Mid-July Market Update – Mecklenburg, Union Counties

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Here are the latest market statistics, relevant to our areas. This information is useful in gauging the overall market performance in Mecklenburg and Union Counties real estate, however for a detailed rendition of specific areas, upon request we can provide an analysis based on your desired location.

Mecklenburg County

SALES PENDING
With 7,017 homes on the market right now, we are currently reporting 2,436 pending sales and 4,581 homes still on the market for sale. The pending sales ratio is 34.7%. The higher the ratio, the more that listings are in demand, indicating a continued seller’s market trend.

The highest number of pending contracts fall within properties in the $100,000-$200,000 price range. The same price range bracket of $100,000-$200,000 has a relatively large inventory of properties for sale at 1,416 listings. Mecklenburg County’s average list price for all price ranges is $363,296 – slightly lower than last month’s figure.

CONTRACTS CLOSED
The previous six months have shown a total of 4,427 closed contracts with an average sold price of $240,016 – an improvement from last month. The most sold listings currently have come from the seemingly most active price range of $100,000-$200,000. Alternatively, 3,255 properties have not sold in the last six months. Reasons for a home not selling range from overpricing to inadequate marketing or less than ideal showing condition. The highest number of off-market listings at 1,078 properties also falls within the $100,000-$200,000 price range.

DAYS ON MARKET
The current Days On Market in Mecklenburg County hovers in the same range at 117, just one day less than June’s number. The average DOM over the last 6 months is 105 days, just three fewer days than last month’s DOM. The fastest selling homes during this time were once again in the $1.2M-$1.3M price range with a higher average sold price for the last 30 days of $294,897. The average DOM for these properties was 92 days.

ABSORPTION RATE
We currently have 6.2 months of inventory based on sales in the previous 6 months. Assuming that it would take this much time to sell all the current inventory if market conditions remained the same, this indicates a balanced market.

Union County

SALES PENDING
We have not seen a significant change in the numbers from last month versus today’s statistics. The total number of homes on the market in Union County is currently 2,139 with 631 sales pending and 1,508 active listings. The pending ratio is 29.5%, indicating more supply than there is demand. Once again, homes for sale in the $100,000-$150,000 price range are seeing more contracts pending sale. Similarly, the price range of $150,000-$200,000 is showing a larger inventory of available homes at 267 listings, higher than last month. The average list price for all price ranges in Union County this month is $330,291, very close to the previous month.

CONTRACTS CLOSED
In the last six months we have seen a total number of 1,127 closed contracts averaging in price at $255,058 – with the highest number of sold listings in the $100,000-$150,000 price range, one step lower than the previous month’s report. As of this report, 970 listings have failed to sell in the last six months for various reasons stemming from marketing technique, inadequate pricing or poor property condition. The highest number of off-market listings at 174 properties are in the $100,000-$150,000 price range, mirroring the price bracket change from our last update.

DAYS ON MARKET
Homes in Union County are taking an average of 135 days to sell and the DOM during the last six months was reported at 111 days, hovering very closely to last month’s number. The previous six months saw an average sold price of $255,058 with the fastest selling properties once again selling in the $450,000-$500,000 price range.

Union County’s average sold price during the last 30 days dipped slightly at $259,500 with an average DOM of 99 days, just two days short of last month’s number.

ABSORPTION RATE
Slightly down from last month, we are at 8.0 months of inventory in Union County based on the number of properties sold in the last 6 months. According on this, assuming market conditions were unchanged, it would take 8 months to sell all existing property listings on the market.
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Keep in mind, these numbers are general and will impact each prospective buyer, seller and investor differently based on the goals at hand. We encourage you to contact us for a customized consultation, entailing detailed and relevant information suited to your specific real estate needs.

Download Your Reports at the Links Below!
Union County: http://www.scribd.com/doc/99943235/NC03005-Union-County
Mecklenburg County:http://www.scribd.com/doc/99943230/NC03005-Mecklenburg-County

4 Questions Buyers Must Ask Their Agents

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A home buyer must be thorough when choosing which agent to hire in order to aid them with the purchase of a home.  For many people, this will be one of the biggest investments of their lives, so putting forth diligence and research and feeling comfortable with the right real estate agent is a key step in starting the home buying process.  There are four key questions a buyer must ask their potential agent before they hire him or her.

