Are we running out of homes to sell?!?

If you have been paying any attention to the real estate market, you have likely heard the phrase ‘low inventory’ used a lot lately. The January 2020 Charlotte Area Market Report takes low inventory to a new level, with inventory down 28.1% compared to January 2019. Inventory in the Charlotte region ended the first month of the new year at just 1.6 months – the lowest it’s been in more than 15 years (see chart below).

DEFINITION: Months Supply of Inventory: A calculation showing how many months it would take to burn through all of the homes currently available for sale at the current rate, if new homes stopped entering the market. Generally, if the months supply is less than 4 months, it gives the sellers an advantage (Seller’s Market), and if the supply is over 6 months, it gives buyers the advantage (Buyer’s Market).

The January report for both Mooresville and Concord followed the trend for the Charlotte region as a whole, with inventory down 37.1% and 43.5% in those towns, respectively. While Mooresville had a slight increase in new listings compared to January 2019 (+2.8%) and Concord had slightly fewer new listings (-3.1%), both towns had a much more significant increase in pending and closed sales, leading to the steep drops in inventory.

As expected, the decrease in inventory is continuing to lead to price increases. The median sales price in Mooresville was up 9.6% to $302,500, while the median in Concord was up 13.6% to $250,000.

There are two things I highly recommend for buyers in the current market:

Continue reading “Are we running out of homes to sell?!?”

What Does Your Agent Help Negotiate When You’re Buying a Home?

Whether you are a first-time homebuyer or a seasoned veteran, the negotiation part of the transaction can be a little daunting and stressful. However, it is necessary to ensure you are getting the best possible deal for your money. [Which is why I am there to help you every step of the way.] So, what should you negotiate when buying a home? 

  1. Closing costs. Your closing costs are determined by a variety of factors, but you can expect it to be between 2% to 5% of the purchase price. We can negotiate for the seller to cover some or all of the closing costs.
  2. Inspection and closing timing. Buyer offers that include a quick inspection and close timeline are often more attractive to sellers who have been going through the process for far too long. I can provide guidance to ensure we allow ample time to get your financing in place and complete proper, thorough inspections.
  3. Home warranty. Sellers will often agree to pay the premium on the home warranty at closing and then hand it off to the new homeowner, who is responsible for the deductible on any future claims.
  4. Repairs. Your inspection may uncover small or large repairs needed to bring the home up to standard. We can negotiate to have some of these items fixed before closing or ask for a price reduction to cover the costs.
  5. Furnishings. Love how the seller has furnished and decorated the home? You should know, most lenders will not allow furnishings to be written into the contract as part of the sale. However, buyers can still negotiate to keep furniture, appliances, and more, as long as it is in a separate agreement.

Richard Slifkin, Broker/Realtor®
Highgarden Real Estate
Cell: 704-658-5352
Email: RSlifkin@highgarden.com

Real Estate Website: RichardIsMyAgent.com
Facebook: @RichardSlifkinRealtor
YouTube: https://www.youtube.com/channel/…
Twitter: @RealtorRS

Serving the Lake Norman and Charlotte, NC Area, including: China Grove, Concord, Cornelius, Davidson, Denver, Huntersville, Landis, Kannapolis, Mooresville, Salisbury, Sherrills Ford, Statesville and Troutman.

Will the Charlotte Area Continue to Grow this Decade?

Charlotte, NC skyline

WASHINGTON (12/2019) – The National Association of Realtors® identified 10 markets expected to outperform over the next three to five years. In alphabetical order, the markets are:

  • Charleston, South Carolina
  • Charlotte, North Carolina
  • Colorado Springs, Colorado
  • Columbus, Ohio
  • Dallas-Fort Worth, Texas
  • Fort Collins, Colorado
  • Las Vegas, Nevada
  • Ogden, Utah
  • Raleigh-Durham-Chapel Hill, North Carolina
  • Tampa-St. Petersburg, Florida

“Some markets are clearly positioned for exceptional longer-term performance due to their relative housing affordability combined with solid local economic expansion,” said NAR’s Chief Economist Lawrence Yun. “Drawing new residents from other states will also further stimulate housing demand in these markets, but this will create upward price pressures as well, especially if demand is not met by increasing supply.”

Continue reading “Will the Charlotte Area Continue to Grow this Decade?”

What’s Trending: Shrinking Price Per Square Foot Gap

As a real estate agent, helping residential property buyers and sellers understand the local real estate market is an essential aspect of what I do in the process of guiding them through the sale and/or purchase of a home. Here’s a quick example of the market information I keep track of on a regular basis, to better serve my clients:

As the graph below shows, the average price per square foot for a home in Mooresville (green line) has historically been higher than the Charlotte area* as a whole (blue line). While this chart shows the past three years, the trend has been consistent over the long term, with a $19 per sq. ft. difference 10 years ago and a $15 per sq. ft. difference five years ago.

In January 2018 there was a $9 difference between Mooresville and the Charlotte area. That difference fell slightly, to $8, in January 2019. Over the course of the year, that gap has continued to shrink, ending November 2019 at just a $2 per sq. ft. difference.

[SCROLL DOWN FOR THE GOOD NEWS FOR BOTH BUYERS AND SELLERS!]

Continue reading “What’s Trending: Shrinking Price Per Square Foot Gap”

5 Steps to Start Investing in Real Estate

Think real estate investing is for you?

Start by doing your research. Learn about tax advantages, potential cash flow, leverage, and building equity. Learn about the risks too.

Still think you want to try your hand at investing in real estate? Here are the first five steps you need to take:

  1. Talk to a lender! Even if your credit is bad, even if you don’t have money for a down payment yet. Consulting with a lender will help you determine the best way to get that first investment property. (Notice I didn’t put talk to me, your real estate agent, as step 1? Lenders are that important! However, if you need a referral to some great lenders, don’t hesitate to get in touch with me.)
  2. Learn the market and prices in the areas you’re considering investing in. Online research is part of this, but the best way to learn an area is in person, touring houses with your agent (me, I hope)!
  3. Narrow down the type of investing you want to do. The market conditions as well as the area you are in should contribute to this decision. Decide if flips, rentals, or wholesaling make sense for you.
  4. Build your team! You can’t do this alone. You may have a lender or two you want to work with and me as your agent, but you’ll also need a lawyer, inspectors, contractors, and more.
  5. Write out your plan. It’s been said that a goal without a plan is just a dream. Put your goal in writing, with a actionable plan on how to achieve it.

Want to schedule a no-obligation consultation? Get in touch with me today!

Richard Slifkin, Broker/Realtor®
Highgarden Real Estate
Cell: 704-658-5352
Email: RSlifkin@highgarden.com

Real Estate Website: RichardIsMyAgent.com
Facebook: @RichardSlifkinRealtor
YouTube: https://www.youtube.com/channel/…
Twitter: @RealtorRS

Serving the Lake Norman and Charlotte, NC Area, including: China Grove, Concord, Cornelius, Davidson, Denver, Huntersville, Landis, Kannapolis, Mooresville, Salisbury, Sherrills Ford, Statesville and Troutman.