Useful and relevant topics for the North Carolina Real Estate industry with a focus on Cabarrus County and the Charlotte Metro region.
Sunday, August 31, 2008
Friday, August 29, 2008
County readies to send notifications to residents for central
edeines@independenttribune.com
Thursday, August 28, 2008
CABARRUS - Landowners in the unincorporated part of the county included in a recent, major landuse plan can expect rezoning notifications from Cabarrus County. And judging from phone calls to
the county office Wednesday, officials said letters began arriving this week.
Jonathan Marshall, the county’s commerce director, said he expects even more public comment
and queries to come from the notifications than were given during the land-use planning process,
which received significant community participation.
“We’re going to get a good volume of comments from people with questions,” Marshall predicted.
“We’re going to get folks who may not have heard about the land-use plan.”
He said about 1,900 mailings have been prepared for landowners in the unincorporated area in the
south and west of Concord city limits. Landowners with more than one parcel of land are sent only
one letter.
Approximately 2,895 parcels are being rezoned across approximately 24,548 acres.
The Cabarrus Planning and Zoning Commission will host a public hearing on Sept. 18 for the
rezoning before consideration of the plan.
Marshall said most of the down-zonings included in the plan generally see land zoned for lowdensity
residential changed to agricultural/open space zoning. The latter zoning prohibits extension
of water and sewer utilities and allows for less residential density.
“We’re not rezoning in any areas where the city will be extending water and sewer,” Marshall said.
During two months of community input sessions in May and June, many residents in the 39,200-
acre focus area said they wanted most of the area to be preserved as open space, with little to no
new development - leading to the proposed down-zoning.
Officials have said the land-use plan will help control the rapid growth and strain on the county’s
public services.
Because the land-use plan includes parts of Concord’s future growth area, the Concord Planning
and Zoning Commission will consider the plan and its concepts in September, said Concord City
Manager Brian Hiatt.
Concord City Council and Cabarrus County Board of Commissioners entered into a zoning and
utilities agreement in June directly related to the land-use plan.
“Really, the agreement that’s already entered into is the main agreement,” Hiatt said. “It didn’t
specifically talk about density, but it pretty much dictates what we can do.”
The June agreement set a boundary for Concord utilities across which the city may not extend
utilities - or allow developers to tap onto utilities - unless approved by commissioners.
And if an area is annexed, the city must retain the zoning as indicated in the proposed plan.
If the land-use plan is approved by Concord’s planning board, City Council will give it a final
consideration, Hiatt said.
• Contact Eric C. Deines: 704-789-9141
Area home prices are showing signs of life | www.charlotteobserver.com
Charlotte-area home prices show signs of strengthening even as a popular measure of home appreciation on Tuesday registered a third consecutive decline.
Tuesday, August 26, 2008
Consumer outlook up, housing bottom may be near | www.charlotteobserver.com
Americans felt better about the economy in August, as a barometer of sentiment posted the biggest boost in two years amid falling gas prices. Two reports suggested that a bottom could be nearing for the housing market, but economists caution it's too early to proclaim that the worst is over.
The Conference Board, a private research group, said Tuesday that its consumer confidence index rose to 56.9, up from a revised 51.9 in July. That's the largest gain since August 2006, and is ahead of the 53 expected by economists surveyed by Thomson/IFR.
It's also the second month in a row that sentiment improved, after a six-month slide since January - but it remains about half what it was a year ago, and worries about the job market persisted.
'It's still too early to call a bottom' on both confidence and housing, said Gary Thayer, senior economist at Wachovia Securities.
The Standard & Poor's/Case-Shiller U.S. National Home Price Index released Tuesday showed home prices dropped a record 15.4 percent during the second quarter. However, the rate of single-family home price declines slowed from May to June, a possible silver lining.
