Triangle home sales rise 22%

Home sales in the Triangle were up nearly 22 percent in August compared to the year prior with average home sale prices also rising more than 3 percent, according to a report from the Triangle Multiple Listing Services

The Triangle region report, which includes new and existing home sales in Wake, Durham, Orange and Johnston counties, shows that sales were up in August with 2,406 home sales recorded, compared to 1,978 home sales in August 2011.

The average sale price of a home in the region reached $234,039, up from an average home price of $226,460 in the year prior.

The report also shows that the inventory supply of homes available for sale has also dropped 25 percent in the past year with only a seven-month supply of inventory available in August compared to a nearly 11-month supply of inventory in August 2011.

Year to date, home sales in the Triangle region are up 18.4 percent compared to the year prior.

Source TBJ

Homes Are Selling Faster as Inventories Fall

The median time a home is on the market nationwide? Just 69 days.

The number of days on the market nationwide has fallen nearly 30 percent from year-ago levels.

Meanwhile, inventory levels are hovering at all-time lows, with the number of homes for-sale down 31.2 percent from a year ago. The inventory is at a 6.4-month supply of homes on the market, as of July data.

“As inventory has tightened, homes have been selling more quickly,” says Lawrence Yun, the National Association of REALTORS®’ chief economist. “A notable shortening of time on market began this spring, and this has created a general balance between home buyers and sellers in much of the country. This equilibrium is supporting sustained price growth, and homes that are correctly priced tend to sell quickly, while those that aren’t often languish on the market.”

For comparison, the time on the market for non-distressed homes peaked at 10 weeks in 2009. During the housing boom between 2004 and 2005, for example, the median selling time was just four weeks.

Source: “Low Inventory Levels Sells Homes Quick,” Realty Times (Nov. 2, 2012)

Foreclosures ease up in the third quarter

Foreclosures have strained the real estate market over the past several years, but the pressure seems to be easing up, according to CNN Money. A recent RealtyTrac report indicates that foreclosures dropped in 62 percent of the nation’s largest metro areas (212 markets in total) during the third quarter of this year.

RealtyTrac vice president Daren Blomquist said that the significant decreases illustrate “that most of the nation’s housing markets are past the worst of the foreclosure problem.” Foreclosure activity in September 2012 was down from September 2007 in 58 percent of the metro markets measured by RealtyTrac.

Foreclosures dipped annually in 12 out of the 20 largest metro areas:

San Francisco — 36 percent
Detroit — 31 percent
Los Angeles — 29 percent
Phoenix — 27 percent
San Diego — 26 percent

On the other end of the spectrum, however, New York, Tampa, Philadelphia, Chicago, and Seattle saw a range of annual increases.

As foreclosure activity has fallen in many metro areas, real estate prices have increased, reports Bloomberg Businessweek. The S&P/Case-Shiller index of property values in 20 cities went up 2 percent this past August from the year prior. “The housing recovery has had modest momentum,” said Anika Khan, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, a subsidiary of the largest U.S. mortgage lender. Khan expects the positive trend to continue.

Source: Click Here

For the investor this may mean when an opportunity comes your way, jump on it quickly.

Raleigh NC distressed properties have dropped to about 16% of all sales.

Raleigh area One of the Top place to flip houses.

House flipping’s status as an aspirational American pastime took hits during the recession but, like disco or SUVs, it has never gone extinct.

It is returning — with a vengeance. Cable TV shows glorify expert flippers and infomercials flog seminars for novice investors eager to dive into this risky market.

As many housing markets stage a recovery, there is a deep inventory of foreclosed or bank-owned properties that investors can tap at below-market prices.

House flippers have grossed an impressive $29,342 on average for each property in the first half of this year, according to RealtyTrac, a foreclosure industry data supplier. From purchase to sale, the average flipped home is turned in 106 days.

“A small player would have a better opportunity in a small town,” says Christopher Leinberger, a real estate professor at George Washington University’s School of Business.

And though small towns within large metro areas sport impressive gross profits, large housing markets, such as New York City, Washington, D.C., and San Jose, Calif., boast the most profitable average flipped home sales.

That’s why home buyers who dabble in flipping homes may vie against Wall Street-financed teams that turn over hundreds or even thousands of distressed properties in short periods.

