RISMEDIA, April 18, 2009-New home sales, traffic and expectations all lifted meaningfully in March. Findings that support this news are detailed in the John Burns Real Estate Consulting April survey of builders across the country. According to the survey, while the improvement can be partially attributed to seasonality, we can also point to a shift in builders’ optimism in many metros. The rating of future sales improved substantially, and expectations rose in every single region except the Northwest. 

Housing market around Wilmington looking up

By Karen Schaefer

RISMEDIA, April 14, 2009-What is the first thing that you always want your potential buyers to see when they first walk into your home that is for sale? Kitchen? Bathroom? Multi-Level Deck? The correct answer is “themselves.” One of the best staging techniques is the use of mirrors, although most people don’t know how to effectively use them. The first place that you should have a mirror is directly on the wall in front of someone when they open and walk through the front door. 

I love having a small mirror right there with a little key hook next to it, holding the house keys. Just above or below the mirror, I do a stencil that says very simply “Welcome Home.”

What if you don’t have a wall that is facing the front door, hence, no place to hang your mirror? The next best area in which to hang a mirror is in a location where the person entering the home will first walk. One of the most important things to remember is that while staging your home, you are creating the flow at which you want visitors to move through the home.

If you are doing an open house event, you can even hang a mirror in the center of a wreath with a small “welcome home” sign suspended from the wreath. You can also put a small mirror just above the doorbell with a stencil that says: “Just use your key” and tie a small key on a ribbon and fix it to the mirror. These are great ways to get people to fall in love with your home before they ever even come through the front door.

My next favorite place to put a mirror is in the bathroom. Of course, you will have one above the vanity or lining the wall above the sinks, but have you thought about putting a small mirror in the bathtub or shower?

A mirror can always be used to expand the size of a room or make a narrow room look wider. Don’t be afraid to have mirrored closet doors in the right environment, or do a mirrored wall. What you don’t want are mirrored tiles.

A great look is large wardrobe mirrors, fixed to a wall centered, top to bottom. Space them about 2-4 mirror widths apart and paint a “frame” around each one. Now you have added a great decorative and interesting element to the room, while still giving it the benefit of “expansion.”

Lastly, I love a wall of mirrors. Not the panel mirrors that we have been talking about, but rather, all different shapes and sizes, framed, etched, big, small, round, square…you get the idea.

The key to success to creating a wall of mirrors is balance. You have to make sure that you end up with a sense of flow and even distribution. You can couple wood frames with frameless, round with square and etched glass with metal accents. If you have something heavy, then put something light next to it, and try to keep the same shapes from being next to one another and feel free to keep the entire wall neutral or add one or two really bold splashes of color with frames. All neutral works well for an elegant look, but to modernize the scene, throw in one or two bright colors like orange, red or yellow.

However you decide to use mirrors while staging your home, make sure that you use them effectively so that you get the greatest impact.

Karen Schaefer is the Founder of Simple Appeal, Inc. and APSD^TM, The Association of Property Scene Designers. She is widely recognized as the Premier Staging Designer for Investment Properties in the Country. For more information, visit www.SimpleAppeal.com.

Despite ‘Chicken Littles,’ Real Estate Markets Are Improving

Commentary by James Crumbaugh

RISMEDIA, April 8, 2009-April is now here and we’re all starting to hear positive news, almost daily, about the real estate industry. Don’t get me wrong - the “Chicken Littles” of the world are still out there, telling everyone who will listen that the sky is still falling.

Here at Allison James Estates and Homes, we go strictly by the numbers and the numbers aren’t lying. Our number of sales is up over 25% and our income was up in March over our best month ever by 31%. If the sky is falling, I sure hope it continues to fall at this rate every month.

However, the pundits are still claiming the bottom is still out there, but their case is leaking water. There are areas in the country that are already seeing small price increases, along with much stronger number of sales, and there are a lot of short sale realtors who still claim that the inventory is going to get much worse. If that’s so, I need an explanation as to why the inventory is decreasing in most areas. Sure, sellers are taking their properties off the market, but so what? Sellers have always taken their properties off the market unless they could get what they wanted. There is nothing new or revolutionary in this strategy.