Sales of new homes rose in July, but still fell short of economists' expectations, and home prices continued to sink. Still, the July increase foll"
July Existing-Home Sales Show Gain |
Existing-home sales rose in July to the highest level in five months, although sales have hovered in a relatively narrow range over the past 11 months, according to the National Association of Realtors®. Existing-home sales-including single-family, townhomes, condominiums and co-ops- increased 3.1 percent to a seasonally adjusted annual rate of 5.00 million units in July from a downwardly revised level of 4.85 million in June, but are 13.2 percent lower than the 5.76 million-unit pace in July 2007. NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the up-and-down pattern may break soon. "We hope the new tools in the hands of homebuyers from the recently enacted housing stimulus package will spark a sustained sales uptrend in the months ahead," he said. "Buyers who've been on the sidelines should take a closer look at what's available to them now in terms of financing and incentives. Given some of the inventory on the market, we also strongly encourage buyers to get a professional home inspection." The national median existing-home price for all housing types was $212,400 in July, down 7.1 percent from a year ago when the median was $228,600. "Sales have picked up significantly in several Florida and California markets. Home prices generally follow sales trends after a few months of lag time," says Lawrence Yun, NAR chief economist. "Still, inventory remains high in many parts of the country and will require time to fully absorb." Source: National Association of Realtors® REAL Trends Comment: As we saw in the July REAL Trends Housing Market Report, sales have increased in five states and leveled off in three other major states. We think the market is improving in terms of unit sales. And the NAR median price figure is almost exactly in line with the average price indicator that the Housing Market Report indicated. All signs of slow but steady progress, at least on the unit sales level. |
Five most typical flaws discovered in new homes
According to the company, many new homes have poor workmanship that ultimately can cost a buyer thousands of dollars.
The company said the five most typical flaws discovered in new homes are:
-- Improperly connected air condition pipes that will cause central air conditioning units not to work.
-- Incorrect framing that could force plumbers to cut through the framing to install pipes.
-- Poor grading in the basement, causing leaking and poor ventilation.
-- Poor roof flashing that could lead to leaks.
-- Inattention to detail that could lead to look ductwork, mismatched joints, cabinet doors that don't close and non-level floors.
Tax credit Web site receiving 10,000 visitor per day
The NAHB says the site, www.federalhousingtaxcredit.
The site is dedicated to informing consumers how to take advantage of the temporary $7,500 tax credit for the purchase of a first home.
The Web site contains information on how the tax credit works, including eligibility requirements.
First Time Home Buyers Want More
Weichert Charlotte Office Growing to Statesville and Mooresville
Charlotte-based Weichert, Realtors-Rebhan & Associates has expanded into Statesville with the acquisition of Weichert franchise at 300 E. Broad St., Suite 103.
The office is the firm's third in the Charlotte area and will be followed this fall by the opening of an office in Mooresville, said Kathleen Rebhan, broker/owner.
The Statesville franchise, started in August 2005 by Harry Tsumas and partners, will include Tsumas' working “hand in hand with us,” she said.
He will focus from the Statesville office on new home construction, building and development under the Tsumas Development name. Phil Dishman remains as broker in charge, and the Statesville sales staff will stay on as well.
The Charlotte headquartered agency, which opened four year ago, was identified as one of the six top producing franchises in 36 states at of the end of 2007. It opened its second office, located in the Ballantyne area, in March 2007.
Fannie Mae, Freddie Mac shares rise
AP Business Writers
WASHINGTON Shares of Fannie Mae and Freddie Mac soared Monday in a respite from their battering in recent days, while some regional banks saw their stocks sink on worries they could be swept up in the turmoil surrounding the mortgage finance giants.
Freddie completed a $2 billion debt sale, and a Wall Street analyst said a government bailout of the mortgage finance giants may not be inevitable.
But a few regional banks with significant holdings in Fannie and Freddie preferred stocks followed the rest of the market down amid questions over whether federal regulators would step in to rescue the two government-sponsored companies.
Shares of Freddie jumped 48 cents, or 17.1 percent, to $3.29 Monday, while Fannie climbed 19 cents, or 3.8 percent, to $5.19.
