Charlotte home prices rise annually | CharlotteObserver.com

Charlotte home prices rise annually | CharlotteObserver.com

Charlotte home prices rose 5.1 percent in November, compared to the previous year, further evidence the market’s rebound is sticking, according to the Standard & Poor’s Case-Shiller home-price indexes released Tuesday.

Prices, meanwhile, fell 0.3 percent in November compared to October, according to nonseasonally adjusted figures. Officials with Standard & Poor’s attributed the monthly dip to the housing market entering its traditionally slow time versus an industry decline.

“Winter is usually a weak period for housing, which explains why we now see about half the cities with falling month-to-month prices compared to 20 out of 20 seeing rising prices last summer,” said David Blitzer, chairman of the index committee at S&P Dow Jones Indices. “The better annual price changes also point to seasonal weakness rather than a reversal in the housing market.”

Overall, the 20-city index fell 0.1 percent in November from October. Annually, the index rose 5.5 percent.

For the year, prices rose in 19 of the 20 cities with New York being the only metropolitan area to see a decline.

Regional patterns are becoming clear with the southwest, including hard-hit Las Vegas and Phoenix, staging a strong comeback. The southeast is close behind in staging a recovery, the data show.

Lower home prices, historically low interest rates and increasing consumer confidence have helped fuel Charlotte’s real estate market. The number of distressed homes, including foreclosures, have been falling, boosting buyer confidence and helping raise prices.

There’s been more demand recently for homes priced well and in desired locations, said Charlotte real estate agent Andy Pressley with MECA Properties.

If anything, he said, there’s a growing problem: There’s not enough supply to meet demand.

One home on Normandy Road in Myers Park, for example, went on the market Monday and by Tuesday was under contract, he said.

“It’s like a race to see how fast you can get to the listing if it’s at the right price point and right area,” he said.

Would-be sellers should be aware, however, that as of November, average U.S. home prices were back to autumn 2003 levels, the report says.

“Housing is clearly recovering,” Blitzer said. “Prices are rising, as are both new and existing home sales. … These figures confirm that housing is contributing to economic growth.”

Read more here: http://www.charlotteobserver.com/2013/01/29/3820210/charlotte-home-prices-dip-in-november.html#storylink=cpy

Home Prices Up in Major Metros for 10th Consecutive Month - Home Prices, Housing Data, Economic Conditions - Builder Magazine

Home Prices Up in Major Metros for 10th Consecutive Month - Home Prices, Housing Data, Economic Conditions - Builder Magazine

The S&P/Case-Shiller Home Price Indices were up on a seasonally adjusted monthly basis in November, though cities saw some seasonal slowdown.  

“Housing is clearly recovering.” That was the conclusion made by David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, in response to the S&P/Case-Shiller Home Price Indices’ November reading, released today.

While both the 10- and 20-city composites posted monthly declines, falling 0.2% and 0.1% respectively, the drops were caused by seasonal factors. Once seasonally adjusted, the two composites showed improvements of 0.5% and 0.6% compared with October, and seasonally adjusted prices were higher in 19 of the 20 metros tracked.

Year over year, the 10-city was up 4.5% and the 20-city gained 5.5%. Phoenix far outperformed any other metro area tracked with a 22.8% price jump compared with the previous year, while New York registered the only year-over-year decline with a fall of 1.2%.

The widespread improvements are stemming from three major factors, according to Patrick Newport and Stephanie Karol, economists at IHS Global Insight, who attributed the gains to economic growth and improvements in the job market; falling inventories of for-sale homes as replacement demand and demand from newly formed households outpaces starts; and low interest rates. “These three drivers will keep home prices moving up in 2013.”

NC home values creeping up, report shows - Charlotte Business Journal

NC home values creeping up, report shows - Charlotte Business Journal

Average home-sale prices rose 2.4 percent in North Carolina during the first 11 months of 2012, the Triangle Business Journalreports, citing data from Lender Processing Services.

