lake norman real estate

Lake Norman Real Estate: Real Life Experiences with Short-Sales Part 2

 “DECLINED”.  After 6 grueling months of waiting, Bank of America just simply declined my buyers’ shortsale offer.  No counter offer, no explanation.  This is the first distressed sale of any kind that I have not closed and I must admit, I was blind-sided by the news.

While Bank of America is notorious for their reprehensible handling of home loans, especially shortsales, I guess I had to experience it for myself.  The irony is that in an article in the Washington Post last July, 2009,  the writer stated that Bank of America was going to “streamline its short-sale process so that it would only take SEVEN days to obtain shortsale approval.”

Here is my experience:

October 20th, 2009:  Submitted offer to listing agent.

October 20th:  Seller Accepted offer

March 30, 2010:  Offer was declined

Below are emails from the listing agent which provides you detailed insight into this failed transaction: Continue reading

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Lake Norman photos

Lake Norman Real Estate’s January 2010 Wallpaper Calendar is Here!

Lake Norman Real Estate's Jan2010 Wallpaper Calendar Preview

Wow, not only is it time for the Lake Norman Real Estate’s new monthly wallpaper calendar, it is also the start of a new year!

This past December brought the greater Lake Norman area as well as much of the country an early dose of winter.  While some winters Lake Norman has hardly a dusting of snow, several weeks ago we got about 4″ in Mooresville and a great deal more up in our mountains.  Not that I am complaining. Living most of my life in California, I still look at every snow fall as an exciting adventure much to the amusement of my clients and friends from the Northeast and Midwest! Continue reading

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Lake Norman Real Estate Market Reports

Lake Norman Real Estate’s Hot Sheet: July 13, 2009

 Lake Norman Hot Sheet:  July 13, 2009 

Lake Norman Real Estate's July 2009 Hot Sheet 2

 There has been so much speculation in the economic news about the U.S. housing market that I decided we needed a reality check.  There is nothing better to shed some light on our Lake Norman Real Estate market than a visit to our Multiple Listing Service.  The above chart is today’s “Hot Sheet” from the Charlotte Multiple Listing Service for single family homes in all of Lake Norman (Area 13).  These numbers represent a real time snapshot of the past two week’s activity.  As always, I have included the past 6 months so that you can put these numbers in perspective.

Here are some highlights:

New listings decreased by 22%…the lowest number this year!  After a peak last month there are consistent signs that our inventory levels are heading downward.  This is one key component of a bottom.  Once our inventory is drop to a 6-8 month of supply we will be back in a balanced housing  market here in Lake Norman.

The number of listings coming “Back on the Market” due to a canceled contract is still extremely high.  Considering our pending and contingent/conditional numbers are dropping, then more homes fell out of contract than went under contract in the past two week.  This is again a sign of the tremendous challenges involved in loans, appraisals and perhaps a lack of buyer’s confidence in the economy and/or housing market.

The number of price changes are back down to our April levels.  This could be simply because the decreasing number of active listings is in line with the decreasing number of price changes when compared to their peak last month.

Pending home sales dropped 18.5% compared to last months high.  If you follow the national housing market you will know that there is always much focus on pending sales since these are sales that are past conditions and contingencies and are waiting to close.  Pending sales are looked at as the best indication of future closed sales.  These have been strong nationally which is one reason why some of the media has been optimistic about the national housing market hitting bottom.  However, here in Lake Norman, all numbers are pointing to the fact that June was perhaps the strongest month we will have this year and that sales will continue to decline through the end of 2009.

The number of closed sales remained equal to last month’s hot sheet.  What I find interesting is that despite last month’s high pending sales of 54, we in fact only closed 44 in the past two weeks.  Last month’s strong pending sales numbers did not result in higher closed sales this month, probably due to the number of contracts that failed to close.

Unfortunately, the number of new contracts, conditional and contingent sales, dropped for the second straight month.  This further supports my feelings that our July and August numbers are going to be lower than June’s.

As always, I will close with a note about our months of supply of active listings.  If we presume that we  will close about 80 sales in July and we currently have 1582 active listings, we still have about a 20-month supply of homes for sale.  It is still a buyers market here in Lake Norman!

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Lake Norman waterfront homes

Lake Norman Real Estate: Is now a good time to buy a waterfront home?

Lake Norman Waterfront Home

Lake Norman has come to life in the past month;  the water is warm, school is out and the boats, jet skis and water sports of all kinds are going on throughout the lake!

I am now having a continual flow of out-of-state buyers, especially from the Midwest and Northeast, coming to see our waterfront homes for sale.  Of course, the million dollar question is:  Is this a good time to buy a waterfront home?

During the past two years, the overall Lake Norman real estate market has slowed significantly.  The only price ranges that have good activity are those that meet the conforming loan limits of $417,000.  Our mid to high-end luxury home price ranges have slowed to a crawl which includes almost all of our waterfront homes.

