This has been the question on everyone's mind for the past two years. When are we going to hit the bottom? When will prices start to stabilize and then slowly increase back up to normal levels?
Well to answer those questions is going to be purely speculative venture. Noone, despite their credentials, can predict what the future holds. Did anyone think the President would negotiate a back door deal with Replubicans? So, all we have to go on is the statistics and the trends that are showing right now how the market is doing.
Nationally, the news has done a great job of portraying a gloom market. But is that the case across the country? No.Certain pockets of the country are still feeling the effects of inflated home prices; while other parts of the country are stabilizing and some are seeing growth.
Charlotte Nort Carolina Real Estate market is one where home prices seem to be stabilizing right now. The trends are not the decrease that was seen over the past two years. There is still bumps in the road and there will always be bumps in the road to growth.
However; over the past six months home prices have pretty much stayed stabilized in neighborhoods in the Charlotte area. Some months have seen a spike and others a slight decline but average out to be along a flat line right now. Does this mean prices are going to rise in 2011? No. I cannot predict what the future holds for home prices. The economy and the road to recovery have a major factor in that.
But another interesting trend pointed out to me in a recent article was sellers lowering home prices. Of the 28 majpr markets that they tracked Charlotte North Carolina was one of only TWO markets where the percentage of sellers lowering their prices decreased from last year as of November 2010.
Those are two indicators. As companies are relcoating to the Charlotte area jobs are growing. Charlotte has been blessed with having the second largest banking captial in the Untied States outside of New York. Companies are relocating to the Charlotte area and creating jobs in turn.
That coupled with the flat line pricing and the amount of sellers decreasing their asking price are indications that the Charlotte market has seen the bottom and has only up to go from here. As long as the government keeps interest rates low the affordability ratio is extremely high and the demand will increase as people realize they can own a home for less than they are paying in rent right now.
So, if you are looking to buy in Charlotte right now...the time may be right. Home prices are at 2006 levels. Interest rates are at historic lows and job creation (though slowly) are starting to be created here.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Friday, December 17, 2010
Thursday, December 16, 2010
Is Tenant Responsible For Rent On Home Being Foreclsoed On?
This is a question that I have seen coming up more and more recently. I represent a lot of first time buyers and families that have moved here from other areas that are currently renting now. One of the biggest questions I have received lately is they have received notifcation that the home they are renting is going to foreclosure.....are they obligated to pay the rent still; if the landlord stopped paying the mortgage?
This is an easy question to answer. YES. Each of those transactions are independent of one another. The landlord (owner of the home) has a contract with the bank to pay a certain amoutn each month. If he defaults on that the bank can, and will, sue him for breach of his contract and take the home over via foreclosure. However; his mortgage is not tied into you paying the rent each month. there is no clause that says as long as the rent is paid he has to pay the mortgage.
The same goes true for you. You have a signed lease agreement with the landlord (owner) of the property. Just because he has defaulted on his mortgage does not entilte you to not pay the rent. Unless your lease agreement specifically reads that your payment of the rent is subject to the landlord beign current on the mortgage; you have to pay until the day he does not own the house anymore. Just as the bank can sue the landlord for not paying the mortgage; the landlord can sue you for not paying the rent.....
It does NOT matter if he has not paid the mortgage payment. I just had a client who bought a house from me a few months ago that got sued by the landlord for breach of his lease agreement. Eventhough the landlord eventually let the house foreclose on; my client failed to pay the rent when he found out it was being foreclosed on. (for the record I did not advise my cleint of doing that). He lost in court and has to pay the ex-landlord back rent PLUS court fees.
So be careful if, you receive a foreclosure notice at your door because the landlord has not been making the mortgage payments. it does not preclude you from not making the rental payments.... Consult an attorney before yous top making the payments.
Dave diCecco
Realtor/Broker
www.davedicecco.com
This is an easy question to answer. YES. Each of those transactions are independent of one another. The landlord (owner of the home) has a contract with the bank to pay a certain amoutn each month. If he defaults on that the bank can, and will, sue him for breach of his contract and take the home over via foreclosure. However; his mortgage is not tied into you paying the rent each month. there is no clause that says as long as the rent is paid he has to pay the mortgage.
The same goes true for you. You have a signed lease agreement with the landlord (owner) of the property. Just because he has defaulted on his mortgage does not entilte you to not pay the rent. Unless your lease agreement specifically reads that your payment of the rent is subject to the landlord beign current on the mortgage; you have to pay until the day he does not own the house anymore. Just as the bank can sue the landlord for not paying the mortgage; the landlord can sue you for not paying the rent.....
It does NOT matter if he has not paid the mortgage payment. I just had a client who bought a house from me a few months ago that got sued by the landlord for breach of his lease agreement. Eventhough the landlord eventually let the house foreclose on; my client failed to pay the rent when he found out it was being foreclosed on. (for the record I did not advise my cleint of doing that). He lost in court and has to pay the ex-landlord back rent PLUS court fees.
