Chapel Hill development projects move forward

The Chapel Hill town website has added a new search feature to the public website that publishes new development activity.  One look at the website and you will wonder if Chapel Hill has been affected much by the recession.  There are several mixed use/major luxury condo projects under construction at Greenbridge, 54 East and  Woodmont.  Another project is in the planning stage at I40 West.  Additional commercial spaces are approved, the library is expanding, churches are adding to their buildings, and the list goes on.

As a resident, buyer or investor, it is reassuring to see that Chapel Hill continues to grow, in the controlled and restrained way that is the essence of Chapel Hill.  If you want to monitor the development approval process, just book mark this link: http://www.townofchapelhill.org/index.aspx?page=589

Triangle home prices are down about 6%?

Raleigh, Durham and Chapel Hill area home prices have fallen in 2009 around 6%, as heard on the news today.  We have all heard it before, “show me a statistician and I will show you a liar”.  This year, more than ever, I believe the stats may not be all they seem.  The 2009 market data is available and most counties in our MLS are showing a significant difference between the average home price and median sales price.  I think that this is a year that median sales price changes are a more reliable indicator of the market trend.  The market this year was uniquely dominated by first time home purchasers due to the $8000 tax credit.  We also saw new construction dominate the upper range, which typically is a higher price/sf than resale purchases.  The Chapel Hill market had a significant number of transactions in the luxury, high end, “green” condo market, that surprised us all; with price/sf exceeding anything in history. Dare we say, we have even seen foreclosures and short sales throughout the triangle.

All of these out of the ordinary trends can make the average a less reliable indicator.  With the median price marking the exact middle, with the same number of sales below as above, a clearer picture of the market is represented.  For example, the 2007 Wake County average sales price was $254,000 in 07 and 227,000 in 09.  The 2009 median price was $206,000 with a median of $195,000 in 09.  These stats are showing an 11% drop in average price that is not really representative of that market.  The 5% drop in median is more reflective of what you get now versus two years ago.

Orange County trends showed the average price down 7% from $322,000 to $299,000 with median home price up 6% at $258,000 from 243,000 two years prior.  Durham sellers saw the least fluctuation with median home price remaining unchanged over the past two years at $170,000.

No matter what you glean from the data, one thing is for sure, we continue to have a more stable real estate market than most major cities.  Homes are still relatively affordable to the average buyer and the triangle will continue to grow as one of the best places to live for so many reasons.

Briar Chapel; artsy and green development

Briar Chapel has dominated sales in the Chatham County market this season.  The new construction homes are green, affordable and beautiful.  It is always interesting to me to see the public’s perception.  I was recently at a small party and a woman was describing the community as “artsy”.  I didn’t know what neighborhood she was talking about until she explained more about the community and the location.  I hadn’t thought about the artsy part.

The community entrance has a stone wall and metal sculpture and artfully placed huge pottery vases here and there in the landscaping.  She told me that she rides her bike there and there is art sculpture and stylized gardens throughout the common areas.  She also said that it is a great place to ride due to the low traffic.  I am usually very observant, especially with regard to art and gardens but on this instance, I missed it.

I am not surprised that the community has done so well…buyers love new construction.  The homes offer stylish details, lots of upgrades, use of sustainable materials and building practices and great floor plans.  What you won’t get is a yard.  You will trade off having your own space and privacy for the use of the beautiful community amenities and common areas.  The homes may seem like a great value and they are if you are not planning to move in the next 5 or more years.  Buyers should know that this is an enormous development, construction will be ongoing.  When it is time to sell, you will have to beat the builders and have your home show in new condition in order to compete.  Remember that the buyers who will be looking at your home in 5 years will be thinking the same way you did when you purchased your home.

Last note, I advise anyone who is planning to purchase new construction to bring their own buyer’s agent to represent their interest in the transaction.  On site agents work for the builder and represent the builder’s interest.  In NC, you have the right to have a buyer’s agent represent your interest in the purchase of a home.  I think buyers often make the mistake thinking they will get a better deal if the builder doesn’t have to pay their agent.  The reality is that the builder will pay the same commission and usually the seller’s agent will net commission from both sides when buyers are unrepresented.  Be sure to read the NC Working with Real Estate Agents Brochure,  which should be provided by your agent, and ask questions if you don’t understand it.