The Jacksonville, Fla.-based mortgage analytics firm (NYSE:LPS) says the average price statewide was $169,000 as of Nov. 30, up from $165,000 in January 2012.

During the real estate and housing boom, North Carolina averages peaked at $187,000, nearly 10 percent above the November 2012 level.

Housing to (finally) be driver of economic growth in '13 - Jan. 27, 2013

Housing to (finally) be driver of economic growth in '13 - Jan. 27, 2013

Economists expect the housing market to be the primary driver of growth this year.

NEW YORK (CNNMoney)

The bursting of the housing bubble plunged the economy into a recession from which it has yet to fully recover. But economists say this could finally be the year that housing lifts us out of the doldrums.

Just over half of economists surveyed by CNNMoney identified a housing recovery as the primary driver of economic growth this year. The rest were split fairly evenly betweenconsumer spending, increased domestic energy production and stimulus from theFederal Reserve as major growth drivers.

"Homebuilding activity will likely remain the strongest growing component of the economy in 2013," said Keith Hembre, chief economist of Nuveen Asset Management. "After several years of excess supply, demand and supply conditions are now in much better balance."

Home sales rebounded to the strongest level in five years in 2012, as home building bounced back to levels not seen since early in the recession. Near record low mortgage rates, rising home pricesand a drop in foreclosures have combined to bring buyers back to the market.

The economists surveyed also forecast that there will be just under 1 million housing starts this year -- roughly matching the 28% rise in home building in 2012. Moody's Analytics is forecasting much stronger growth -- a 50% rise both this year and next year, which it estimates will create more than 1 million new jobs.

"There's a lot of pent-up demand for housing, and very little supply," said Celia Chen, housing economist for Moody's Analytics. "As demand continues to improve, home builders have nothing to sell. They'll have to build." She said that growth in building will mean adding not just construction jobs, but also manufacturing jobs building the appliances and furniture needed in the new homes, which in turn drives overall consumption higher.

Related: The road to real recovery is open

And economists say the tight supply and renewed demand for housing should lead to higher home values -- about a 3.7% increase according to the survey.

"One of the most significant indirect effects from the housing recovery is the 'wealth effect' on consumers due to the recovery in home prices," said Joseph LaVorgna, chief U.S. economist of Deutsche Bank, who said better home values can affect both consumer psychology on spending as well as their actual finances.

"Even small moves in home prices can have large effects on consumption, because housing comprises such a significant share of household assets," he said.

But even with the bullish outlook on housing, economists are still forecasting only a modest rise in the overall economy this year. The consensus estimate is for economic growth of about 2.4% in 2013, only a modest improvement from the 2012 growth rate of about 2% they're forecasting when the final numbers are in.

By far the biggest concern is a standoff on Capitol Hill. About three-quarters of those surveyed picked Congressional gridlock -- which could result in a cutback in federal spending -- as the biggest problem facing the U.S. economy. Other choices, such as theEuropean sovereign debt crisis, continued high unemployment and increased government regulation, were much less of a concern.

"Washington is now the primary impediment to stronger economic growth," said Russell Price, senior economist of Ameriprise Financial. 

Home sales: Best year since '07 - Jan. 22, 2013

Home sales: Best year since '07 - Jan. 22, 2013

NEW YORK (CNNMoney)

Steady December home sales capped the best year for the U.S. real estate market in five years, according to an industry trade group report Tuesday.

The National Association of Realtors said that December sales of previously-owned homes came in just slightly below November's sales pace, but up 12.8% from a year ago. That brought full-year sales to 4.65 million, up 9% from 2011 and the best year for home sales since 2007, when there were 5 million homes sold just before the start of the recession.

Sales are being helped by a combination of strong market fundamentals -- near record low mortgage rates, lower unemployment and a rebound in home prices, all of which are bringing in buyers into the market who had been waiting for it to hit bottom. The mortgage rates and years of depressed home priceshave also combined to create the most affordable housing market on record, according to the Realtors group.

