Real Estate Information

Happy Monday!  I can't believe we are already at the end of January.  Time is flying by way too fast.  The real estate market seems to be off to a good start in 2012 with lots of activity here since the holidays.

Today, I received an email from the President/CEO of Alpha Mortgage, Michael Lopez about the pending fee increase for Fannie Mae and Freddie Mac backed loans.  I thought it was some great information to share and instead of summarizing what he said, I thought I would share it all with you.

So here it is:

Fee Increase to Impact Home Loans

In December 2011, Congress reached a last-minute deal to fund the payroll tax cut extension. The payroll tax extension will provide a 2% tax reduction for individuals making up to $106,800, so the tax extension will be very helpful for many Americans who are struggling during these tough economic times. But like so many things in our tangled economy, there's a flip side. In this case, the tax cut deal has a rippling effect that will impact the mortgage world.

Here's what's happening and what it means to home loan rates:

What is happening and why? To put it bluntly, the passage of the payroll tax cut extension is being funded via a mandate to Fannie Mae and Freddie Mac (the nation's largest providers of mortgage money) to increase their guarantee fees or "g-fee's" by at least 10 basis points on the rate. So rather than giving a par rate of 4.00%, for example, the par rate is now increased by at least 10 basis points, or approximately 4.10%. But as you probably know home loan rates are priced and offered in .125% increments, so this will most likely impact the consumer by .125% in rate. Whether you agree or not on the politics behind this cost being passed along to folks who are taking out mortgages, the Congressional Budget Office recently estimated that the increase will ultimately pay for about $35.7 Billion of the cost of the payroll tax extension.

What exactly is this "g-fee"? The guarantee fee or "g-fee" is an amount charged by mortgage-backed securities (MBS) providers, like Freddie Mac and Fannie Mae, to help protect against credit-related losses in the overall mortgage portfolio. In other words, it acts a lot like insurance and helps lower the overall risk which means home loans can be offered at terrific interest rates to borrowers that have good - but not perfect - credit.

What exactly is the impact of the rate increase? For example, for a $200,000 home loan, the increased g-fee (assuming a .125% increase in rate) would equate to $250 more per year in interest, or $7,500 more over 30 years. Someone buying or refinancing a home can certainly choose to buy down the cost with cash up front - but most folks will not do this.

Who will this impact? The change will impact all new borrowers of Fannie Mae and Freddie Mac loans. The bill will also impact Federal Housing Administration (FHA) loans by increasing the annual mortgage insurance premium that borrowers pay by one-tenth of a percent.

When will it start? Officially, the increase to guarantee fees will begin on April 1, 2012. However, the increase is already starting to be seen in rate sheets right now, since home loans being originated now will likely not be closed, pooled and securitized until April and therefore will need the increased g-fee priced in earlier.

How long will this be in effect? The increase will be effective through October 1, 2021.

The bottom line is that the g-fees will be going up and this will impact homebuyers looking to obtain a home loan through Fannie Mae, Freddie Mac and FHA.

The good news is that home loan rates are still at historic lows right now, and it's a great time to purchase a new home.

Located in Leland, North Carolina, just 5 minutes from Historic Downtown Wilmington and 20 minutes from area beaches, Magnolia Greens Golf Plantation offers diverse and affordable living options surrounding its 27 hole champion golf course. The community features an 8000 sq. ft. recreation center with fitness and aerobics rooms, a playground, 2 tennis courts, picnic and grilling areas, lit sidewalks for safe walking, and 1 heated indoor and 2 outdoor swimming pools. Plus, Magnolia Greens conveniently has its own shopping and dining area, so residents never have to go very far for groceries or a quick bite to eat.

Forest areas, ponds, lakes, and green areas provide a variety of views and home sites. Homes are quality designed and built in a variety of price ranges. So, if you're a first time buyer or looking to upsize, there are options for you.

View Homes for Sale in Magnolia Greens

View Land for Sale in Magnolia Greens

If you are interested in viewing property in Magnolia Greens, we would be happy to show it to you. Fill out our contact form or give us a call at (910) 202-2546.

Quote of the Week:

“Take rest; a field that has rested gives a bountiful crop.” ~Ovid (43 BC - 17 AD)

Local Market Statistics

There are currently 3716 single-family homes for sale in New Hanover, Pender and Brunswick Counties.  In the last 6 months (7/23/11-1/19/12), 1891 homes have sold.  These numbers indicate that if NO other homes are listed for sale that there is approximately 11.7 months worth of inventory.

