More good news in Winston Salem!!

While much of the housing market is struggling, mid-priced, middle-class housing in some cities is on the rise. Affordability has kept these communities strong, say analysts from Forbes magazine, which examined data from Zillow.com to identify these healthy markets. Most of these markets never experienced a boom. That in conjunction with rising wages and employment has meant that increasing numbers of residents can afford to buy a home. Here are the markets where prices for mid-priced housing have risen most in the past year.* Ithaca, N.Y., median home price, $179,500; increased 5.9 percent in 2008* Winston-Salem, N.C., $136,845, 3.4 percent* Utica, N.Y., $112,737, 3.3 percent* Spartanburg, S.C., $103,437, 3 percent* Little Rock, Ark., $122,439, 2.5 percent* Pueblo, Colo., $118,877, 2.4 percent* Augusta, Ga., $109,815, 2 percent* Oklahoma City, Okla., $113,417, 2 percent* Des Moines, Iowa, $147,427, 1.7 percent* Dallas, Texas, $132,312, 1.2 percentSource: Forbes, Matt Woolsey (12/04/2008)

Winston Salem housing market is GOOD!!

Research conducted by Zillow, a company that provides online real estate values and other information, found that U.S. home values will plunge a total of $2 trillion this year.
Home values dropped 8.4 percent year-over-year in the first three quarters of 2008 compared to the same period last year, Zillow reported today, for a total nationwide home-value loss of $1.9 trillion.
One in seven (14.3 percent) of all homeowners were underwater by the end of the third quarter, owing more on their mortgage than their homes are worth.
Out of 163 metro areas tracked in Zillow's market report, 30 had gains during the first three quarters of the year compared to the same three quarters in 2007.
The values are based on the company's estimated values of individual homes, which are calculated with a proprietary formula. The company's value index calculates the median value of all single-family homes, condos and cooperatives in a given area using this formula, regardless of whether the properties are for sale.
All of the top-five worst-performing markets for home-value changes during the first three quarters (compared to the same period last year) are in California, while three of the five best-performing markets are in North Carolina.
The Stockton, Calif., metro area was the worst-performing housing market in the country during the study period, with values diving 32.3 percent in the first three quarters of 2008 compared to the same period last year. Next on the list was Merced, Calif. (down 31.2 percent); followed by Modesto, Calif. (down 30.4 percent); Salinas, Calif. (down 30 percent); and Vallejo-Fairfield, Calif. (down 27.8 percent).
And the best-performing housing markets during the same period were Jacksonville, N.C. (up 4.9 percent); Winston-Salem, N.C. (up 4.1 percent); Anderson, S.C. (up 3.5 percent); State College, Pa. (up 3.4 percent); and Burlington, N.C., up 3.1 percent.
The latest quarterly University of California, Los Angeles, Anderson Forecast noted that declines in U.S. home prices since a record peak in 2006 amount to an estimated $4.5 trillion loss in wealth. And that is coupled with a stock-price slide valued at about $7.4 trillion since December 2007 (see Inman News).
And the Federal Reserve reported this month that the combination of falling prices and stock-market declines amounted to a U.S. household loss in wealth of about $2.8 trillion during the third quarter alone (see Inman News).
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Making the Right Real Estate Choices: Landscaping: Fall checklist

Fall is the perfect time for landscaping. It is also perhaps the most important time. As the summer heat breaks and the plants prepare for winter, you can prepare your landscaping so that it’s ready for the spring.

Flowers:
Fall is the time to plant. If your landscaping includes spring bulbs, you need to plant them in the fall. Have a vision for what you want in the spring. Map out where you want the flowers to bloom once winter is over, and plant your spring bulbs there.
Another part of your fall landscaping should be to take care of any rose bushes. Stop fertilizing them in the fall, but do spray them with fungicide when their leaves drop. Also, cover your rose bushes with at least eight inches of loose soil or mulch and prune them back to 36 inches. A little landscaping help with them now helps them to bloom in the spring.