The bottom line is there was an overreaction to the inflationary increases in real estate over the period between 2000 to 2006. As a result, real estate in most areas is now undervalued and the consumer has taken notice. One of the things I’ve noticed over the last month, is the number of end-use buyers is now as strong as the investors. This is a very good sign, as it shows that the pent up demand that we have all talked about for the past couple of years is starting to kick in.

On another note, the real estate brokerage business has been stood on its head due to the last three years. Everyone knew the old brick and mortar model was unsustainable with today’s realtors demanding and getting 80% plus. Then you have the 100% companies struggling because they made the mistake of trying to combine the brick and mortar concept with the 100% concept.

What surprises me is that Allison James Estates and Homes is still the only business model of its kind. We have eliminated the brick and mortar and allow our Realtors to work virtually from their home offices while keeping 100% of their commission. This is a simple business model, and I have nothing to hide with it.

It’s not rocket science, I’m just surprised no one has copied us. We all know that a lot of brokers are challenged in this area, and at Allison James Estates and Homes, we work as a team to keep our brokers at the top of the industry.

All in all, we are 14 months old, we are profitable, we’re having fun and we’re growing at a steady clip of 20% + per month. Chicken Littles take notice.

James A. Crumbaugh III is CEO of Allison James Estates & Homes.

For more information, email jcrumbaugh@AllisonJamesInc.com.

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.

Wilmington ranked No. 13 on list of best for business

By David Reynolds
Staff Writer

Published: Sunday, March 29, 2009 at 8:56 p.m.
Last Modified: Sunday, March 29, 2009 at 8:56 p.m.

Thirteen may be an unlucky number for some, but not in Wilmington this week.

Forbes magazine has ranked this area No. 13 on its annual list of best cities for business and careers.

Several area business officials said the selection, which comes at a time when businesses across the country are cutting back, is probably a reflection of Wilmington’s quality of life, which remains high even in times of economic gloom.

“We do have some things that Mother Nature has blessed us with,” said Todd Sammons, chief financial officer of Cooperative Bank. That Wilmington is a popular destination for both tourists and retirees has been a boon to business in the past and will be again, he said. “This is something we should take pride in and be happy about.”

Wilmington was one of six cities in North Carolina that Forbes ranked in the top 20. The list considers 11 factors including past and projected job growth, as well as cost of living, crime rate and the education level of a city’s work-force.

Raleigh topped the list for the third year in a row. Durham came in at third, and Asheville ranked sixth. Winston-Salem and Charlotte ranked 18th and 19th respectively.

Connie Majure-Rhett, CEO of the Greater Wilmington Chamber of Commerce, said she considers the ranking a sign that Wilmington is better positioned for a comeback after the recession than many other cities.

“Our whole picture going forward is pretty positive,” she said, adding that Wilmington and North Carolina traditionally rank high on lists that consider quality of life and ease of doing business.

Better than some

The 2009 list is the Forbes 11th annual ranking of business-friendly cities. The magazine ranked the 200 largest metro areas based on job growth statistics from the past five years as well as projected job growth through 2011.

The Forbes’ magazine article says even though the country has lost 4.4 million jobs since December 2007, some cities still have a lot to offer businesses.

William Hall, senior economist for UNCW’s Center for Business and Economic Services, said when choosing a location, businesses consider cost of living, wage levels, tax rates and the skills of the workforce, among other things.

That Wilmington scores high in trouble times, Hall said, shows this list is based on past and projected-future statistics and it indicates that rankings are relative to other cities.

It does not mean Wilmington has escaped the recession unscathed, Hall said.

The city’s 9 percent unemployment rate is at a 25-year high. Also, the region has a stockpile of houses that need to come off the market before economic growth returns, Hall said.

One asset that will help Wilmington in the long run is that it continues to gain population, a leading factor in economic growth.

Hall said it is surprising that so many cities in North Carolina topped the list, since the state has the fourth highest unemployment rate in the nation.

Sammons, of Cooperative Bank, said Wilmington may be braving the recession better than some cities because of its broad spectrum of industry -- everything from film and health-care to energy and tourism, he said.

“Everything doesn’t go up and down at the same time,” he said, “which will help during the bad times.”

Majure-Rhett said having UNCW and Cape Fear Community College helps ensure a well-trained workforce.

One thing that should help is Wilmington’s pleasant climate and access to beaches – assets the business community has long relied on to help bring people.

