Home sales: Existing home sales are expected to rise 12% in 2012, following a 2% rise in 2011, Moody’s Analytics predicts. The signs are already showing: In November, pending home sales reached its highest level in 19 months, the National Association of REALTORS® reported.

New-home market: Coming off of what could be considered the worst year for new-home building ever recorded, the sector is expected to bounce back in 2012. New-home sales and starts were already showing a rebound in the last few months of 2011. Moody’s is predicting that single-family housing starts will increase 37% in 2012, and new-home sales will soar 74%.

Consumer confidence: With mortgage rates at record lows and housing affordability high, about 71% of Americans say now is a good time to purchase a home. Also, more Americans are optimistic that home prices will rise over the next year... about 26% feel prices will rise in 2012, an increase of 4% over the last survey, according to Fannie Mae’s December National Housing Survey. Also, recently-reported consumer confidence numbers in the economy as a whole have spiked upward.

Whether you are looking to buy in Ballantyne, SouthPark, Cotswold, Midwood, Matthews, Mint Hill or Weddington,   now is a good time to give us a call and talk about your plans. We are here to help!

Pending sales, or signed contracts that have not yet closed, a good measure of current housing activity, climbed 8% from July 2011 and 25% from August 2010. The data come from the Realtor association's Carolina Multiple Listing Services, which accounts for nearly all sales in the Charlotte area.

The improvement is due in part to Charlotte foreclosures and short sales being absorbed buy buyers. The Charlotte market's distressed housing inventory continued to decrease in August, with the number of foreclosures for sale at its lowest level in more than three years. Distressed sales represented nearly 23% of all closings in August, down from 35% in August 2010.

The average Charlotte home price in August was $205,915, down 4% from the month before and down 9% from August 2010.

The median price of a single-family home dropped in 118 metropolitan areas out of 153 measured, the National Association of Realtors said. The largest declines were in Biloxi, Mississippi, and Akron, Ohio. Foreclosures that sell at cut-rate prices are at the heart of the devalued real estate trend nationally.

Separately, the Realtors Association noted U.S. existing-home sales fell 0.8% in the first three months of 2011 compared to the same period a year earlier to an annual pace of 5.14 million. The biggest decline was in Tennessee, where transactions decreased about 15%. The largest advance was in South Dakota, with an 86% gain.

To find out what is happening in your neighborhood or one that you are interested in, call us or drop us a note. Happy housing!

Starting January 1, 2011, there is a new and significantly revised standard contract used to buy and sell homes in North Carolina.

Gone are the days when buyers used only earnest money to secure the purchase and had that earnest money "conditional" upon them getting loan approval and successful inspections and repair negotiations with the sellers. If the buyers conditions were not completed to their satisfaction within the time frame they told the seller they needed, they could walk from the deal at no cost to them.

This scenario has been replaced with one where buyers put up a combination of earnest money and/or a "due diligence fee" which is non-refundable and goes directly to the seller at time of contract. Buyers negotiate an amount of time they need to do their due diligence, which would include loan approval, appaisal, inspections, repair negotiations, surveys... anything they want to investigate. If the buyers are not satisfied with the progress or results of their due diligence, they can walk from their deals anytime up to the expiration of their due diligence period and take any earnest money they may have put up with them... but the due diligence fee stays with the seller.

So how does this new contract affect repair negotiations, the mortgage approval process, the amount of time needed to perform a contract and close, and every other facet of buying and selling? Great question! Contact me and we can go over any part of the process that needs further explanation and how it affects what you are trying to accomplish.

John C. Walker, Realtor® is an experienced agent specializing in Charlotte Homes and those in the surrounding area. Visit his Charlotte real estate search site to kick your home buying process into high gear.

Lower borrowing costs, lower home prices and more jobs may entice homebuyers in coming months, helping the real-estate market regain its footing after the end of a tax credit caused demand to trail off. Housing activity will still look low relative to the boom years, but expect a solid growth rate to occur through 2011 and beyond.

Pending home sales were projected to decrease 1%, based on the median of forecasts. Three of four U.S. regions saw an increase in contracts, including gains of 7.1% in the Southern U.S.