Chapel Hill third quarter stats hard to read

Chapel Hill real estate stats are now available and I recently blogged about the triangle numbers.  I know I said I would be talking about this all week but it has taken me a week to find the impetus.  I have a quirk in my personality.  If I am excited about something, I will have contageous enthusiasm, move mountains and get others to help me.  However, the report is so ho hum that I had the opposite problem.

The August numbers are quite interesting.  When compared with Aug 2008,  there was negligible change in median and average sales price, total dollars sold and the percent of list price paid vs asking price.   August 09 sellers saw a significant increase in their days on the market, up 29% from 70 with an 09 average days on market over 90 days.  August 09 would be sellers are “just saying no”.  New listings were significantly down, a whopping 43% less sellers took the plunge in Aug 09 vs Aug 08… wow!

You might think this is a bad thing for buyers.  On the contrary, eventhough fewer sellers entered the market, lingering inventory pushed the volume of homes for sale up from 889 properties in 2008 to the 2009 inventory of 990 choices for buyers, (11% more).

As always, I am offering the detailed report to anyone who wants to see the actual numbers, graphs and comparisons.  It is just a click away, at www.mariescheuring.com

Triangle third quarter market data good for buyers

The third quarter triangle area market statistics are now available and there is so much to say that I will likely blog on this all week.  The overall market data paints a somber picture for sellers.  Buyers, however, have cause for celebration and hopefully motivation to get out there and cash in.

The number of new listings is down about 20 percent for the past two years.  This might make you think that this equates to a low inventory but that is not the case.  Although less homes are being listed, the average days on market has increased 14% from 2008 to 2009 and a total of 30% increase over the past two years.  This means that there is now over 9 months  inventory.  Homes are taking longer to sell, with 102 average days on market, up from 78 average days on market in 2007.  Two years ago, buyers did not have the luxury of taking their time.  Mulitple offers and the chance of missing out has been replaced by choices for buyers.

Median sales price is down slightly over the past two years which is good news for sellers and buyers.  It indicates a stablility in the triangle market when compared with other cities that experienced the real estate bubble.  Prices are down almost 5% over 2008, negating the increases we saw for average home prices in 2007.  Sellers who have been in their home over the two years saw a very modest loss while 2009 season buyers are seeing a more favorable price structure.

We can still be thankful that we live in an area where the average home price is very affordable at $226,000.   This price is very workable for the average person with an average salary and very affordable for a two income family.  We can also be grateful that our market exemplifies, “what you see is what you get”.  Despite the slow market, sellers are still getting close to their asking price with 96+% of asking price payouts.  This makes shopping for a home a little easier.  Buyers can be comfortable knowing that there probably was not a $500,000 home that sold for $300,000 and they didn’t miss out on the deal of a lifetime.

What this all says about our market is that this is a desirable place to live on many levels.   For any of my readers who want to have the actual data and graphs that comprise this report, please send me a quick email request or give me a call.  If you want to know more, with speicifics for market areas, stay tuned and read on through this week.

Public transportation coming to Pittsboro

Ah, Pittsboro; the quintessential bedroom community.  It is a quiet little town with all the charm and rural character and located just 25 miles from Chapel Hill.  With no industry or jobs really to call their own, most residents rely on surrounding communities for employment.  Of course, the area is also a hotbed foragriculture and artists as is often the case when there is lots of land and a small population.  But, Pittsboro is no ordinary sleepy town.  This is a population that is involved in its community; that cares about the issues and elections. 

Now Pittsboro is even better with public transportation routes that will take passenger to Chapel Hill and back, daily.  You can view the schedule and see the details at this link: http://www.townofchapelhill.org/Modules/ShowDocument.aspx?documentid=4349
The trip will cost you $3 each way but that is less than you would pay for parking.

2009 Could be the best year ever to buy a home

In my opinion, this is about as good as it will get for buyers.  If you are a first time buyer, the clock is ticking on the tax credit of $7500 that you will benefit from if you close by June 30th.  Note, the word close.  That means that you need to be under contract sometime in April to allow for unexpected delays. 

