Charlotte Region October Indicators Report – Including Median Sales Prices for 10 Area Towns

OCTOBER 2018: If the last few months are an indication of the temperature of housing markets across the country, a period of relative calm can be expected during the last three months of the year. A trend of market balance is emerging as we approach the end of 2018. Prices are still rising in most areas, and the number of homes for sale is still low, but there is a general shrinking of year-over-year percentage change gaps in sales, inventory and prices. New Listings were up in the Charlotte region by 6.9 percent to 4,796. Pending Sales increased 5.0 percent to 4,091. Inventory shrank 8.7 percent to 10,055 units. Prices moved higher as Median Sales Price was up 5.0 percent to $231,000. Months Supply of Homes for Sale was down 7.4 percent to 2.5 months, indicating that demand increased relative to supply. Stock markets experienced an October setback, but that does not necessarily translate to a decline in the real estate market. The national unemployment rate has been below 4.0 percent for three straight months and during five of the last six months. This is exceptional news for industries related to real estate. Meanwhile, homebuilder confidence remains positive, homeownership rates have increased in the key under-35 buyer group and prices, though still rising, have widely reduced the march toward record highs. Contact me for the full Charlotte Market Overview, including key Charlotte market metrics graphs. Current as of November 5, 2018. All data from CarolinaMLS, Inc. Report provided by the Charlotte Regional Realtor® Association. Report © 2018 ShowingTime.

OCTOBER 2018 MEDIAN SALES PRICE BY TOWN:

  • Mooresville: $300,365 [+2.9% vs. October 2017]
  • Concord: $205,000 [+2.8%] – smallest gain in median sales price
  • Denver: $330,000 [+6.5%]
  • Cornelius: $265,000 [-3.8%] – largest (only) decrease in median sales price
  • Huntersville: $315,000 [+9.0%]
  • Kannapolis: $146,500 [+16%]
  • China Grove: $151,495 [+16.5%]
  • Sherrills Ford: $295,415 [+11%]
  • Troutman: $250,000 [+19.9%] – largest percentage increase
  • Davidson: $372,500 [+17.9%] – highest median sales price
See graphs below for more details:









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 and Troutman.

Top 3 Rookie Mistakes of First Time Homebuyers

You’ve been saving for a down payment, keeping your credit in good shape, and you’re finally ready to purchase your first home. It’s an exciting time for sure, but be sure not to let the thrill of house hunting lead you to make theses mistakes:

1. Skipping a home inspection.

You’ve made an offer, it’s been accepted, and now you’re in the due diligence period. There will be a few things you can do which are optional during this time, and one of them is a home inspection. DON’T SKIP IT! It doesn’t matter if the home is two years old or 22 years old, getting an inspection by a qualified inspector can help you find issues you won’t see on the surface. It will be an expense you may have to pay up front, but it can possibly save you thousands if an issue is discovered, which you can then negotiate for the seller to fix, or use as part of your rationale for a reduction in price.

2. Making a big purchase before closing.

You found the right house, your offer was accepted, and you’re waiting for the lender and lawyer to wrap things up before closing. It could be a few more weeks, and you start thinking… ‘wouldn’t the living room look better with brand new furniture?’ or ‘we finally have a garage, let’s get a new car to put in it!’. DON’T DO IT! Most loans are approved based on a specific debt-to-income ratio. A purchase which requires financing (cars, furniture) will affect your ratio, and that is something which the lender typically re-checks just before closing. So, even if your debt-to-income ratio was good when you applied, a last minute change could cause your lender to not approve your mortgage at the last minute.

3. Not using a Real Estate Agent.

You can find everything online, so why do you need a real estate agent? First, everything you see online is not true… and that includes listing info. Most websites which list homes for sale are not ‘live-updated’, and some can have info out of date by a few weeks, or even more. Why waste your time looking through listings which may not be available? The Multiple Listing Service (MLS), which Realtors have access to, is the only true, instant access to accurate listing info, updated as soon as any Realtor makes a change to their listing. Besides that, in almost all instances the seller pays the commission of the buyer’s real estate agent, so you are getting the expertise of your agent without paying anything. If I’m your agent, I’ll guide you on details such as not skipping a home inspection, not making big purchases before closing, as well as dozens of other specifics on the home purchase process. Ready to start the search for your next home? Get in touch with me and let’s get together for a no-obligation consultation.
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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 and Troutman.

Myth Busters! Home Buyer Down Payments and FICO Scores

Myth Busters! Home Buyer Down Payments and FICO Scores

Is it time to forget what you think you know about about getting approved for a mortgage loan? Results from a 2018 Borrower Insight Survey* suggest that it might be necessary for many people who are considering purchasing a home.

Myth: You need a 20% down payment to buy a house… FALSE

In the borrower insight survey, almost 50% of renters who were surveyed said they thought they needed to put down 20% or more for their down payment. While that may have been the case in the past, the National Association of Realtors 2017 Profile of Home Buyers found that overall, those who financed their home purchase typically made a 10% down payment, financing 90% of the purchase price. The down payment amount is even lower among first time home buyers, who typically financed 95% if their home, while repeat buyers financed 86% of their home purchase.

