65 homes in our listing inventory, we have 5,729 homes on the market as of July 1st.  This continues to put us in a strong buyer’s market with a listing inventory of over an 11.3 month supply. Our average list price has stayed below the $400,000 range for ten months; we are currently at $380,567. Our rolling 12 months (year over year) shows a gain of 694 units or 16.9% gain. In June we saw an increase in our seller concessions, it is now 30.8%. Our average days on the market are 119. The list to sold ratio is 94.4% and is down .1% from last month; this number needs to continue to get better. The number of homes that sold in 15 days or less continues to remain very low, 20.4% of June sold homes. The 30-year fixed-rate mortgage (FRM) averaged 4.57% with an average 0.7 points for the week ending July 8, 2010. Have a great week and let me know what I can do to help you and your clients.

Despite all the media comments about our markets we are still lending money for residential mortgages. If a client has income and credit and some sort of down payment; they can get a mortgage. It goes to the basic three C’s – Capacity, Collateral and Character.

Wilmington NC Homes for Sale

In June we saw an increase in homes for sale of 65 units. We are about 294 units over July 1, 2009. We have 5,729 single family homes for sale in our MLS. The average list price of $380,567 is down by $6,057 from last month. The average list price has decreased by 8.8% from July 1, 2009.

Monthly Average Sold Price

Our monthly average sold price is up by 8.2% from last month and down 4.8% from June 2009. Our average sold price is up by $18,197 from last month. June average sold price ($238,986) shows an increase of 2.0% from year end 2009. Our average sold price had its first considerable increase since February. We can tie this to our peak pending index on May 3rd and the original tax credit deadline of June 30th (this has been extended to September 30, 2010 by Congress).

Monthly Sold Units

The number of sold homes is up 15.5% from last month and up 21.6% from June 2009 and we are up 12.9% from June 2008. June saw an increase of 90 sold homes over June 2009. This is our tenth monthly increase in year over year sold homes since September 2005. No doubt in my mind the First Time Homebuyers Tax Credit has contributed to this increase in sales units. I am concerned that with the tax credit removed as an incentive we will see a decrease in our sales as we approach the fall.

Average Sold Price Year to Date

Year over year our year to date numbers have dipped a little.

2003 year end average sale price $ 186,137

2004 year end average sale price $ 210,048

2005 year end average sale price $ 254,080

2006 year end average sale price $ 264,498

2007 year end average sale price $ 273,408

2008 year end average sale price $256,498

2009 year end average sale price $234,379

2010 year to date average sale price $226,880

While our current year to date numbers are lower than Year End 2009 they do show promising signs that our sales are on the upswing. The first six months of 2010 has a 443 sold unit gain over first six months of 2009. The average sales price is down 3.7% for the first six months of 2010 than the first six months of 2009. Our median sales price is just 2.2% behind 2009.

Rolling 12 months

Another bright spot is the rolling 12 month numbers. When we look at July 1st, 2009 to June 30th, 2010 we have 4,810 sold units and when we compare July 1st, 2008 to June 30th, 2009 we have a 694 unit gain (4,116 sold units). When we look at the same rolling 12 months for average sold price we see that we are only down by 5.5%. So the dates of 7/1/2009 to 6/30/2010 we have an average sold price of $230,213 while from 7/1/2008 to 6/30/2009 we had an average sold price $243,596.

Median Sold Price

Our Median sold price is up .8% from last month, about $188,500. While we have not dipped as low as the National Median we seem to have turned the corner while the national median is showing a slight increase. I would anticipate over the next couple of months to continue to see this median increase.

Pending

Pending Sales – A sale is listed as pending when the contract has been signed but the transaction has not yet closed. Sales are typically finalized within one to two months from signing. I look at the total pending units on a regular basis and this is how they chart out. We saw our pending index turn back to its upward climb about the first week in January. We saw our peak pending numbers about May 3rd. We are down 21% from last month and we are down 31% from our peak on 5/3/10. With the tax credit benefits expired it will be interesting to see if our sales can improve going into late summer and early fall.

Market Absorption rate – The number of homes sold in June, 506 divided by the current listing inventory, 5,729 gives us an 11.3 month supply of single family homes. This decreased by 1.7 months from last month. This is good to be under 12 months. With rates where they are and plenty of inventory; we can get this number down.