“The housing market clearly is in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011,” Lawrence Yun, NAR’s chief economist, said in a statement.

The average rate on a fixed 30-year mortgage reached 4.17% in mid November, the lowest level since Freddie Mac records going back to 1972. The average rate climbed to 4.46% in the week ended today, a four-month high, on mounting evidence the economy is improving… still a historically low figure.

NAR’s housing affordability index, which takes into account borrowing costs, home prices and household incomes, climbed in October to indicate record affordability for homebuyers.

Effectively, SAVE would define a method for calculating an Energy Factor (E). The E factor will be based on the square footage of the home and the average energy costs per square foot in the geographic area from Department of Energy data. The database exists and could be refined as the data become broadly used for this purpose. A property with an energy cost lower than the DOE average would have an increment of value calculated as the Net Present Value of the dollar savings over the life of the loan based on a specific formula. This higher collateral value would allow the borrower to qualify for a larger loan by recognizing that they would have lower operating costs for the efficient property. The calculated collateral value of E could be added by an appraiser based on specific calculations, or could be added at the loan underwriting stage if it was not already factored in by the appraiser (a safeguard would prevent double counting).

The energy costs for a specific property would be determined by a HERS rating or similar rating standard approved by the DOE. Acquiring the rating is not mandatory. A home with no rating would be presumed to have the average E factor for that square footage in that region and there would be no adjustment of the normal appraisal. The HERS rating would allow recognition of superior energy performance as a direct value added to the value estimated by the Comparison Approach without regard to energy efficiency. Since this valuation method would apply to virtually all residential mortgage loans, there would be no need for special loan programs such as the EEM programs available now. The home with no energy rating would get no special treatment and the home with superior energy performance would gain a benefit. Over time, this SAVE program would serve as an incentive for buyers to select new or existing energy efficient homes and for homeowners to retrofit inefficient homes to gain access to the financial benefits.

As proposed, the legislation would require HUD to include the E factor valuation in loan underwriting programs within three years of passage of the bill. This seemingly long delay would permit careful implementation and training of underwriters, loan originators, appraisers, and other involved parties such as EcoBrokers! No one can ever predict the actions of Congress, but watch for this proposal to come forward and be sure to participate in the discussion and debate that will occur.

To see green home listings in our area, visit Charlotte Green Homes.

• Oct. 30, 10:30-a.m.-1 p.m.: "Halloween Hilarity Tea" Historical re-enactor Patti Proctor will share Halloween superstitions, legends and folklore while attendees enjoy harvest tea and treats. $5 per person. Call Cathy Wright, 704-843-1992 for reservations.
• Nov. 5, 2-5 p.m.: "War Between the States," for home school students. Civil War era demonstrators and re-enactors will be in the village to offer students a hands-on experience in history. Reservations are required. Cost is $2 per student and $5 per adult.
• Nov. 5, 7 p.m.: "Lee and Jackson . . . the last meeting" Civil War re-enactors Gene Pennell and Andrew Shores take on the roles of the generals as they meet around the campfire to discuss strategic plans for their attack on the Northern line in what would be Lee's greatest victory and Jackson's final battle. Bring a chair or blanket. Event is free with donations accepted.
• Nov. 6, 9 a.m.-3 p.m.: "Salute to Veterans" Exhibits of military memorabilia along with Civil War era demonstrators and re-enactors. Flag retirement by Boy Scout Troop 144. Free.
• Nov. 23, 7 p.m.: Mint Hill Town Hall. "Annual meeting of the Mint Hill Historical Society." Guest speaker: Tony Zeiss, President of Central Piedmont Community College. Recognition of Historic Home Preservation and recognition of charter members.
• Dec. 8-9, 1 and 4 p.m.; Dec. 10-11, 1, 4, and 7 p.m.: "Christmas Teas" to celebrate the season at the Village's Ashcraft Schoolhouse. There will be hot wassail, plum pudding and other delicious treats. Cost $20 per person. For reservations call 704-545-4928

For more information about any of these events visit www.minthillhistory.com.

