Archive for November, 2008
Would you like some GOOD news?
November 26th, 2008 categories: Asheville Economy
I’m on the verge of not watching the nightly news anymore. So much doom and gloom each and every night. I think I’ve figured out that’s why they have pure entertainment shows like Entertainment Tonight right after the news, you need a dose of fantasy to pull you out of the depression they just put you through during the nightly news . . .
So, when I read this Asheville Chamber of Commerce report, I immediately knew I had to share it with everyone. The Asheville area has always seemed to fare better than many parts of the U.S. and we continue to do so:
Asheville Metro Economy Report from the Chamber November 2008Â Job Growth Continues
Total employment in the Asheville metro was up by 1,000 jobs in September 2008 versus one-year earlier. The positive result means Asheville experienced its 55th straight month of record year-over-year growth. Although Asheville’s rate of growth equaled a mild 0.6 percent, it was greater than the state and nation. Of the 310 U.S. metros nationwide tracked by the U.S. Bureau of Labor Statistics, 164 reported net job losses, including three in North Carolina. Â
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Metro Unemployment Rate Lowest in State
At 5.2 percent, the September 2008 unemployment rate in the Asheville metro was the lowest among all metros in North Carolina. For the same period, the rate nationwide was 6.1 percent, and 6.6 percent statewide. Rocky Mount had the highest metro-area unemployment rate in the state at 9.6 percent.At 4.9 percent, the City of Asheville had the fifth lowest unemployment rate among the 20 largest cities and towns in North Carolina. Chapel Hill had the lowest rate at 3.5 percent.
Industry Sectors Split on Net New Growth
Four major industry sectors in the Asheville metro experienced net year-over-year job gains in September, while seven sectors were either flat or down. The Health Services & Private Education sector led with 1,100 net new jobs over the year. The sector has added jobs consistently for over a decade. The Leisure and Hospitality sector added 1,000 net new jobs over the year, its 33rd month of record year-over-year growth. Professional and Business Services added 700 net new jobs, it’s 38th month of record year-over-year growth. The largest job losses came from the Manufacturing sector, down 700 jobs over the year.
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Mortgages and the $700 billion TARP rescue plan
November 18th, 2008 categories: Market Updates
For mortgage markets, the biggest news of the week came from Treasury Secretary Paulson during an update on the $700 billion TARP rescue plan. Paulson surprised investors with the news that the Treasury has scrapped the original plan to purchase troubled assets from banks and will use the funds in other ways to support the still “fragile” financial system. Lawmakers an investors were provided few details about the anticipated future use of the funds, and this abrupt shift in plans added to the uncertainty confronting investors in recent weeks.
While mortgage rates ended the week nearly unchanged from the prior week, daily volatility remained high. During October and November, movements in mortgage rates have been much larger than usual, primarily due to the high degree of uncertainty facing investors. Will there be a second major government stimulus package and what form will it take? What will be the impact of the extra debt issued to fund the government programs? Will other countries such as China have less money available to invest in US bonds, including mortgage backed securities, while they stimulate their own economies? Finally, how will the Treasury use the remaining funds from the $700 TARP rescue plan (discussed above)? Once investors have answers to these and other questions, we should see less volatility in mortgage rates.
Brought to you by : Cameron Lewis, Beverly-Hanks Mortgage Services
MBSQuoteline Xinnix
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So, WHO are we bailing out?
November 16th, 2008 categories: Financing Programs
I’m getting just a bit confused and irritated by the sudden shift of who Treasury Secretary Henry Paulsen is going help with the 700 billion we’ve all given to the Government. Although Paulsen feels it’s “an important idea” to help 3 million American households avoid foreclosure, he feels it goes beyond the intent for funding under the $700 billion financial rescue plan passed by Congress. For more information on the changes the Gov’t is considering, click on this link.
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7 Critical Steps to Avoid Real Estate Pitfalls
November 11th, 2008 categories: Interesting Tidbits, Real Estate News
 
If you’re getting ready to embark into the real estate world, as a buyer or seller, there are a few very critical things to remember as you go about the process. These are tips that I use to educate my clients on a daily basis. The’re all very important and valid points that will clearly benefit you by implementing them.
 Skipping the loan pre-approval step. For buyers, getting pre-approved for a mortgage gives you a clear idea of how much you can safely borrow and gives you insight as to what mortgage programs are available. Most importantly it identifies you as a serious buyer who’s done their homework. Sellers who have a great property and have priced it right, will have much more buyer interest and should expect proof of pre-approval from the potential buyer’s financial institution. Why waste time on an unproven buyer.
Timing the market. This is probably my biggest peave in real estate. Why buyers and sellers feel they can time it “just right” are living in La La Land.  Have you ever tried timing the stock market? I rest my case . . . Once in a great while I’ll meet someone who happened to sell and gain optimal profits, but their reasons were usually driven by the timing being right for them, not for profit.  If you think the market has bottomed out, chances are it has already started it’s way up. Always take the approach that real estate is a long-term investment.