List to Sold price ratio – the average list price of the sold properties is $253,292 and the average sold price is $238,986 for June which gives us a 94.4% list to sold price ratio – a decrease of .1% from last month. We have now managed to stay under 95% for over a year.

Seller Concessions – We had 30.8% of sold properties report a sales concession for June, an increase of 2.4%. We want this number to go lower.

Days on Market – The average days on market for the sold properties is now at 119 for June. That is almost 5 + months to keep a property on the market. Only 20.4% of the properties were placed under contract in less than 15 days for the month of June.

Carolina & Kure Beach

There are currently 516 single family homes for sale and this represents an 18 unit decrease over June 1, 2010 and 9.0% of our total WRAR inventory. The average list price is $418,525 an increase of about $3,047 from May. In June there were 27 homes sold, divide that by the homes available and you have a 19.1 monthly supply of homes in Carolina and Kure Beach. The average sold price for the month of June was $366,246 and is up $85,443 from last month. When we look at our rolling 12 months July 1, 2009 to June 30, 2010 we have 295 homes sold at an average price of $293,076. While July 1, 2008 to June 30, 2009 we had 248 homes sold at an average price of $323,910.

This data was pulled on July 10, 2010, based on information from the Wilmington Regional Association of REALTORS Incorporated, for the period Jan. 1, 2005 through June 30, 2010.

The Market

30 year fixed rate mortgage drop slightly to create another new low

Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 4.57 percent with an average 0.7 point for the week ending July 8, 2010, down from last week when it averaged 4.58 percent. Last year at this time, the 30-year FRM averaged 5.20 percent. This rate is yet another all-time low in Freddie Mac’s 39-year survey.

“With mortgage rates falling to historic lows, refinance activity has been strong over the past three months,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The Bureau of Economic Analysis reported that the effective mortgage rate of all loans outstanding was just below six percent in the first quarter of 2010, the lowest since the series began in 1977. Since the start of the second quarter, two out of three mortgage applications on average were for refinancing, according the Mortgage Bankers Association.

“Household balance sheets also improved in other ways over the first three months of the year. The Federal Reserve (Fed) reported household net worth rose by almost $1.1 trillion in the first quarter of 2010. The share of credit card loans that were 30-days or more past due fell to the lowest since first quarter of 2002, according to the American Bankers Association. Finally, the aggregate household debt burdens were at a level not seen since the third quarter of 2000, based on the Fed’s debt service ratio.”

Thanks to David Flory of Cunningham Mortgage .
Cunningham & Company is a full service Mortgage Banker – we handle everything in house. We do first time buyers, USDA, FHA and VA loans, Conventional and Jumbo Loans, 100% financing and we have a large selection of adjustable rate loans as well as several interest only programs. You may reach David at 910 352-8273

Coldwell Banker real estate continues to receive awards for their innovative marketing especially in the Wilmington NC real estate market.  The Latest award was for “On Location” YouTube Channel, for the Real estate Category.  Below is the letter from Corporate headquarters for Coldwell Banker Realty.

Coldwell Banker Sea Coast realty and Kay Baker and Associates continue to strive for new ideas and creative outlets for marketing of Wilmington NC real estate.  Visit http://www.cbbaker.com/

COLDWELL BANKER REAL ESTATE WINS COMMUNICATOR CREATIVE EXCELLENCE AWARD FROM INTERNATIONAL ACADEMY OF VISUAL ARTS

Brand’s ‘On Location’ YouTube Channel Honored in Real Estate Website Category

PARSIPPANY, N.J., (July 7, 2010) – The International Academy of the Visual Arts has named Coldwell Banker On Location, the brand’s YouTube channel, a recipient of this year’s Communicator Awards for Creative Excellence in the real estate website category. The category honors the best site for the sale or rental of residential or commercial property.

“We were the first national real estate brand to add streaming video to our website. Today, our agents across the globe have posted more than 15,000 videos to our On Location channel,” said Mike Fischer, chief marketing officer for Coldwell Banker Real Estate LLC. “The most exciting part of On Location is that we have only just begun – there’s a lot more to come.”