Have you been watching the news about real estate in the media? It is crazy with all the "sky is falling" discussions around foreclosures and home prices out there. When it seems the real estate market cannot get any crazier, it takes another step backwards.

With this continuing media frenzy around the real estate, I want to remind you that the most important real estate market is the street where you live... or are looking to live on soon. If you are curious about what is happening on your block, or any particular neighborhood, please give me a call so I can give you real data that are specific to those areas.

Generalizations about national and even metro real estate trends are difficult to translate to your Charlotte home or area of interest... they may even get the story wrong or mask real opportunities. I am happy to help you make sense of it all, forget the hype, and make an informed decision based on relevant data.

In the rankings, North Carolina scored third in business costs and regulatory environment and ninth in growth prospect. Forbes scored the states on six measures including business cost, labor supply, regulatory environment, economic climate, growth prospect and quality of life.

Other highlights in North Carolina that factored into the study results include: a decline in unemployment from 11.1% in January to 9.7% now, corporate profits up 10% in 2010, a climb to fifth in the nation for personal income growth since June 2009, and the stabilization of the construction and manufacturing industries which are no longer losing jobs.

In addition to some 36,700 jobs created in the last 12 months, commitments have been secured from corporations for 30,000 more new jobs and $5.6 billion in investments.

Freddie Mac says the average rate for 30-year fixed loans this week was 4.54%, down from 4.56% just last week. That’s the lowest since Freddie Mac began tracking rates in 1971.

The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.

The rate on the 15-year fixed loan dropped to 4%, down from 4.03% last week and the lowest on record.

Rates have fallen since the spring. Yields on U.S. Treasury bonds have dropped as jittery investors seek safer investments. Mortgage rates tend to track yields on Treasurys.

To research your own situation, use our mortgage tools and read why you should use a local lender for your next transaction. We are here to help!

Housing starts rose to a 672,000 annual rate last month, exceeding the median forecast of economists, reaching the highest level since October 2008. Permits fell by the most since December 2008, a sign homebuilding will may pause after a tax-induced jump in sales.

Building permits, which are considered a leading indicator for homebuilding, fell 12% to a 606,000 annual rate last month. Applications for both single-family and multifamily projects decreased.

Starts rose 41 percent in April from the same month last year, the biggest year-over-year gain since 1994, while permits increased 16 percent.

Construction of single-family houses increased 10% to a 593,000 rate in April, while permits fell 11%. Work on multifamily homes, such as townhouses and apartment buildings, dropped 19 percent to an annual rate of 79,000.

Building is climbing after sales jumped following a government incentive of as much as $8,000 helped reduce the number of unsold new houses. Sales of new homes surged in March by the most since 1963, while purchases of existing homes rose for the first time in four months.

The jump in sales brought the number of new houses for sale down to 228,000, the lowest since March 1971, allowing builders more room to begin projects even as they compete with foreclosed homes coming back on the market.

To see new construction home listings in the Charlotte MLS area, go to our Charlotte Home Search website and remember to use the "new construction" radio button on the right.

The 2220 single-family homes and condos sold last month marked an increase of more than 25% compared with April 2009, according to results released by the Charlotte Regional Realtor Association.

That represented seven consecutive months of year-over-year increases and the largest increase since November 2009, when buyers rushed to close before the original expiration date of the tax credits. The credits were then extended until this April 30.

April’s sales also inched above 2003 levels, the first time that’s happened since the downturn walloped the housing market. Still, the number of deals remained below the 2004 count and well off the 2006 peak.

In another upside sign, sales in April posted the biggest jump from March in at least 8 years. That 17% monthly gain, following an even larger jump in March, is likely due mostly to the tax credit although there have been modest signs of economic recovery.

A 32% jump in pending contracts signals that tax-credit induced buying will continue fueling closings for another month or so. Pendings are signed deals that haven’t yet closed, and the 2988 contracts in April mark the highest number since the spring of 2008, just before the worst of the financial meltdown.

Tax credit deals had to be signed by April 30, but buyers have until June 30 for the final closing.

Pricing remained soft, with the average sales price of $201,410 essentially unchanged from a year ago. The gap between sellers’ asking prices and actual sales prices remained above 10%, about double the highest level before the downturn. That indicates sellers continue having to cut prices.

