Chapel Hill real estatate market statistics: get them here!

Chapel Hill and Orange County third quarter real estate market statistics were just released.  There were not many surprises.  Unemployment is up, homes sales are down but on a positive note, the average home price is up over last year. More inventory is not resulting in more sales.  My advice is that if you are buying, take advantage of this good time to buy.  Sellers must have their homes in top selling condition and be ready to negotiate.  If you have any questions on this report or would like to receive the entire detailed stats, please call me for an immediate response, 919-357-6064. 

This and the following pages you will find statistical indicators detailing the performance of the residential real estate market in Orange County. Here are the answers to my top questions pertaining to market performance;

What is going on in the job market?

Based upon 8/08 figures released by the Employment Security Commission of North Carolina, the employed workforce

in the Durham/Raleigh/Cary MSA was 813,684. This is a 0.45% decrease from the employed workforce seen during 8/07and the first drop since the 8/01 versus 8/00 time period. The employed workforce in North Carolina dropped 1.3% and the employed workforce in the United States dropped 0.19%. The unemployment rate in the Raleigh/Durham/Cary MSA increased to 5.5% from 3.7%.

Is anyone looking at Chapel Hill/Carrboro housing?

There were 1,938 showings as logged through the CSS system during September of 2008 in areas 201 through 209.  This is a 27% decrease compared to 9/07 showings.

What is happening with inventory?

Overall inventory increased 7%, re-sale inventory decreased 2% and new home inventory increased 42% compared to inventory levels at the end of 3Q/07. The average days on market for the active listings is 126 compared to the 96 day average at the end of 3Q/07. The number of sellers who have dropped list price from original list has increased to 377 from 321.

Are more choices producing more contracts?

The answer is still no. Contract pending levels for the county were off 19% compared to 3Q/07. This mirrors the trend seen in other counties in the Triangle. TMLS contract pending sales for the quarter were off 22%.

What is happening with closed sales?

There were 362 closings posted during the quarter, a decrease of 32% compared to 3Q/07. Third quarter TMLS closings were down 27%. Orange County resale closings were off 29% and new home closings were off 52%.

How long is it taking for homes to sell?

The average days on market for homes that closed during the quarter was 80 days. The average at the end of 3Q/07 was 79 days. The average days on market for resale homes was 75 and the average for new homes was 137. The overall TMLS average has been 88 days.

How does the current supply compare with other area’s in the Triangle?

The current supply for all housing located within the county is 8 months. The current supply at the end of 3Q/07 was 5 months. The current supply of housing located in the four main counties of Durham, Orange, Johnston and Wake is 8 months.

Give me some numbers

The average list price is $489,200, an increase of 11% compared to the average at the end of 3Q/07.

The average sold price was $323,700, down 10% compared to 3Q/07.

Are sellers getting more for their house than what they paid?

Yes they are; the average percent per year gain for resale housing located within the county has been 7.25%. The average for housing located in the South Atlantic region of the United States has been –1.2% and the United States average has been –4.84%.

Where are people buying?

Southern Village, Lake Hogan Farms and Meadowmont were the top sellers during the first nine months. The average sales price per square foot was $149.24 and the average sales price/list price ratio was 97%.

 

 

Home selling in the Chapel Hill market

Sellers need to realize that they are competing for a limited buyer pool.  To be tops on the list of favorites, move in ready is no longer enough.  A strong marketing plan will bring buyers, but buyers are looking for the “wow” factor.  Here is a list that I recently came across that I believe offers some excellent suggestions and insight:

1. Paint the exterior - A fresh coat of paint can give even a relatively new home a much needed facelift, and can often be done for as low as a few thousand dollars. Select a neutral tone that is consistent with other residences in the neighborhood. Also be sure to pay close attention to eaves, gutters and drains that may also need painting.

2. Complete all needed repairs - To maximize a home’s worth, it should be in good condition both inside and out. Don’t wait until there is an offer on the home. Hire an inspector now, and fix any and all problems, such as roof deficiencies, leaky plumbing and electrical concerns.