During the last week (1/12/12-1/19/12):

• 140 Homes were listed FOR SALE
• 41 Homes went UNDER CONTRACT
• 37 Homes SOLD
• 75 Homes FAILED to SELL (Withdrawn or Expired)

*Please note all of these statistics are based on data taken from the Wilmington Regional Association of Realtors multiple listing service.

In Case You Missed It

The Wilmington Theater Awards will be happening on Thursday, January 26. If you are familiar with the area, you know Wilmington has a strong theater community with numerous venues around town and on the local college campuses. Thalian Hall, which continues to be the local theater epicenter, is co-sponsoring the event and it sounds like it’s going to be a lot of fun to watch. Tickets to the event are being sold online and are $14.

Area Happenings

1/20/12: Tree Fest – Independence Mall
1/20/12: Live Music from Local Bands - Brikhouse
1/21/12: Murder at the Museum – Cape Fear Museum
1/21/12: Nature Hike – Halyburton Park
1/21/12: Kids @ CAM – Cameron Art Museum
1/24/12: Health & Wellness Expo – Miller Motte College
1/24/12: Grammy Nominee, Nicolay, with The Hot @ Nights – The Soapbox
1/25/12: Bald Head Island Nature Tours – Bald Head Island Conservancy
Now – 4/1/12: Murrinis Within a Crystal Matrix: The Poetic Glassworks of Richard Ritter – Cameron Art Museum

The Cameron Team

Melanie Cameron, Broker 910.233.2840

Susan Harkins, Buyer Specialist, 910.431.2362

Gina Martin, Buyer Specialist, 910.619.1987

Meghan Riley, Client Care Specialist, 910.202.2547

Diligently working to exceed real estate expectations in Wilmington, NC and surrounding areas including Ogden, Porters Neck, Wrightsville Beach, Carolina Beach, Castle Hayne, Leland, Burgaw, Rocky

Happy Monday! I hope everyone had a wonderful weekend. A little chilly but I guess that's to be expected in Winter!

The numbers for December are in! The average sold price for December was at $215,056 which represented a 7.2% increase over November and the list to sale price ratio increased slightly to 94.1%. Almost 23% of the sales in December were in the price range of $200,000-$299,000. Even more telling was that over 44% of the transactions were for $160,000 or less. 371 units closed in December which was an increase of 29 units over November.

Our current listing inventory is at 3,751 which is the lowest we've seen in a while and represents an inventory supply of around 10.1 months. Our average list price for December had a slight decrease to $343,088 and our average days on the market decreased to 152.

January seems to be off to a good start and only time will tell if these trends will continue. Interest rates remain incredibly low and it's a great time to invest in real estate. If we can help you or anyone you know with your real estate needs, please let us know. 

On a "Cameron Team" note, we are pleased to announce the addition of Meghan Riley to our Team.  Meghan is our new Client Care Specialist and Team Administrator which basically means she does all the work behind the scenes.  She is incredibly talented, a pleasure to work with, and another asset to our Team.  Welcome, Meghan!

Have a great week!

Kiplinger recently released its national list of Best Values in Public Colleges for 2012 and our very own University of North Carolina – Wilmington ranked at number 15 out of 100 top schools! This is wonderful news. Just last year, it was ranked at 27. That’s a significant leap!

According to their website, Kiplinger evaluates 500 public 4-year colleges throughout the nation to compile their top 100 list. They evaluate test scores, admission and retention rates, graduation rates, student-to-faculty ratios, in-state student costs, and financial aid. Currently, UNC-W maintains a 45% graduation rate for 4-year students and a 66% rate for 6-year students, and consistently ranks in the top 5 colleges in North Carolina. UNC-W was outranked by only one other North Carolina school, UNC – Chapel Hill, which ranked number 1 overall.

Quality colleges - just another reason why living in Wilmington is so great! 

Happy Monday and hope you had a fantastic weekend.  The weather was GREAT here in Wilmington (almost felt like Spring).  Well, I think everyone is finally back into the swing of things after the holidays.  I know we're all glad to be back in a routine.

We have definitely seen an increase in showings since the New Year and I'm optimistic that trend will continue.   One factor homeowners need to keep in mind is that pricing is still the key to getting your home sold in this market.  With a shadow inventory of bank owned properties coming on the market this year, sellers have to be competitive.  Not only that, but your home needs to show great too!  We have professional stagers available for anyone that may want to use their services.  If you're in the Wilmington market and want a market analysis of your homes value, check us out at www.WilmingtonHomeValuesOnline.com

On the buying end of things, interest rates are still incredibly low.  Yes, getting a loan is a little more difficult but buying opportunities that are available in our market right now have not been seen here in almost 8 years.  Thinking of buying?  Let us help you out and explain the process.  Just tell us what you are looking for at www.WilmingtonListingsOnline.com

Have a great week and we look forward to working with you in 2012!