“I think the number one reason is our quality of life,” said April McDavid, president of the Wilmington Regional Association of Realtors. “You want to live in a place where you can raise a family and be happy.”

David Reynolds: 343-2075

dave.reynolds@starnewsonline.com

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.

 

A recent study was just released by the FEDERAL HOUSING FINANCE AGENCY (FHFA) detailing the property value trends across the country titled "Record Home Price Declines in Fourth Quarter; Isolated Pockets of Strength". We all know the reality that our market has been slow and values have dropped but this study offers some very positive news for our region and helps put our market into the national perspective. I have been saying for a while that we are fortunate to be working and living in this market due to it's attractive geographic location and economic potential. We should feel the up-tick before the majority of the country due to this. I think the numbers help support this.

This study is thru the end of 2008. Here are some of the general findings:
Purchase-only Index:
1. Prices fell over the last four quarters in 44 states and Washington, D.C.
2. Four-quarter price declines exceeded five percent in 22 states and were in excess
of 10 percent in eight states.
3. All nine Census Divisions experienced price declines in the latest quarter. Prices
were weakest in the Pacific Census Division, which experienced a 7.1 percent
seasonally-adjusted price decline in the quarter and the West South Central
Division was strongest, with a seasonally-adjusted decline of 0.9 percent.

Here is what is positive to recognize here:
The NC market may have lost on an average of 3.66% in value of the past year but the US in general lost 8.27%. We are still ahead by 21+% for a 5 year period verses 12+5 across the US. This ranks us in the top half of the nation on a yearly loss basis but if ranked by the 5 year we would be at 19! What's important to note is that the majority of states that are above us and have lower losses are predominantly A) rural in nature thus having had lower appreciation (demand) over the past years and B) generally not considered as competitors for the burgeoning retirement and second home markets a lot of our real estate caters too. Of the more densely populated states that out rank us, they are located in northern climates; not many generally want to retire or relocate to a colder climate!

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.

By Amy Hoak

RISMEDIA, January 30, 2009-(MCT)-These days, a bigger home isn’t always a better one: Recent research suggests that homes being built today are getting smaller.

The average size of homes started in the third quarter of 2008 was 2,438 square feet, down from 2,629 square feet in the second quarter, according to the U.S. Census Bureau. Similarly, the median size of homes started in the third quarter was 2,090, down from 2,291. The statistics confirm what the housing industry has suspected for a while.

“We’ve been hearing for a long time ‘Why is the home size not declining?’” said Gopal Ahluwalia, vice president of economic research for the National Association of Home Builders. He spoke about the trend at the International Builders’ Show, held in Las Vegas last week. Anecdotally, he had heard smaller homes were being built as housing prices tumbled and the economy began to weaken. Still, “we never had data to back it up,” he said.

Gayle Butler, editor-in-chief of Better Homes and Gardens, said for many homeowners, it is not so much a matter of downsizing as “right-sizing,” giving up big homes with unused space and buying a home that better fits their needs.

“Either by necessity or choice, they’re willing to take a step back from the McMansions,” she said at the Builders’ Show. In fact, according to a survey conducted by the magazine, 32% of participants said they expected their new home to be either somewhat smaller or much smaller than the one they already live in, she said. The magazine’s online study involved 733 potential new-home buyers.

Builders are responding to those consumer desires. According to the National Association of Home Builders, 88% of builders surveyed in January said they are building or planning to build a larger share of smaller homes. Eighty-nine percent said they’re planning on building more lower-priced models.

As homes get smaller, homeowners are looking to economize the space they do have. Butler says she is seeing more interest in “Wii-sized spaces”-family rooms that are flexible enough to accommodate a variety of activities, from video games to fitness systems. Outdoor spaces aren’t being wasted either, and outdoor kitchens and entertaining areas continue to rise in popularity, she said.

According to the Better Homes and Gardens study, top priorities in a new home include an affordable price, natural light and comfortable family gathering places. The era of super-sizing may be ending, Butler said, with buyers looking for a home that is “right-sized, organized and economized.”

Other consumer housing trends include:

- Fewer luxuries. Consumers say they need fewer luxuries in their next home, Butler said. Twenty percent or more of the participants in the survey viewed upgraded landscaping, upgraded finishes such as granite countertops, and luxurious master suites as less important in their next home, she said. High ceilings in main living areas were less important to 35% of those surveyed. There are also fewer fireplaces in new homes: While 62% of new homes completed in 1991 had at least one fireplace in it, 51% had a fireplace in 2007, according to Census statistics.