Not understanding the length of the buying/selling process. The home-selling process is often more extensive than you think, from the early planning stages to protracted negotiations to often delayed closings. Financing can get held up, buyers may have a tough time selling their old house, repairs needed that the inspection uncovered etc. Don’t back yourself into a corner time-wise, the last place you want to find yourself is living in a hotel with all your belongings in a truck.
  Curb your enthusiasm.  The moment you drove up, you knew you were hooked. Now you’ve been inside, it’s absolutely heaven!  Now’s the time to play the game and keep that poker face. If you let the sellers or their agent know you love the house, you are giving them a position of power.  They may assume you might forgive some flaws because it’s your dream home. So, hold on to that giggle, shout for joy, or statements announcing “this is the one”, until you get in the car and close the door.
 Poor timing. Unfortunately we’ve all heard about people committed to a new house before selling their old one? Sometimes, you have little choice in the matter, but when you do, secure the sale of the old house before signing on the dotted line for the new one. Sure, you hate to miss out on that rare find and you might have to find an interim rental, but that’s better than spending time in financial limbo and biting your fingernails to the quick.
Hiring the wrong agent. You may not benefit by opting for an agency’s top-volume seller. That top-producing agent may have listed 40 homes last year and sold 30, but another agent may have listed 15 and sold 14. Opting for a friend or family member who is an agent doesn’t assure you of results either. It could cause a rift. And choosing the agent who suggests the highest listing price is not a recipe for success either — nor is opting for the agent who charges the lowest commission. Remember the SEED qualities in an agent: Smart, Empathetic, Experienced and Dedicated will usually get the job done right.
 Thinking appraisal equals actual value. In theory, appraisals are objective estimates of value. But several different appraisals can yield several different numbers. For example, an appraisal that’s been done for a possible refinance may have been slightly inflated to encourage that refinance. So sellers, before you put your home on the market, have an agent do a comparative market analysis to better indicate the home’s worth. And buyers, get similar “comps” from your agent. But realize the true value of a house is what someone is willing to pay for it.
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What? Are the holidays almost here?
November 10th, 2008 categories: Places to go
It sneaks up on us, doesn’t it? I’m still enjoying the last days of fall color of Western North Carolina, but now I find I need to start planning pretty quickly for Thanksgiving and Christmas. There’s so much to do in the Asheville area during the holidays, and here are a few of my favorites:
Christmas at Biltmore opens this weekend at the Biltmore Estate. It’s a feast for the eyes with more than 100 decorated trees, 1,800 poinsettias and music being played everywhere. If they can’t put you in the Christmas spirit, you should probably take a cruise. For more info: 877-BILTMORE or www.biltmore.com
The National Gingerbread House Competition entries go on display Nov. 17-Jan. 11 at the Grove Park Inn, 290 Macon Ave. Asheville. More info: 252-2711 or www.groveparkinn.com
The 62nd annual Asheville Holiday Parade rolls through downtown at 11 a.m. Nov. 22. This year there is a new route: It starts on Charlotte Street, then heads up Biltmore Avenue, down Patton Avenue and ends at French Broad Avenue. The theme is “The Art & Heart of Giving.” Call 628-2403 or go to www.AshevilleParade.org for more info.
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When will Western North Carolina Real Estate Market Improve?
November 5th, 2008 categories: Market Updates
This is the question on the minds of everyone isn’t it? Here is some food for thought and information we all need to keep in mind as we go forward as buyers or sellers in todays market.
So, in the many discussions I’ve had with people about when they think the market will improve here in Asheville and in Western North Carolina in general, here are some of the answers I’ve been given:
a. After the election.  b. 2009. c.  Spring 2009. d. Summer 2009.
And the correct answer? DAY BY DAY! Keeping in mind how to respond to the challenge we face in todays housing market, there are some positives specific to our market that I want to share with you.
Historically, WNC has been a stable marketplace. We enjoy a high quality of life here. There is a limited supply of new construction in comparison to other states, and no national builders. The percentage of sales from speculative buyers is small and our percentage of foreclosures is very modest.
Sales are rising fastest nationally where prices have dropped the most: (Real Trends Housing Market Report Sept 08)
                                                Closed Sales                                          Average PriceÂ
NorthEast                                      -10.2%                                                      -3.9%
South                                               -8.6                                                            -5.00
MidWest                                       +7.8                                                            -11.1
West                                               +27.1                                                          -21.2
What this essentially tells us is that our region is perhaps still priced a little high. If you have a house on the market and not getting much activity, reducing the price will bring a buyer in quicker. In fact, I’ve seen sellers price their homes very competitively and have multiple offers come in. When you have multiple interest in a property, the price very often can go up. It’s the best situation for a seller to be in. Take the step and underprice your competition, you may be pleasantly surprised at the outcome, not to mention being able to move on . . .
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