Real Estate Information

Time for your Wilmington, NC real estate market report for June 2011!

Total units sold is up from May but down from last year.  This is partly due to the Home Buyer's Tax Credit issued last year.  The average sales price is up slightly from May but down from last year.  Single month swings are normal-long term trends are what we want to see here. The total dollar volume of sales is up 23% but down 11% from last year-also likely due to the Tax Credit influences of last year.

The DOM (days on market a listing takes to go to contract is up 23% since May and a whopping 40% since June of last year.  So, it will take longer to sell-it is important to price and present those properties very well!  New listings are down in both categories-this is a good thing.  If you reduce supply, we should increase demand though we need to reduce supply a lot more!

Lastly, Pending sales, our forward looking indicator, is down 11% but up 5% from last year.  Again, trends are important to follow here. 

These sales numbers are certainly being affected by the incentives brought in early last year so we have to consider that when looking at year over year data.  We are seeing positive numbers in most all areas which over time, will help us to see when we have truly hit bottom.  For now, it appears we are very close to the bottom and as long as you are not buying short term, you should be just fine.  Enjoy those interest rates while you can!

From May 2011 to June 2011

• Total units sold: +12%
• Average sales price: +9%
• Median sales price: +4%
• Total dollar volume: +23%
• Days on the market: +14%
• New listings: New Listings -1%
• Pending Sales: -11%

From June 2010 to June 2011

• Total units sold: -11%
• Average sales price: -1%
• Median sales price: -5%
• Total dollar volume: -11%
• Days on the market: +40%
• New listings: -18%
• Pending Sales: +5%

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408

I was speaking with an agent the other day who had a client, we'll call him "Joe," that was quite upset he was not getting the deal he thought he was going to get. Joe and his agent had been house hunting and like many people these days, they really want to get a "steal of a deal." However, when his appraisal came back, it was essentially at the price he agreed to pay for the property.  Joe was furious to find his steal was not the stuff made popular by the afternoon cable shows with titles like "Steal This House!" In fact, based on the appraisal, he was just ordinary Joe paying market value.

Now understand, there is nothing wrong with wanting to get a good deal on a property.  Joe and his agent shopped and toured homes until he found one that worked well, they negotiated a great price, and put the contract together.  They knew, based on all the properties they had seen, this was a great deal. What happened next happens quite often, in Wilmington NC and all markets and all price ranges. 

The bank that Joe is using to provide financing is sent a copy of the contract.  The bank then orders an appraisal to make sure they have a proper value to protect their valuable cash interest.  The appraiser (who now has a copy of the contract) will visit the property and pull comparable sales. As the appraiser gleans the details from enough recent sales, his goal is to reach a reasonable conclusion as to the value of the property.  If he is having trouble reaching value, he will continue to look until he finds enough value or he will provide an appraisal that shows the property is not at contract value. 

There is very little motivation for an apprasier to continue to work to increase the value of a property past the contract sales price. Unless there is overwhelming evidence that there is higher value, the appraiser has done his job to protect the bank.  That is why many appraisals come in at or very near the purchase price.

So, if you are like Joe, don't think you did not get a great deal based on the appraisal.  The value is what you are willing to pay for it as long as you are not under duress and there are a fair amount of homes to choose from!

Way to go Joe!

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408

The short term market "pendulum" swung back to the encouraging statistics side in May.  From April 2011 until May 2011 the sales statistics (numbers) showed increases in all areas except "new listings" and "days on the market" and those two categories are not areas you would like to see increases so I am bringing good news!

Here is the skinny:

From April 2011 to May 2011

• Total units sold: Up 3%
• Average sales price: Up 5%
• Median sales price: Up 4%
• Total dollar volume: Up 8%
• Days on the market: Down 1%
• New listings: Down 9%

From May 2010 to May 2011

• Total units sold: Down 10%
• Average sales price: Down 1%
• Median sales price: Down 8%
• Total dollar volume: Down 11%
• Days on the market: Up 18%
• New listings: Down 7%

Housing affordability is phenomenal. Even new construction is aggressively priced. With low interest rates, plenty of inventory, and motivated sellers, buyers are poised to do well.  Firmly in the driver seat, buyers realize resale homes are where the highest value is and the reality is that many sellers are appreciative of offers and are very willing to make most reasonable repairs on homes (unless it is a short sale or foreclosure) and some concessions.

