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Chapel Hill and Durham Real Estate Blog

Chapel Hill - Durham Real Estate Blog

Jodi Bakst

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Displaying blog entries 231-240 of 443

Team Jodi has just listed a beautiful home on the north side of Chapel Hill

In Northwood.  This home is immaculate and backs to the neighborhood greenspace.

 

Right now, the economy is kind of like the weather. It’s always changing. It’s nearly impossible to predict what’s going to happen next. And it affects everybody. Sometimes it makes us happy, and sometimes not. What you can be assured of, however, is that spring is coming. Things are warming up. Things are getting better. 

Change is occuring right now—change that is worth taking a closer look at. The Fed has increased the discount lending rate. 

The Lowdown on the Change

It wasn’t much of a shock to anyone when it happened late last week. What happened is really quite simple. The Federal Reserve, as a lending institution, charges an interest rate to banks when they borrow money. The Discount Rate is a special lending mechanism of the Federal Reserve, which is designed to lend money to member banks on a short-term basis. This discount lending rate took a steep dip during the crisis in order allow banks to borrow easily and stabilize once again. The current increase in the lending rate brings it to 0.75%, a marginal increase, but one with some implications.

 What it Means

Let’s interpret this financial news into some financial forecasting. Lending rates are to the economy like barometers are to the weather. Here are several possibilities of what the increased lending rate could be a forecast of. 

The economy is getting better. The Fed itself commented that their change was due to “continued improvement in financial market conditions.” When times our tough, lending rates go down. When times improve, lending rates move back up to normal levels. The increased lending rate reflects a modest improvement in the market as a whole. Jim Enright with The First Financial Mortgage Company commented that “it is a sign that either the economy is improving or that the taxpayer bill…is being reigned in.” Either of those are good options, and this is one likely interpretation for the increase.

Interest rates might go up. It could also mean that eventually, everyone else’s interest rates will go up. It isn’t guaranteed to happen, but often when banks are getting charged more for borrowing money, prices go up for everyone. In plain language, that means that mortgage rates might creep upward again. Notice the “might.” The major tool that the Fed uses to affect consumer lending rates is the Fund Rate, not the Discount Rate. They haven’t touched the Fund Rate, and probably won’t. They are still focused on protecting consumers and improving Main Street economy. Despite their safeguards, rates will rise. Kearney Davis of Carolina Home Mortgage said, “as soon as the economy gains some traction and leading indicators point to an end of the recession, you can bet that 30 year fixed rate mortgages will be back up.” That time is coming…very soon.

What You Should Do

Now, let’s take this information and turn it into practical action. What do all the weather changes mean? Should you get out your umbrella and raincoat? There are two primary actions that the change suggests.

Thinking about buying? Do it now. If you’re a first time homebuyer, you have zero reason to wait around. For one, there is no guarantee that the generous first time homebuyer tax rebate is going to be around after April. Secondly, there is no guarantee that interest rates are going to stay as low as they have been. Furthermore, as the market warms up this spring, your house options will begin to decline as other homebuyers and investors start purchasing homes.

Thinking about refinancing? Do it now. If you’ve been considering a refinance for your current mortgage, make that phone call today. Again, with the potential for an increasing mortgage rates, your best time to refinance is today. Mortgage pro Jim Enright commented, “If a refinance is in your future, get off the fence.” Judging by the weather patterns, his advice is spot-on.

Thank You to my lender contributors: 

Jim Enright, First Financial Mortgage Company, 919-451-0864, jim@themortgagestrategist.com; and Kearny Davis, Corporate Investors, 919-86-8210, Kearny@carolinahomemortgage.com.

 Team Jodi has listed 101 Christine Court in Chapel Hill's Parkside Neighborhoodl

This house has master bedrooms on the first and second floors, is in immaculate

condition and has an ideal location at the end of the cul-de-sac backing to greenspace.

Luxury Home Market - 2009 In Review

by Jodi Bakst

In Raleigh, Durham, Chapel Hill, the luxury home market is defined as homes priced at or above $500,000.  Based on data provided by The TARR Report, I have summarized below the 2009 luxury home real estate market. 

  • The inventory of luxury homes declined 16% from the 4th quarter of 2008;
  • New home luxury inventory decreased by 36% and resale luxury inventory decreased by 5%;
  • The average days on market for luxury inventory increased from 113 to 144;
  • The number of sellers that dropped their from their original list price was 50%;
  • In 2009, the number of luxury home closings declined 30%;
  • The list to sales price ratio declined from 97% in 2008 to 95% in 2009; and
  • The combination of a 30% decline in closings and  16% drop in inventory has resulted in a current supply of 19 months.

realestateexperts.net regularly posts information and market updates the luxury home Real Estate market.

Click here to view Team Jodi's Chapel Hill Real Estate and Durham Homes for Sale.

Click here to Search homes for sale in Chapel Hill and homes for sale in Durham and the surrounding Triangle NC area.

 

January 2010 Chapel Hill Real Estate Market Update

by Jodi Bakst

2010 has gotten off to a good start.  I am seeing a lot of activity in the market.  In the Triangle overall, 21% of the current inventory is under contract.  Chapel Hill is doing the best in the area with 32% of its inventory under contract.

Currently, and compared to January 2009:

  • New listings are up 26.4%;
  • Closed sales for the month of January are up 54.8% (from 31 to 48);
  • Median prices are down 24.7%;
  • Average prices are down 20.4%;
  • The list to sales price ratio is down from 96.4% to 95.5%; and
  • Days on market increased from 110 to 194.