On Location has been rated among the top 10 most-viewed brand channels on YouTube. In April, just 11 months after launching On Location, Coldwell Banker announced it had received over 1 million views. The site was launched in May 2009 and was produced in collaboration with FD Kinesis.

“Home buyers would much rather see a home than only read about it,” Fischer said. “Our On Location videos empower them to get a feel for a home, a community or a real estate professional that they could not get from photos or a text description alone. Equally important are the home sellers who are now expecting video to be a part of marketing their property.”

With thousands of entries received from across the United States and around the world, the Communicator Awards is one of the largest and most competitive awards program honoring the creative excellence for communications professionals. The Communicator Awards are judged and overseen by the International Academy of the Visual Arts, an invitation-only body consisting of top-tier professionals from acclaimed media, advertising and marketing firms.

About Coldwell Banker®

Since 1906, the Coldwell Banker® organization has been a premier provider of full-service residential and commercial real estate. Coldwell Banker is the oldest national real estate brand in the United States and today has a network of more than 98,000 agents working in more than 3,600 offices in 50 countries and territories. The Coldwell Banker brand is known for creating innovative consumer services as recently seen by being the first national real estate brand to augment its web site www.coldwellbanker.com for smart phones, the first to create a iPhone application and the first to fully harness the power of video in real estate listings, news and information through its Coldwell Banker On LocationSM YouTube channel. The Coldwell Banker system is a leader in specialty markets such as resort, new homes and luxury properties through its Coldwell Banker Previews International® marketing program.

© 2010 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Office Is Independently Owned And Operated Except Offices Owned And Operated By NRT Incorporated.

Wilmington NC has been recognized by Coastal Living Magazine as one of the top 10 spots for July 4th festivities. The fireworks display at the Battleship is a huge drawing card, as one of the largest in the region.

“We chose to highlight Wilmington among the others because of the variety of fun options centered around the waterfront and the unique fireworks display,” said Jacquelyne Froeber, Travel Editor for Coastal Living.
Other great locations include Honolulu, Myrtle Beach, San Francisco and Chicago.

Two downtown restaurants were also noted for great viewing, The George and Elijah’s.

This list will appear in the July/August issue of Coastal Living.

The 14th Annual Battleship Blast kicks off this year at 9:05 PM following the street fair in downtown Wilmington.

Wilmington NC Real Estate

It seems that the nationwide numbers in this week were not so good for the real estate market in May. The tax credit offered by Uncle Sam expired at the end of April and new home sales plummeted nationwide. But, Wilmington NC real estate is still ticking along pretty good. Our numbers for pending sales in May were up over April this year. We still have our fair share of foreclosures and short sales that are weighing heavily on prices, but overall we seem to be better off than most.

If you are a home seller in the Wilmington NC area, please keep in mind that you are competing with all the short sales and foreclosures in the marketplace. Buyers are out there, but they are looking for the best deal possible. And, they have choices. So, they will move on if they don’t get what they want.

And, if you are looking to purchase a home, now is the most perfect time in many years. Interest rates are at an all time low and everything is on sale! Start your search right here at www.cbbaker.com. You can search Wilmington, NC real estate by price, neighborhood, maps and more. We can also send you a detailed list of foreclosures and short sales .

Good news for Wilmington NC real estate home buyers today. The Senate has extended the closing deadline for home buyers that signed contracts by the April 30th deadline. The closing date deadline is now Sept 30, 2010 instead of June 30th. That is good news for many home buyers that are having difficulty with loan completion by June 30th. Many lenders are backlogged with the volume of loan applications right now.

Wilmington NC Real Estate

And, if you did not take advantage of the tax credit, there are still great deals to be had in the marketplace right now. Many sellers with Coldwell Banker Sea Coast are offering the $8000 buyer bonus. So, get out and take advantage of a once in a lifetime opportunity to buy a home. You can begin your search right on my website at www.cbbaker.com or email kaybaker@ec.rr.com for a complete list of Wilmington NC foreclosures and short sales.

Rendering by Creative Illustration Media, INC. LS&P Architects

Wilmington NC is going to get it’s own state of the art  Convention Center.  After waiting for approvals and site plans, an opening date has been set for the Historic Downtown Wilmington Convention Center on the Cape Fear River. 