Myth: You need to have a FICO credit score over 750 to qualify for a mortgage… FALSE

The borrower insight survey also found that almost 50% of renters believed they needed a FICO score of 750 or above to qualify for a mortgage. Yes, good credit is very important… (Need a referral to a credit repair specialist? Just ask!) However, your required credit score will vary depending on the type of financing you are applying for. The Ellie Mae June 2018 Origination Insight Report found that the average credit score for all loans closed in June was 726. A closer look at the closed loans reveals that the average FICO score for FHA loans was 677, while the average score for VA loans was 711. The average score for conventional loans was 753. However, 41% of conventional loans closed with a score lower than 750. A third of the loans closed in June were something other than conventional mortgage financing. The breakdown of loan types closed in June was: 66% Conventional, 20% FHA, 10% VA, 4% Other. The only way to find out what type of mortgage is best for you and what you can be approved for is to talk to a mortgage lender! (Need a referral to some great lenders? Just ask!) This should be the first step before any real estate agent takes you out to look at houses. Remember, be sure to get a pre-approval, not just pre-qualified! (What’s the difference? Read this- Guest Post: Prequalification vs. Preapproval….There is a BIG Difference!)
PRINT THIS. *2018 Ellie Mae Borrower Insights Survey. **National Association of Realtors Profile of Home Buyers and Sellers 2017. ***June 2018 Ellie Mae Origination Insight Report.
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 and Troutman.

Guest Post: Prequalification vs. Preapproval….There is a BIG Difference!

Guest Post: Prequalification vs. Preapproval….There is a BIG Difference!

I am excited to present a guest blog post from Dana Meadows, Senior Loan Officer with Movement Mortgage. Dana has provided a great explanation of the difference between prequalification and preapproval. Thank you Dana for taking the time to share this with my readers! Dana’s contact info will be at the end of this post – get in touch with her if you have any questions about her post, and mention that you saw it on my blog! -Richard Slifkin [There is a DISCLAIMER at the end of this post.] The current housing market is a competitive place, and one of the ways to have the advantage as you search for the perfect home is to get pre-approved. Many buyers do not realize the difference between pre-qualification and pre-approval. A pre-qualification is a simple phone or online application where the lender takes information from you and runs an analysis of your credit, income, and assets. Nothing is verified during the pre-qualification process. Often times, once income and asset documentation is reviewed by underwriting, issues arise, causing the process to derail. A pre-approval is when the lender reviews your credit, income and asset documentation and issues an underwriting approval. A pre-approval helps you stand out as a buyer (especially in multiple offer situations) and gives you the commitment that your loan will close. It also shows both real estate agents and sellers that you are serious in your pursuit of a home. Even if you are searching in a housing market that is not necessarily competitive, knowing what you can spend on a home and knowing that you will make it to the closing table will give you confidence as you begin the process. A pre-approval process analyzes: • Credit: Your history of paying bills/debts on time, credit score • Employment: Your employment history and your income. • Debt: How much debt do you have, what type is it and what is your debt to income ratio • Capital or cash reserves: The money, savings, and investments you have that can be utilized for down payment, closing costs, and reserves • Capacity: Your current and future ability to make your payments Getting pre-approved often helps speed up the mortgage process once your offer has been accepted, reducing the closing time frame to as little as two weeks. Knowledge is power and understanding what you can afford is a smart move.

Dana Meadows | Email: dana.meadows@movement.com | direct: 704-763-9728


PRINT THIS. 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 and Troutman.
[DISCLAIMER: From time to time I post content written by other real estate professionals. I do this to provide a perspective other than my own on various topics. Posting this content does not necessarily constitute or imply my exclusive endorsement, recommendation, or favoring of the products/services these professionals provide. The opinions expressed in all guest posts are those of the author of the content, and may or may not match my own opinion.]

Mooresville Residential Lease Rates Continue to Rise

Since the beginning of this year the average monthly lease price in Mooresville has increased 2.4%, from $1302 in January to $1,333 for the 12 month period ending June 30, 2018. The current average monthly lease price in Mooresville is now $80 higher than than it was for the 12 month period ending June 30, 2017, representing a 6.4% increase.* According to the U.S. Bureau of Labor Statistics, rent prices for primary residences experienced an average inflation rate of 3.06% per year between 2000 and 2018. If a $1,333 per month rental property in Mooresville were to remain at that rate through the end of this year, then increase by 3% per year for the next three years (a lower rate than Mooresville rates increased from June 2017 to June 2018), that property would be renting for $1,456 in 2021. If the same person rented the apartment from now until the end of 2021, they will have paid a total of $58,914 in rent. While people rent for a wide variety of reasons, and purchasing a primary residence does not make sense for everyone / every situation, renters should be aware of three essential facts regarding home ownership:
  1. When you have a fixed rate mortgage, your monthly principal and interest payment does not change over the life of the loan.
  2. $1330** is the approximate amount of monthly principal and interest for a 30-year fixed rate mortgage at 4.5%, with a financed amount of $262,500.
  3. The NATIONAL ASSOCIATION OF REALTORS estimates that home values rise, on average, by 4.5% per year. (NO investment is guaranteed!) However, using an average 4.0% growth rate, a $200,000 home would appreciate $84,662 after 10 years.
  • As you make mortgage payments you are decreasing your debt on the home. If you had bought that $200,000 home in the example above with a 10% down payment, your mortgage balance after 10 years would be approximately $154,500. With the home having appreciated to a value of $284,662, you now have over $130,000 of equity in the home!
[Please see my post, Renting vs. Buying – a 10 Year Comparison, for a full explanation of the $200,000 home example.] If you are currently renting, you may be able to purchase a home with little or no money down, and a monthly payment less than you are currently paying in rent. Contact me to schedule a no-obligation consultation! *Based on information from the Carolina Multiple Listing Services, Inc. for the period June 2017 through June 2018 in Mooresville, NC. **This is the amount for principle and interest only. Taxes and insurance are also typically included in a monthly mortgage payment, and the amount paid for taxes and insurance can vary from year to year.
PRINT THIS. 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 and Troutman.