Trees and shrubs:
Pruning the trees and shrubs is a part of fall landscaping. Now is the time to cut back dead or diseased branches. Also, your trees and shrubs should be heavily watered before the cold weather hits.

Lawns:
Fall is also a busy time for lawn landscaping. This is the time for the lawn to be aerated to loosen compacted soil. The next step is to seed and fertilize. Doing this landscaping maintenance in the fall prepares your lawn for the spring.

Potted plants:
Your landscaping probably includes several potted plants, but these cannot stay outside once the nights get colder. Bring in the houseplants once the nighttime temperature starts reaching 50 degrees. Also, if you have a Christmas cactus, it requires a bit of work now. Three months before you want it to bloom, stop feeding it and reduce its water. Make sure that it has complete darkness from sundown to sunrise and sunlight all day. When buds start to appear, you can start feeding and watering it again.

Miscellaneous:
Don’t forget the non-living aspects to your landscaping. Water hoses need to be drained and stored. Any debris cluttering the lawn or flower beds needs to be removed to prevent damage or disease.
Fall landscaping is almost as if you are tucking your plants and flowers into bed. You are getting them all settled for the winter so that they can wake up in the spring when you can enjoy your landscaping to the fullest.

Memorial Day

Memorial Day weekend is very special time for our veterans and our country. I enjoy putting out American flags at mailboxes in various neighborhoods during this time. It really looks GREAT. Makes one proud to see our flag when it is seen at every home on the street. I was shocked and quite proud to say that one of our neighbors wrote the following to our local news paper.

"I would like to thank John Hersome of Coldwell Banker for the American flags that were put at each of our mailboxes. This was such a wonderful gesture of love for America. To me it showed the love he showed for America. God bless him and all...."

Business Milestone

John Hersome, a real estate broker and sales associate in the Coldwell Banker Triad, Realtors, Clemmons and Davie office, was recognized as the company’s top producing sales agent in the Triad for 2007.

Winston Salem Real Estate Market

Winston-Salem, NC Real Estate Market The Winston-Salem real estate market is presently and has been a relatively even market between buyers and sellers. There has been no sharp spike upward nor severe downturn in many years. The market has enjoyed steady growth coupled with moderately extended time between first market appearance and sale of houses. Investment in the Winston-Salem real estate market has been a safe albeit expensive bet for novices and professionals alike. However it can prove lucrative as the recent introduction of a new Dell Computers Facility has boosted the job market. This provided a two-fold benefit. Entry-level homeowners were attracted to the area and move up buyers were encouraged to spend a little more for larger houses. Rising prices have done nothing drastic to the even correlation between buyers and sellers. Neither has risen to claim the sole title of the market as of yet and, if trends continue, neither will. Investment strategies differ according to a variety of factors, most importantly is locational trends. Winston-Salem, North Carolina is no exception. With an average closing price of $188,000 and an average of 78 days on the market for a house for sale, it has proved wise for would-be investors as well as seasoned professionals to enter transactions cautiously and with a carefully planned out exit strategy. Although “getting stuck” with a property with a price of over $150,000 is an unpleasant occurrence for some, it would not be as detrimental to an investor in the Winston-Salem real estate market. For example, instead of trying to make a profit by selling the house, income can be generated by renting out the property. The Winston-Salem real estate market is one that is overlooked by hungry investors. Overshadowed by higher profile locations such as Florida and Nevada, the first-time homebuyer as well as previous homeowner have enjoyed a market relatively free from fluctuation. The steady flow of buying and selling has kept everything stable and free from most surprises. Most real estate investment training courses offer advice on places to target for strategic purchase but the Winston-Salem market has remained under the radar for reasons that only speculation could provide. A simple market at best, Winston-Salem has not provided many a good enough reason to be drawn to its ample charm and easy to discern market patterns. This market has survived the housing boom as well as the bursting of “the real estate bubble” and has remained virtually unchanged. The Winston-Salem real estate market is definitely one that should be considered by savvy investors. It does not give evidence of a get-rich-quick area but one that could offer great dividends to the patient but cautious house hunter. In conclusion, the Winston-Salem real estate market joins quite a few others on the list of markets that are not being watched as closely as they should be by potential investors. This is compensated by the ever-faithful homebuyer who is drawn to the Winston-Salem market for personal as well as professional reasons. The phrase remains, “Let the Buyer Beware” and in this case it applies to both homebuyers as well as investors.