And the Realtors are predicting strong sales should continue into 2013 and beyond. It has a forecast for 5.1 million existing home sales this year, and 5.4 million next year.

Related: Big luxury home sales, big tax savings

The improved demand for homes in December led to the inventory of homes for sale to fall to 1.82 million homes on the market, the lowest supply since January 2001. One factor in tightening supplies is a drop in foreclosures and other distressed home sales, which made up only 24% of home sales in December compared to 32% a year ago. The tighter supply, and the drop in distressed sales, have helped to lift home prices so that the median sales price for the year rose to $176,600, up 6.3% from 2011. That's the biggest gain in prices in since the bubble year of 2005.

The rebound in the market for previously-owned homes is also showing up in the market for new homes, where sales rebounded to their highest levels since 2009, while housing starts reached the highest level since 2008. 

The Scramble for Choice Finished Lots Heats Up - Land, Business - Builder Magazine

The Scramble for Choice Finished Lots Heats Up - Land, Business - Builder Magazine

Builders, start your backhoes and bobcats. The number of finished lots available in markets that buyers desire is dwindling fast, and developing raw land—which became a lost art for many builders during the recession—could soon be a necessity for growth-minded companies.

There are approximately 600,000 vacant developed lots in the U.S., which equals a 60-month supply based on the current rate of home building. However, the number of lots in A locations is less than a 17 months' supply, compared to a “normal” level of between 24 and 36 months. “This is a severe shortage,” exclaimed Brad Hunter, chief economist for the research and consulting firm Metrostudy, who presented these data during a seminar at the International Builders' Show on Wednesday entitled “Where’s the land?”

In contrast, there are 34 months of B lots, 92 months of C lots, and 1,670 months of D, E, and F lots.

Joining Hunter on that panel was Jeff Meyers, president of Meyers Research LLC; and Bill Sanderson, vice president of joint ventures for Forest City Land Group.

Hunter pointed out that single-family detached finished lots, “which drive [home] sales,” have been falling since the second quarter of 2007, and are now down to about 75,000, or 0.75 months’ worth of supply when the “equilibrium point” should be around 2 months. Houston’s supply of these lots, at 1.9 months, is at a seven-year low, he said.

This dilemma is exacerbated by the fact that housing starts in many parts of the country are accelerating. Inevitably, supply and demand are colliding in places like Boynton/Delray Beach, Fla., where there’s a 15.1-month supply of A lots and only a 1.7-month supply of finished vacant homes.

Consequently, “projects that were running really hot have had to slow down,” said Hunter. And the rush to acquire or control A location lots is causing prices to escalate. For example, in Atlanta, where only around 10% of its 140,000 finished lots are where home buyers actually want to live, lot prices rose 35% last year. Highly desired lots in Dallas are fetching $1,700 per front foot, between $1,200 and $1,600 in Denver, and as high as $3,400 in Boca Raton, Fla.

Hunter observes that, short of developing their own land, which can take years and many regulatory headaches to get ready for construction, builders facing a lot-shortage quandary are rationalizing their land positions and accepting lesser-quality lots. “C has become the new B," Hunter quipped, in places likePhoenix, California’s Inland Empire, and some areas of Florida. Builders are also looking for A lots in C locations in places like Atlanta; or are turning their attention to building in emerging markets such as York County, S.C., and Fort Bend County, Texas.

Meyers said he expects large public builders to also start pursuing more mergers and acquisitions to bolster their lot pipelines in certain markets.

Meyers noted that land is most constrained in markets where job growth is strongest, such as San Jose, Calif., or Washington, D.C. Phoenix added 40,000 jobs last year, so it hasn’t been surprising that land investors have been flocking to Phoenix, where Meyers estimated there are 37,000 builder-ready lots (43% of them in Pinal County), and projected that 25,000 residential permits would be issued in 2013.

Land transactions in Arizona rose by 26% in 2012. But this is a market where 72% of the available lots are controlled by home builders. In small and midsize markets, that kind of concentration can be onerous for private builders trying to compete for land with national and large regional builders, said Sanderson.