It is expected that interest rates will linger in and around 4.5%; a historic low.  I am a big fan of owning your home but with this interest rate out there, it is a good time to pay off other debts and put down a smaller down payment.  Buyers should also consider fifteen year terms instead of the more common 30.  Even if you don’t anticipate living in your home for more than a few years, you will pay down much more of the principle on a fifteen year note, increasing your equity value.

Consider adding green features.  There are great tax incentives for everything from a new, energy efficient furnace to solar panels.  These tax credits in some cases are so generous that when you factor in the energy savings, you will essentially get the improvements for free.  Keep in  mind, you will be putting the money out up front with a payback over time.  Adding green features and energy efficiency will also increase the value of your property. When you see that home that has the twenty year old HVAC, think opportunity.  Negotiate with the seller and take advantage of the creative ways to upgrade.

Lastly, there are special mortgage products that will allow you to finance improvements for home rehab or for addition of green features.  For the first time in a while, there is plenty of inventory property.

It is just my opinion, but I believe 2009 may be the best year ever to buy a home.  If you would like information on any of these programs or details on the tax credits, please contact me at 919-357-6064.

Orange County impact fees increase will go to pay down debt

Orange County Commissioners just approved an increase in impact fees that will make it a lot more expensive to build a new home in the Chapel Hill area.  Orange County schools district fees will remain at 3,000 for 09 but will increase by 25% in 2010.  Homes constructed in the Chapel Hill/Carrboro school district will pay a whopping 73% increase in impact fees over the next two years.  As of Jan 1, the fees will increase 38% to $6092  and then in 2010 it will go to $7616. 

Local homebuilders were opposed to the increase, stating that they have already seen a significant strain on their business due to the economy and current housing market. Commissioners were sympathetic to the homebuilders concerns but felt the increase was necessary to pay down the debt for the new schools.

Inevitably, builders will pass this charge on to the buyer.  If you are considering purchasing a new home in Chapel Hill or Carrboro, it is probably too late to avoid this added cost.  However, we are lucky to have a strong real estate market that is likely to continue to appreciate.  Because we are a college town, people come and go every year, regardless of the real estate market conditions.  There are plenty of older properties that are ripe for rehab, and buying an existing property is a “greener” choice and offers a way to get more out of your home purchase.

Furniture recycling offers an ecofriendly decorating option

Triangle Furniture Reclycers is a business that I was lucky to stumble upon that offers some ecofriendly options for decorating your home.  This fledgling business owner travels the state and shops for furniture for resale.  They do some furniture rehab when necessary.  Many of the pieces are high quality and in very good condition. 

The business owner offers a helpful website which has photos for internet shopping.  The great thing is that this is an entrepreneur who is saving our landfills and offering very affordable, quality furniture to his clients.  The owner has an eye for classic, timeless design.  I give him a thumbs up and predict that this business will continue to grow as he fills the need for a quality product that has little to no impact on the environment and responds to the need for people to pinch their pennies in the current state of our economy.  Check them out at www.trianglefurniturerecyclers.com.

Chapel Hill voting results say a lot about the community

The most interesting and telling part of the Orange County election results is that over 70% of the registered voters participated in the November election.  Chapel Hill is an educated population that cares about community affairs and speaks its mind.  Here are the details for the local results:

Orange County Election Results

N.C. State Senate District 23

Candidate	Percent	Votes
Ellie Kinnaird	73.37	51,739
Jon G. Bass	26.63	18,780

N.C. House of Representatives District 50

Candidate	Percent	Votes
Bill Faison	100	17,894

N.C. House of Representatives District 54

Candidate	Percent	Votes
Joe Hackney	100	7,236

N.C. House of Representatives District 56

Candidate	Percent	Votes
Verla Insko	100	30,835

Orange County Board of Commissioners At-Large

Candidate	Percent	Votes
Bernadette Pelissier	69.48	48,115
Kevin Wolff	30.52	21,132

Orange County Board of Commissioners District 1 (pick 2)

Candidate	Percent	Votes
Valerie Foushee	53.38	50,556
Pam Hemminger	46.62	44,155

Orange County Board of Commissioners District 2

Candidate	Percent	Votes
Steve Yuhasz	100	54,670

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If you didn’t find the information you are looking for here or want to know more about the NC election results, visit: http://www.sboe.state.nc.us/ for statewide results.