Citigroup analyst Bradley Ball said in a research note that federal bailouts "don't necessarily wipe out all" company shareholders, and that Fannie and Freddie still have options despite their steep stock declines in recent weeks.
"We are not convinced that (the government) needs to take any action over the near term," Ball wrote.
But Len Blum, managing director and partner at investment bank Westwood Capital in New York, said Monday's rebound is likely to be temporary, as the companies' ability to raise capital on their own appears uncertain.
"The market thinks they're going to be nationalized," Blum said. "People have confidence in the debt, not the equity."
Freddie's sale of $2 billion in short-term debt was well received on Wall Street, but the company had to sweeten terms of the offer to lure demand, investors said. "We saw very good demand for today's deals," said Freddie Mac spokesman Michael Cosgrove.
In the coming weeks, Wall Street will be watching the results of several such auctions by the two companies. Sean Egan, manager of the ratings desk at Egan-Jones Rating Co., estimates the two companies have a combined $295 billion in debt coming due by year-end.
"It's becoming increasingly expensive for both Fannie and Freddie to fund their business," he said. "If that's not addressed fairly soon, the companies will continue to be under stress."
A government rescue of Fannie and Freddie - whose share prices have plunged in recent weeks as they struggle with billions of dollars in losses from bad mortgages - could be costly for scores of investment, banking and insurance companies that hold billions in their preferred shares.
The two companies had nearly $36 billion in preferred shares outstanding as of June 30, according to filings with the Securities and Exchange Commission.
Preferred shares usually pay a fixed dividend and have priority over common stock when it comes to dividends and bankruptcy liquidation. While slightly riskier than bonds, which have the highest priority in times of trouble, companies often invest in preferred shares for certain tax advantages.
JPMorgan Chase & Co. disclosed Monday that it held about $1.2 billion of Fannie and Freddie preferred shares. It estimated the shares have lost about $600 million since the start of the quarter on July 1, based on their current market values.
Shares of JPMorgan fell $1.54, or 4.1 percent, to $36.13 Monday, while the major Wall Street indexes lost about 2 percent. The Dow Jones industrial average fell 241.81 to 11,386.25, while the Standard & Poor's 500 index declined 25.36 to 1,266.84, and the Nasdaq composite index fell 49.12 to 2,365.59.
Regional banks with the largest exposure to Fannie and Freddie preferred stock as a proportion of their capital include Sovereign Bancorp Inc., Westamerica Bancorp, Gateway Financial Holdings Inc. and Midwest Banc Holdings Inc., according to a research note from Samuel Caldwell at Keefe, Bruyette & Woods. Of those four banks, only Westamerica shares rose on Monday.
Caldwell estimated that 38 regional banks together hold about $1.3 billion in preferred stock of Fannie and Freddie.
Banks in general are permitted to hold preferred shares as "core capital," which they use to guard against losses, said David Barr, a spokesman for the Federal Deposit Insurance Corp.
The FDIC does not make public data on such holdings, or their concentration among banks. Companies are required to recalculate the value of those holdings every quarter, and the FDIC's bank examiners are likely watching such holdings closely.
With a total of $4 billion worth of Fannie and Freddie's preferred stock, U.S. insurance companies also are among the largest holders, according to A.M. Best Co. Inc. But that still represents less than 1 percent of the insurance industry's cushion against losses.
Still, on Wall Street, Fannie and Freddie's existing preferred shares are trading like junk bonds, yielding around 17 percent to 19 percent instead of around their 6 percent dividend levels. The higher yield is an inducement to investors to accept the higher level of risk that the dividends won't be paid.
Friday, August 22, 2008
Harrisburg plans land-use agreement with Cabarrus
By Eric C. Deines
edeines@independenttribune.com
Thursday, August 14, 2008
HARRISBURG - Like the City of Concord before it, Harrisburg is at the cusp of a land-use
agreement with Cabarrus County that will determine where and how the city will grow.
“Our (land-use plan) is several years old, and we’ve been talking about it for a while to do it,” said
Josh Watkins, Harrisburg’s town planner.