- Green elements. Ninety percent of those who participated in the Better Homes and Gardens survey said they’re planning to have energy-efficient heating and cooling systems in their next home and 31% plan to have geo-thermal heat, Butler said. There has also been increased interest in home gardens, with more people wanting to know where their food is grown, said Robin Avni, senior director and consumer strategist for the firm Iconoculture, a cultural trend research firm. “The green theme touches everything in the home, from the food we look to consume, our health concerns in the home, building-even our furnishings in the home,” Avni said.

- Getting organized. With smaller spaces, organization systems are continuing their popularity. More entryways are being outfitted for storage, and homeowners often want more functional use of wall space, Butler said. Sixty-nine percent of those surveyed by the magazine said no-space-wasted design and ample storage will take on more importance in their next home.

- Practical appliances. Although sales of appliances have been down, freezer sales have been up. The reason: More people are shopping for bargains and freezing what they won’t use right away. “Appliance sales have taken a hit … except the freezer. Which is really all about going back to basics, a very practical kind of living,” Avni said. “If you look at your parents and your grandparents, they used to have a freezer-they used to buy stuff on sale and put it in the freezer and use it for later. It wasn’t just run out and buy something that day.”

© 2009, MarketWatch.com Inc.
Distributed by McClatchy-Tribune Information Services. 

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas. 

By Christine Karpinski

RISMEDIA, April 4, 2009-You’d love to buy a vacation home, but (let’s be honest) the recession and the not-so-dim memory of the housing bubble have you a bit skittish. If only you could see what the future holds. But since a reliable crystal ball has yet to be invented, you must resort to less mystical indicators.

According to Christine Karpinski, the National Association of Realtors® (NAR) 2009 Investment and Vacation Home Buyers Survey suggests that the iron is sizzling hot-and if you’re going to strike, the time is now.

“A few years ago when prices were escalating rapidly, people were kicking themselves for not having bought earlier when real estate was far more reasonable,” notes Karpinski, director of Owner Community for HomeAway.com and author of How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment. “Well, in 2012 or so, people will look back on 2009 as another missed opportunity.”

While all home sales were down significantly in 2008 (as one would expect)-and vacation property sales were down some 30%-so were real estate prices. That, of course, makes for an extremely favorable buyer’s market. It’s not surprising at all, therefore, that the NAR report found that 80% of vacation property and investment property owners surveyed believe that now is a great time to purchase real estate.

These sentiments echo those of Walter Molony, spokesman for NAR, who said in a recent CNBC article that the second home market is “fundamentally healthy.”

“The long-term underlying demand is favorable for vacation homes because of the large number of middle-age, middle income Americans [who are the primary buyers of such properties],” Molony was quoted as saying. “In recent years, this market has been driven by the Baby Boomers, but there are two even larger population groups coming up right behind them. Those younger segments will continue to fuel this market for the next 10 years.”

Karpinski says the NAR 2009 survey results, in conjunction with a proprietary Special Report done for HomeAway, constitute clear evidence that now is an ideal time to buy a vacation home.

She offers the following insights:

- Home prices are way, way down. The National Association of Realtors survey showed that the median sales price of the typical vacation home was $150,000-down 23.1% from 2007’s median price of $195,000. (To put this in perspective, consider that when NAR started conducting this survey, the median vacation home price in 2003 was $190,000 and reached a high in 2004 of $204,100.) When combined with the rock bottom interest rates, says Karpinski, all signs point to the likelihood that we’re now at the picture perfect time to buy.

“Anecdotally, I can tell you that people who would never have purchased a detached single home on the coast are now seriously considering it,” she notes. “Homes that would have once cost $3 million have now fallen to $1.5 million. And these buyers know that the price won’t stay down long, and will never be this low again.”

- It’s never been more obvious that real estate is a sound long-term investment. The NAR survey results revealed that the share of speculator sales is down from 29% to 16%. Combined with the fact that 34% of buyers are purchasing properties within 100 miles or less of their primary residence-which suggests they intend to use it themselves-this trend indicates that more and more people are embracing a “buy and hold” strategy. Plus, Karpinski says she constantly sees evidence that people are beginning to see the long-term benefits of real estate investing earlier in life. (The median age of vacation property buyers in 2008 was a relatively young 47.)

