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Homefront
Wake County Real
Estate Newsletter
October 2015
CONVERTING TRANSACTIONS INTO RELATIONSHIPS
IN THIS ISSUE
Thoughts on Wake County Real Estate
by Steve Poirier
Halloween is right around the corner.
The Halloween decorations have already
been up in my neighborhood for about a
week, announcing that the season for
spine-tingling ghost stories has arrived.
There are no scary ghost stories
currently in the Wake County real estate
market. Ghosts of distressed properties
seem to be a thing of the past and there
are no witches brewing up home
mortgage bubbles.
There are several themes that have
recently appeared in the news that
continue to push the good news in the
local real estate market.
Mortgage Rates
Mortgage interest rates fell to an
average 3.79% this week for a 30-year
fixed-rate product after The Fed
remarked that now is not the time to
raise interest rates. Low interest rates
and the expectation of continued low
interest rates continue to be one of the
key driving forces in the real estate
market.
Skyrocketing Rents
Rents skyrocketed in 2014 and many
analysts did not think that those
escalating costs would be sustainable.
Rents in 2015 have gotten even higher
and the increases are likely to continue
into 2016
In This Issue
Wake County Real Estate Stats
Housing Starts
Top Tips for Building a New Home
An improving job market, higher rental
costs, and still low interest rates are
helping to buoy buyers’ confidence
lately. As a result, housing starts are up
nationally by 12% in the year to date and
building permits, a sign of future
growth, are up 13%, according to the US
Commerce Department.
Around Wake County
However, labor challenges remain
problematic for many builders. A
shortage of trades such as carpenters,
tile setters, and electricians are
prompting more builders to report
delays in construction.
Tips to Make Your Home Cozier This Winter
About Steve
I am a Realtor® with Better Homes and Gardens Real
Estate/Go Realty in Cary, NC, specializing in residential,
investment and multi-family properties throughout
Wake County. I have more than 20+ years of real estate,
marketing and finance experience and have lived in the
Wake County for more than 10 years.
FAST FACTS
2%
Percent Increase in Showings for August 2015.
46%
Resale LADOM 1-30 Days for August 2015
Wake County Real Estate Stats
by Stephen Poirier, Statistics provided by TARR Report
-9%
Overall residential inventory decrease for August
2015.
The statistics listed in this summary
represent residential market information
for Wake County for the period ending
September 30, 2015.
Market Summary
RATES
Product
Rate
+/-
Prior
Month
30 Year Fixed
3.79%
3.87%
15 Year Fixed
2.85%
2.93%
30 Year Fixed
Jumbo
4.16%
4.23%
Source: Bank Rate.com Mortgage Average
Widget
COMMENTS OR QUESTIONS
Please feel free to contact me at
stevep@gorealty.biz if you have any comments
or questions about this newsletter. Suggestions
also welcome.
WEBSITE
Visit my website at www.steveprealty.com for
additional articles and information.
September showings were up 2%
compared to September 2014 and down
15% compared to August.
Inventory
Overall inventory decreased 9%, new
home inventory increased 7% (3rd
monthly increase in a row) and re-sale
inventory decreased 15%. Distressed
inventory was 21% lower again
continuing its downward trend.
The number of properties listed did
increase again by 13%. The Average
Listing Days on Market (LADOM)
decreased again to 37 days from 64 days
in August. Note: The LADOM was
incorrectly reported in last month’s
newsletter.
For the re-sale market, 66% had an
LADOM between 1-30 days, a decrease
from 67% in the prior month. Months of
housing supply based upon monthly
closed sales increased to 3 months from
2 months in the prior month.
Sales
Sales continued to trend upward in
August. Year to date sales up 9%,
monthly closed sales up 10%. The
number of pending sales during the
month increased by 8%. The average list
price of the pending sales decreased by
1%, and the average list price per square
foot of the pending listings increased by
3%.
Notes
The metrics for the 3rd quarter were
generally positive. The continuing trend
of inventory decreases and sales
increases continues. September was the
first month in a long time where the
average list price of the pending sales
decreased compared to the prior year’s
month. This is indicative of house prices
levelling off. This trend will bear
watching into the 4th quarter.
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AROUND WAKE COUNTY
Top Tips for Building a New Home
from
National Association of Realtors
Home building is back. After several years
of little to no new construction, new home
construction is back. If you have been
driving around the Triangle, you may have
noticed the number of new home
construction projects that have started in
recent months.
Over the past few months, I have been
working with some buyers that are
interested in new home construction.
Here are some tips to consider when
building a new home.
Get pre-qualified for a
mortgage
Whether building a new home or buying
an existing home, this first step is the
same. By contacting a lender and
providing them with some basic
information regarding your debt, income
and assets, you can find out the size of
mortgage for which you are likely to
qualify. Then, before that first shovel of
earth is turned, you should make sure you
get final mortgage pre-approval. This
involves filling out a mortgage application
and supplying a lender with the necessary
documentation to check your financial
background and credit rating so you will
know exactly how much you can afford to
spend.
Check the reputation of your
builder
Many builders are out there, but not all are
created equal. Do a little research to find
out which builders have the best
reputation. Whether you search for
information online or get
recommendations from your friends, find
out whether a builder is respected for
doing quality work as well as being
punctual.
Be selective about location
The most important thing to decide when
building a new home is where to build.
What makes the community that you are
interested in stand out? Often, new
building developments are located on the
outskirts of a city or suburban area. It’s
therefore important to check if the area
you are considering is close enough to
transportation routes, shopping and
schools. Also, find out if the developer is
planning to add amenities that will
enhance your lifestyle such as walking
trails and ponds.