Harrisburg and Cabarrus County would share in the cost of the study, which would include several
community input sessions.
In the current budget, Harrisburg has set aside $10,000 for a land-use plan update.
In its agreement with Concord, Cabarrus County down-zoned development densities for several
areas as a means of managing growth to keep up with public services, such as schools, and
preserve open space.
In the proposed agreement between Cabarrus and Concord that will serve as a template for the
county’s agreement with Harrisburg, it is stated that Concord will not extend utilities to
developers or allow developers to tap onto utilities without the consent of commissioners.
It also states that Concord must maintain the applied zoning of an area when it is annexed into the
city.
Officials have said the agreement is a first in the state for a county and a municipality.
“When you make rezoning decisions, you have to base them in part on what your zoning is,” said
Harrisburg Attorney Rich Koch, who also serves as attorney for Cabarrus County and is the author
of the land-use agreement between the county and Concord.
Officials said the proposed agreement between Harrisburg and Cabarrus would stand for 15 years.
Harrisburg Town Council lightly discussed how the land-use study would be paid for, with Cabarrus
and Harrisburg splitting the cost based on population and the area studied in the plan.
Mayor Tim Hagler said that because the area Harrisburg will study is much smaller than that
included in the Concord plan, the cost should be far less.
Hagler said Harrisburg is limited as to where it can grow, with Concord’s limits to the north and
east and the Mecklenburg county line to the west.
“The only way we have to grow is south into the county,” Hagler said.
Next week, the Cabarrus County Board of Commissioners plans to consider the land-use plan for
the Concord growth area, which will subsequently go before Concord City Council for approval.
• Contact Eric C. Deines: 704-789-9141
Positioning Properties to Sell
Real Estate is cyclical in nature and prices will rebound and recover. When? you ask. We are beginning to see more buyers shopping. that is a good sign. Most people looking for housing are still interested in location and value. If your property is priced more attractive than the competition and offers value, the chances are it will sell before the others.
This is true for all properties, not just those owned by Relocation companies. This is a different market than 12 months ago and a different market than 24 months ago. Housing purchases are for the long haul and significant consideration should be given for being a place to live in and not just an investment. Long term trends prove that real estate has been and will continue to be a great investment, but not necessarily so for the buyer who expects to "flip" the property in a year or less.
The "Gotta Have" price that sellers want, that's above market, will take a long, long time to be realized. Those days have gone the same road as $1 a gallon gasoline. And while people may not like it, they are going to have to get used to it. They are going to have to be happy enjoying the tax benefits of home ownership and if they achieve something higher than what they paid for their property they should c ount themselves fortunate.
Agents who agree to list properties above the market price will be akin to Professional golfers who can't putt or dogs that chase cars, they will be short-lived. Those agents that engage in this practice have been contributors to the housing crisis we have been in. If these properties were removed from the market, our market would be a more normalized market with an absorption rate of approximately 5 months which is doable.
For those sellers who sell for less than they could have sold for in previous markets, the reward is that they can move up at a discounted price as well. Ask your Buyer's Agent to go over procong for you dso that you can understand the process better.
Our company has been a leader in the real estate business for 30 years and we have built our reputation on service. Now, each of our agents are QSC (Quality Service Certified) trained and certified. this is something that our office does and is not normal in the market we are in. We put down in writing what you can expect from us and ask that you provide a candid report card on our service at the conclusion of the transaction. Every agent and company should aspire to such a goals and hopefully more will in the future.
So what's the Bottom Line of this musing? Price your property correctly and it will sell. How do you know what price that is? Engage one of our agents to prepare a Broker Price Opinion and let them explain the process. A lot of people think that all we do is put a sign in the yard and make a million dollars. Oh, if that were so! Reality is that if your house isn't priced correctly, it will be a long, long time before the house will have any interest at all. And, time is money. If you need to sell, price it right. Let our trained professionals walk you through the process. you'll be glad you did.