Don't forget to make realestateexperts.net a favorite so that you can see monthly updates on the Chapel Hill Real Estate market.

Click here to view Team Jodi's Chapel Hill Real Estate and Durham Homes for Sale.

Click here to Search homes for sale in Chapel Hill and Durham and the surrounding Triangle NC area.

January 2010 Durham Real Estate Market Update

by Jodi Bakst

2010 has gotten off to a good start.  I am seeing a lot of activity in the market.  In the Triangle overall, 21% of the current inventory is under contract.  Durham is doing slightly better overall with 22% of its inventory under contract.

Currently, and compared to January 2009:

  • New listings are down 3.3%;
  • Closed sales for the month of January are down 2.2%;
  • Median prices are down 1.9%;
  • Average prices are down 9.9%;
  • The list to sales price ratio remained about the same at 95.9%; and
  • Days on market decreased from 94 to 87.

Don't forget to make realestateexperts.net a favorite so that you can see monthly updates on the Durham Real Estate market.

Click here to view Team Jodi's Chapel Hill Real Estate and Durham Homes for Sale.

Click here to Search homes for sale in Chapel Hill and Durham and the surrounding Triangle NC area.

January 2010 Orange County Real Estate Market Update

by Jodi Bakst

2010 has gotten off to a good start.  I am seeing a lot of activity in the market.  In the Triangle overall, 21% of the current inventory is under contract.  In Orange County is right on target with 21% of its inventory pending.

Currently, and compared to January 2009:

  • New listings are up 15%;
  • Closed sales for the month of January are up 4.8%;
  • Median prices are up 17.4%;
  • Average prices are down. 0.3%;
  • The list to sales price ratio is down 1% from 95.7% to 94.8%; and
  • Days on market increased from 95 to 127.

Don't forget to make realestateexperts.net a favorite so that you can see monthly updates on the Orange County Real Estate market.

Click here to view Team Jodi's Chapel Hill Real Estate and Durham Homes for Sale.

Click here to Search homes for sale in Chapel Hill and Durham and the surrounding Triangle NC area.

January 2010 Chatham County Real Estate Market Update

by Jodi Bakst

2010 has gotten off to a good start.  I am seeing a lot of activity in the market.  In the Triangle overall, 21% of the current inventory is under contract.  In Chatham County, it is slower but still 16% of the inventory is pending.

Currently, and compared to January 2009:

  • New listings are down 11%;
  • Closed sales for the month of January are up 50% (from 24 to 36);
  • Median prices were down 12.4%;
  • Average prices declined 8.7%;
  • The list to sales price ratio declined from 95% to 93%; and
  • Days on market increased from 66 to 181.

Don't forget to make realestateexperts.net a favorite so that you can see monthly updates on the Chatham County real estate market.

Click here to view Team Jodi's Chapel Hill Real Estate and Durham Homes for Sale.

Click here to Search homes for sale in Chapel Hill and Durham and the surrounding Triangle NC area.

2010 has gotten off to a good start.  I am seeing a lot of activity in the market.  In the Triangle overall, 21% of the current inventory is under contract.  

Currently, and compared to January 2009:

  • New listings are down 4.7%;
  • Closed sales for the month of January are up 6.4%;
  • Median prices are up 2.6%;
  • Average prices are down. 0.4%;
  • The list to sales price ratio remained the same at 95.8%; and
  • Days on market increased from 102 to 109.

Don't forget to make realestateexperts.net a favorite so that you can see monthly updates on the Raleigh, Durham, Chapel Hill Real Estate market.

Click here to view Team Jodi's Chapel Hill Real Estate and Durham Homes for Sale.

Click here to Search homes for sale in Chapel Hill and Durham and the surrounding Triangle NC area.

We have fresh news of a fresh start for Raleigh real estate, Chapel Hill Real Estate and Durham real estate. Reports have just been released from the prestigious research agency, Hanley Wood, of the top 100 U.S. Housing Markets. Guess who came out number one:  the Raleigh-Cary market and number six: the Durham-Chapel Hill market. 

This is no small matter. With the national real estate market still trying to clamber to its feet, people aren’t exactly elated about market conditions overall. For the Triangle, however, things are a lot different. There is reason to be optimistic. The California research firm’s findings not only reflect how things are right now, but they also turn an eye to the future. Economic forecasting, which looks about ten months forward, positions Raleigh, Durham, Chapel Hill at the head of the line for real estate market conditions.  

Researchers used several criteria for ranking national markets. They analyzed current home prices, the employment/unemployment statistics, and area growth potential. Raleigh, Durham and Chapel Hill’s rankings were high due to the fact that the Triangle boasts some of the nation’s highest average household income, has a surprisingly low unemployment rate, and has above-average home prices. 

A recent report from the Triangle Business Journal reports that area home prices will continue to modestly climb over the next year. Already, sales are up by 8% compared to last year at the same time.  I think it is safe to say that stimulus packages and tax breaks have had a dramatic positive impact on sales, and we can expect things to continually improve.  Plus, this is just a great place to live!

Displaying blog entries 231-240 of 443

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Team Jodi
501 Eastowne Drive, Suite 140
Chapel Hill NC 27514
919-697-5014
Fax: 1-877-206-5036