Watch your budget
New home communities list a base price
for the homes that they offer. However,
this is rarely the actual final cost when
building a new home. Be aware that you
can add thousands of dollars to the base
price of a home very quickly if you get
carried away upgrading the standard
flooring, cabinetry or lighting. It’s
important to know exactly how much you
can afford and to budget accordingly.
Downtown Chili Cook-Off
November 7th 10:00 AM – 4:00 PM
More than 20 individuals, businesses, and non-profit
groups show off their cooking skills and compete to see
who has the best tasting chili in Fuquay-Varina. Prize
money and bragging rights for who has the best tasting
chili.
Visit: http://www.fuquayvarinadowntown.com/events/chili-cook-off.html
Build with resale in mind
No matter how much you love the house
that you are building, it’s unlikely that it
will be the last home you will ever own.
Knowing that, you should be mindful of its
America Recycles Day Paper
potential resale value. Don’t add so many
Shred, November 14th
upgrades that you overprice your home
Shred it and forget it when you celebrate America
for the neighborhood.
Recycles Day at our free paper shred event. Cary citizens
Know your timeline & be
prepared for delays
Building a new home usually takes many
months and lots must be coordinated
during this time frame. If you are already a
homeowner, your current home must be
sold, you must make decisions regarding
your new home and you must arrange a
new mortgage. Get an estimate of when
the building of your new home will be
completed and plan accordingly.
No matter what time frame a builder gives
you, there is always the possibility of
delays. Inclement weather, shortages of
supplies and labor problems can all factor
into delaying the completion of your
home. Be aware of this going into the
building process and be prepared to be
somewhat flexible.
may bring up to three boxes of confidential papers for
free, onsite destruction and recycling. Visit:
http://www.townofcary.org/Departments/Parks__Recre
ation___Cultural_Resources/Environmental_Outreach_
Programs/Environmental_Events/America_Recycles_Da
y.htm
NC Chinese Lantern Festival
November 28th
The Festival will include more than 20 displays, each one
comprised of hundreds of parts, and thousands of LED
lights. Additionally, there will be multiple weekend
performances by Chinese artisans from Tianyu Culture,
the Zigong, Sichuan-based company presenting the
Festival. Visit: http://boothamphitheatre.com/
Tips to Make Your Home Cozier This Winter
from Better Home and Gardens Magazine
Yes, winter is coming! Long days of
summer, beach days and evening
cookouts are in our rearview mirror.
Colder days lay ahead…and yes, snow!
Get yourself and your home ready for
cooler weather with these easy design
ideas, home maintenance to-dos and
quick projects to keep your house
feeling sunny, comfortable and
welcoming to guests and prospective
buyers throughout the cold-weather
season.
Make Outdoor Spaces ColdWeather Friendly
Does your home have an outdoor room
or backyard structure that you love?
Adding a fire pit or fireplace not only
gives your room a dramatic centerpiece
but also lets you enjoy the space during
cool fall evenings. Permanent fireplaces
give you the most visual bang, but fire
pits typically throw off more heat.
Brighten Rooms with Color
A bright pillow or a brilliant wall color
keeps your home’s rooms cheerful, even
when you’re stuck for weeks under gray
skies. If color makes you nervous, here
are a few tips to remember:
—Keep trim the same color throughout
your home to unite spaces wearing
different wall colors.
—Carry color throughout your home.
The color on one room’s wall can be
another room’s accent pillow or vase.
—Pick colors out of your closet for
surefire winners. If you wear them, you’ll
probably enjoy living with them.
—Have an open floor plan? That limits
your ability to transition from color to
color. Instead, pick one you love!
Use Curtains to Eliminate Drafts
Layer curtains and shades for insulation
against your home’s window drafts.
Look for curtains made of insulating
material. Or bulk up a light fabric with a
layer of cotton flannel on the backside.
Layers mean you can quickly change the
look of your windows. For example, in
summer, heavy panels can be pulled off
for the simplicity of shades. Remember,
open curtains can help reduce energy
use, too. Keep drapes open on southfacing windows during the day during
heating season.
Turn on Your Home’s Ceiling
Fans
One extra-simple step to save cash? Use
ceiling fans to reverse the airflow. In
summer, you want air blowing
downward for a cooling effect. Reverse
the fan in winter so that it circulates the
hot air around the room. This works
especially well in rooms with high
ceilings. Hot air rises and collects near
the ceiling, so bring it down where
people gather.
Complete Outdoor Repairs
Whether it’s peeling siding, a leaky roof
spot or drafty windows, now is the time
to patch or replace old elements that no
longer keep air and moisture out.
Making sure your house’s exterior is in
tip-top shape not only keeps it in top
working order during winter months, it
also helps boost your curb appeal for
prospective buyers.
Attend to Your Home’s Gutters
One surefire way to cause problems in
winter—especially during those random
midwinter thaws —is to let drainage
problems go unchecked. Avoid that by
cleaning your home’s gutters of fall
debris before winter storms hit. Clogged
gutters can lead to siding damage,
basement floods and gutter corrosion.
Practice Fireplace Maintenance
If your home has a fireplace you’re
planning to use, prepare it for cold
weather by having a chimney sweep
clean it during the fall months. This
eliminates buildup and helps prevent a
chimney fire. If your home has an older
fireplace, you may want to look into a
fireplace insert that improves heating
efficiency.
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