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Let the Coastal Realty Connections team help you find your next real estate purchase. Contact us today. 910-279-9398.
With home prices expected to appreciate by over 5% this year, some are beginning to worry about a new housing bubble forming. Warren Buffet addressed this issue last week in an article by Fortune Magazine. He simply explained:
“I don’t see a nationwide bubble in real estate right now at all.”
Later, when questioned whether real estate and/or mortgaging could present the same challenges for the economy as they did in 2008, Buffet said:
“I don’t think we will have a repeat of that.”
It is easily explained by the theory of supply and demand. There is a lack of housing inventory for sale while demand for that inventory is very strong. According to a recent survey of agents by the National Association of Realtors (NAR), buyer traffic was seen as either “strong” or “very strong” in 44 of the 50 states (the exceptions being: Alaska, Wyoming, North Dakota, West Virginia, Connecticut and Delaware).
Also, in NAR’s latest Pending Home Sales Report, it was revealed that the index was the highest it has been in a year.
As prices rise, more families will have increased equity in their homes which will enable them to put their home on the market. As more listings come to market, price increases should slow to more normal levels.
Anand Nallathambi, President & CEO of CoreLogic, recently addressed the issue:
“Home price gains have clearly been a driving force in building positive equity for homeowners. Longer term, we anticipate a better balance of supply and demand in many markets which will help sustain healthy & affordable home values into the future.”
Let the agents at Coastal Realty Connections help you buy or sell. Contact us for a free valuation of your property’s worth or for assistance in finding just the right home for you. 910-279-9398.
Every house on the market has to be sold twice; once to a prospective buyer and then to the bank. With escalating prices, the second sale might be even more difficult than the first.
A recent post on “The Home Story”, a site published by Fannie Mae, explained the difference between the price a seller may get for their home and the value an appraiser might assign the property.
The Sales Price
Of course, most sellers want to maximize the value they get for the house. However, the price they set might not be reflective of the other comparable homes in the neighborhood. As the article stated:
“People tend to view their homes emotionally, and that can become quickly apparent when they decide to sell.”
That doesn’t mean that the home won’t necessarily sell for that price.
A seller can set an asking price and actually have a buyer agree to that price. However, that value may not be necessarily in agreement with what most buyers are willing to pay. For example, one person can view a property, determine it is exactly what they are looking for and well worth the asking price, whereas another person could look at the same property and feel the asking price is too high.
Steven Corbin, Director of Valuation in Fannie Mae’s CPM Real Estate division gives an example:
“Someone may have driven by the property countless times, and they really want to live in that house. So in reality they may overbid for that property. This would be a situation where the actions of a specific buyer do not represent the actions of a typical buyer.”
The Appraised Value (or Market Value)
Fannie Mae explains what they look for when appraising the house:
“When a contract is established on a property, an appraised value is determined by a professional real estate appraiser. The appraiser works on the lender’s behalf to determine that value by taking many factors into consideration, including the neighborhood, the value of properties of similar size and construction, and even such things as the type of fixtures on the premises and layout of the floor plan.”
Corbin adds:
“From a lending perspective, a bank would want to know the probable price a typical buyer would offer for the property. That’s what an appraiser would set as the market value.”
The Challenge when Sales Price and Appraisal Value are Different
If the appraiser comes in with a value that is below the agreed upon sales price, the lending institution might not authorize the mortgage for the full amount a buyer would need to complete the transaction.
Quicken Loans actually releases a Home Price Perception Index (HPPI) that quantifies the difference between what sellers and appraisers believe regarding value. The HPPI represents the difference between appraisers’ and homeowners’ opinions of home values.
Currently, there is approximately a 2% difference between what homeowners believe their home to be worth and what appraisers value that same home. On a $300,000 sale that would be a $6,000 difference. That could be a challenge that might prevent the home sale proceeding to the closing table.
Quicken Loans Chief Economist Bob Walters recently commented on this issue:
“The more homeowners are in line with appraisers, the easier it will be to refinance their mortgage and easier for those looking to buy a home. If the two are aligned, it eliminates one of the top stumbling blocks in the mortgage process.”
Bottom Line
Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). In a housing market where supply is very low and demand is very high, home values increase rapidly. One major challenge in such a market is the bank appraisal. If prices are jumping, it is difficult for appraisers to find adequate comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank.
