Every market has seasonal trends for home buying. The North Carolina mountains, beaches even big events like the Super Bowl or the NHL All Star Game can influence a seasonal buying trend. However, in the Greater Raleigh Area our traditional trend in home buying spikes up in April, May, June, July and early August.  This is due mostly to families with children trying to settle in before Wake County Schools begin.

We see home buying demand increase again in October, November and December. The Fall months are busy due to the annual Parade of Homes and many people wanting to settle into a new home for the holidays or get a tax write off before the year ends.

What Are The Slowest Months of the Year for Buying or Selling a Home?

Traditionally the slowest home buying months in Raleigh area  are January and February.

When Is The Cheapest Time of the Year to Buy a Home?

A factor that will always effect home buying trends are interest rates. When interest rates drop this gets more buyers thinking about real estate and when they inch up it always drives more buyers to take action.  

Isn’t it interesting that so many buyers miss the lowest interest rates because they wait hoping they will get better?

Perhaps a solution would be to purchase a home with a lender that will allow you one free rate drop during the process. Then you have a safety net if rates drop again or if they go up you will be happy you did not procrastinate. At present interest rates are the lowest they have been in 40 years. A rise of 1% in an interest rate is like paying 10% more for the same house. Don’t wait it is a great time to buy real estate. It is on sale and interest rates are low low low.

What is the Bottom Line, Linda?

To quickly summarize generic, predictable trends that happen every year regardless of interest rates or big city seasonal events: Families tend to move in the summer, first time buyers purchase before weddings and holidays, investors buy good deals year round but, traditionally see more out shopping in the winter when home buyer compettition will be a little lower. To see every home for sale in the Triangle area including Raleigh home rentals, foreclosures, short sales, new homes and resales visit our Raleigh Real Estate Website, www.LindaCraft.com

If I can answer any questions for you about the greater Raleigh area real estate market please give me a call. I have sold over 5,000 homes, am investor certified and a distressed property expert. If you have questions I have answers. Feel free to call me at 919-235-0007 or email  Linda@lindacraft.com

Have a great day!

Linda

If you have any real estate questions please do not hesitate to contact me.

I hope that you have a great weekend,

Linda

Hedingham Single Family Homes Open Sunday May 16th 1-3 pm

Hedingham Townhomes Open Sunday May 16th 1-3 pm

For more information about Hedingham or any homes for sale in Raleigh, please visit our Greater Raleigh Area Real Estate Website or call us at 919.235.0007.

Hope you have a great weekend,

Linda

This past week one of my buyer agents,  JV Lavery, mentioned that prices on large tracks of land had dropped significantly and what a great time it was to buy land and hold it. He is so right but, I don’t know many developers  with $500,000 to a million dollars cash in the bank to buy land in these tight economical times. We all know land has always been a great investment and everyone I know is looking for something to buy cheap and hold onto for high profits later so we started brainstorming who could buy this well priced land.

Here Are Some Ideas On How To Buy Land:

1.   A group of individuals could buy the land to use as a hunt club. For the price of a yearly membership they could own acreage together. Use it to hunt now and hold it for a later sale when the value increases. Now that is a great real estate investment with no risk.

2.  A church could buy land now to hold for a future church plant

3.  A group of individuals could buy land to hold for future development or to sell when the next housing boom hits

4.  A family could buy land and put it into a family trust which would benefit their children

What are some other ideas you may have?  If you are interested in finding out about the best tracts of land for sale in the Greater Raleigh area please contact my team, JV Lavery or myself.  We would love the opportunity to work with you.

Have a great weekend,

Linda

First Let Me Explain The TWO Types Of USDA Approvals:

 Approval with “GUARANTEE OF FUNDS” 

1. This approval type states that funds are available and have been guaranteed for a specific loan.
2. The loan can close.

Approval With “CONDITIONAL COMMITMENT – SUBJECT TO RECIEPT OF APPROPRIATED FUNDS”

1. This OCCURS WHEN USDA RUNS OUT OF FUNDS
2. It is an approved loan.
3. It states that “WHEN FUNDS ARE AVAILABLE (appropriated from Congress) IT WILL AUTOMATICALLY RECEIVE A GUARANTEEE”
4. The loan can close however it is up to the lender.
5. Funds are NOT available to be guaranteed – Increased risk to the lender.

