August 2010 On the Move Newsletter

ON MOve Market Activity and Trends for Charlotte & Surrounding Counties

A U G U S T 2 0 1 0

The average closing price for the Charlotte area in July 2010 was $217,320, up approximately 2% compared to 2009. Average days on market was 142.9 for the month of July, 2010.

There were 1968 total closings in July 2010, down 11.5% compared to 2009. The bulk of home sales continues to be in the lower price ranges, with 72% of sales in the $250,000 and under category.

Residential Closings - Entire MLS 2009 - 2010

July 2010 Closed Sales by Price Range

www.helenadamsrealty.com

the

Current Active Listings by Price Range

Under $120,000

$120 - $150,000

$150 - $250,000

$250 - $350,000

$350 - $500,000

Total Active Listings = 25,818

Data Courtesy Carolina MLS.

24%

12%

14%

10%

3%

ASP = Average Sold Price


Total Sold July 2010 = 1968


13%

13%

7% 7%

1%

$500K - $1 Million

Over $1 Million 29%

9% Under $120,000

$120 - $150,000

$150 - $250,000

$250 - $350,000

$350 - $500,000

$500K - $1 Million

Over $1 Million

34%

25%

Fred Holder 704‐578‐6818 [email protected] www.fredholder.com

Fred Holder 704‐578‐6818

[email protected]

Page 2 On the Move - He len Adams Realty Volume 2, Issue 8

Total Closed Units July 2010 - All MLS Areas

Residential Single Family, Townhomes & Condos

HPI Annual Appreciation

MLS Area Units Closed

Total Closed Volume

Average Closing Price

01 ‐ Mecklenburg County (N) 167 $ 31,589,775 $ 189,160

02 ‐ Mecklenburg County (E) 110 $ 12,988,108 $ 118,074

03 ‐ Mecklenburg County (SE) 66 $ 8,135,800 $ 123,270

04 ‐ Mecklenburg County (SSE) 99 $ 34,733,727 $ 350,846

05 ‐ Mecklenburg County (S) 176 $ 71,572,457 $ 406,662

06 ‐ Mecklenburg County (SSW) 62 $ 11,810,919 $ 190,499

07 ‐ Mecklenburg County (SW) 56 $ 6,969,315 $ 124,452

08 ‐ Mecklenburg County (W) 67 $ 5,394,177 $ 80,510

09 ‐ Mecklenburg County (NW) 81 $ 12,237,405 $ 151,079

10 ‐ Union County 193 $ 55,933,574 $ 289,811

11 ‐ Cabarrus County 133 $ 22,129,346 $ 166,386

12 ‐ Iredell County 88 $ 11,465,893 $ 130,294

13 ‐ Lake Norman 92 $ 39,645,668 $ 430,931

14 ‐ Lincoln County 32 $ 4,996,626 $ 156,145

15 ‐ Lake Wylie 38 $ 16,345,035 $ 430,132

16 ‐ Gaston County 139 $ 17,017,231 $ 122,426

17 ‐ York County 117 $ 23,285,725 $ 199,023

20 ‐ Alexander County 6 $ 1,507,500 $ 251,250

21 ‐ Rowan County 73 $ 9,287,033 $ 127,220

22 ‐ Cleveland County 26 $ 2,052,608 $ 78,946

23 ‐ Stanly County 20 $ 3,170,017 $ 158,501

24 ‐ Lancaster County 43 $ 10,000,335 $ 232,1566

25 ‐ Anson County 10 $ 969,500 $ 96,950

29 ‐ Catawba County 22 $ 2,744,777 $ 124,763

35 ‐ Chester County 1 $ 10,000 $ 10,2000

42 ‐ Mtn. Island Lake 17 $ 3,924,360 $ 230,845

99 ‐ Uptown Charlotte 14 $ 2,914,900 $ 208,207

TOTAL (for All MLS) 1968 $427,686,411 $217,320

The HPI (Home Price Index) is a broad measure of the change in annual single family home prices in geographic area across the US. 2009 and 2010 show the first signs of home depreciation in the Charlotte metro area in over 30 years.

This decline however, coupled with the fact we are seeing some of the lowest mortgage interest rates in decades, also indicates that is it an excellent time to buy.

Charlotte Metro Area

Source: Federal Housing Finance Agency: www.fhfa.gov



Pending Contracts

Average Residential Closing Price

New Listings

30 Year Fixed Mortgage Rates

Source: Freddie Mac, NAR, July, 2010



How To Get a Downpayment to Buy Investment Property


Take Advantage of Falling Interest Rates By Refinancing Your Home

See our Monthly Market Reports on:

www.helenadamsrealty.com/market_data

Strategy Loan Amount Term Interest Rate Monthly Payment

Original Loan $150,000 30 years 8.0% $1100.65

Refinance $183,579 30 years 6.0% $1100.65

Cash Out $33,579

With falling interest rates, are you thinking of refinancing your home to lower your monthly payments? Instead, consider this: refinance your home and leave the payment the same. This will allow you to pull cash out of your home and buy and investment property. This is the #1 way most investors find the down‐payment to get started owning investment real estate. The graph top the right shows an example of how your home can produce a $33,579 “golden nest egg”.

Tips for Buying Investment Property:

1. Buy residential properties. Buy single family homes, condos, townhomes. Stay away from land and commercial unless you are an experienced investor.

2. Buy “mainstream” homes. These are competitively priced properties that would appeal to most buyers. Avoid over priced or unusual properties. Look for single family homes with at least 3 bed‐rooms and condos with at least 2 bed‐rooms.

3. Don’t buy with partners ‐ unless you have to. If you do partner, make sure they have the same goals, values, as well as financial and geographic stability.

4. Work with knowledgeable people. Pick Realtors® who know the neighborhood and market trends, and look for experi‐enced, reputable home inspectors, ac‐countants, attorneys and repair men to aid you in the process.

5. Take good care of your property. Hire a reputable property management com‐pany to screen potential tenants for credit and crime history, maintain the home, handle repairs, landscaping, etc.

6. Get started early. Don’t wait to buy real estate. When the time is right and rates are low, buy real estate and wait. If you don’t have the money now, make a plan and commitment to obtain it.

7. Know your enough. How much of a nest egg do you need? Make a financial plan to determine how many properties you’d like to accumulate, when you would like to stop investing, and when you want to start paying off all that you have.

8. Believe in the long run. Real estate mar‐kets are cyclical, but a sound investment will reap profits with time. Keep an eye on dropping interest rates, and look for homes that will offer long‐term value to determine the best time to buy.

Fred Holder

2301 Randolph Road, Charlotte, NC 28207

704‐578‐6818

[email protected]

www.fredholder.com

Documents

August 2010 On the Move Newsletter