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On the MOVE The Helen Adams Realty Monthly Market Update

May 2014

Metropolitan Markets are Reaching Normalization

In this Issue P2

Vital Signs

P3

Making the Most of Your Outdoor Space

P4

Residential Closings

Reprinted from April 2014 CRRA Monthly Indicators

The public has finally grown used to talk of a real estate market in recovery. With prices going up, people are starting to wonder if a new bubble is forming. Most metropolitan markets are somewhere between recovery and normalization. Supply is still tight but improving in some areas. What housing really needs is further job and wage growth to support healthy demand levels fueled by new household formations. New Listings in the Charlotte region increased 1.8 percent to 5,311. Pending Sales were up 0.2 percent to 3,534. Inventory levels shrank 0.8 percent to 15,566 units. Prices marched higher. The Median Sales Price increased 4.8 percent to $175,000. List to Close was down 0.7 percent to 137 days. Absorption

rates improved as Months Supply of Inventory was down 3.7 percent to 5.4 months. April’s job growth was above expectations. Growth is likely to accelerate through the year, but the types of jobs being created is also important. We’re producing more lowwage jobs as opposed to high-wage jobs. That’s not conducive to increasing the number of potential buyers. It also means less disposable income sloshing around. Even so, some local markets may pause but are unlikely to falter thanks to suppressed supply levels and an improving sales mix. Don’t confuse temporarily weak demand indicators for stagnation.

Evelyn McCorkle Trusted Real Estate Advsior 704.957.3558 emccorkle@helenadamsrealty.com


Market Updates Charlotte, North Carolina And the Surrounding Areas

Cunningham & Company’s

The Vitals:

A look at Charlotte’s Improving Market. • With the months supply of homes still dropping, down to 5.4 months in April 2014, now is a great time to be a seller. With limited inventory homes are moving more quickly driving up home prices. • Additionally, the average sales price for homes in the Charlotte-Mecklenburg Area has increased 2.2% over the last twelve months to $222,168, with the average list price increasing 9.3% over the last twelve month period. • The 200,000-300,000 price range still has the strongest number of closings, which has increased 12.3% over the last twelve months.

Monthly Mortgage Update

Where are rates headed during the remainder of 2014? As lenders, many times in the past several years we’ve felt like the little boy who cried wolf when we said rates were headed up soon. However, we feel strongly that this time we’re really close to seeing a gradual increase in rates and here’s why. As the economy improves this has a negative impact on mortgage bonds and interest rates. One of the biggest influences of rates is the monthly unemployment number and job creation figures. It’s predicted that rates will be near 5% by the end of the year. What does this mean for you? Simply, the low rate train is beginning to leave the station so you should act now rather than later! 4.6

4.46

4.49

4.46

4.37

4.4

4.19

4.2

4.26

4.43 4.3

4.34

4.34

4.07

4

• Homes with two bedrooms or less currently hold the largest sales percentage in the area, with the number of sold homes with two bedrooms or less

3.8 3.6

3.54 3.45

3.4 3.2 3 Apr.13 May.13 Jun.13

increasing 6.9%, year over year.

Jul.13 Aug. 13 Sept.13 Oct.13 Nov. 13 Dec. 13 Jan. 14 Feb. 14 Mar. 14 Apr. 14

• Overall, the amount of inventory in the Charlotte area has decreased 0.8% since this time last year, creating an advantageous market for sellers.

Monthly Market Snapshot +2.4%

+0.2%

+1.8%

+2.2%

-0.8%

Change in closed sales

2,990

Pending Sales

Change in New Listings

Average Sales Price

Total Active Listings

Average Days List to Close

Months Supply of Homes for Sale

3,534

5,311

$222,168

15,566

137

5.4

(1) Data Represents change in data since this time last year. (2) Data Represents the most recent month’s data for CMLS.

-0.7%

-3.7%

(1)

(2)


Making the Most of Your Outdoor Space As Spring heads into Summer, it’s hard to believe that it’s almost May and we have another fun Summer ahead of us. When most people think summer they think of beaches, barbecues, and a little bit of fun in the sun. Really, what’s not to love about vacation season, lake days, beach weekends, and hanging out with your friends and family. After the cool spell this past weekend, we’re definitely ready to start spending some quality time outside. If your home has any type of outdoor space, you know how enjoyable it can be this time of year, and if it doesn’t, maybe it’s time to start thinking about a little outdoor oasis of your own. Outdoor kitchens and entertaining spaces have become all the rage these past couple of years with homeowners creating full on kitchen and dining spaces outside as well as luxurious lounge areas. Here are a few idea for creating an awesome outdoor to enjoy this summer season!

5 Simple Rules for Managing your Credit 1. Less is more: Don’t apply for store credit just to get the 10% off. Frequent credit inquiries and numerous revolving lines of credit (credit cards) will lower your score. 2. Know thyself: Pull a copy of your report at least annually for free from annualcreditreport.com to check for inaccuracies and address them as soon as possible to minimize their impact on your score. 3. Pay your bills on time: Pay the full amount due on secured loans each month. If you can’t pay the full amount due on secured loans, request to make an interest-only payment until you can make the full payment. 4. Play the percentages: Credit card balances below 50 percent of the credit line is good, but 30 percent is better. 5. Protect your identity: Keep your good credit score intact by shredding all unnecessary financial information. Protect online accounts with challenging passwords and be cautious when giving out your SSN as an identifier (for example on medical billing). Tips provided By: Rebecca Madej


Residential Closings for the Entire CMLS Area April 2013 - April 2014 4000 3500 3000

$217,190 ASP $216,329 ASP

3401

$232,649 $239,789 $232,851 ASP ASP ASP

3484

3527

3392

2915

$237,635 $220,866 ASP $210,278 $223,725 ASP ASP 2825 2831 ASP

2619

2500

$222,168 ASP $214,964 2990 ASP

2636 $224,128

2658

ASP

2169 $206,384 ASP 1877

2000 1500 1000 500 0

Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sept 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14

Evelyn MCCorkle Trusted Real Estate Advisor 704.957.3558 emccorkle@h elenad amsrealty.com 2301 Randolph Road Charlotte NC 28207


Otm may2014 evelynmccorkle pdf