Choosing your REALTOR ®

The most important decision you will make in the sale of your home is the REALTOR you choose. Be sure to find someone you feel comfortable with. If you don't feel you can ask questions or go to your REALTOR, you have the wrong person. Your REALTOR should show you research to back up any recommendations. This includes information about recent sales, current listings, and recently expired listings in your neighborhood.

Choose a local REALTOR. He or she will know your area better than an outsider, will be seen as a source for people looking to relocate in your neighborhood, and will get better co-operation from other agents. It is likely that any amount you might save by having a friend or relative from outside the area serve as your REALTOR will be lost in their lack of knowledge about your specific local market.

Dont forget to ask for references from the REALTOR. He or she should be willing to give you names of previous clients. Ask your friends and acquaintances for recommendations, but make your final choice based on your needs. Ask the REALTOR to show you what will be done to market your home. Consider the office and company support available to him or her as well as the initiative and professionalism shown by the individual.

Look for a REALTOR who tells you what he or she knows from experience in the market, and not what they think you want to hear. Flattery may sometimes get the listing, but it doesn't sell the home!

Questions For Your Lender

The following are some good questions to discuss with your lender when applying for a home loan:

1. Are both fixed-rate and adjustable mortgage loans available?
2. What is the interest rate?
3. How long can I "lock-in" the financing at the current interest rate?
4. Is a float down lock available in case rates drop after I have locked in?
5. What are the other fees a lender may charge me in conjunction with my loan?
6. Are funds for a second mortgage available?
7. On adjustable loans, how often will the interest rate be adjusted?
8. Is there a maximum limit on each rate change?
9. How often will the monthly payment be adjusted?
10. Is there a ceiling on payment adjustments?
11. Can the term of the loan be extended?
12. What is the maximum rate that can be charged over the life of the loan?
13. Is there any potential for negative amortization?
14. Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity. About 80% of all loans in the United States are paid off early.
15. What is the "grace" period?
16. How late can a monthly payment be made before a late charge is assessed?
17. What will happen if a payment is missed?
18. If you sell your house, will the new buyer (if he/she qualifies) be able to assume your mortgage at the same interest rate?
19. Do you have to pay "points" to get your new mortgage?
20. Usually lenders charge points for the cost of giving you a mortgage loan. A "point" is 1% of the loan.
21. Will the lender require mortgage insurance?
22. Is the loan serviced locally or is the servicing sold? Ask for a written "good faith deposit".

Benefits of Proper Pricing

When your home sells faster, you save carrying costs, mortgage payments and other ownership costs. A quicker sale creates less inconvenience for you. If you've moved before, you know the energy it takes to prepare for showings: keeping the home clean, making childcare arrangements, and altering your lifestyle. Proper pricing reduces these demands on you, by helping your home sell faster. At market value your home will gain exposure to more prospects that can afford the price.

Sellers who list at a high price are looking for that one buyer who will pay it, often not realizing that they have discouraged many potential buyers who could have afforded the home. The final sales price is probably one that will be affordable by more purchasers. This is because sellers many times accept a much lower price at a much later date since that one buyer willing to pay the higher price never comes.

When salespeople are excited about a home and its price, they make special efforts to contact all of their potential buyers. Knowing that it is priced properly for its market, they expect it to sell soon and encourage their prospects to act quickly. Their excitement is contagious!

Ad calls and sign calls to REALTORS? turn into showings when price is not a deterrent. Most serious prospects are well educated about asking prices in the areas they are seeking. They will not waste their time on a home they consider overpriced.

Buyers fear they might lose out on a good home when it is priced right. They are less likely to make "low ball offers." Better pricing attracts multiple offers!

Bottom line, if a home is priced right, the excitement of the market produces higher sale prices. You net more both in terms of actual sale price and in less carrying costs.