Wall Street-backed home flippers enjoy the advantage of scale and cash purchases, says Leinberger. That is particularly true in large housing markets, such as Las Vegas or Phoenix, that have a bounty of bank-owned residences. But persevering smaller players can succeed.

Nearly two-thirds of the flipped homes are sold to first-time home buyers who seek a modest, 1,500 square-foot starter home — three bedrooms and two baths in a residential neighborhood, for example.

When it comes to house flipping, of course, location matters greatly. Once predominantly practiced in West Coast metro areas, such as Las Vegas, Phoenix and Los Angeles, house-flipping action is not restricted to those areas.

Daren Blomquist, a RealtyTrac vice president, says, “Investing seems to move from West to East and we’re seeing investors starting to move to East Coast markets.”

“If you’re looking to do a lot of flips, I would avoid overly crowded markets,” advises Blomquist. “But if you’re looking to do a flip or two a year or if you’re getting into it as a hobby or to make some income, my advice is stick to the market that you know well. There almost always will be a potential property and a prime opportunity that you can jump on when it (becomes available.)”

6. Raleigh, N.C.
–Avg. gross profit: $69,253
–Homes flipped through mid-2012: 455
–Avg. home price: $223,359 (78th highest)
–Avg. days to flip: 114

The greater Raleigh area has seen a 63% increase in the number of flipped home sales for the first half of 2012,compared to the first half of 2011, while the available inventory of foreclosed homes has remained constant.

And yet, in Raleigh, which is North Carolina’s second-largest housing market after Charlotte, median home prices declined by only 8.2% from pre-recession peak value. The U.S. median home price fell by more than 33% during the recession.

Source: USA TODAY
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Great, now is their a catch? YES there are.

You must use CASH, YOUR CASH.

You must take title.

Contract assignments, Taking over payments, or lease option from seller and lease option to another buyer is NOT an option. These may even be illegal. Contact your Real Estate Attorney.

Seller financing is possible, if the seller owns the property out right with no mortgage.

And then there is your potential buyer? How do you sell your property properly so your buyer can get a loan? That is the big ticket item. Call me lets sit down and talk about this.

Need Help?

I have been flipping properties since 1993. I can find you the best deals, and avoid pitfalls.

I even have a transitional lender to help you purchase, as long as you have the cash for the rehad and sell within 12 months.

I am here to help

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Wake Parade of Homes Start TODAY 9/28/2012

Be Prepared to be Dazzled.  New Homes, New Ideas, Green Building and just WOW

Its Here:  http://www.paradeofhomeswake.com/

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Get your Book of Parade Homes VIA SMART PHONE – Download the Parade App for your iPhone or Android phone and explore Parade homes online.

Now GO . . . . .

Tom

Carolina Real Estate Market update

 

Welcome Home

Thomas Bohlmann

3635 Rogers Road

Wake Forest NC 27587

919-434-4100

Raleigh: Buy a Home Now and 5 Great reasons why

Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying:
Supply Is Shrinking

With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.
Price Increases Are on the Horizon

Prices will bounce along the bottom this winter. However, projections call for appreciation after that. Several studies and surveys call for price increases over the next few years starting in 2013. One such survey shows that prices will increase over 10% by 2016.
Rents Are Skyrocketing

Rents historically increase by 3.2% on an annual basis. A study issued earlier this year projects rent increases of 4% for the next two years. Trulia recently reported that rents this year have actually shot up by 5.4%.
Interest Rates Are at Historic Lows

Federal Reserve Chairman Ben Bernanke has kept interest rates low in an effort to stimulate a lethargic economy. He understands that low rates will help housing and housing is a key to bringing back the economy. As the economy approves, the need to keep rates low will no longer exist. The 30-year-mortgage rate before the financial crisis was 6.57% (August 2007).
Buy Low, Sell High

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’. It’s time to buy.