“And in these markets, people are not going to drive long distances for good schools,” he added.

In small to midsize markets, Sanderson said builders are facing lot prices that have reset to 2000-2004 levels; “zero” availability to borrow from banks for acquisition and development; an uncertain regulatory climate; and environmental opposition to development in general.

So he offered advice to these builders about where they might obtain land. There’s still some bank-owned property out there, but its quality and location are variable, he said. Sanderson also noted that banks “want out” of lending for land development, so builders’ best bet for financing might be private equity for a while longer.

Sanderson also suggested that builders consider adaptive reuse of retail and light commercial space; infill and teardown opportunities; taking over failed subdivisions; picking up land in tax sales and auctions; and relying more on Realtors and brokers. “They call them ‘broke-rs’ for a reason,” he laughed.

Housing sales best in five years - Charlotte Business Journal

Housing sales best in five years - Charlotte Business Journal

Total sales of existing homes in 2012 reached the highest level in five years, and the annual gain in prices was the greatest in eight years, according to the National Association of Realtors.

The Washington, D.C.-based trade group says nationwide home sales in December slowed from the previous month, down by 1 percent, but December sales were up 12.8 percent from a year ago.

For all of 2012, NAR says 4.65 million existing homes changed owners, up 9.2 percent from total sales in the previous year.

The nationwide median sales price of an existing home last year was $176,600, up 6.3 percent from 2011.

The Charlotte market has experienced a similar rebound. As previously reported, figures from the Charlotte Regional Realtors Association show closings up 23.4 percent in December from a year earlier. The median sales price in the local market increased 2.5 percent in the same time period to $158,925 from $155,000.

“I’ve gone from cautiously optimistic to extremely optimistic,” Jennifer Frontera, president of the CRRA, told the Charlotte Business Journal in a recent interview. “But this is still such a fragile recovery.”

Pat Riley, president and chief operating officer of the Allen Tate Co., Charlotte's largest residential real estate firm, said 2012 was a stabilizing year for the industry, and he expects the recovery to continue in 2013.

As recovery takes hold, building lenders follow | CharlotteObserver.com

As recovery takes hold, building lenders follow | CharlotteObserver.com

As new houses come back in demand, Charlotte is now home to several new banking teams dedicated to financing them.
Two community banks – Charlotte-based Park Sterling Bank and Raleigh’s VantageSouth Bank – both announced this month that they’re putting teams of “builder finance” lenders in the city.
That follows on the heels of Wells Fargo’s announcement in August that it was creating its own unit headed in Charlotte.
The mortgage market in Charlotte, like that of the country as a whole, is far from healed. Foreclosure rates remain elevated, and hundreds of vacant homes remain unsold.
But bankers say their new builder financing teams are less a bet on the future of the housing market than a reaction to what’s already going on.
While there are still vacant homes and lots that stay on the market for months, they’re mostly in the far reaches of the region. There is plenty of demand for new homes in places closer to the city, such as Davidson and Fort Mill.

Those homes are already being built.

North Carolina ranked third-highest for number of single-family home permits in November, according to data from the National Association of Home Builders – behind only Texas and Florida. South Carolina clocked in at No. 9.
“It is like oxygen finally coming to our industry,” said Alan Banks, owner of Evans Coghill Homes and new president of the Home Builders Association of Charlotte. “This is absolutely huge news.”

Boom, bust, boom

In 2006 and 2007, builders couldn’t get homes up fast enough, and developers moved farther and farther away from the center of Charlotte to find land.
“Then the world changed,” said Bill Miley, the Charlotte market director of research firm Metrostudy.
Demand dried up, home prices plummeted, and many builders went out of business.
Banks scaled back on their home building loans, and they largely stayed out of the business as they dealt with the distressed real estate on their books.

Now things are turning around.

