Charlotte Real Estate Blog

HUD has announced again that FHA will allow the $8000 first time home buyer credit to be applied directly towards home purchase costs.  In typical HUD fashion, we have no other details, but will let you know as soon as we learn more.

 Interest rates spiked earlier in the week and sent the 30 year fixed rate up from 4.875% to 5.50%.  There are a lot of reasons stated for the spike, many of them complex, but it seems to be mostly due to the over supply of Treasuries. According the Mortgage Market Guide " The Treasury has literally been printing money by way of Treasury auctions to pay for the massive spending. And these hundreds of Billions of dollars of new Bond supply have to be absorbed by the market, the additional supply literally weighs on the entire Bond market and drags prices lower (which ultimately increases yields and interest rates)"

 There is also an over supply of Mortgage Backed Securities due to the record amount of refinances which also has to be absorbed by the market.  The Fed has been a buyer which they committed to at the end of 2008.  This action by the Fed initially brought mortgage rates down, but they simply can't buy enough to balance all of the selling.

 Because of the over supply issue, there is speculation that we may not see rates go back to the lows we have experienced over the last few months.

 We are seeing a welcomed rally in the Bond/Treasury market so far today, and hope to see rates ease a little.

Just south of the infamous Dilworth area in Charlotte NC you will find a subdivision called Sedgefield.  The homes in this neighborhood are not as large as the houses in Dilworth and there are not as many bungalow style homes...but the feel of the neighborhood is similar.  There are a lot of matured trees, street parking and the neighborhood is quiet.  The homes in Sedgefield were built in the late 1940's and early 1950's.  If you were driving down Park Road and were not familiar with Charlotte you may miss the subdivision all together or think that you are still in Dilworth.  The prices in this area are still very reasonable given that the area is within 5 miles of the city.  Three bedroom, 2 bathroom houses in good condition are going for the mid $300,000's (though there are a couple that have been added on to that are starting to look like Dilworth houses and they can go for the $600,000's).  The neighborhood has a nice park...from an aerial shot it is shaped like a butterfly...and the high schoolers in Sedgefield will attend Myers Park High School (another plus).

From Uptown Charlotte...go south on Park Rd. and take a right on Poindexter or Marsh and drive through Sedgefield.  Let me know what you think of the area.

Fifth and Poplar, located at the intersection of 5th and Pine, is a popular condominium complex located in Uptown Charlotte, NC.  The complex is known for its luxurious amenities.  The community is gated with security, there is a workout room, concierge service, Starbucks coffee bar, dry cleaning, putting green, pool, grilling area and outside bar area.  The HOAdues have recently been raised (some units are over $500/month) because they are having to repair a problem with the roof.  The dues are expected to be lowered once the repairs have been made. 

I prefer the units that have views into the courtyard.  During the summer months the area is busy and is a great place for the residents to make new friends.  The VUE is in the process of being built and is affecting the view of units on one side of Fifth and Poplar.  Some units will now be staring into the side of a taller condominium building.

There are several units in this complex that are on the market in a short sale situation.  The units sold a few years ago for over $400,000 and are now listed in the high $290,000's.  This is forcing several of the resales to drop their list prices and it is directly affecting the market value in this complex.

Check out what is currently on the market at Fifth and Poplar by clicking here.

Here are four solid reasons to get other there and start looking at your local real estate opportunities now:

1. Don't be fooled, the stock market is going to continue to be turbulent for some time. There were some stock gains in March. In fact, it turned out to be one of the best growth months the market has experienced in the last fifty years, will be returned in the form of profit taking. But there is a very good chance that many of the numbers we are seeing in the financial markets now are an indication of a recovery that will start in earnest in late 2009. If that is indeed the case, many of the bargain basement real estate prices we've seen these past six to twelve months will quickly disappear.

2. Mortgage rates have rarely been better. The rate of a thirty-year fixed-rate mortgage is more attractive today than it has been in the lifetime of just about any potential buyer who is out there looking right now. If recovery starts to heat up market activity, those rates are unlikely to be around come the spring of 2010.

Additionally, for first-time home buyers the government has made an $8,000 tax credit available. That's huge for anyone who owes income tax. And you can bet that tax credit will go away if signs of recovery continue to solidify.

3. If you put on your bargain-hunting hat, there are some incredible deals to be had. Don't look for an $80,000 fixer-upper or foreclosure in Bel Air, CA or other great addresses across America. However, homes which were selling for $250,000 in 2007 are now being offered as foreclosure sales for $65,000. If that's not attractive enough to get your attention, you may have to wait for the next big buying opportunity on Mars, because chances are on this planet a 75% price drop is going to be as good as it gets.

4. It never hurts to look. Getting approved for a loan is indeed far more difficult today than it was two years ago. But if you have some money to put down, good credit, and a good work history, you would be wise to find out what amount of a loan for which you can get pre-qualified, then get aggressive in searching for good buys. Open houses are free, and looking with an agent is also free.

So put yourself out there and see what you like. Nothing ventured, nothing gained.

By:  Martin Brown