Source: http://www.kcmblog.com/2012/09/17/five-reasons-to-buy-a-home-now/

Raleigh: Parade of Million Dollar Homes

The Million Dollar Plus homes

Biltmore Dreams
1015 Venetian Court
Cary, NC
4.00 Bed / 5.00 Bath
7,359 sq. ft.
Community: Renaissance at Regency Estates
Builder:Ange Signature Homes
$1,700,000

The Jordan
211 Colvard Park Drive
Durham, NC

Bed / Bath

5,658 sq. ft.
Community: Colvard Farms
Builder: Loyd Builders
$1,250,000

Top Notch
1500 Brooks Avenue
Raleigh, NC

Bed / Bath

4,292 sq. ft.
Community: Budleigh
Builder: L and L of Raleigh
$1,025,000

More here: http://www.paradeofhomeswake.com/homes/

Rent vs Buy Raleigh

Rent vs. Buy: Which is Cheaper for You?

The decision to rent or buy a home depends on where you live and also on your mortgage rate, tax bracket, and time horizon.
You can save hundreds of dollars a month by buying a home instead of renting – especially if you can get today’s low mortgage rates, itemize your tax deductions and plan to live there for 7 years.

The most important housing decision that most consumers face is whether to rent or to buy. So to help them with this decision, we took a look at the key market factors affecting the cost of homeownership. First off, asking home prices have started to rebound and have risen by 2.3% year over year in August (3.8% excluding foreclosures); however, rents have risen more (4.7%). This means that prices are lower relative to rents than they were a year ago. But more importantly, mortgage rates have fallen: the best rates this summer have been around 3.5%, while last summer rates were closer to 4.5%. Based on asking prices and rents during the summer of 2012, buying is now 45% cheaper than renting in the 100 largest U.S. metros, on average – that’s a savings of $771 a month. If you plan to stay in a home for 7 years, which is the average time that Americans traditionally live in a home before moving again, it is more affordable to buy than to rent in ALL of the 100 largest metros in the U.S.

Costs aside, the decision to rent or buy a home is very personal. There’s a strong emotional component: some people want the security of homeownership and others want the footloose freedom of renting. But the financial factors are also very personal because the decision to rent or buy depends on:

1. Can you qualify for a mortgage at the best rate available?
2. Which tax bracket are you in, and do you itemize your deductions?
3. How long will you stay in your home?

To calculate whether renting or buying costs less, we assume people can get a low mortgage rate of 3.5%, itemize their federal tax deductions and are in the 25% tax bracket, and will stay in their home for seven years.

Buying is a Slam Dunk
With a 20% down payment, a 30-year fixed mortgage rate at 3.5% and at the 25% federal tax bracket, homeownership is cheaper than renting in all of the 100 largest metros by a wide margin. There is no market where the financial decision is even close, so long as you plan to stay in the home for at least seven years, get 3.5% mortgage, and itemize your tax deductions. However, how much cheaper it is to buy a home than to rent really depends a LOT on where you live.

Raleigh, it is 43% cheaper to BUY vs Rent for a savings of over $600 / month mortgage payment vs rent payment.

For example:

In one specific Wake Forest neighborhood a 3 bedroom 2 bath town home can be purchased for $1000 down, and approx $680 / month in mortgage payments. This same town home to rent would be $995 / month. That is a $315 savings per month.

We are here to help. Contact us today for great savings in home ownership:

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Source: http://trends.truliablog.com/2012/09/rent-vs-buy-summer-2012/

2012 Raleigh Parade of Homes Is coming Soon

“Fantastic turnout! So many buyers – not just lookers!”

The 47th Annual Raleigh Parade of Homes will be held September 29 & 30, October 5-7, October 12-14, 2012, homes open 12-5 p.m.

Houses are judged prior to the first open house weekend based on criteria such as quality workmanship, floor plan and curb appeal. Winners of the gold, silver and bronze are announced during the Parade at an evening awards gala. Special design features are also highlighted in parade homes.

2012 Parade of Homes

The 2012 Wake County Parade of Homes will be held over the weekends of September 29-30, October 5-7, and 12-14 from 12-5 p.m. each day. This will be a free, self-guided tour featuring the best new homes throughout Wake County.

View the list of homes for our 2012 Parade. HBA LIST OF Homes On Parade

Visit http://www.paradeofhomeswake.com/homes/ for the online list of homes – which will be live the week of Sep. 24.

More info so as to the Many Great Builders and Neighborhoods.