Did you know that NC ranks #3 in the latest Forbes magazine ranking of best states for business. Up from #5 last year, Forbes #3 ranking was based on the state excelling in the following areas: business costs, regulatory environment, economic climate, growth prospects, and labor supply. Utah took the top spot due to its economic growth and Virginia took #2 to round out the top 3.
As Fall is upon us I think we are starting to see some leaves of change in the real estate market as well. Fueled by the record low interest rates and affordability of homes, purchase contracts are up. After a stagnant 3rd qtr. we at C.A. Carter Group are seeing a multitude of purchase contracts and property management deals set to close in the 4th Qtr. I am seeing a frenzy of foreclosure and short sale activity this month. Approximately 60% of all the homes we put “under contract” this month were short sale or foreclosure properties. In the market? E-mail us!
1-A Buyer’s Market! We are 4-5 years into the biggest housing bust in modern US history. 2-Mortgages are Cheap! In fact, the lowest rates on record. 30-year loans are being quoted at 4-4.25%. 3-Savings from Uncle Sam! You can deduct mortgage interest, real estate taxes, and avoid capital gains (whenever you sell). 4-Inflation Protection! According to Karl Case (of Case-Schiller) housing tends to beat inflation by a couple percentage points a year. 5-Forced Savings! You are creating a savings account by building equity. The mortgage is “good discipline”! Want to discuss, e-mail me.
NC foreclosures rose 34% from 3rd Quarter 2009 and 9.3% from the 2nd Quarter 2010 (according to the Charlotte Business Journal). Expect this to taper off significantly in the 4th Quarter as a result of many banks including Charlotte-based Bank of America declaring a moratorium on residential foreclosures due to mishandling of paperwork.
The big problem with the housing market is the lack of barriers of entry into the industry. After all, you can become a real estate broker after merely a week or so of classes and pass a test. This is true in all aspects of real estate from mortgage brokers to real estate appraisers (the last line of defense to a sound investment). This real estate industry is broken. The probability that someone will find a person with true expertise in the real estate profession is more unlikely than likely. Make sure you do your homework before making a decision on a real estate professional. I, as broker-in-charge at C.A.Carter Group, am a CPA and seasoned investor in the real estate arena. Know that if you go with C.A.Carter Group for your real estate needs that your best interest is at heart.
Did you know that according to the Charlotte Business Journal an estimated 6.6% of the residential properties with mortgages in NC are “underwater”. This means that the property is worth less than what is owed on the loan. This equates to 156,061 homes statewide. Nationwide nearly 28% are “underwater” with the highest concentration in Nevada, Arizona, Florida, Michigan and California.