Spring has Sprung in the Triangle!

First day of Spring was yesterday, yeah. I can see the grass getting greener already. March Madness in full swing, hope your team is doing well. Maybe it is the weather but showings on our listings are definitely higher. The biggest selling months of the year are April, May and June so as you can imagine, showings are are the rise... with most occuring between the $200-400,000 price ranges.

Most listings spend an average of 125 days on the market in the Triangle, a 15% increase from this time last year. However, homes sales are starting to show some improvement in the lower price ranges. In more popular areas, supply is down to a 2 month supply under $150,000 list prices, where the luxury market ($500,000+) is still excessive.

BUY OF THE WEEK - An Investment Opportunity!

Glenwood North Town Homes
FORECLOSURE @ $199,900

RES - Buyer Full
RES - All Photos

National Association of Realtors, New Home Buyer Stats

In the last decade, a lot has changed in the real estate industry from how buyers go through the process to how prices have changed while some things haven’t changed like the median age of buyers, according to the National Association of Realtors. The following are new stats about the buying experience... if you are considering selling your home, keep these things in mind:

1999: 37% of buyers searched for a home online. 2009: 90% of buyers searched for a home online.

1999: median home value is $137,600. 2009: median home value is $172,600 (but not that some reports reflect that when accounting for inflation, the value hasn’t changed at all this decade).

1999: 82% of buyers purchased detached, single family homes. 2009: 78% of buyers purchased detached, single family homes.

1999: 46% of buyers choose suburban neighborhoods. 2009: 54% of buyers choose suburban neighborhoods.

1999: 68% of buyers were married couples. 2009: 60% of buyers are married couples.

1999 and 2009: the median age for buyers was 39.

1999 and 2009: “neighborhood quality, affordability, and convenience to work and school have consistently been top priorities.”

Overall the only major shift has been in the rise of online search which was predictable, but I’m personally a bit surprised at the drop in number of married couples. Which stats most strike you?

Short Sales getting easier?

Good Monday morning and WOW is it cold outside. New guidelines came out the end of last week from the US Treasury Department to make selling a home via the short sale approach easier. This could mean better buys for us all and easier sales if you happen to be in an unfortunate position.

To qualify under these new guidelines:
The property must be the home owner’s principal residence.

The home owner must be delinquent on the mortgage or close to defaulting (this is better than delinquent because usually once you are behind you only have 90 days...).

The loan must have been made before Jan. 1, 2009, and be for less than $729,750.

The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.

Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments. Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.

Source: Associated Press, J.W. Elphinstone (11/01/2009) and The Wall Street Journal, Ruth Simon (11/01/2009)

Easier Home Energy Tax Credits...

I hope everyone enjoyed their Thanksgiving and visiting with family and friends... now it's time to prepare for the holidays.

If you need a motivator to do some home winterizing projects, the IRS recently sweetened the deal. The American Recovery and Reinvestment Act (Recovery Act), enacted earlier this year, expanded two home energy tax credits: the non-business energy property credit and the residential energy efficient property credit. That means you can perform energy-saving home improvements and reduce your 2009 tax hit.

The credit equals 30 percent of what you spend on eligible energy-saving improvements, up to a maximum tax credit of $1,500 for the combined 2009 and 2010 tax years. The IRS says that by spending as little as $5,000 before the end of this year on eligible upgrades, taxpayers can save as much as $1,500 on their federal tax return.

What's included? The cost of certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass all qualify, along with labor costs for installing these items. The cost of energy-efficient windows and skylights, energy-efficient doors, qualifying insulation and certain roofs also qualify for the credit, though the cost of installing these items does not count. Before making any investments, be sure to check with your accountant or the IRS to be certain that your upgrades qualify for the credit.

Some other low-cost home winterizing tips:
Use a programmable thermostat. When installed and used correctly, you may be able to save $180 each year.

Get a tune-up for your furnace and change your furnace filter monthly. Clean filters create better air flow, while dirty filters can hike energy usage.

Reduce drafts by sealing air leaks and add insulation to keep precious heat from escaping. The EPA estimates that homeowners can typically save up to 20 percent of heating and cooling costs (or up to 10 percent of total energy costs) by air sealing their homes and adding insulation in attics, floors over crawl spaces, and accessible basement rim joists.

Get a window insulation kit from the hardware store to keep drafts at bay.

Thinking about Updating a Kitchen...

As many of you know, my husband Michael and I LOVE to cook in our kitchen, as a result, it takes a lot of abuse and ends up quite disorganized, so I looked in to what we should do to ensure it remains in good condition and I wanted to share what I found out… Here are some of the most common scenarios that your kitchen will see and our tips for handling these scenarios. Of course, even if the following scenarios don't directly apply to your household, the solutions are nearly universal in creating a more efficient kitchen. If you are considering a renovation, Call me... I would love to share my input and give you feedback on which items to prioritize and any suggestions on which vendors other clients have had success with.

Playing Host for the Holidays
No matter what holiday you are celebrating in your home, your kitchen is going to receive the brunt of the extra strain, foot traffic, and the judgmental eyes of the in-laws:

Start with an evaluation of your kitchen storage. The first obligation of hosting the holidays is providing meals. You need easy access to pots and pans, mixing bowls, and serving dishes. You may want to think about adding a custom-built cabinet or else moving your toaster oven and other less important items out of the kitchen entirely until your hosting duties are done.