 With regard to Approval #2 above:  Some lenders WILL go ahead and close the loan with a conditional commitment from USDA while others choose NOT to.  It is typical that USDA runs out of funds in September/October time frame as October is their fiscal year end.  We have all experienced in the past!

 What Is Different RIGHT NOW? 

 It is March and USDA is expected to run out of funds by the end of April…..  Obviously USDA has become a very popular loan program due to market conditions but more importantly the lack of other 100% financing programs.

1. MOST IMPORTANTLY:  As of now USDA is stating the following:  “ONCE FUNDING IS EXHAUSTED (estimated at the end of April), THE AGENCY WILL NOT ISSUE CONDITIONAL COMMITMENTS “SUBJECT TO RECIEPT OF APPROPRIATED FUNDS”.  THIS IS BECAUSE IT IS NOT CERTAIN WHEN ADDITIONAL FUNDING WILL BE AVAILABLE”.

 How Is This Different Than In The Past And What Does It Mean?

It is different because unlike Approval type #2 above they are NOT going to issue a “Conditional Commitment” and therefore when money is appropriated, if appropriated, there is NO Guarantee of Funds.  Confusing no doubt, so what does it mean?

It means that even the lenders who would typically “Fund” with a “Conditional Commitment” may NOT be so inclined to do so and therefore may NOT close the loan.  I would strongly recommend asking your lender how they will handle this and be cautious of USDA loans in months to come.

If you have any questions please feel free to contact me at or seek out a knowledgable mortgage lender here in the Greater Raleigh Area. 

Happy Saint Patrick’s Day!

Linda

How Will A Raleigh Homeowner Benefit?

The $6,500 tax credit will really help many sellers offset any depreciation they may have experienced in the Raleigh Real Estate market and will give them the extra funds they need to buy a new home. When selling a home you have to deduct the mortgage pay off, property taxes, real estate commissions, revenue stamps and other miscellaneous charges for selling a home. The remainder after everything is paid is the net proceeds. Or better described the check the seller gets at closing to spend on their new house. The Government is giving them an additional $6,500 tax credit to help home sellers in Raleigh buy new homes. This is pretty exciting especially when you consider mortgage interest rates are still around 5% for a 30 years fixed rate mortgage. The low interest rates and the tax credit will help many homeowners get into better houses than they ever dreamed.

Raleigh Mortgage Lending Guidelines Have Changed

Today in order to buy a home most lenders require a minimum of 5% down. We can usually negotiated to get the mortgage closing cost paid by the seller but, when the Raleigh housing market hasn’t appreciated over the past several years it makes it really hard to sell and be able to net enough money from the sale for the down payment on a new home. The $6,500 tax credit will put many home buyers in the market now that could only sit and wait before. Here are some details:

Who is Eligible  

• Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.
• All U.S. citizens who file taxes are eligible to participate in the program.

Income Limits

• Home buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
• For married couples filing a joint return, the combined income limit is $225,000.
• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
• The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.

Effective Dates

• The eligibility period for the tax credit is for homes purchased after Nov. 6, 2010, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.

Types of Homes that Qualify

• All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.  

Tax Credit is Refundable

• A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
• For example:
  • A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).
• All qualified home buyers can take the tax credit on their 2009 or 2010 income tax return.

Payback Provisions

• The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

The www.federalhousingtaxcredit.com site is being updated and you can find alot of useful information there.

Please remember to talk with your CPA or tax advisor to verify how the tax credit can help you and your family.  I am not a tax advisor but have given you the information above as I understand it.

Hope you stay warm today!

Linda

For more properties in the Greater Raleigh Area feel free to check out my raleigh real estate website where you can create your own search.

A Few Quick Moving Tips For Raleigh Area Families: 

1.   Your children’s rooms should be one of the first places you unpack and set up.  Once it is done they can play in their room and get settled in while you move on to the next important space. 

2.  If your children are used to certain bedtime or morning routines, stick with them.  I know that it is hard when you are in the middle of boxes to do it, but it will make a difference.

