There has been a lot of conversation recently about the first time homebuyer’s tax credit and its effects on the market. But what about the upper end of the market, specifically homes priced at $750,000 and above?
To understand the current status, we need to review what impacts buyers and sellers in this part of the market:
Ability to get mortgages
Inventory of homes on the market
While the same 3 factors affect all buyers and sellers regardless of price point these trends affect the high-end buyer a little differently. Let’s take a look at how this group specifically has been affected.
I’m often asked how the real estate market is doing in the Triad Region. In fact, one person recently commented that if the real estate market is improving, then everything thing else will too. Housing normally leads the economy and I have to say thelast 60 days have been fun again! The first quarter was a promising start for 2010 real estate sales in the Triad market. March was especially strong and the federal government’s tax credits helped stimulate more April sales.
For those who are trying to sell their home, just remember that selling a home is dependent upon numerous conditions, especially price and maintenance. If your home is priced correctly and is in great condition, it will take approximately 4 months to sell a house in the Triad. The average number of days your home will spend on the market will also slowly decline as the spring market continues to accelerate.
The 80’s taught us many things. But it was the Head and Shoulders commercials from that era that taught me, “You never get a second chance to make a first impression”. Curb appeal, in real estate terms, isthe first impression your home makes.
My first home was a rental for eight years before I purchased it. Based on the way the color drained from my mother’s face when I first took her to see the property, it is not an exaggeration to say that the yard needed work. A lot of work. Nevertheless, the price of the house and the investment potential I saw pushed me to move forward with my purchase (despite my mother’s many pleadings to do otherwise!). In essence, what I purchased was a .25 acre jungle with a 1000 square foot house on it. Only after closing on the property did I realize the magnitude of the project I had purchased.
Understanding how credit scores are determined has always been a mystery to me and in asking others about it, I realized that most people feel the same way. It is absolutely amazing to me that we know so little about something that has such a significant impact on our lives.
In an attempt to make Nancy Drew proud, I decided it was time to see what I could find out. I was only more frustrated after searching the internet as the information was overwhelming and inconsistent. More confused than ever, I decided to attend a class on the topic.
Here’s what I learned…
Credit scores, also known as Beacon scores, are the main indicator used by lenders to determine your credit worthiness. The specifics on how your credit score is determined are as follows:
I’m sure that you’ve heard the old adage: The three most important words in real estate sales: “Location, Location, Location”. Well, times have changed. With the internet evolution, the most important way to attract today’s buyer: “Pictures, Pictures, Pictures.”
Over 80% of today’s buyers start their home search online and, of those, 97% found photos extremely important in their home search.
In today’s market, buyers decide whether to view a home or not in 2 clicks of a mouse. The first picture (click 1) has to capture the buyer and compel them to want to see more photos (click 2). If the home has no photos, it is rarely considered. If the home only has one photo, the buyer typically assumes that the inside is not worth seeing and moves on.
“How is the market doing?” If I had a dime for every time someone asked me that … Over the past 24 months that seems to be the question on everyone’s mind. I am happy to report that the market is recovering.
The health of any real estate market is based on the principle of supply and demand. Supply and demand is generally impacted by three factors: the availability of jobs in the market, consumer confidence, and the cost of home-ownership. Moving one step above that is that fact that all real estate markets impact one another, especially in an area like the Carolina’s where many people relocate from other parts of the country. If you can’t sell your house where you currently live, then you most likely can’t purchase in your new location. Or if you have to sell for less where you currently live, then you might have to purchase differently in your new location.
Sitting back and reflecting on the real estate industry, I am amazed at all that we have been through. There is no denying that over the past decade, we have lived through some extreme highs and extreme lows together. That being said, if we take a step back to examine the real estate market since 1950, it is clear that we are continuing to see forward progress. Today, we are adjusting and recalculating from a 5-year hiatus, which is why I felt the need for the Allen Tate Company to create a blog where myself and my Allen Tate team members can share with you information about home ownership. This is a very important topic to us and is one that covers buying and selling homes, mortgages and insurance, relocation and renovation as well as the state of national, regional and local housing markets.
As the sun rises on the residential housing market in America, there is an extra ray of light shining on the place I call home.
The I-40/85/77 corridor has been named among one of the strongest metropolitan areas in the country. In a nutshell, the Carolinas represent a region poised for unparalleled growth and attention. Why is this, you may ask? I attribute it to the economic diversity of our job clusters, climate (who could possibly say no to this weather?!), pro business attitudes, work ethic, quality of life, and cost of living to name just a few.
During the recent commencement ceremonies held at Queens University in Charlotte, NC, our founder and chairman, Mr. Allen Tate, was honored with a Doctor of Humane Letters degree. Mr. Tate is the epitome of a Carolina man and the honorary degree reflects his five decades of business leadership and civic engagement across the region.
When he began entertaining the thought of career in real estate, Mr. Tate knew that he wanted to do more for people than simply selling their homes; he wanted to help them. That desire and drive led him to establish the civic-minded Allen Tate Company a few years after graduating from the University of North Carolina – Chapel Hill.
During his incredibly successful career in the Carolinas, Mr. Tate has or is currently serving on the boards of the University of North Carolina – Charlotte Foundation, the Central Piedmont Community College Foundation, and the Piedmont Public Policy Institute, among many more. He has also served as chairman of the Charlotte Chamber of Commerce, the American Cancer Society, and the American Heart Association’s Heart Ball, among others.