The grand opening is set for Thursday January 13, 2011 at 9:30 am.  The public is invited and there will be a ribbon cutting ceremony with the mayor and other community leaders.  Following the ceremony, there will be a BizTech Expo with technology and business vendors.  On January 15 a black tie event will be held by the Greater Wilmington Chamber of Commerce, with proceeds benefiting the Cape Fear Future initiative.  

A couple of big companies have signed contracts to hold their conventions here for the next couple of years.  This will bring added revenue to Wilmington NC and expose our area and all it’s natural treasures and great Wilmington NC real estate opportunities.  

Please explore our website for the most up to date listings of all Wilmington NC real estate and waterfront properties.  www.cbbaker.com or call us and we will personally select properties that will fit your real estate needs or portfolio.

If the low prices and the low interest rates have you wishing you could buy a new home but cannot because of your debt load, there is still time to reorganize your finances to make your wish come true.  Take a realistic look at where you spend your money.  Write everything down and where you spent it.  Is there a $4.00 Latte everyday? Make a budget and try to do away with some of the extras that you buy on a whim.  There are budget tools online, like Suze Ormans expense tracker that will help get you started.   We also have a credit repair company that can help you earn additional points for your credit score, so that you can qualify for lower interest rates.  Before you know it, that new home can be yours.  Be patient and work towards what you really want.  We can help you achieve this.  For all your Wilmington NC real estate needs please visit www.cbbaker.com or www.kaybakerwilmington.com

To view the home pictured please visit www.AskMeAboutWilmington.com

Wilmington NC Real Estate Short Sale Specialist

If you are in the market to sell your home in Wilmington NC and are facing a possible short sale, a HAFA Short sale Specialist in the local market place, is the agent you need to have on your side.  A HAFA short sale specialist will know how to present your personal situation to the lender for you, and when an offer is presented, a specialist will know how to negotiate and prepare the package for the lender. These steps are very important for the process to expedite in a timely manner.

HAFA Requirements

There are minimum requirements for a homeowner to qualify for the HAFA short sale program.

It must be your principal residence.

The Mortgage lien originated before 01/01/09 and it is first lien.

The mortgage is in default or will be in the near future.

The mortgage balance must be $729,750 or less.

The monthly payment exceeds 31% of the borrowers income.

And a bonus for the seller, $1500!

Please contact us immediately if you are facing a short sale situation, we will review the entire process with you, confidentially, of course. We are your HAFA  short sale specialist in Wilmington NC.

And, if you are a buyer looking to purchase a possible short sale, please email kaybaker@ec.rr.com for a complete list of short sales and foreclosures. Or you can log onto my website at www.cbbaker.com.

Coldwell Banker Sea Coast Realty is among the nation’s top 500 real estate companies according to Real Trend magazine. The report ranks the companies by closed transactions and sales volume. Sea Coast ranked #151 among 500 other top real estate companies and ranked #23 out of more than 1074 Coldwell Banker affiliates.

Kay Baker of Sea Coast Realty is ranked in the top  Realtors with Coldwell Banker in the South East Region. If you are looking to buy or sell Wilmington NC real estate, give Kay Baker & Associates a call or email kaybaker@seacoastrealty.com. You can also search all for all homes in Wilmington NC at www.cbbaker.com.

Good news this week as mortgage rates have improved.  We are now at some of the lowest levels of the year.

Home prices on the Rise

Hedge fund manager John Paulson, who made billions betting that US Home prices would fall back in 2007, is now saying home prices will be on the rise.  He is calling for prices to grow by 3 to 5% this year and increase by 8 to 12% next year.  Keep in mind that if homes only raise a fraction of his outlook, just 2% – it would yield a healthy rate of return for someone buying a home right now.  For example, if someone bought a home for $100,000 and put down 10%, they invested $10,000 in the home.  If the home appreciated just 2% or $2,000, the rate of return based on the down payment of $10,000 is 20%.   Not bad!

Wilmington NC real estate

So, no doubt that now is the time to buy Wilmington NC real estate. With rates at historic lows, inventories high and prices low, the time is now to take advantage of this once in a lifetime opportunity to purchase real estate.

If you are searching for homes in Wilmington, NC, please visit my website at www.cbbaker.com today.