3.  Set up your children’s rooms the same way they had it in their old home.  You can always change it later, but having everything in the same spot makes it easier for them to know where things go.  

4.  Get out and meet the neighbors and their families.  Check out your neighborhood playground for a few minutes or walk around the block when it is time for a break. 

5.  Go easy on your children and yourself.  Moving is stressful for everyone.   Remember to take care of yourself.

6.  Give your children an area to unpack.   Preschoolers through highschool can always help whether it is dishtowels in a drawer or other simple areas.  You can always redo it later and they will feel like an important part of the move and family.

For more tips on moving with kids, pets or setting up your household visit my raleigh real estate website or call my office and speak with my team.  We all have moved around or to the Raleigh area from other parts of the country and know what it is like to be in transition.   We are here 24/7 to help make everything about your move easier.

Linda

The Biggest Real Estate Problem We Have in the Raleigh Region

is that we are not seeing many move up buyers. This is causing many sellers to compete for a sold sign and has driven home prices down. The listing inventory of homes for sale is still high and many sellers have reduced their home prices several times and still are not sold. The average home list price to sales price is  96% if sold in the first 30 days and 89% if price reductions occur. With declining home values, low interest rates and tax credits you would think real estate here in the Greater Raleigh area would be booming but, it isn’t. Everyone is busy showing a lot of houses but, the truth is Triangle real estate home sales are still lower in 2009 than they were in 2008.  

Let’s Look At Some Contributing Housing Market Factors

1.  First Time Home Buyer and Tax Credit  

Raleigh area homes  under $300,000  have been driving the market as our first time home buyers are out looking for their dream home and an $8,000 free gift from the government. The $8,000 first time home buyer tax credit is due to expire in 102 days.   Many people who have been unsure about the economy and their jobs have decided to wait until the last minute to find a house.  Not a good idea. Every first time buyer needs to get busy now. Procrastination can cause you to loose your chance at $8,000 and pay more for a house. On July 31, 2009, new mortgage regulations went into effect that can extend a real estate closing to approximately 45 days.  This means in order for someone to use the credit they have to hire a REALTOR, find a house they want to own, negotiate an acceptable contract and apply for a loan by October 15 in order to be assured a closing before December 1st. I believe this fall we may see Raleigh real estate priced below $300,000 spike up in value as those that waited to the last minute are now in bidding wars over the best houses left in the market. 

2. Life Change

People in all walks of life have to have some place to call home.  Some of our Raleigh market activity comes from every day situations where people moving  are  merging households, downsizing, having kids and running out of room, relocating due to a job transfer, divorce, death or need a change due to health reasons.   This type of activity always happens in our Raleigh Real Estate Marketplace and will never change regardless of market conditions.

3.  Short Sales and Foreclosures in the Greater Raleigh Areas

Today’s investor loves our Raleigh real estate market. They know now is the time to see the highest returns on a home purchase. Raleigh is ranked in the top 10 cities to rebound fastest. Homes in the Raleigh, Cary, Apex, Holly Springs and Wake Forest real estate markets have about 20% distressed properties and cash is king. People who have patience, good credit, or cash in the bank are another segment in our Raleigh real estate market. If you want to invest in these type of properties look for an REALTOR with a CDPE designation. It is not a traditonal transaction and you will need someone with experience to guide you.

4.  Supply and Demand

Standing inventory is a real problem in the Greater Raleigh area.   The absorption rate is 10 months to 39 months in some price ranges and locations. In my recent blog posting “Home Sellers Need Tough Love in this Economy” I talk about how some Triangle Home Sellers are experimenting with the market.   As I said before, if you don’t need to sell your home right now, don’t list it.   Yes, I am a Top Producing Real Estate Agent in the Triangle area, however, I believe in helping people and not just closing a transaction.  Our real estate market is still over saturated with homes that are not selling.  It is a fabulous time to buy a home and one will find many great deals out there, but if you don’t have to sell, please wait.

If you have questions about the real estate market here in Raleigh or would like to receive new listing alerts, please don’t hesitate to contact us.   We are here to help you make wise decisions about your home.

Linda