3. Purchase a home warranty - Establish peace of mind that comes with knowing a home and its contents are adequately covered in the event of a loss. A transferrable home warranty protection plan can provide added security to the home owner – and buyer – in this regard.

4. Furnish the home to sell - Appeal to the buyer’s emotion. Furnishing a home can go a long ways to getting your home sold, actually increasing the odds of it selling. Give buyers the option to procure the property with or without furnishings, and have a pre-established sale price set for either scenario.

5. Upgrade front yard landscaping - Curb appeal plays a big role more so than people realize. Potential buyers driving the neighborhood may never call on the For Sale sign, if your home doesn’t look appealing from the outside. As well, buyers waiting for their Realtor to show up will often spend a good amount of time critiquing the landscaping while waiting. In addition to purposeful foliage, add landscape lighting and a weather and soil moisture-based landscape irrigation scheduling device to boost value even more.

6. Create a quick kitchen makeover - Kitchens are one of the number one room in the home where you’ll get the most bang for your remodeling buck. Countertops and appliances are the quickest fix, as are faucets, fixtures, door knobs and other easily changed items that can have a large impact on the space.

7. Think spa, not bathroom - The master bath is an important a factor in a home’s worth. Think spa, or private sanctuary, where the master bath is concerned. A space meant to be relaxing, rejuvenating and more. Give buyers something to be excited about with upgraded faucets, fixtures, lighting, cabinetry, mirrors and the like. Then dress it up with plants, candles and other inexpensive, high impact décor.

8. Install soft and hard window treatments - There’s nothing more boring than a plain window. Take advantage of this easy opportunity to give the home’s interior design more impact, while also increasing the home’s actual worth. In addition to “hard” treatments such as blinds and shutters that offer privacy, also add soft treatments hung from decorative fixtures, which can alter the appeal of a room entirely. Look to a professional to ensure the best outcome.

9. Replace carpet rather than just cleaning - Rather than simply steam cleaning old, used carpet, replace it with fresh, neutral-toned carpet with an upgraded pad for an extra luxurious feel. Spending the extra money on new carpet will really make your home stand out from the crowd, in sight, feel and even smell.

10. Don’t overlook your closets - The better organized a closet, the larger it appears and the better it reflects on a home overall. Now is the time to box up those unwanted clothes and shoes and donate them to charity. Then, invest in a closet organization system – either by a professional or self-installed – which will positively impact an appraisal.

For more information, visit www.thejensongroup.com.

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Radon gas is not necessarily a deal breaker for homebuyers

When radon gas is found on inspections, some buyers may panic.  The reality is that if properly mitigated, you could end up with a home that has healthier indoor air quality than many other homes.  Radon is a colorless, odorless gas that is released from the earth as decaying uranium excapes from granite rock.  Radon is the second leading cause of lung cancer.  When radon gets trapped inside the home, it can build up to unhealthy levels.  The mitigation can cost anywhere from a few hundred to several thousand dollars.  Once radon is detected, most licensed radon mitigators will recommend a one year monitor of the problem.  Homes with basements are more likely to have radon but any home can have unhealthy radon levels.  Radon levels are reduces by either sealing cracks and openings that are allowing the radon to enter the home or by ventilating the home.  I think every buyer should have the home tested for radon during inspections.  If radon is found, then the buyer should request radon mitigation to be performed by a licensed radon specialist.

Chapel Hill celebration evolves into “Homegrown Halloweeen”

Chapel Hill celebrates Halloween in a way that rivals the New Orleans MardiGras.  Every year, 80,000 or more costumed clad party goers invade our little town for the event.  In recent years, the cost to the town for crowd control, security, traffic control, clean up has decidedly become a daunting task and expense.  Major changes are planned for this years event which is being affectionately renamed “Hometown Halloween”.  Celebrants should expect much smaller crowds as the town will block streets and impose strict traffic and parking controls.  What will definitely be missing this year is the Duke students who normally take this opportunity to rub elbows with their UNC rivals.  For a detailed accounting of the new plans, check out the town link at http://www.townofchapelhill.org/index.asp?NID=127.