Before our downturn in mid-2007 waterfront homes were increasing in value at a far greater rate than the rest of our homes.  So, it would stand to reason that this niche would also have the greatest vulnerability to loose value.  At our peak, the average waterfront home sold for about $300 per square foot.  Today, the average waterfront homes are selling at about $206 per square feet.  Here is a chart breaking the numbers down by our Multiple Listing Services areas:

lake-norman-waterfront-sales-analysis

 Overview:  We currently have 587 waterfront homes for sale and have sold 28 since January 1, 2009.  If we were to keep up this trend, it would take 56 months for us to sell all of our waterfront homes.  If we are generous and assume that about 23 homes will close in the next month based upon the number of pending sales as of today, we would currently have 26 months of supply.  This compares to 18.5 months of supply for all of  our Lake Norman real estate market.    But, as you can see above, these numbers vary greatly by the area.The average sales price when compared to the average final listing price was about 90%.  In other words, the average listing price was 10% higher than their sales price.

Area 13/1:  This is the area North of Highway 150 on up to Statesville.  With only one pending sale, this area has not picked up in sales and still has 58 months of inventory.  The average sales price is $694,666  and the average dollars per square foot is $191.  This area does not have as many luxury homes and was just experiencing their building boom when the market slowed.  Builders have been hit particularly hard in this area because of the number of spec homes they had just built.

Area 13/2:  This is South Iredell County/Mooresville from Highway 150 down to Langtree Rd at the new Exit 32.   Included in 13/2 would be the luxury community of The Point.  With 9 pending sales, right now we can estimate that we have about 22.5 months of supply.  The average sales price is $1,004,757 and the average dollars per square foot is $211. 

Area 13/3:  This is Mecklenburg County including Davidson, Cornelius and Huntersville.  Included in this area would be the luxury community The Peninsula.  With 11 pending sales we can estimate that we have about a 12-month supply of waterfront homes.  The average sales price is $833,363 and the average dollars per square foot is $215.

Area 13/4:  This is Lincoln County including the unincorporated town of Denver.  Included in 13/4 would be the Crescent community of Sail View and several smaller luxury home communities.  With 4 pending sales, we can estimate that we currently have a 24-month supply of waterfront homes for sale.  The average sales price is $784,050 and the average dollars per square foot is $184 which is the lowest of the 5 areas.

Area 13/5:  This is Catawba County including Sherrills Ford and Terrell.  Included in 13/5 would be the Crescent community of Northview Harbour.  With 2 pending sales, we can estimate that we currently have a 50-month supply of waterfront homes for sale.  The average sales price is $505,448 which is the lowest of the entire Lake Norman area.  However, the average dollars per square foot is $204.6.

If there is one trend I can see, it is that the older communities are fairing better than the newer communities that still have new construction and/or are a bit more remote rather than being in the heart of Mooresville or Cornelius.  This may be because our builders have been the first to be hit hard with foreclosures.  Will there be a next wave of foreclosures before our market stabilizes?  It would certainly make sense.  Until jumbo loans are more available and affordable I still see our waterfront home market struggling.  So, to answer my million dollar question:  Is it a good time to buy a Lake Norman waterfront home?  It depends.  It depends on the location, the motiviation of the sellers and the season.  Right now we are in our peak season for home sales, but once fall hits, I expect to see a significant slowdown that will last at least through winter 2010.  Of course, this is only my opinion:)

Learn More About Life in Lake Norman:

10 Things Lake Norman Waterfront Home Buyers Should Know BEFORE buying

Lake Norman Relocation Resources

Relocating to Lake Norman

60 Things You Should Know About Life in Lake Norman, Part 1

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lake norman real estate

Lake Norman Real Estate: Developer Close-Out Auction in Davidson!

Lake Norman Condos for sale in Davidson

Would you like to own a part of one of Lake Norman’s trendy new mixed-use Urban Villages?  Mark your calendars for Saturday, April 18th at 10:00am when 17 new residential condominiums located in the popular South Main Street District in Historic Downtown Davidsonwill be sold by auction.

The scoop:  5 of these condos are going to be sold at “ABSOLUTE AUCTION” which means there is no reserve.  The highest bidder buys regardless of the price!  The other 12 condos will sell subject to the sellers confirmation.

The history:  Pre-selling of these “Condos in South Main Square” began in 2007.  5 sold through our MLS at prices from $129,900 for a 550 square foot “garden condo” to $247,595 for an 1132 square foot 2-bedroom 2-bathroom patio condo. The rest of the units for sale on the MLS were withdrawn several months ago.  17 of these will be in this auction.