Take a look at your kitchen lighting and its flexibility. No area of the house has the same need for flexible lighting design. You need wide, clear lighting for food prep and cleaning, but task lighting for chopping vegetables and stove tops are also helpful. And what about grandpa's habit of getting up at 3AM for a late night snack? A miniature, overnight light will keep guests' footing safe without disturbing the rest of the household or your energy bills.

Expand your kitchen space. Smaller kitchens can use help from other areas of the home. You probably need every available space for seating, but during cooking times, the dining room can sometimes be converted to aid the work going on in the kitchen. From food prep to laying out extra silverware, napkins, dessert dishes, and other items, look at opportunities in areas adjacent to the kitchen to expand your kitchen capacity.

The Winter Kitchen

When winter arrives, it puts strain on the whole house: Trying to keep the bedroom warm enough, handling cold bathroom tile, and maintaining your heating system in general can all be chores, but you can't forget the kitchen, the most underrated and under-utilized asset in surviving the winter!

It all starts with a hot beverage in the morning, whether it comes from the espresso machine, tea kettle, or instant powder. If you are entertaining and not sure how to juggle various demands of guests, consider going to Bed Bath and Beyond – they have the one cup coffee and tea dispensers on sale this week!

A big, healthy breakfast doesn't hurt, either. Winterizing your kitchen always involves putting its best face forward in the morning.

People tend to eat more in the winter, and this simple fact affects everything in the kitchen. A new oven range will help with your increased baking needs; a new counter top can help with chopping vegetables and better nutrition.

Don't forget the kitchen is still a room. Thermal windows, insulation, and zoned heating can increase energy efficiency in the kitchen, just like anywhere else in the house.

Make it a great week and get that holiday shopping done, it is busy out there!

Gains in local real estate trends...

Our local housing market may be headed in the right direction - with 17.6 percent more homes were sold in the Triangle residential market during October compared to the year prior!

The Triangle MLS (multiple listing service) tracks new and existing home sales data in Wake, Durham, Orange and Johnston counties and in October 2,009 homes were sold compared to 1,709 the year prior.

Data from the Triangle Area Residential Real Estate report also indicated that the dollar volume of homes sold last month also grew, by 8.3 percent, to $441.8 million in October compared to $407.9 million in homes sold the year prior. That’s the first gain in sales volume since October 2008.

Much of this change can be contributed to the federal $8,000 first-time home buyer tax credit program and the new tax credit program for move up buyers will help continue this trend. This program extends the first time homebuyer tax credit and offers a $6,500 tax break to qualified homeowners looking to move up to middle-market homes that cost no more than $800,000. Another important contributing factor is that home sales in the Triangle started declining in late 2008, so the market today is in comparison to one of the slowest housing markets in decades.

If you are a seller, keep in mind that overall, the average Triangle home sale price was down by 8 percent in October compared to October 2008, and it took four more days on market to sell than the year prior. The positive news is that the inventory of homes for sale has declined by 13 percent which means there is less competition for the homes on the market for sale. To look at this information by County:

· In Wake County, 1,141 homes sold in October compared to 967 home sales the year before, which is an 18 percent increase. Total dollar volume of homes sold in the county was $270 million, which was up by 5.5 percent from the year prior.

· In Durham County, 269 homes sold in October compared to 210 homes sold the year before, which is a 28 percent increase. Total dollar volume of homes sold in the county was $52 million, which was up by 23.4 percent from the year prior.

· In Orange County, 91 homes sold in October compared to 62 homes sold the year before, or a 47 percent increase. The total dollar volume of homes sold in the county was $28.3 million, which was up 43 percent from the year prior.

· In Johnston County, 193 homes sold in October compared to 176 homes the year before, or a 9.7 percent increase. Total dollar volume of homes sold in the county was $32 million, which was up by 5 percent from the year prior.

Home buyer tax credit extension and potential expansion

Everyone’s been asking about the home buyer tax credit extension and potential expansion so I thought I would give you an update.

“The new compromise which will be part of the unemployment extension bill would extend the existing credit and create a new $6,500 credit for move-up buyers. Both types of buyers must sign a binding contract to purchase a new or existing primary residence between December 1, 2009 and April 30, 2010. Buyers would have until June 30 to close the deal.

Move-up buyers will be eligible if the home they are leaving has been their principal residence for five years or more.

The cost of the newly purchased home may not exceed $800,000 for new or move-up buyers. There is no partial credit for homes over $800,000.

Home buyers would not have to repay the credit as long as they live in the home as their principal residence for at least 36 months.

The income limits for all buyers would rise to $125,000 for single returns and $225,000 for joint returns, up from $75,000 and $150,000 respectively, under the current program.

The full Senate will probably vote on the unemployment extension bill, which includes the home buyer credit, next week. If it is approved, it will move to the Assembly”, which "could agree to the amendment or disagree and send it to a conference committee."

I will keep everyone updated on the progress of this bill, you can check the story out here.