Number of Sales

The first question a buyer must ask is “How many homes has the agent sold this year?”  The number of sales is a very good indicator of the amount of experience the potential agent has in today’s market.  The market changes quickly; this year’s market is different than even last years, so knowledge of the hot button issues of today’s market is a significant factor in the negotiation process.

Years of Experience

The second question a buyer must ask is “How many years of experience does the agent have?” The real estate industry is an industry that has low barriers of entry because it does not take much for a person to get a real estate license.  Because of this low barrier of entry, many people achieve their real estate license and work as an agent only part-time.  To find the most qualified individual, make sure that they have good experience as a full-time agent.

Administrative Support

The third question a buyer must ask is “What kind of administrative support does the agent have?”  Any championship sports team or Oscar winning film crew will tell you that a good supporting cast is paramount to success.  The agent you are working with may have great people skills and negotiating skills, but may partly struggle with paper work.  This is why it is imperative that the agent has a dedicated and skilled administrative staff.

Find a Specialist

The fourth question a buyer must ask is “Is the agent a buyer’s specialist or a jack-of-all-trades?”  A serious buyer will be much more successful with an agent that is focused on specifically helping buyers.  Many real estate teams have members who have distinct functions and skill sets.  Find the agent that is a true expert in their field.

For any home buyer, asking these four questions is critical to making the decision on which agent to hire to help find the best home and best deal for the buyer.  Having the best buyer can relieve a great deal of stress for any home buyer and make the home buying experience an enjoyable one.

Things To Know About the Not-So-Common Knowledge of Short Sales

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When families find themselves staring at the prospect of losing their home to whatever reason, whether job loss, downsizing, relocation or anything else that is unforeseen – many times they feel cornered and unable to see the options.  For years during the current economic state that has resulted in an unstable real estate market, the answer seemed to be foreclosures.  But more and more often, short sales are taking over as the alternate choice. 

Here are three things worth knowing about short sales:

It Doesn’t Hurt to Ask For An Adjustment

Many people do not realize the benefits of simply engaging in dialogue with their banks.  With the large number of distress sales out there these days, banks are far more willing to engage in conversations about alternatives to foreclosure.  Foreclosures end up costing lending institutions thousands of dollars to litigate, plus hours of time and resource put in to handle each case.  By expressing the desire to explore a loan modification, banks are relieved of this stress and are likely to agree with a loan modification.

Through an adjustment of your current interest rate, you may be able to afford the same home and spare you and your family the difficult process and impending negative impact of a foreclosure.  Not only does a loan modification save homeowners money, it also protects their credit from long-term negative affects otherwise experienced with foreclosures.

Know What The Tax Man (Or Woman) Has To Say

Short sales are a great way to spare a family of much pain but there are tax implications.  Like anything else, before embarking on this financial shift with the ownership of your home, it is a good idea to familiarize yourself with everything you need to know about the taxes involved.  In short, the tax liability works like this:  On a mortgage with $200,000 owed that has a short sale of $100,000, there is that remaining $100,000 left that will show up on a 1099 in your name.  This translates to income and should be managed with a tax advisor so you understand all there is to know about that real estate income.

All Players Must Agree to the Terms

A lot of times mortgages involve multiple lenders.  When those homes are being purchased, surely the thought of needing to do a short sale was not a consideration.  Now that you do find yourself looking at a short sale, it is essential to iron out the terms of agreement with all lenders involved. 

When there is more than one lender the secondary bank must agree to give the primary lender a portion of the liability on the difference to you.  This sounds easy enough but since this can be a matter of lender-specific policy, you may come across a lender that is unwilling to agree to this term of a short sale.  By researching in advance the number of banks that are involved and what their respective policies are regarding short sales, you will cover important bases and be far more prepared.
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Short sales are a choice that offers many families reason to hope and a path to dream the reality of living in their own home again, without struggling to manage the mortgage.  Armed with the key knowledge necessary to tackle this newest intervention on the real estate woes of many, you can and will hope to succeed in your housing endeavor and look forward to a positive outlook!