With escalating prices, the second sale might be even more difficult than the first. That is why we suggest that you use an experienced real estate professional to help set your listing price.
Let us help you determine your asking or buying price by contacting us at Coastal Realty Connections.
Source: Reposted from Current Affairs.
Wilmington NC home sales finished last year with an increase of nearly 13 percent over 2014, according to statistics released Monday by the Wilmington Regional Association of Realtors.
The number of Wilmington NC home sales increased by 849 in 2015, from 6,555 to 7,404 in a nearly 13 percent jump, as buyers took advantage of historically low interest rates in a market where some price points are in shorter supply. The figure is the highest year-end number for units sold since 2006, WRAR’s Multiple Listing Service statistics show.
“We’re gaining ground,” said Don Harris, the 2016 president of WRAR.
He said he expects the direction to continue this year. “Interest rates are still low,” Harris said, noting a recent quote of 4.125 percent.
The rates for Wilmington NC home sales are forecast to increase a little, possibly by the fourth quarter of this year, he said. (more…)
Brunswick County, North Carolina
According to a recent article in the Wilmington Business Journal, luxury home sales ticked upward as November came to a close.
Six homes in the $1 million range sold in Brunswick County and three in the same category in New Hanover during the month of November, according to a luxury home market report released this week.
As of Nov. 30, there were 164 homes for sale in New Hanover and 84 in Brunswick with asking prices exceeding $1 million, stated the report, compiled from local MLS statistics by Wilmington-based firm Just For Buyers Realty.
In Brunswick, 33 of those listings were on Bald Head Island, while New Hanover’s were also in locations known for higher priced property: 31 in Landfall, 29 in Wrightsville Beach and 23 on Figure Eight Island.
The luxury market in general has been healthy in recent months in the Wilmington area and surrounding communities, Realtors say.
When most people think about housing trends, they think about wall colors, cabinet styles and materials. As lives become more complicated, priorities shift and the definition of family has changed significantly. In response to these shifts in society, the housing trends change and adapt. The economic situation for many homeowners has also caused adjustment to future housing plans.
Location, Location, Location! Yes this has always been the most important aspect of choosing a home. In the past, people focused on a location because of family, job or cost of living. Now the number one priority in regards to location comes down to the walkability of restaurants, shopping and services.
We are all familiar with “green” building however the shift to “well” building is right around the corner. “Well” building continues the avoidance of harmful materials and the highlight of water and energy conservation with a new focus on design that enhances the life of the occupants. “Biophilic” design involves window and door placement to strive for a seamlessness between the home and the great outdoors. Increasing natural light and adding LEDs with dimmers and colors that can be changed according to time of day or weather. The lighting can simulate circadian rhythms in the body to improve sleep patterns which in turn is a boost to your health. In similar terms, a “well” home is all about being healthy in your body and in your mind.
In one of our early posts, we discussed the ever growing sustainable movement which has thousands of yards adorned with edible landscaping, backyard chickens and even bee hives. Going a few steps farther is a new housing trend called “Agrihood”. These are planned communities with a “nod” to communal living. The idea is to incorporate farming into planned neighborhoods where homesites are larger, community gardens and livestock herds cover the common areas and neighbors work together maintaining the needs of the farm. You may even see community kitchens and dining rooms instead of tennis courts and pools. The shared work and “fruits of labor” create a sense of pride and connection between neighbors. We expect to see more of these communities popping up as the sustainable movement spreads.
Managing power usage continues to be a top concern for home owners. In addition to solar panels there has been a huge boost in the number of “smart homes” which help to manage usage by automatically adjusting heating/cooling settings and lighting to accommodate time of day as well as weather. Most of the “smart home” technology can be accessed and manipulated by a cell phone app.
Consumers are demanding low maintenance features and materials as they no longer want to spend their weekends mowing grass and painting the deck. The focus has shifted to materials and systems with a greater longevity and durability. A good example is hand built brick walls, they will last for centuries rather than just one owner. This goes along with the push to build structures to withstand severe weather. Many builders and homeowners are “opting to go beyond what is required” says Philadelphia developer Nino Cutrufello.
To further to the low maintenance push, folks are choosing to build smaller, more open floorplans. Including creative use of space and smaller bedrooms allow for overall smaller structures. Since the bedroom is typically where we spend the least amount of time it makes sense to make these rooms smaller. This also is the case for families housing multiple generations. Private entrances offer a feeling of separation and independence while still being cost effective and family oriented.
