Why Is Monthly Payment More Important Than Price For A Home?

When I am dealing with a home buyer the toughest question is what price range are you looking to be in. But, it really is not a tough question. Because it is one a Realtor should NEVER ask you. It is completely irrelevant to ask someone what price range they are looking in. What we need to know is what are YOU comfortable affording for a monthly mortgage payment. There is a big difference between price range and monthly mortgage payment. People that have owned homes in the last 10 plus years are thinking that they are paying $1000 a month right now for their home that cost them $130,000. So, if they want to go to $1200 a month on a payment with the equity they receive out of their house then they can only look at a $150,000 range for a home. Well the reality is with interest rates as low as they are right now; at $150,000 in Charlotte, NC. you would be paying less than that for a mortgage payment. You probably can go up to $200,000 range (depending on taxes) and achieve the same payment you are looking for. That additional $50,000 opens up a whole new area of homes for you to search. You always need to talk to a mortgage broker about getting pre-qualified...However; your Realtor should be able to give you an estimate of what the price area you can look in based on what you are comfortable a month paying. i am just shocked when people tell me that they never heard it that way before....I work with a general rule of thumb. If you can afford that now and are paying your bills on time and have money saved you should be able to get approved....So far; it has worked for me. The answer here is simple....a great realtor will ask you what are you comfortable at a month not what price range you are looking in.....because it always boils down to how much a month do you want to pay; not what the price is...... Dave diCecco Realtor/Broker www.davedicecco.com

Is The Charlotte, NC. Housing Market Improving In 2012?

A question that is always asked by home sellers during a listing presentation and home buyers looking for homes; "How is the market performing now as compared to the past few years?" the answer has always been subjective depending on who you talked to. Charlotte was one of the last areas to get hit by the housing crisis and has been slower than others to recover...however the trends are showing we are coming out of the housing slump. The data says that Charlotte is recovering along with the rest of the country now. Inventory levels peaked around January 2010 as families were trying to short sale their home or sell it. Unfortunately at that time the amount of buyers out looking made it very difficult to get your home sold if it was not priced right... In January 2010 we had an average of 13.2 months of homes for sale based on sales at that time. Currently we have an average of 10.8 months supply of homes on the market. That may not seem like a lot but it is a drastic drop in inventory levels. Considering that a six month supply is considered a balanced market Charlotte is trending toward a more balanced inventory level right now. The other factor that plays into this is the amount of homes for sale right now. We had a high in January 2009 of homes on the market (due to foreclosures running rampant). We are down 28% in total inventory in the Charlotte area in the past 2 years. That is a large reduction and the trend seems to be heading in lower inventory levels. With lower levels of homes to choose from the demand will start to increase and prices will begin to climb slowly. I know currently being on both the selling side of it and the buying side of it; i have noticed a substantial uptick in home offers and multiple offers on house right now...if you are priced right and have the home marketed well you can and should sell your home rather quickly as compared to the past 2 years. The other variable is the amount of homes sold. From last year to this year we have seen an upswing of almost 27% more homes sold and the amount of homes pending to close has increased by almost 30%. both are great signs that the housing market is in the rebound in the Charlotte, NC. area. With interest rates being at historic lows and maintaining that level and rental prices increasing dramatically; more people are finding it more affordable to own a home than to rent one right now. As the economy has stabilized in the Charlotte region and more jobs have been increased consumer confidence has risen with it. That i believe has sparked the increase in home sales today and will continue to help the housing market in Charlotte, NC. recover from the recession. Dave diCecco Realtor/Broker www.davedicecco.com

Market Report: NoDa/The Arts Distrcit Charlotte, NC. March 2012

NoDa or also known as the Arts District is a suburb of uptown Charlotte. Conveniently located 2 miles from uptown it is home to art galleries and various southern cuisine restaurants. People love living here for the old world charm it still has. An old textile mill area of is a thriving area of Charlotte. Below is the market trends over the past three years for the area from February 1st to february 28th. 3 years ago there were 42 homes that sold for an average sale price of $242,268. They were on the market for an average of 113 days. 2 years ago there was 20 homes that sold for an average of $221,245. They were on the market for an average of 113 days. Last year there was 34 homes that sold for an average of $195,918 They were on the market for an average of 124 days. Currently there are 17 homes actively on the market for an average asking price of $224,669. They have been on the market for an average of 171 days. There are also 10 homes under contract. These homes have not closed yet. They have an average asking price of $254,326 and were on the market for an average of 75 days. Based on the current market conditions inventory levels are leveling off in this area. A six month supply of inventory is considered to be a blanced market. Currently there is just about a 6 month of home inventory on the market. This area is becoming more stable and balanced now. Dave diCecco Realtor/Broker www.davedicecco.com