Our team has been fielding a flurry of calls from potential buyers and we are busy writing and negotiating contracts.  The folks that have been "sitting on the fence," realize that the market is much safer.  They also realize that even if values slip a little more, they are confident low interest rates will offset any additional slippage of values versus higher rates that erode affordability. The bottom line is that they are tired of paying rent and want to own their own home so they can create the perfect place for their families. Now IS a good time to buy.

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408

Real estate appraisals or "valuation reports" are typically ordered by a bank or lender that will provide financing for a real estate purchase.  The buyer contracts on the property, the contract is sent to the bank and the bank orders the appraisal to make sure the property is worth what they are providing the loan for.  After all, the property will be the collateral. Hopefully,  the appraisal comes back and the appraiser will show the property is indeed, possessing the proper level of value. Appraisals are only performed by certified and licensed appraisers and will be different than the Competititve Market Analysis (CMA)performed by a real estate broker.

An appraisal is simply an opinion based on as many facts as the appraiser can find.  When these people are under paid and working out of their familiar areas, it is easy to see why appraisals can be further "off" than expected.

I am of the school of thought that market value of anything is worth what someone who is reasonably educated and not under duress, is willing to pay for something.  Some of our clients have very specific requirements in a home.  There may be only one of those "special" homes on the market.  That property will be worth a little more to them because it satisfies their needs and they, after seeing their options, are willing to pay that price.  It should be that simple but it is not.  The appraisal will dictate the value of which the bank will lend-not the desire of the client to purchase the property.

Sometimes, appraisals come back and they are short.  In other words, there is not enough proof that the property supports the contract value, therefore, the bank will only provide financing based on the lower of the two: purchase price or appraisal value.  Sometimes, properties are so unique that there really aren't any appropriate comparables.  It may also be that anything similar may not haev sold for several years.  Performing an appraisal is very difficult task in many situations but a good local appraiser will be able to work through those issues.

In the case of a "short" appraisal, the buyer then has three options: 1) Bring extra money to closing to cover the difference.  2) Renegotiate with the sellers to lower the price.  3) Walk away from the property.

The buyer (or seller) may also dispute the appraisal and if they can provide enough supporting evidence, they may, in some cases, have an appraisal modified if the bank or appraiser is willing to keep an open mind. You may need to hire an independent appraiser to assist you.

If your appraisal comes in low, know your options.  Get a copy of it and review the comparable properties used and that will help you understand why the value came in where it did.  Appraisers are some of the hardest working people out there but there are some that are certainly better than others!

In our next segment, we will discuss more about appraisals and how they are influencing the market, why there are problems with some of them, and setting your expectations once an appraisal has been ordered.

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408

If you recall, when I posted last month's real estate report I urged everyone to be cautiously optimistic as sales statistics can vary substantially from month to month.  We have seen very positive numbers over the last months and now we see that April's numbers seem quite different.

One thing we have to keep in mind is that last year, in the spring, we were experiencing the Home Buyer's Tax credit-remember that?  Qualifiying buyers could get up to $8,000.00 credit on their taxes and that really caused some strange peaks and valleys in sales.  Many folks accelerated thier purchase plans and inventory dipped-especially "affordable" homes.

The tax credit is now gone, distressed properties are still out there and yet sales are happening and in spite of the numbers we see in April, we feel the energy in the air and the number of buyers in the market is noticibly increased.  There is an ever expanding younger generation of potential buyers that are capable of purchasing homes.  Most people still want the joy and benefits of owning thier own home. We are seeing the investors back in the market and that is a good inidicator of an overall real estate market that is on its way to recovery.

Here we go:

From March 2011 to April 2011

• Total units sold: Down 8%
• Average sales price: Down 15%
• Median sales price: Down 8%
• Total dollar volume: Down 22%
• Days on the market: Down 6%
• New listings: Down 12%

From April 2010 to April 2011

• Total units sold: Down 20%
• Average sales price: Down 7%
• Median sales price: Down 10%
• Total dollar volume: Down 25%
• Days on the market: Up 22%
• New listings: Down 23%

What do we know? 

1. Sales numbers vary susbstantially from month to month
2. Foreclosures and short sales continue to affect the market and will continue to do so through the year
3. Spring has brought out a new wave of buyers
4. Pent-up demand for homes continues and people are taking advantage of the great opportunities
5. Interest rates are very good
6. Great pricing and home condition are keys to selling in this market

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408

According to www.Realtor.com, pending home sales are up again."Pending" home sales is a forward looking indicator of real estate activity.  "Pending" sales occur when an agreement is made (contract signed) for the purchase of real estate.  The actual closing (sale) will typically occur in 30 to 60 days after the contract is signed.

