Statesville NC September 2011 Market Update

The Statesville real estate market has been a roller coaster this year to say the least.  For a market that is normally busy in the spring and a little quieter in the summer, this year has been to opposite for me.  My spring was a little slow going and the summer was HOT!  Not only have sales increased this summer, the foreclosure market seems to be slowing, giving “regular” sellers a better chance of selling their homes.  Statesville has always been known to have plenty of affordable homes and our current market stats show this fact.  You will see in the charts below that the average sales price for homes sold since January 1, 2011 is $108,708 and I can attest to the fact that most of our sales have been for homes under $140,000.   We have a large investor market in Statesville for homes under $90,000 and the numbers show that increase.

 

On the brighter side, I have also experienced a larger demand for homes over $150,000 than we have seen in previous years.  Prices on those homes have dropped slightly and buyers are finally taking notice and taking advantage of some great deals on these homes.  The biggest hole in our market now is the availability of new construction.  New homes that had been foreclosed on in the past several years have been sold and builders are still not constructing many new homes in our area.  We have a few “track” builders that are building some spec homes but custom homes are non existent.
Currently in Statesville, we have 496 active listings with an average list price of $195,928 and an average Days on the market of 184 days.

*All information obtained from Carolina Multiple Listing Service

image

 

 

 
Since January 1, 2011 – Statesville has had 348 single family residential homes sell with an average days on the market of 136 days.  This compares to 376 listings sold for the same period of 2010 with average days on the market of 135.  Of the 348 sales, 100 were categorized as a Foreclosure with an average sales price of $72,109.

image

 

 

 
image

 

 

 

 

 

 

 

 

 
image

 

 

 

 

 

 

 

 
This chart shows the fact that our foreclosures in Statesville have fallen to only 3.6 months of inventory verses 21.5 months for regular resales and 19.4 months for short sales.  The question is:  Will we see more foreclosures in the future or will the cooperation of the banks with the short sales and loan modifications finally slow the foreclosure market? image

 

 

 

 

 

 

 

 

 

In the end, the Statesville market is continuing to improve in certain areas and stay stale in others.  Homes over $200,000 still struggle to find buyers while we see multiple offers on homes under $200,000.  There are bright spots in every market and the Statesville market is no exception.  With interest rates at close to 4%, the USDA 100% program going strong for rural areas and prices holding steady – our market looks pretty good right now.

Search for Statesville area homes

Sign up for my Distressed property list and weekly tips

Search Foreclosed Homes in Statesville NC and Iredell County

 

It has been an amazing year in Real Estate in Statesville NC

imstillselling

I know you have heard the news and read the papers that the Real Estate market stinks!  Home sales are down, inventory is high, Realtors are starving, foreclosures are taking over…….Blah, Blah, Blah………..

Well, let me correct a few things for you about the Statesville area that may put a smile on your face.  Don’t forget, all real estate is local and listening to the national news will not give you a true picture of Iredell County and the Statesville area.  I am actually having my best year ever in Real Estate and 2010 was my second best year.  Now, granted, I have only been in the business since 2005 and have not really experienced “a good market” but the fact is that I am still here and thriving!

We had a recent training by a representative from the Iredell County Tax office and Steve Irving shared some facts and figures with us that may come as a surprise to you.  You can view the slide show on their website but here are the highlights.

Iredell County is reassessed every 4 years to equalize property values and with the amount of foreclosures on the market, you would think our values would have come back much lower in January than 4 years previous – but you may be pleasantly surprised to learn that there has been very little change.

The 2011 Valuation showed an AVERAGE decrease of approximately 1.5% (all types of property) and only 1.92% for Single Family Homes. The big loser here was manufactured homes at a decrease of 15.67%.  Here is the the big surprise…..Only 1% of all sales were foreclosures!

image

image

Although lot sales were down and new home construction was almost non existent, there were some bright spots.  Rural land sales greater than 1 acre were up due to Farmer to Farmer Sales (let’s keep those farms going!) AND our overall average assessed value in relation to 2010 sales value was at 98.7%.  Pretty good job Iredell County.  Now I know property values can tend to be a sore spot for many people but it is not an easy job to do and you do have the right for an appeal of your value but overall, the values are pretty darn close to reflect the current market.

Revaluation Brochure

 

This was the most recent report from the Charlotte Regional Realtor’s Association for the week ended August 6th that shows New listings decreased, inventory decreased and pending sales increased for the Charlotte Region.

So……. Cheer up!  Things are not as bad as they may seem.  I will keep you posted on more good news in our fabulous County – so stay tuned.

 

Statesville NC Real Estate Market Statistics Jan – August 2010

Every day I am asked the same questions over and over by anxious buyers and sellers, by friends and family and by my community so I decided today to answer some of those questions for you. This market is changing on a daily basis and the answer to many of these questions may be different next month, so keep that in mind as we talk about some of our recent market stats.

QUESTION #1: How is the Real Estate Market in Statesville NC?