Happy New Year!  We hope your holiday weekend was filled with fun festivities and high hopes for the coming year!  May your 2012 be filled with good health, prosperity and good fortune!

Well the Stock and Bond markets are closed today in observance of the New Year holiday but expect it to open up full swing tomorrow.  December's report for consumer confidence came in at 64.5, which was the third highest number reported in 2011 (and the highest it's been since April). 

With the economy in Europe still struggling, we should continue to see low interest rates here.  Tomorrow will bring reports of the Fed's last meeting in 2011 and it will be interesting to see what is said about inflation.  Friday brings the Job's Report from the Labor Department, which will certainly have an effect on the market.

Of course, the Presidential Election will be front and center in coming months and we'll be watching that closely as well.

If you have any questions or concerns about the market, please let us know.  We look forward to working with you or anyone you know that may need a competent, professional Realtor.  Have a great week!

Happy Monday and Merry Christmas!  I hope you had a fantastic holiday with your family and friends and memories that will last a lifetime.  Seeing the magic of Christmas through the eyes of my children has been the best part of the season for me for sure!

As the year comes to an end, we've seen another roller coaster year in our real estate market both locally and nationally.   Interest rates have been incredibly low and it has remained a strong buyers market throughout the year although we have seen in recent months the inventory of homes start to dwindle.  I'm asked frequently what I think the coming months and years will be like in our local market and my common response remains the same.  We aren't going to see any record breaking appreciation in our area any time soon.  I'm cautiously optimistic that the significant decline in values we've seen in the past 3-4 years is slowly coming to an end but we'll have to continue to see strong indicators month after month for some time in order to prove that to be true.  When we do see the tide turn, I think we'll see very conservative appreciation (2-3% per year) for several years.   The days of 10-20% appreciation in short periods of time are over...and I don't think we'll see them again any time soon.  The silver lining that I do see in all this economic turmoil that we've been through, is that more people are getting their finances in order which will help everyone in the long run.  

We wish you much love, laughter, health and prosperity in the New Year!

Happy Monday!  Only 6 more days until Christmas.  I don't know who's more excited, me or my 6 year old twins!  If you haven't finished your Christmas shopping, here's to you (and me) finding some GREAT bargains this week.  During the rush of the Holiday Season, I hope you find many things to be thankful for, make some wonderful memories with your families and big plans for the coming year.

Retail sales for November were up slightly, though not as high as expected and interest rates remain incredibly low.  Up until the past few days, we've been relatively busy in our local market.  I expect a quiet week this week but am optimistic things will pick right back up after the Holidays.  If you'd like to revise or start a search, check out our Buyer's Resource site at www.WilmingtonListingsOnline.com and tell us what you are looking for.  Also check us out and LIKE us on Facebook.  Just search "The Cameron Team".

Have a great week!

Happy Monday!!!  It's beginning to look a lot like Christmas and it's getting pretty chilly too!  I hope you had a great weekend and are looking forward to the week ahead!  I for one am committed to finishing my Christmas shopping this week!!

Stats for November are in and they show the typical fluctuation we see around the holidays.  The average sales price for November ($201,478) was a 10.5% drop from last month.  Keep in mind that this does not mean values dropped over 10% but that the price range of homes that sold were more in the lower price range than higher.   The list to sale price ratio increased a little to 93.6% last month.   329 units sold last month and our current listing inventory is down by 3.5%.   There are currently 4,106 homes for sale which equates to a 12.4 month supply of inventory.

Our average list price decreased to $343,706 and the average days on the market increased slightly to 166 and our current year to date average sold price is at $222,471.

An interesting fact, I read recently.... At the end of 2009, 10% of mortgages had at least 1 payment past due and another 5% were in the foreclosure process.  At the end of 2010, 9% of mortgages had at least 1 payment past due and another 5% were in the foreclosure process.  As of the end of the 3rd Qtr. of 2011, 8% of mortgages had at least 1 payment past due and another 4% of mortgages were in the foreclosure process (Info. from the Mortgage Bankers Association).  I think this is good news that we are headed in the right direction.

Be sure to check us out and LIKE us on Facebook on The Cameron Team page.  We try to put relevant info. and interesting articles up for our clients.   If you have any questions, comments, or needs, we're here for you!