- The vacation home rental market is booming. While 89% of vacation property owners surveyed cited “to use for vacations or as a family retreat” as a reason for purchasing their second place answer is telling, indeed. Twenty-seven percent of respondents said they were purchasing their home “to rent to others.” While this number is up from the 25% cited in last year’s survey, Karpinski predicts next year’s survey will really tell the tale. As recession-crunched homeowners pursue new income streams-and as it becomes ever more evident that the vacation rental market is booming-2009 will prove to be a huge turning point in the renting out of second homes.

- People are more in touch with “rental realities” than they once were. In the past, says Karpinski, a first-time vacation homeowner might have expected to rent out their property an unrealistic number of weeks (say, 50 weeks out of the year). But NAR’s Special Report for HomeAway shows that 44% of respondents said they plan to rent anywhere between 9-26 weeks.

- Renting by owner has become mainstream. The NAR Special Report for HomeAway reveals that 54% of respondents plan to market their homes themselves. This do-it-yourself attitude reflects not only a burgeoning confidence index among vacation property owners, but also the wealth of support resources available to those who want to rent out their homes themselves.

Everything has changed. The truth is it’s gotten so easy and so affordable that there’s no valid reason not to do it yourself.” Need one more reason to take the plunge? Consider the fact that last month Fannie Mae rescinded its four-property limit for investors. If you’re financially secure and can come up with the requisite 20% down, chances are good you’re going to easily qualify for a mortgage.

“Of course there are always risks when buying any kind of real estate,” Karpinski acknowledges. “But investors who are comfortable with risk have to realize that conditions are ripe right now for a ‘perfect storm’ of success. Even if housing prices do go lower, interest rates surely will not. And once the turnaround comes, selection won’t be nearly as good as it is right now.

“Naturally, you should be cautious and do your homework before you buy any property-but don’t be so cautious that you miss this window of opportunity,” Karpinski adds. “These windows do have a way of slamming shut, and you don’t want to be stuck on the other side wistfully looking in a few years down the road.”

Christine Karpinski is the author of How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment andProfit from Your Vacation Home Dream: The Complete Guide to a Savvy Financial and Emotional Investment.

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.

Mortgage Rates Hit All-Time Record-Breaking Low

RISMEDIA, April 4, 2009-Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.78% with an average 0.7 point for the week ending April 2, 2009, down from last week’s average of 4.85%. Last year at this time, the 30-year FRM averaged 5.88%. The 30-year FRM has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year FRM.

The 15-year FRM was also down this week, averaging 4.52% with an average 0.7 point, down from last week when it averaged 4.58%. A year ago at this time, the 15-year FRM averaged 5.42% and has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 1991 for the 15-year FRM.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.92% this week, with an average 0.7 point, down from last week when it averaged 4.96%. A year ago, the 5-year ARM averaged 5.59%. The 5-year ARM has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 2005 for the 5-year ARM.

One-year Treasury-indexed ARMs averaged 4.75% this week with an average 0.6 point, down from last week when it averaged 4.85%. At this time last year, the 1-year ARM averaged 5.19% and has not been lower since the week ending September 29, 2005, when it averaged 4.68%.

“Mortgage rates followed other interest rates lower this week amid reports of slower economic growth” said Frank Nothaft, Freddie Mac vice president and chief economist. “The final estimate of economic growth in the fourth quarter was revised lower and personal incomes fell 0.2% in February, below the market consensus.

“On a positive note, pending existing home sales rose 2.1% in February, marking the second increase in three months as potential homebuyers are taking advantage of historically low mortgage rates and falling home prices. Serving as a spur to sales, housing affordability reached an all-time high in February 2009 since the series’ inception in 1971, according to the National Association of Realtors®. By region, sales surged by nearly a third in the Northeast and Midwest, but fell in the West.”

 

If you would like to buy or sell Wilmington, NC real estate, contact Sandy and Steve Thornton for all your home buying and selling needs. Specializing in Wilmington, Leland, Hampstead, Sneads Ferry, Jacksonville, Topsail Island including Surf City, Topsail Beach, North Topsail Beach, Beach and waterfront properties covering New Hanover County, Pender County, Brunswick County and Onslow County areas.