The facts: There are 17 units with 4 floorplans ranging in size from 1072 to 1132 square feet.  All of the units have 2 bedrooms and either 2 or 2.5 bathrooms. 10 of the units are actually 2 level townhomes.  The listing prices for these 17 units before they were withdrawn from the MLS ranged from $198,100 to $248,500.  Financing is available from Peoples Bank.  The auction itself is being held at Campania Cafe which is located at 416 S. Main Street adjacent to the condos.  For more information: Interstate Auction, for photos, floorplans, contracts, instructions on how to bid and buy at the auction and other important information.

Open Houses:  Every Saturday and Sunday from 1pm – 5pm or by appointment. (704.892.6923) until auction day.

If you are looking for new construction in a truly walkable neighborhood that is part of the Davidson Main Street Arts District and close to Davidson College, minutes to the I-77 and only about 25 miles to Charlotte, this might be a great opportunity for you.

I would caution that there are a number of townhomes and condominiums currently for sale in the Davidson community some of which are new construction and some re-sale.  Sales are very slow so know your comparable sales before bidding. It is hard to know whether these will be bargains until the day of the auction.

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 Lake Norman Real Estate:  Davidson’s Harbour Place Urban Village

Lake Norman’s Birkdale Village: Great Shopping, Dining and Housing!

 Lake Norman Real Estate:  Morrison Plantation; Another Urban Village

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lake norman real estate

Lake Norman Real Estate: Davidson’s Harbour Place Urban Village

Davidson's Harbor Place Development

 

If you have taken Exit 30 off of I-77 lately you will know what an incredible transformation has taken place just off of the exit towards Davidson’s Main Street!  All of a sudden a whole other community has cropped up including the new Harris Teeter Shopping Center, town homes, condos, offices, Davidson Day School and even an hotel. Continue reading

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Lake Norman Real Estate Market Reports

Lake Norman Real Estate’s 2008 Home Sales Analysis

 

Wow, what a year!  After a significant drop in closed sales in November, we actually had a pretty strong December when compared not only with November 2008 but with December 2007.  And, we in the Lake Norman area were not alone.  December seemed to be a better month for communities all over the country.  Speculation is that the drop in interest rates bumped the sales up.  It is hard to know how long this bump will last but it’s sure nice to have some halfway good news to report!

 

  Continue reading

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Lake Norman Real Estate Market Reports

Lake Norman Real Estate: Friday Hot Sheet 12/19/08!

My bi-monthy Lake Norman Friday Hot Sheets are back!

Lake Norman Residential Real Estate Hot Sheet

December 19, 2008

Hot Sheet12/19/200810/24/20089/26/20088/22/20087/25/20086/27/2008
New Listings9110196120138142
Back-On-Market445032335455
Price Changes118210168238248212
Pending Sales232536446155
Sold242829334741
Conditional/Contingent141112212218

Continue reading

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Lake Norman Real Estate Market Reports

Lake Norman Real Estate: We are NOT Charlotte!

This morning I got a glowing email from a real estate agent referring to the article today in the Charlotte Observer. Yippee! “Area home prices are showing signs of  improvement. Overall, the Charlotte market is holding up better than many others around the U.S.”

Darn that S&P/Case Shiller Home Price Index. And you, Office of Federal Housing Enterprise Oversight, with your numbers showing that Charlotte area home prices rose 5.2%. Can we talk? First of all, both of you are talking about a 12-month period ending June 30th. A lot has changed in our housing market in the past two months, so exactly how valuable is a 12-month report dated June 30th? Second of all, one of you doesn’t include “subprime lending, many government-backed loans and the largest mortgages.” Aren’t these kind of important in this current real estate market?

So, our area housing marekt is “showing signs of life”? In Lake Norman we currently have 1763 active listings and a total of 82 homes sold in the past 30 days. This means we have a 21.5 month supply of active listings. A balanced market has 6-8 months of inventory. In the same period last year we had 143 home sales. Is 3-times the number of listings and a 42.6% decrease in the number of home sales your idea of showing signs of life?

If you go on to read the Charlotte Observer article you will find that they do note a 37% regional sales drop in home sales, a decline of 52% in Mecklenburg County building permits…the lowest since “at least 1998? and a few other insights that might challenge their optimistic headline.

All of you that read my blog regularly know the statistics about the Lake Norman real estate market. Frankly, they are not showing signs of improvement but there is some indication that we are leveling off. The reality is that until our inventory of homes is back down to a 6-8 month of supply on hand we are going to see downward pressure on prices.

I have been through the recession in the early 1990’s. I know our Lake Norman market will come back to life. We will again be THE destination for so many looking for the perfect place to live and when it does I will be the first to let you know! Until then, please read the small print!

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Finding the Truth about Lake Norman’s Real Estate Market: A Case Study

Lake Norman Real Estate: Is New Construction Slammed by Housing Slump?

Lake Norman Relocation Resources

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