Go to Charlotte Home Listings Search to find active listings that match your criteria. Or do your own closed sales research here.

The vote marks a significant milestone in the progress of the bipartisan HOME STAR legislation, although it's important to note that the authorization bill passed today must be matched by the Senate, and followed up with an appropriation bill to allocate funds for the $6 billion program.

HOME STAR will create good American jobs in construction, manufacturing and related industries. It will help American homeowners improve the efficiency of their homes and save money. And it will provide a solid foundation for our country's energy policy and energy security.

If you are interested in seeing green homes for sale in the Charlotte metro market, sign up to have those listings sent to you.

The rule also applies to places where children under six spend large amounts of time, such as child care centers and schools. The certified contractor must provide the occupants (owner or tenant) with a new information booklet and must follow lead safe work practices.

There are several important exemptions to this rule:

1. Homeowner occupants or tenant occupants may do the work themselves without certification.

2. A residence where there are no children under 6 and no pregnant women as regular residents is a possible exemption.

3. If the area disturbed is less than 6 square feet indoors or 20 square feet outdoors, the project is exempt. Because lead paint was so prevalent on window frames in pre-1978 houses, window replacement on these homes is never exempt.

4. If a qualified lead test specialist certifies that no lead paint will be disturbed, the project is exempt.

5. There are a few additional less likely exemptions.

The required disclosure booklet is to be provided by the contractor, but you may wish to have it for your reference as well. You can get it at http://www.epa.gov/opptintr/lead/pubs/renovaterightbrochure.pdf (English) or http://www.epa.gov/opptintr/lead/pubs/renovaterightbrochuresp.pdf (Spanish).

To qualify, buyers must meet the following requirements:.

1. Owners of existing homes, specifically, taxpayers who have occupied the same property as a principal residence for 5 consecutive years during the previous 8 years, may now be able to claim a tax credit on a purchase of another home they intend to use as their principal residence.
2. The credit is for up to 10% of the price of the replacement home, capped at $6,500. The home must be placed under contract by April 30, 2010, and the closing must occur no later than June 30, 2010.
3. Members of the armed forces and federal diplomatic and intelligence personnel stationed overseas get one extra year to claim their credit.
4. The maximum purchase price on houses eligible for the credit is $800,000.
5. Purchasers are not required to sell their previous house, but they must be able to demonstrate that the replacement home is or will be their primary residence.
6. A copy of the signed HUD-1 settlement sheet, including the contract sale price and the date of closing. This is to document that the timing of the transaction meets the program's requirements.
7. Evidence of long-term ownership and occupancy of the previous home to meet the 5-consecutive-years requirement. This can be property tax records, homeowner's insurance records or IRS Form 1098 mortgage interest statements for the 5-year period.
8. For buyers claiming a credit on a newly constructed home, for which a HUD-1 settlement sheet is not available, the IRS will accept a copy of the certificate of occupancy showing the purchasers' names, the property address and the date.
9. Your modified adjusted gross income (AGI) must be $125,000 or less if you are single, $225,000 or less if you are married and filing jointly. Above these limits, the allowable credit amount begins to phase down in increments and is eliminated once incomes hit $145,000 for singles and $245,000 for married joint filers.

Be aware, you may have to repay the credit to the government if you sell your new home within 36 months after purchase, convert it to a rental or business property, or if your lender forecloses on the new house.

The legislation would extend the homebuyer credit to multifamily properties used as the borrower's primary residence. It would also eliminate income caps of $75,000 and $150,000 on individuals and couples seeking to claim the credit.

The Business Roundtable and the National Association of Realtors are pushing to expand the tax credit and to lower mortgage rates to revive the U.S. housing market. The proposed bill would extend the credit, which now applies to homes purchased from Jan. 1 to Dec. 1, 2009, to one year after the new measure is signed into law. It would make the credit available to all borrowers, not only borrowers who haven't owned a home in the previous three years as is the case under current law. It would also let borrowers divide the credit over two years. The legislation wouldn't be applied retroactively to purchases completed before the date of enactment.