We are pleased to announce that Allen Tate Realtors has joined forces with Knox Realty, Inc., a 37-year-old, full-service real estate firm located in downtown Davidson, N.C. Over the years, we have been fortunate to partner with 17 other independent companies (this makes #18). We continue to be a company founded on real estate families coming together to serve their communities with a higher level of tools and market exposure.
As I look into the crystal ball again, this time to see what the Charlotte residential market will look like in this new year, the picture looks promising.
Forecasts on the national level are predicting increased demand in 2011. There are 4 factors that impact housing demand:
Economic growth leads to job growth; job growth leads to household formation. Projections for continued overall economic recovery should be amplified in the Charlotte area. With accolades such as “Best Large County for Business Recruitment”, “Second Economic Strength Ranking”, and “#2 Best City for Entrepreneurs” there is no doubt that companies will continue to relocate to the area and grow their current businesses.
2010 has almost drawn to a close and it is time to reflect.
I saw the very funny JibJab Video with President Obama and Vice President Biden singing “So long to ya 2010” and it made me think what the Allen Tate version of that video would look like…
The real estate industry has been challenged the last several years (of course so have several other industries). But those of us who have survived are better companies, REALTORS, and trusted advisors than we were before the economy took its downturn. And while I am happy to see 2010 in the rearview mirror, it was a good year in a lot of ways. And we are well positioned to soar in 2011.
The holidays visit us only once a year (sad but true). This year we were fortunate to have Steve Harney visit us not once but several times across the footprint and this week he made a holiday travel stop at our offices.
For those who may not know, Steve Harney is the leading expert in negotiation and sales training for residential real estate professionals. I have had the privilege of working with Steve over the last several years. His ability to explain things in a simple way has really taught me how important that is. The more complicated things get, the more we have to distill them to the barest form to really understand their true meaning.
Attending his sessions I was blown away, as usual, by his insights and thoughts as to where we, the real estate industry and the general public, are heading.
It is that time of year that we look into the crystal ball and see what we believe the real estate climate will look like in the coming months. Here are some thoughts about real estate in the Triangle in 2011.
Beginning mid-2010, the Triangle residential real estate industry was poised for a slow economic recovery. Thanks to a relatively healthy job market, historically low mortgage interest rates and the (now expired) homebuyer’s tax credit, that prediction largely came true.
The population growth and overall strong economy in the Triangle continue to be positives as we look ahead. However, to employ a now overused phrase, we’re not out of the woods yet. We enter 2011 optimistic but with our eyes wide open.
The real estate headlines continue to be confusing.
Two weeks ago I read a headline that said “10% jump in September Existing Home Sales.”
Last week there was a headline that read “September Pending sales slip 1.8%.”
How can that be? The first article references CLOSED transactions. The second article references transactions that went UNDER CONTRACT in September.
Both reports were comparing September 2010 activity to August 2010 activity. The numbers vary by region throughout the country. And, when you look at numbers specifically for the Carolinas, you will find that September sales and closings were behind August sales and closings.
Why did I choose real estate for my career? Honestly, it chose me.
I grew up in the business. My Grandfather was a commercial builder, and my Dad expanded into commercial real estate, development and property management when he took over the business in the early 50’s. I didn’t have plans to be part of the family business as construction and development didn’t interest me.
Then in the early 80’s my brother decided to expand into residential real estate. I was a junior at UNC-CH majoring in Chemistry when my brother called to see if I might want to be a part of his new residential real estate venture. Now that sounded interesting! Helping people find homes where they would build their families and lives would be so rewarding, and the pace would be faster. There would be many more transactions and the opportunity to work with a larger population. So I adjusted my class schedule, commuted to Raleigh 2 days a week and got started in residential real estate.
Worried about the value of your home? As we have discussed in previous blogs, the best future indicator of your home’s value is the Housing Inventory level in your market. Historically, housing inventory has predicted future pricing in the following manner:
Year over year, the Charlotte Region’s inventory levels were up in all price ranges below $250k. Above $250k, inventories have come down significantly from last year and are even below 2008 inventory levels. (Please note the extremely tight inventory levels in September 2007 at the height of the market – inventories during this peak season ranged between 2.5 and 6.2 months. We can see that the inventory levels at the peak were solidly in an “appreciating market”.)
In June I posted about the upper end market and its rebound. Since then, we’ve seen the market continue it’s up and down course. So what does the upper end market in our region look like today?
First, inventory of $750,000 and plus homes in the Triangle, Triad, and Greater Charlotte markets has decreased significantly in the past 12 months. In fact, inventory is at its lowest level during the past 24 months. New home inventory is not getting replaced so expect to see inventory numbers continue to decline.
Second, demand has increased 40% or more in these same markets since a year ago. Why? There are great values in the market as median prices have dropped 10% or more. There have been comments from Wall Street Journal, Karl Case, John Paulson and others that now is the smart time to buy real estate and the wealthy are heeding the advice and buying homes.