With such a shift in housing trends it will be interesting to see what effect if any these changes have on the resale market. We may start to see more and more renovations to retro fit homes for the “new style” of living.
5952 Dutchman Creek Road
This beautiful, meticulously maintained marsh front home has panoramic views of Dutchman Creek, tidal marshes, ICW and distant Caswell Beach. Architect designed plan with full living quarters, kitchen, dining and master suite on the first level. Direct access to the open deck, spacious screened porch and a relaxing sunroom completes the spa package. Two further bedrooms and bathroom on the upper level create a totally private family or guest area, complete with a study area and ample storage.
MLS# 686658
Listing Agent: Donald Howarth
Cell: 910-279-9398
Email: Donald@
Since Europeans first viewed the area, the river known ominously as the Cape Fear has been vital to the fortunes of both buccaneers and businessmen. History shows it was the pirate Stede Bonnet – by most accounts a poor sailor who already had been convicted as a pirate and pardoned – who may have realized the river’s name. After returning to piracy, he tried to escape capture in the early 1700’s by hiding up the Cape Fear. But he forgot the first rule of pirates – always have more than one escape route. Bonnet was caught as soon as the British reached the mouth of the river.
Union vessels didn’t have as much luck with the blockade runners of the Confederacy, who continued to escape capture and bring needed supplies back to the port at Wilmington during the Civil War. In fact, Wilmington was the last port open to blockade runners. When it finally fell in early 1865, it signaled the end of Confederate hopes.
Since then, though, most seagoing traffic hasn’t needed an escape route – merely a North Carolina berth. That meant the Cape Fear River in Wilmington, and the deep water harbor at Morehead City. When North Carolina’s first major port development began in the 1850s at Morehead City, harbor pilots began bringing in ships through Beaufort Inlet.In Wilmington, the river pilots became crucial during the Union blockade of the South during the Civil War. They would steam down the coastline and bring back needed supplies to the port, making Wilmington the last port open to blockade runners.
In the years before modern dredging and channel deepening of the river, known ominously as the Cape Fear, captains used local pilots to maneuver the sandbars at the entrance of the harbor and of Frying Pan Shoals, more than 20 miles offshore. “Think of the captain of a large ship at Cape Fear as a blind man entering an immense, strange house, cluttered with unfamiliar furniture and other hazards, with only one entrance and one exit,” writes Jim McNeil in Masters of the Shoals.
Because of the pilots’ daring runs and narrow escapes, they often were romanticized in publications as “dandies of the town,” according to an article excerpted in Masters of the Shoals. “They wore fine ruffled shirts, tight fitting boots, long black coats and plug hats,” the author writes. “Every boy hoped someday to become a pilot.” “Without pilots, captains would be burdened. There is so much paperwork involved in every port visit, and (captains) go to so many ports around the world that they can’t know each river and port,” says Kirby. Federal regulations say that all “coastwise seagoing vessels propelled by machinery and subject to inspection” must be under the direction of a qualified pilot, along with vessels “not authorized by their certificate of inspection to proceed beyond (a specified) boundary line which are in excess of 1,600 tons, propelled by machinery and subject to inspection.” In more understandable terms, that means: “Every freighter, every big ship you see coming in this port has got a pilot in it,” said Scott Aldridge, river pilot and former president of the Cape Fear River Pilots Association.
In the Port of Wilmington 90 miles south of Morehead City, eight river pilots guide ships from a sea buoy in the Atlantic Ocean, past Bald Head and Jaybird shoals, and up the Cape Fear River.
“You have to navigate all the turns and bends in the river,” said Wes Kirby, then president of the Wilmington/Cape Fear Pilots Association. “Every bend has localized shoaling.” As river pilots bring the ships close to their berth in the Wilmington port, the docking pilots take over and use tugboats to push the vessel alongside its berth. Docking pilots also use tugs to undock vessels and turn them around so they can head down the river and out to sea.
Pilots have been around North Carolina ports for hundreds of years.
“Without pilots, shipping would come to a halt.”
sourced: Cape Fear Pilots Association – Wilmington,NC
There are cat people; there are dog people. Well, guess what? States divide along those same furry lines. The majority of Americans love their pets—56% of U.S. households have one. So enough already about all of this red state vs. blue state nonsense: Do you live in a dog state or a cat state? 