"Lawrence Yun, NAR chief economist, said home sales activity has shown an uneven but notable improvement. “Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own,” he said."

Read the full article: http://www.realtor.org/press_room/news_releases/2011/04/phs_march

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408

It has certainly been a busy month since our last report.  Whether you are buying, selling, brokering, lending, building or otherwise involved, directly or indirectly, with the real estate market, you have begun to notice a substantial increase in activity.  If you are like me, you will be cautiously optimistic. 

In as much as we have seen tough months in the Wilmington NC real estate market (and nationally), we can certainly see some very good months as well and March was no exception.  It is only natural to for Americans to be positive and enthusiastic survivors.  Couple the positive attitudes with beautiful spring weather and you have a recipe for a great spring real estate market.

Let's look at March 2011 Wilmington NC real estate sales data and historical numbers:

From February 2011 to March 2011

• Total units sold: Up 52%
• Average sales price: Up 22%
• Median sales price: Up 8%
• Total dollar volume: Up 86%
• Days on the market: Up 20%
• New listings: Up 21%

From March 2010 to March 2011

• Total units sold: Up 6%
• Average sales price: Up 10%
• Median sales price: Up 6%
• Total dollar volume: Up 17%
• Days on the market: Up 15%
• New listings: Down 18%

February 2011 was a mixed bag of sales data that showed us some signs of pricing stability.  March is making up some of the sales volume (number of sales).  Pricing is continuing to show stability and even some recovery.  Foreclosures still dominate the deals out there but folks looking to buy a home for themselves are realizing that it is difficult to find the "right" home in a foreclosure-especially with many requiring a lot of capital to bring it up to their standards. 

A word of caution to those that are selling.  Do not think that a general trend over a month or two of increasing value means we are back in the days of a seller's market.  Pricing your home with a "compelling" list price and having it in excellent condition is the best bet for getting your home sold.  Pricing "high" will net you a high "Days on the market" stigma and you may find yourself with a problem that will not go away.

If you are buying, consider the reasons for your purchase.  Investors can risk losing a house with a lower offer.  If you are buying a home to live in, there are other important things to consider besides money.  Safety, location, features, and a place to create many lifelong memories are most important.

Whether you are thinking of buying or selling in the Wilmington NC real estate market, have your agent run a "competitive market analysis" on the property in question and you will have the information you need to make the best decision.

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408

The 64th Annual Azalea Festivalis coming April 6-10, 2011.  The Festival is a celebration of the history, arts, culture, and lifestyle of the coastal Wilmington Community.  Activities include a street fair, exhibitions, pageants, circus, concerts, garden tours, parade, and much more!  If you plan ahead, you can see Darius Rucker in concert or take a ride in the horse drawn carriage over cobblestone streets. Come and savor the ambiance and history of our southern history. 

The Azalea Festival is always an exciting time for us here in Wilmington as it ushers in spring in a grand fashion.  By the time it starts, there has been plenty of warmer weather, greening grasses, and flower and tree blooms galore!  We expect to have over 300,000 people visit and take part in the fun.  The ocean is still a bit cold but many times the weather is just right to relax on the beach. 

This is also a wonderful time to set aside a little time for a discovery visit to the area-if you are thinking of making a move. If you want to see what types of homes are available here, make a list of your personal preferences and search Wilmington NC Area Homes.  Let us know and we will get a relocation package with lots of great information.  I hope you make it down soon!

PS: Don't forget to check out our inspirational Morning Coffee each week!

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408

Wilmington, NC housing and real estate sales numbers are out for February 2011.  As we move forward through the year and watch the trends we are encouraged by trends we are able to track.  Primarily, we are watching sales prices and the number of sales in units. Both of these statistics are important as each shows us different but important aspects of the real estate market.  For example, in 2008, we did not see a huge decrease in prices but we did see a substantial decrease in unit sales.  What this told us was that buyers stopped buying and sellers did not want to lower prices to encourage demand.  If we only watched sales prices, we may not have understood the full picture and noted that the market had reached critical mass.

