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Archive for September, 2009

I am back from the NCAR meeting in Savannah, but before leaving, took time to do a little touring.  I was struck by the town’s reverence for and joy it takes in its history.  Those folks really know how to make the best of an old building or park.  The town was designed around multiple “squares” or small parks in the center of the historic area.  It was clear that they consider those to be gems to be polished and admired. 

Every town has some history that can be recalled and cherished.  I’ve seen some towns tempted to throw it all away in favor of having everything shiny and new.  Downtown Charlotte has struggled with that for years and lost many great buildings because of it.  Back in the 60′s, Mooresville had the idea that if they covered up all of the old downtown buildings with modern aluminum facades, that they could make the area look like a mall, which back then was considered by business people to be the holy grail since malls were still new back then.  More recently, Mooresville figured out that history and nostalgia are actually good things.  The building owners pulled down the facades and spruced up the old store fronts.  That has made for a much more pleasant and compelling look.  Statesville has done some of that, too, and now are offering grants to building owners to help them bring back the old look.

I think we’ve finally figured out that we can only grow strong by taking care of our roots.

Here are a few shots of Savannah.  Wish I’d had time for more… next time.

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Why would NC Realtors be in Savannah?  Well, we are here for the NC Association of Realtors Convention, and I along with 134 or so other members are here also for the meeting of the Board of Directors of NCAR.  NCAR is here to work ”for the purpose of exerting effectively a combined influence upon matters affecting real estate, to elevate the standards of the real estate business throughout the State and the professional conduct of persons engaged therein.”  Fancy words that just mean we do everything we can to ensure that real estate clients enjoy the highest possible ethical performance of Realtors and that the rights of property owners are protected such that the overall community benefits from the decisions of local and state government.

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Suggested Menu for Better Living

A friend sent this menu to me.  I was so impressed with how it could change my life, I though you might like it, too!  Read it slowly and carefully.

Breakfast

     1 grapefruit

     1 slice whole wheat toast

     1 cup skim milk

     Lunch

     1 small portion lean, steamed chicken
     1 cup spinach

     1 cup herbal tea

     1 Hershey’s kiss


     Afternoon Tea


     1 The rest of the Hershey Kisses in the bag

     1 tub of Hagen-Daaz ice cream with chocolate chips


   Dinner


     4 glasses of wine (red or white)

     2 loaves garlic bread

     1 family size supreme pizza

     3 Snickers Bars

 

     Late Night Snack


     1 whole Sarah Lee cheesecake (eaten directly from the freezer)


    Remember: Stressed spelled backward is desserts.



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The J. Hoyt Hayes Memorial Troutman Library is getting close to be complete, at least from the standpoint of the building and grounds.  The next challenge will be to work with the Iredell County Library to figure out when to open the library.  The economic situation has put more question marks on that than was anticipated.  Iredell county is not exactly rolling in money (who is?), so we’ll be trying to work with them on the question of whether to open without having the library fully furnished and stocked or wait until everything is ready.  We hope to meet with some of the powers that be in the next few weeks to begin that conversation.  In the meantime, here are a few more snaps from today (click on them to make bigger).  Don’t forget to go by Ole World Market on Eastway Dr. in Troutman and check out our gently used books for sale which raise funds for the library.  We’ll be giving out details soon on our Fall Book Sale which will be held at Ole World Market this year.

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Lake Norman is one of the best assets of our area.  People live on it, play on it (and in it), fish in it, and get their home drinking water from it.  We count on it to be clean and healthy.  That doesn’t just happen by itself.  Duke Energy built the lake and owns it and is required by the Federal Energy Regulatory Commission (FERC), to maintain it to the benefit of the public in addition to the benefit it provides in producing electric power.  The people who own land at water’sAC001908 edge around the lake can do things that benefit or harm the lake.  Duke Energy and the NC Dept. of Environmental Resources (NCDENR) are two of the primary groups who put people in the field to work with property owners to be sure that what goes on around the lake is not going to harm it.

Today, I went to an annual presentation by Duke Energy for real estate agents to help us keep up with the details of how to help our waterfront clients meet the requirements of Duke, NCDENR and FERC, among others.  Dennis Whitaker, a Duke Lake Services Representative, went through the process of applying for permits for building docks on the lake.  He emphasized the point that anything that is done at the shoreline must be reviewed for its impact on the lake in view of the regulations on the books for lake management.  In other words, it would be unwise to buy property on the water that has no dock and assume that a dock would be allowed.  Since it takes around $1,000 in various fees and design costs just to apply, and the outcome can have a huge impact on the value of the lot, this is something to seriously investigate before buying or selling a lot.LBOAT031

They invite questions by calling 704-382-1594.  You can also get an idea of what this is all about by looking at the Duke web site HERE.  This site also has lots of handy links to all kinds of lake information and maps.

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There are lots of properties on the market today that are priced so low that they are very tempting to investors or people thinking of becoming investors, either through buying and flipping property or buying and renting out property.  If you are considering doing this or know someone who is, here’s some “been there, done that” advice from Jim Gillespie, CEO of Coldwell Banker.  Jim is an owner of a number of investment properties and has some useful advice for those who’re thinking of doing this to generate some income.

