Charlotte, NC. Housing trends And Stats For April 2013

There is a lot of talk about the housing market in Charlotte, NC. and whether it is improving or if this is a smoke screen. Being one of the largest metro areas in the United States and one of the fastest growing this trend plays a vital impact on home sellers and home buyers alike. So I decided to do a monthly analysis versus the previous year and two years ago during the same month and see where the trends are and how they are impacting the housing market in Charlotte, NC. here are the stats for April 2013: First, let's look at inventory of available homes buyers have to choose from in the Charlotte, NC. region. In 2011 there were 24233 homes for sale in April. In 2012 there were 20127 homes for sale in April. Last month there were 14660 homes for sale. That is a decline of 44% in two years of available homes buyers have to choose from. Second, the average sale price of homes in the Charlotte, NC. region for April 2011 was $203,442. In 2012 the average sale price was $214,739 and last month the average sale price was $217088. That is an increase of 6.7% in the average sale price in the Charlotte, NC. market. Third, let’s look at days in inventory. How long are houses sitting on the market? In 2011 the average home sat on the market for 13.9 months before being sold. In 2012 the number improved to 9.9 months and last month it improved to 5.2 months. That is a dramatic drop in inventory of over 76.1% in two years. What the trends are showing is that the housing market is out of the recession and available homes for sale have decreased to the lowest levels we have seen in over 5 years coupled with prices slowly creeping back up and more buyers out there than homes available and you have signs of a robust market in Charlotte, NC. If all three factors were trending equally it could be the market fixing itself. But the fact that inventory has declined 25% less than average days on market means we are getting more buyers out there than homes right now and it is starting to cause prices to go up. This is a good thing for the housing industry and the economy. Coupled with the fact, home prices are not skyrocketing to adjust for decrease of inventory and interest rates continue to be at all time lows is keeping a stable growth in the Charlotte, NC. market. Dave diCecco Realtor/Broker Coldwell Banker United Cell: 704-519-7895 ddicecco@cbunited.com www.davedicecco.com

What Do You Do If The Appraisal In Charlotte, NC. Comes Back Low

In this ever changing market in the Charlotte, NC. area the one variable that seems to be the unknown variable with all transactions is the appraisal. Yes, we have seen an uptick in pricing in Charlotte, NC. since last year. Depending on where you are looking to buy a home it can be anywhere from 3% to as high as 10% or more. But how are appraisers viewing the change in the market? Are they adjusting the values to reflect the ever changing market right now? In some cases they are and in more and more cases they are not. Does that mean that the homes in the Charlotte, NC. area are not worth what home buyers are willing to pay for them? Does it mean that due to lack of inventory Realtors are over pricing homes and buyers are panicking and giving the seller s what they are asking without regard to whether it will appraise or not? I personally think it is a mixture of a little of both. yes homes have increased in value because of supply and demand and appraisers for the most part are trying to adjust appraisals in Charlotte to reflect that. But at how much of an increase? I have come across two separate cases in the past two months that an appraisal came in lower than the sale price of the homes. In one case i had the listing and was a little nervous and in the other I had the buyer and felt the offer was fair and the appraisal should not have been an issue. But what do you do if the appraisal comes in to low? I personally ask for the appraisal and go through the comparable that the appraiser used and try to see if there are better comparable for them to use. I also double check the accuracy of the comparable they are using and the neighborhoods to ensure that they are giving the best use and most value to the ones that are in the same neighborhood or close to that home in size and design. Contesting an appraisal is not an easy thing to do. But when we price homes as a realtor and inform our clients of a price to offer on a house the one thing i always do is a market analysis of the property and share with the buyer or the seller what the market is bearing right now and adjust for condition and square footage accordingly. I then pull that out and match my findings with the appraiser’s findings and see what discrepancy we have and argue why some of my comparable are more favorable or theirs are not. It can be a long and tedious process. I have been able to get one of the two appraisals changed to reflect what I felt was a fair price for the house and keep the transaction together at the agreed upon price. On the other one; after a long fight I lost a battle the other agent and I felt we were right in. You are not going to win them all; but at least with the information as to why you agreed to that price at your fingertips and justification you can make a strong argument as to why the appraiser should adjust their value..... Dave diCecco Realtor/Broker Coldwell Banker United Cell:704-519-7895 ddicecco@cbunited.com www.davedicecco.com

Memorial Day-------A Day To Remember

Monday marks the day we honor our fallen soldiers and countrymen who gave their lives so that we enjoy the freedoms and liberties we have today. Graves throughout the country today will be honored with an American flag honoring those men and women who gave so much for us. Parts of the country host parades honoring our fallen.... I have served in the Army during the Persian Gulf Crisis. Thrusted into action and unsure of what the future held. Yet I would not have traded places. As so many people who served our country before and the many more that will serve our country in the future; we do it for a purpose....To protect our country and what we stand for. This past week I had the honor of flying on a plane and being seated next to a USMC Sergeant on his way home to visit family. He was in full dress uniform. When he came and sat down we began a conversation about the military and life in it. Then an older gentleman came and joined us in the row. As we politely acknowledged him and let him be seated we continued our conversation. The other gentleman then said i am a Vietnam veteran. I served four tours over there voluntarily. So now we all began swapping war stories and having a good laugh and time. Suddenly the stewardess came up to our row and asked the USMC sergeant to move to first class in honor of what he does for our country (apparently there was an open seat there) . The USMC sergeant without blinking an eye or any hesitation said thank you to the lady and said he rather give the seat to the older gentleman since he served four tours in Vietnam and is more deserving of the first class than I am. In the same breath the Vietnam veteran said to the stewardess thank you I am honored but please give the seat to the young lady over there with her child( we figure less than a year since they were sharing a seat). The stewardess did as he requested. The lady and her child came over and thanked us as they moved to first class. After they got situated the Vietnam veteran looked at both of us and said: "is that (pointing to the lady and her baby) not the reason we serve and are willing to give our lives up for our country?" We both acknowledged.... The people around us heard the stewardess ask the question and the responses given and one of them got up and started clapping; saying thank you for what you do. it turned into the whole plane thanking us and then singing god bless America. When we landed; the stewardess informed us that the rest of the plane will remain seated as we depart. It started out as one person requesting it and the rest of the plane agreed. so we departed the plane first and to a loud cheer and clapping from passengers we did not know...and a lot of thank you's..... To me that is what memorial day is about. It is the reason we serve and why so many people are willing to give up their lives for our country.... So, I salute each and everyone of you that has served or is serving our country and I personally want to say "THANK YOU" . Dave diCecco Realtor/Broker Coldwell Banker United www.davedicecco.com