Here are February's data and historical numbers:

• January 2011 to February 2011
  • Total units sold: Down 7%
  • Average sales price: 0% change
  • Median sales price: Up 3%
  • Total dollar volume: Down 7%
  • Days on the market: Down 1%
  • New listings: Up 25%

• February 2011 vs February 2010
  • Total units sold: Down 11%
  • Average sales price: Down 17%
  • Median sales price: Down 9%
  • Total dollar volume: Down 27%
  • Days on the market: Down 1%
  • New listings: Down 18%

What we are seeing is stability in pricing, a fair numbers of units selling, and some seasonal increases in listing inventory.  As long as prices continue to remain stable, we should continue down this apparrent road to recovery. 

One issue that could hold up recovery or at least stall it, is the release of foreclosures that have been simmering in the big banks' pot while they improve thier foreclosure procedures.  Regardless, buyers are seeing the tremendous opportunities to purchase properties at historicly low prices and interest rates.  Without a doubt, affordability is at an all time high. 

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408

Last time we reviewed some basic information you need to consider when hiring a Realtor.  This week we will go a bit deeper into this so we can provide you with the proper knowledge to make a good decision.

Buyers and sellers both use Realtors so let's break this down a bit more.  We will start with what the sellers will want to know.

1. Firm:  Is the agent working with a reputable firm with a good presence in the marketplace?
2. Does the agent have a written marketing plan?  How can you know what an agent will do for you if there is no written marketing plan?  If you are interviewing agents, make sure you have a clear written idea of what the agent and thier firm can offer.  You did not hire the agent to put a sign in the yard and list it in the MLS.  You hired them because they should have a complete and thorough means to get your property maximum exposure.
3. Does the agent invest any of thier own money into the marketing of thier listings?  Some agents spend a lot of money gaining additional exposure for your property while other agents rely on the firm to do all the advertising.  Here are some questions to help you determine this: Do you have your own website?  Do you have lead capture systems? Do you have an IVR ?System?  Do you provide virtual tours for all your properties?  What new technologies are you using to help get properties sold?
4. CMA (comparative market analysis).  This is the all important part of determining the market value range for your property.  It should be thorough and consise.  Properly pricing a property is the single most effective way to get it sold.  Price will overcome many difficiencies.
5. Staging:  Is the agent giving you candid advice on preparing the property for sale?  Do not be offended if an agent suggests decluttering, depersonalizing, changing paint colors, or making repairs and improvments.  These issues are often the reason homes do not sell or must be sold at a discount.
6. Team:  Your agent does not have to have a team to be effective but they certainly help.  Having specialists on a team may ensure a more effiecient and smoother experience. 
7. Availability: Find out ahead of time when your agent will be available if you need them.  Setting expectations up front will avoid frustrations later.

** Print ads:  I thought it appropriate to add this in here.  Print advertising effectiveness is different in all markets.  Some areas do quite well with print ads while other areas have moved away from print.  The internet has changed the way people find homes.

Buyers needs are different.  They should focus on the following questions and issues with regards to a Buyer's Agent:

1. Ask them about thier experience in the real estate business? 
2. How many transactions have they closed?
3. Do they have a team to support them? 
4. Make sure your agent is listening and asking questions.  Knowing your needs is critical to getting you in the right property at a good price.
5. DO NOT be offended when an agent questions you about how you intend to purchase the property (cash or loan). If  you will be getting a mortgage, make sure you have been pre-approved. It is part of the job and is required.  Knowing your price range and ability to purchase should be set before viewing any homes or property.
6. Be clear about what you want.  Make sure all decision makers are invloved up front.  (Spouces, parents, etc.). 
7. When you find the property you like, make an offer accordingly.  If you are easily satisfied with many homes on the market, you may be able to negotiate a bit  harder.  If your home needs are more unique, make a fair offer.  Do not assume all sellers have to sell and that it is OK to low-ball offers.  Good homes priced well will sell and you may risk losing a property if you insult the seller.  You buyer agent will review comparable properties with you and that will show you what fair market value is.

Choosing the right Realtor is one of the best decisions you can ever make.  You can develope a long term trusting relationship and feel safe knowing that your best interests are being looked after.  Great agents are not after the sale-they want future referrals from satisfied clients. 

Wilmington NC Real Estate Sales - Chris Baynes REALTOR Chris Baynes and Associates is one of the areas most successful Realtor Teams.  We specialize in helping buyers and sellers with real estate services in the greater Wilmington NC area including Wrightsville Beach, Carolina Beach, Kure Beach, Castle Hayne, Hampstead, Leland, Belville, New Hanover County, Brunswick County and Pender County, and all Wilmington NC Real Estate.  (910) 470-4408