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Time to look at some real estate numbers for August recently published by the Charlotte Regional Realtor Association.  Hey, look on the bright side- things are getting worse at a slower rate!

Days from List to Close: Aug. ’08= 136.1, Aug. ’09= 145.9, that’s an increase of 9.8 days.  Many factors affect this, but one in particular is that because of changes in some federal laws over the last several months affecting lenders, it’s taking longer from contract to close.  They’re advising us to plan for a minimum of 45 days, although I know some can beat that for different kinds of loans.

Average List Price of Solds: Aug. ’08= $247,323, Aug. ’09= $234,504, a decrease of 5%.  Calculator

Average Sales Price: Aug. ’08= 230,472, Aug. ’09= $209,245, a decrease of 9%.  Both of the above reflect the overall lowering of prices and the understanding that more lower priced houses are selling compared to higher priced houses.  No doubt some of this is attributable to the first time home buyer tax credit that is involved in many of these sales.  This August’s sale price compared to list price is 89%.  Last year’s was 93%.  When our market was running strong, that figure was in the 95-98% range. 

Residential Contracts Reported: Aug. ’08= 2,655, Aug. ’09= 2,434, an 8% decrease.  Note that some contracts don’t go to close because of a variety of issues, but right now many are falling through because of various lending issues including the failure of the property to appraise for the contract price.  Lenders and appraisers are now more conservative, and lower previous sales prices lower the overall comparable market prices on which appraisals are based.

Residential Closings Reported: Aug. ’08= 2,468, Aug. ’09= 2,221, a 10% decrease.  The good news is that the fall in sales volume is slowing.  In May, the same measure showed a 31% decrease.  This may be signaling a bottom in our local market.

Ok.  Should we just pull the covers over our eyes and wait until next year?  It depends on your situation, but if you want to sell and plan to stay in this area, the answer is no- at least not because of the above numbers.  Reductions in price are across the board, so the sales price of what you sell will likely be affected no more than the sales price of the house you buy.  Absolute numbers don’t matter so much and can be in your favor if you a planning a move up in price.  You should also decide what kind of bet you’ll be taking that interest rates later will still be as great as they are now.  As Dirty Harry said, “Are you feeling lucky?”

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There was chatter on Twitter last week (yes, I’m there from time to time) about concerns for the financial health of the Federal Housing Administration (FHA).  This is very important to anyone concerned about keeping up some momentum in housing sales.  That means pretty much everyone since we’ve seen how strongly the US economy is tied to the health of the housing industry.  The word was that the FHA reserves for covering loses were running below a federally mandated level.  Now, understand that FHA loans are not funded by the FHA, but rather are insured by the FHA.  Still, the more FHA insured loans fail, the more the insurance fund has to pay out to the lenders of those mortgages.  FHA has guaranteed about a quarter of all US mortgage loans made this year.  They enable people to borrow who would have difficulty borrowing in the conventional loan market while still requiring the borrowers to have some “skin in the game” in the form of a minimum 3.5% down payment and adequate credit scores.  If they could not insure these loans, or if they had to drastically tighten their own lending requirements, that could have a very negative effect on home sales going forward.  This would affect homes sales up to their limit of $271,050 for Iredell County.  See loan limits for other locations HERE.

On Friday, the FHA announced that they were making credit policy changes and adding a chief risk officer for the first time.  I would’ve thought they’d already have done that!  In any case, they said: 

“To be clear, the fund’s reserves are sufficient to cover our future losses, so the FHA will not require taxpayer assistance or new Congressional action,” said Commissioner Stevens. “That said, given the size and scope of the FHA and its importance to today’s market, these risk management and credit policy changes are important steps in strengthening the FHA fund, by ensuring that lenders have proper and sufficient protections.” 

HERE’S the full statement.  Their web site is a bit cranky right now, so you may have to try a couple of times to see it.  I’d hate to see FHA reduce their lending since this is one of the main sources of first time home buyer funds as they try to take advantage of the first time buyer tax credit before it expires.

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This video has been shown on PBS and several other outlets in the last few months.  It grabs me every time I see it.  It is about the universal appeal of music and how it can be used to provide common ground for people who otherwise are at odds in the world.  This video and others were done by a group called Playing for Change who went around the world recording people all performing the same songs.  The effect is amazing.  See their web site HERE to see this and other videos like it.  It is worth a look and maybe your support if you like the idea of working toward a more peaceful world.

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My recent discussion with one of my preferred real estate attorneys about deeded boat slips clarified some misconceptions we may have about these.  He said that since you can’t own a piece of Lake Norman, even the spot where you have a boat slip (Duke Energy owns it), you can’t really have a deeded boat slip.  That term is used often when talking about waterfront condos and townhouses to indicate that a slip comes with a listed property.  My attorney said that he’s seen various recorded documents called deeds or assignments that all assign boat slips to property owners, but it is really erroneous to call them deeds.  He also said that some HOAs just use internal documents to assign boat slips to property owners, but these are not publicly recorded documents and may have language about how the assignment is done or may be changed.  When an HOA owns the actual boat slip structure and maintains it as common property, it makes sense that an individual property owner would not have a deed to the slip.

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