Short sale may bring tax liablilities for the seller

Sellers who are upside down on their mortgage (mortgage balance exceeds the equity) can consider requesting a short sale from their lender.  If the lender approves, they accept less than the actual amount owed and the seller avoids foreclosure.  The buyer usually gets a good value.  Sellers should consult an accountant or tax attorney to be sure they understand their liabilities.  The IRS may consider this “forgiveness” as income and tax may be due when you do your annual tax return.  Buyers should know that short sales are more complicated and may take longer and have added risks that could be deal breakers.  If you are considering requesting a short sale, contact me for a no charge total market overview of your property (919) 357-6064

Top 10 credit dos and dont’s

It is important to keep your credit stable and keep your score high during the home buying process.  The lender will verify your credit worthiness just before closing and it is best to avoid any surprises.  Here is a helpful list to keep your credit score at optimum:

1) Don’t apply for new credit of any kind
2) Don’t pay off collections or charge offs
3) Don’t close credit card accounts
4) Don’t max out or overcharge any credit accounts
5) Don’t consolidate your debot onto 1 or 2 cards
6) Don’t do anything that will cause a red flag to be raised by the scoring system
7) Do join a credit watch program
Do stay  current on existing accounts
9) Do continue to use your credit as normal
10) Do call your lender if you receive something in the mail that you believe may affect your score

If you have any questions about these recommendations or want to receive a more detailed report on this winning strategy, please contact me at 919-357-6064.

Central Carolina Community College offering solar hot water systems course

Central Carolina Community College in Pittsboro is offering a Solar Hot Water Systems course on Dec. 4, 2008.  Students will learn about the different types of systems as well as parts and installation options. For $80 and four hours of your time, you can have the knowledge to get started on your own solar project.  For additional information, contact Laura Lauffer at 919-542-6495 X228 ir visit www.cccc.edu.  This is a fantastic opportunity to get started with a small step, with the promise of a big payoff on going green!

Chapel Hill homes inventory at a high offers buyers big choices

Chapel Hill current home inventory is well over 600 properties.  With the recent painful losses on Wall Street, buy low/sell high is front and center in all our minds.  The real estate market is no different.  For buyers, this is the best position to find yourself.  One of the most common complaints I hear when I work with  a Chapel Hill buyer client is that there is so little to choose from.  If you are ready to buy a home, sellers are eager to negotiate and ready to hear from you.  Waiting until spring, will likely bring a different scenario.

Governors Club golf offers balance of beauty and challenge

Governors Club is a very large gated community just minutes from Chapel Hill.  Although, the physical adress is Chapel Hill, buyers should know that the neighborhood is located in Chatham County.  This means that as a resident you will not have access to the Chapel Hill facilities such as their award winning schools and library.  Not to worry though, the schools in Chatham County are also receiving good marks and continue to improve.  You will also be spared the 1.8 tax rate that Chapel Hill residents are paying.  Taxes in Chatham County are half that at just .67.  Governors Club has other amenities including tennis, swimming, wellness center, a beautiful club house and the food is exceptional for country club fare.

This Jack Nicklaus course was designed to offer a balance between challenge and beauty.  I have not golfed this course myself but my scratch golfer neighbor tells me it is quite difficult.  Winding through the community, the course is surrounded by some of the most beautiful homes in the triangle.  Membership fees are substantial but with the low property taxes, these well to do homeowners can afford it.

Chapel Ridge has a Fred Couples designed course with land and nature conservation plan

Chapel Ridge is the most affordable option for entry into a golf community near Chapel Hill.  This Fred Couples course offers amenities to residents including a club house, tennis, swimming, sports courts and walking trails.  As a Certified Audubon Protection community, the developers, Blue Green, have committed to land conservancy and designated nature preservation areas.  This is a very new neighborhood and resale will be very slow until it is more established.  This community is not convenient to schools or shopping or much of anything for that matter.  Prospective buyers should know that the on-site agents work for the seller.  I recommend excercising your right to have buyer representation in any transaction.  The best way a buyer can preserve their right to bring a buyer’s agent, is by having their realtor make all contacts for them.  It is a beautiful course with a nature setting offering the most affordability in the area.  For more information on this community or buyer agency in NC, please call me (919)357-6064.