Which beloved domestic animal reigns supreme by state? To find out, we took a deep dive into pet population data from the American Veterinary Medical Association. Check out our map to find out if your pet preference falls on the right side of your state lines. (Note: Data for Alaska and Hawaii were not available. Sorry!) And for those who really want to know where Fluffy stands, check out the detailed cat and dog population data at the bottom of this article.
OK, let the house-trained beast battle begin!
Crossing the Mason-Dixon pet line
Our findings revealed plenty of interesting cuddly animal-specific trends. Example: Roughly speaking, Southern states are more Fido-friendly than Northern states, which tend to be the cat’s meow. Massachusetts is the biggest feline state with nearly 2 times more cats than dogs. Arkansas ranks No. 1 in ratio of dogs to cats.
Nationwide, though, cats outrank dogs 74 million to 70 million. Though dog owners are a larger number than cat owners—due to multiple cat ownership by household.
Bottom line: It’s no surprise Americans lavished $30.4 billion on all those furry family members last year, up from $17.8 billion in 2000, according to The Wall Street Journal. Luxury buildings are offering upscale amenities such as rooftop dog runs and spa “pawdicures” in order to lure those free-spending pet lovers.
“More people are shopping for homes and cars with the needs for their pets in mind,” said pet health and safety coach Arden Moore.
Doggy amenities win
But Realtor.com wanted to dig deeper. So the data team scratched its way into our 2.6 million active and recently sold home listings to tease out the most popular dog- and cat-friendly home features. There were fascinating revelations for Rover: Despite a prevalence of cat owners, we didn’t find a significant pattern of cat-friendly features in our home listings. That’s probably because the most common cat features such as cat trees, scratching posts, or self-cleaning litter boxes are portable rather than built in. And none of these features are things people want to brag about anyway.
Read more over at Mental Floss about Washington Posts’ Wonkblog article on the state divisions which shows North Carolina as not being a divided state, but a Dog State —- Cats or Dogs, we love them both!
source: Realtor.com & MentalFloss
In a recent article by the Southport Stateport Pilot‘s Staff Writer Lee Hinnant, he highlights the ways in which marinas contribute to the local economy.
More than just places to tie-up and buy fuel and ice, marinas are substantial contributors to the economy and gateways to some of the nest spots on the Cape Feat coast.
With thriving restaurants, an inn, real estate sales and other businesses, Bald Head Island Marina is like a second village square. Everyone who visits the island passes through, wither on private boats or the large passenger ferries.
At South Harbor Village in Oak Island, the marina helps support two large restaurants and several small businesses overlooking the water. Just up the Intracoastal Waterway at St. James, the marina anchors a market, restaurant and Tiki hut. One of the area’s top seafood restaurants and a motel overlook Blue Water Point Marina. At the heart of it all is Southport Marina. During the past decade, Preston Development has turned what was an aging marina into a first class facility that has garnered numerous awards. There are 10 full-time employees and two part-time workers. Businesses based at Southport Marina include a boat brokerage, a boating club, a boat rental company, a sail supplier and an American Sailing Association-certified sailing academy. Seven charter Companies and Zimmerman Marine Service also call the marina home.
There’s a waiting list for the boat dry stack and manager Hank Whitley said that’s no happy accident. “We’ve put a lot of effort, headache and heartache to do it right,” he said. “It’s a big deal for us and a major revenue stream to bring folks from elsewhere.”
The boaters who stayed at Southport Marina less than a month increased by about 150 last year to more than 1,500. Whitley estimates that one-quarter of the marina’s business is with transients. “We think of ourselves at concierges,” Whitley said. “The biggest thing about the impact is that just about every single one of them want to go out and eat somewhere in town.” The visitors who boat to Southport also need provisions, fuel and marine parts and services.
“It’s the same thing as a hotel,” said Cindy Brochure, tourism director for the City of Southport. “If they like you they will come back.” Brochure said the marina’s awards and favorable mention in publications such as Sail Magazine have helped introduce Southport to many newcomers. “We have big-city amenities in a small town. It’s an economic boost when these people come in.” Brochure called the area marinas “a year around economic development tool” and said her office enjoys handing out information about the community. “It’s like having a stop on the interstate highway” she said.
A 2008 study of the southeastern region of NC stated that marinas employed 783 people and had a secondary economic impact of $305-million in sales.