So be careful if, you receive a foreclosure notice at your door because the landlord has not been making the mortgage payments. it does not preclude you from not making the rental payments.... Consult an attorney before yous top making the payments.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Wednesday, December 15, 2010
Are Appraisals Affecting Your Financing Options
There has been much made recently about foreclosed homes and the conditions of them. People are looking constantly for a better deal and trying to purchase a home for well below market value. But what happens when your mortgage lender orders the appraisal? We all figure that if the house is priced well below market value then they should have no problem getting the house to appraise for more than they are looking to purchase the home.
However; today the appraisers are looking for more than just the value of the home. Certain guidelines with FHA and VA loans have made it more difficult to purchase homes in "as-is' conditions. Which in turn has led banks to sell their homes without those financing avenues availble to consumers.
Recently I had 2 cases where the appraiser placed the value of the home at or slightly greater than the agreed upon price. However; in both cases the apprasier stipulated repairs to be done to the house prior to them being able to clear the appraisal for the type of financing that was requested.
In some cases it can be minor repairs. In other cases the repairs can be quite costly. So, who pays for the repairs? Is it something that the seller can afford to repair or is the buyer going to have to pay to have the repairs done to the house? these are questions that need to be asked if you are purchasing a home in an "as-is" condition. It can make the difference between you being able to purchase the house and not being able to buy the house.
Make sure if you are purchasing a home in "as-is' condition that the home will qualify under the type of financing arrangemetns you are looking to get....otherwise you could be going through the process and making the arrangements for the move that may not happen on that home.....
Dave diCecco
Realtor/Broker
www.davedicecco.com
However; today the appraisers are looking for more than just the value of the home. Certain guidelines with FHA and VA loans have made it more difficult to purchase homes in "as-is' conditions. Which in turn has led banks to sell their homes without those financing avenues availble to consumers.
Recently I had 2 cases where the appraiser placed the value of the home at or slightly greater than the agreed upon price. However; in both cases the apprasier stipulated repairs to be done to the house prior to them being able to clear the appraisal for the type of financing that was requested.
In some cases it can be minor repairs. In other cases the repairs can be quite costly. So, who pays for the repairs? Is it something that the seller can afford to repair or is the buyer going to have to pay to have the repairs done to the house? these are questions that need to be asked if you are purchasing a home in an "as-is" condition. It can make the difference between you being able to purchase the house and not being able to buy the house.
Make sure if you are purchasing a home in "as-is' condition that the home will qualify under the type of financing arrangemetns you are looking to get....otherwise you could be going through the process and making the arrangements for the move that may not happen on that home.....
Dave diCecco
Realtor/Broker
www.davedicecco.com
Monday, December 13, 2010
Why Are More People Choosing North Carolina To Live
The other day I was reading an article from Forbes magazine. It was discussing the top ten states people are leaving and the top ten states that people are moving to. People are leaving states in the North and Midwest and fleeing to states in the South and Southwest.
North Carolina ranks in the top five of states more people are fleeing to. Why? There is a wide array of reasons. On the top of the list is economy. Despite all the horror stories people read on a daily basis on the economy and jobs; North Carolina ranks among the top destinations for young professionals. It has a high growth rate in energy jobs and high tech and is home to some of the largest public companies. This makes it an attractive place for young professionals looking to start a career or professionals looking for a job.
Another reason is the weather. The southern states have always been enticing to people moving because of the lack of snow and extreme cold weather that is characteristic of the north this time of the year. One has to only look at the news to see that winter has already struck fear in some people and caused havoc for a lot of people in the North and Midwest.
Third is the cost of living. In comparison to some states North Carolina offers an affordable cost of living in comparison to where they are at now. Personally moving here from the Northeast five and half years ago; I can contest to that. The housing prices are more affordable for approximately the same home; taxes are less expensive and the quality of life is better.
Couple all this together and you have a great recipe for success. Which is why North Carolina has consistently ranked in the top five for people looking to move....
Dave diCecco
Realtor/Broker
www.davedicecco.com
North Carolina ranks in the top five of states more people are fleeing to. Why? There is a wide array of reasons. On the top of the list is economy. Despite all the horror stories people read on a daily basis on the economy and jobs; North Carolina ranks among the top destinations for young professionals. It has a high growth rate in energy jobs and high tech and is home to some of the largest public companies. This makes it an attractive place for young professionals looking to start a career or professionals looking for a job.
Another reason is the weather. The southern states have always been enticing to people moving because of the lack of snow and extreme cold weather that is characteristic of the north this time of the year. One has to only look at the news to see that winter has already struck fear in some people and caused havoc for a lot of people in the North and Midwest.
Third is the cost of living. In comparison to some states North Carolina offers an affordable cost of living in comparison to where they are at now. Personally moving here from the Northeast five and half years ago; I can contest to that. The housing prices are more affordable for approximately the same home; taxes are less expensive and the quality of life is better.
Couple all this together and you have a great recipe for success. Which is why North Carolina has consistently ranked in the top five for people looking to move....
Dave diCecco
Realtor/Broker
www.davedicecco.com
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