MY ANSWER: That depends. If you are a buyer, my answer is this "It is the best market a buyer has EVER seen!" As a home buyer, all the pieces to the perfect puzzle are all in place right now.

img120

Historically low interest rates have made homes affordable to millions of people that were not able to purchase homes in the past.   In the last quarter, interest rates have been hovering right around 4.5% (see chart).  Although may buyers are financing homes through FHA and having to pay additional Mortgage Insurance premiums, the low rates have given the “breathing” room to affordable payments.  

 

The existing inventory is plentiful in Iredell County:  As of the end of August 2010, there were a total of 1722 Active Single Family Homes for sale and 622 .  Foreclosures and Short Sales have added considerably to our inventory with currently 165 distressed homes in Iredell County on the market and more being added every day.  This has caused the sales prices to fall, offering more affordability to the buyer. 

 

So my question is:  Why are buyer’s still sitting on the fence?  And the short answer to that is Fear of Job Security.  I hear it over and over again that people are afraid of losing their jobs and are holding off purchasing a home until they feel more secure.  It is a tough place to be in….High unemployment in the best buyer housing market ever.  Do you take the risk?  I say, yes.  It is a great opportunity to purchase a home and get out of that rental and time to build equity for yourself and your future. 

********************

Now…to answer that question for Sellers.  My response to them would be “What is your current situation?’’  Are you moving up to a larger home? Are you relocating? Are you downsizing? Is it that you can no longer afford your current home?  There are many scenarios for sellers and many different answers to that question.  Each individual circumstance will get a different answer. 

For example:  If you are considering a larger home.  If you can afford to sell your home in the current market conditions and price you property to move in this market, you may take a small loss but you have to factor in the gains you will make on the buying side.  In many cases, you may come out ahead because your savings will be larger on a more expensive home.  For many, it may no be the right time to put their homes on the market.  The worst thing a seller can do is list their home for sale “hoping” to get a higher price for their home.  If you are not able to compete with the existing homes that are comparable to your home, keep it off the market and wait it out.  A shop worn home does not do you or the market any good.

 

Right now in Statesville NC our YTD market stats are improving.  We are seeing a lower number of units being sold but the average sales price is increasing.  Since January there have been 1029 Single Family Sales in Iredell County and 373 in Statesville (averaging about 46.5 per month).  The average list price in Statesville (not including the Lake Norman region) was $125,841 and average Sales price was $134,284.  IF we add in the Lake Norman area the average list price as $270,761 and average sales price was $253,400 (all figures taken from Carolina MLS). 

 

QUESTION #2:  Should I wait a little longer to buy? 

ANSWER:  This is a tough question because no one had a crystal ball to see what will happen to the market 3, 6 or 9 months from now.  What I do know is this.  If you are considering FHA financing, the monthly mortgage insurance premiums will be increasing in October and reducing the amount of home you can qualify for due to increased debt ratios.  USDA 100% financing has funding  for now, but who knows when they will run short again and if their upfront fees will increase.

Will house prices increase?  Will interest rates increase? Will the inventory decrease?  I say if you want to buy a house and have the means to do it, then just do it.  This market is prime for buying now and any other “incentives” and unknown.

 

QUESTION #3: Should I put in a “low ball” offer?

ANSWER:  My advice would be to know the whole story about the property before making a low offer.  If it has been on the market for an extended period of time, you may be able to negotiate a lower price.  If the property is distressed, you may get a lower price or other concessions.  Most of my recent research on homes in the Statesville area have shown through comparative market analysis that the majority of homes are priced to sell in this market.  Sellers have reduced their homes (sometimes several times) to keep up with what buyers are offering and to compete with Iredell County foreclosures and short sales.  Most of the distressed homes are priced to sell from day one and do not offer a ton of “wiggle room”.  In most cases, you will find that the banks do not come down on their prices by much but may pay some buyer closing costs.  Today’s prices do not warrant “Low Ball” offers and in most cases, you will just get an outright rejection with no counter offer.  Do your homework, work with your realtor and offer a fair price and you will come out ahead.

*************

I hope this helps answer some of the questions you have been wondering about.  If you have any others, feel free to ask and I will be happy to give you a honest answer (it may not be the one you want to hear but it will be honest).  In the end, there are opportunities in this market and there are some pitfalls.  Do what is best for you.

 

_________________________________________________________________________________________________________________________________________________

Best Picture

 

Statesville NC Real Estate Guide –Sonya Leonard, Exit Home Team Realty Agent Sonya Leonard of Exit Home Team Realty is your local real estate expert in Statesville North Carolina.  The Statesville Real Estate Guide provides free access to individualized home searches for all homes in Statesville, Mooresville, Troutman, Lake Norman and the entire Lake Norman Area.  Explore buyer and seller reports, community resources, new home communities, and be sure to sign up for you’re my exclusive FREE Weekly Distressed Sales List.  Let Sonya help you INVEST in Real Estate and your Future! (704) 450-0588. Exit Home Team Realty