In the third quarter, more than 1,900 new housing starts were recorded in Charlotte – up 28 percent from the same time period a year ago, according to the latest report from Metrostudy. Though home prices are still significantly lower than the peak in 2007, they are rising.
In the best locations, the inventory of vacant lots is down to about a 12-month supply when it can take two-and-a-half years for a single one to be developed from start to finish, Miley said.
That means regional statistics can remain mediocre while a pressing need has developed.
“The best locations, they’re all spoken for. Builders are scrambling trying to find good locations,” Miley said. “They don’t want those lots that are in Stanly and Rowan.”

Teams emerge

The teams at both Park Sterling and VantageSouth come from RBC Bank’s homebuilder lending unit. When the bank was acquired by PNC Financial Services last year, the new company announced it was winding down the division.
VantageSouth brought over Bill Bickett to lead the team, along with relationship managers Clark W. Gregory and Jay Hall.
Bickett said a return to the boom times is not imminent, but that there is a lack of financing options for builders in this area. VantageSouth will be looking for local builders in the Carolinas and Virginia who have weathered the storm of the recession.
Park Sterling had some bankers doing builder financing across its footprint, but hired Steve Ray to add expertise.
“By establishing a Builder Finance division, Park Sterling is further strengthening their lending division and showing that they’re dedicated to and believe in the market and the industry,” Ray said.
He said Park Sterling will be looking for professional local and regional builders with solid track records in the Carolinas and northern Georgia. Ray is currently building his team and says he hopes to hire additional administrative staff and a junior lender.

Wells going national

These local trends are playing out on a national scale, as well.
Wells Fargo launched its own builder finance unit focused on the Southeast, Texas and the Midwest after noticing an uptick in demand, better industry data and better performance from the bank’s own clients.
“We decided it was time to go back into more of an origination and entrepreneurial mode,” Anderson said. He’s been working in builder finance since joining Wachovia in 1985.
Of the team’s 14 members, three are in Charlotte.
“We’re not speculating as much as analyzing and reacting to our analysis,” he said. “Most markets have real improvement in those higher quality locations.”

Foreclosure numbers down but expected to rise again - News14.com

Foreclosure numbers down but expected to rise again - News14.com

CHARLOTTE -- The number of foreclosures on the market in the Queen City is at its lowest point in six years.

"We have a very low inventory," said Jennifer Frontera, a broker with Wanda Smith and Associates.

Frontera is generally optimistic about the new year. Nonetheless, North Carolina's major cities -- including Charlotte, Raleigh, Greensboro and Winston-Salem -- will likely see a bump in foreclosures in 2013.

"Those should all hit the market in this coming year,” said Frontera. “Not all at once. It will be spread out over the year."

According to a new report from RealtyTrac, North Carolina is among the states that will see increases in foreclosures as short sales or as bank-owned homes. Realtors say new mortgage settlements with lenders could play a role.

"There are some foreclosures that had not been finalized that will be finalized," Frontera said.

At the Neighborhood Assistance Corporation of America, counselors are working to keep people in their houses.

"We help folks prepare a package, a modification package, present it to the banks and present a new affordable payment," said spokesman Rick Herrera.

NACA receives thousands of calls a day from people asking for help with their mortgages.

"A lot of folks are still losing their homes, they're struggling," he said.

That instability should start to level out as the country and North Carolina emerge from the worst of the foreclosure crisis.

"A little increase should be well absorbed in the market," Frontera said.

Charlotte home sales prices continue to rise - News14.com

Charlotte home sales prices continue to rise - News14.com

CHARLOTTE -- The real estate market in Charlotte ended the year on a positive note. Sales prices were up again in December.

The average sales price last month was up nearly 8 percent from December of 2011. The average list price was also up 4.5 percent.

Inventory continues to decrease, edging closer to a sellers' market, with homes for sale an average of about five months.

Lake Norman luxury home sales heating up - Charlotte Business Journal

Lake Norman luxury home sales heating up - Charlotte Business Journal

Luxury-home sales in the Lake Norman area are on the rise, according to a report from WCNC-TV.

The news station interviewed real estate professionals in the area and found increases in the number of homes under contract and the number of showings compared with the same time last year. That coincides with a decrease in the number of homes in short sale or foreclosure, according to the report.

A bounce-back in prices, coupled with low interest rates, may be prompting some luxury buyers to make a purchase, the report says.

The residential real estate market in the Charlotte region as a whole is improving, according to the latest report from the Charlotte Regional Realtors Assocation. The CRRA's monthly market activity report for November shows closings and home prices on the rise in the area.

Double-digit increases continue for metro Charlotte’s residential real estate market - Charlotte Business Journal

Double-digit increases continue for metro Charlotte’s residential real estate market - Charlotte Business Journal

Metro Charlotte posted yet another positive month for residential real estate, with closings increasing 23.4 percent in December from the same time a year earlier, according to the Charlotte Regional Realtors Association’s monthly market activity report released Tuesday.

Closings in the 10-county area totaled 2,339 last month, up from 1,896 in December 2011, the report states.

The Charlotte housing market has shown signs of a strong recovery, with 11 straight months of positive returns. Home closings increased 35 percent in November, and they were up 36.8 percent year-over-year in October. Local industry observers expect 2013 to continue in a steady fashion. Both average and median sales price were up at the end of 2012.

“Charlotte’s housing market has shown steady signs of improvement over most of 2012 and could be called the year our local recovery started,” says Eric Locher, association president. “With some of the uncertainty on the federal level temporarily averted, we’re hopeful these trends will continue through what is generally considered a slower selling season.”

The average sales price increased year-over-year by 7.9 percent to $205,537 from $190,565 in December 2011. The median sales price — considered a more accurate measurement of trends over time — increased 2.5 percent to $158,925 from $155,000.

Pending sales are up 33.5 percent, with contracts increasing year-over-year to 2,150 from 1,610.

Listings dropped 1.7 percent to 2,342 from 2,383, while average list prices last month bumped up 4.5 percent to $222,888 from $213,210 in December 2011, as counted through Carolina Multiple Listing Services Inc.

The average amount of time from listing to closing decreased by two days year-over-year to 156.

Of the new listings last month, 14.8 percent involved distressed properties, down from 19.8 percent a year earlier, while 15.6 percent of the closings last month were sales of distressed properties, down from 17.7 percent a year ago.

Overall inventory fell 27.7 percent from the same time in 2011, leaving the region with a 5.3-month supply of houses.

CoreLogic: National residential foreclosure figures fall in November - Charlotte Business Journal

CoreLogic: National residential foreclosure figures fall in November - Charlotte Business Journal

November saw home-foreclosure activity drop 23 percent from a year earlier, according to the latest report on from data firm CoreLogic Inc.

CoreLogic (NYSE:CLGX) reports 55,000 foreclosures were completed last month nationwide, down from 72,000 during November 2011.

That’s also 4,000 less than the number of foreclosures finalized in the previous month, or a decrease of 6 percent. Some 59,000 were completed in October, according to the data firm. CoreLogic revised the number upward from its report last month.

About 1.2 million homes, or 3 percent of all homes with a mortgage, were counted among the nation’s foreclosure inventory in November, according to the report. That’s down from 1.5 million homes a year ago, a decline of 3.5 percent.

"The continued fall in completed foreclosures is a positive supply-side contribution in many regions of the U.S.,"Anand Nallathambi, president and chief executive of CoreLogic, says in the report. "We still have a long way to go to return to historic norms, but this trend is firmly in the right direction."

In North Carolina, foreclosure inventory made up 2 percent of the total number of mortgages in the state in November. CoreLogic reports 27,683 foreclosures were completed in the state during the month.

The most recent figures available from CoreLogic on foreclosure activity in the local market are for October. For that month, the foreclosure rate was 2.95 percent among outstanding mortgage loans in the Charlotte-Gastonia-Rock Hill area in October, down from the 3.53 percent rate reported for the same time last year.