In his first speech as President, Garner challenged his fellow REALTORS® to continue their hard work as ambassadors for homeownership and dedication to helping Wilmington’s housing market recover.

“Sometimes we find ourselves saying ‘if only’. The problem with that is we miss out on opportunities right in front us today,” Garner told the room of 225 members and guests. “As REALTORS®, consumers look to us for our knowledge, service and advice. I encourage you to use that knowledge to best advise your clients how to take advantage of the remarkable opportunities in today’s market instead of missing a once in a lifetime chance.”         

Accompanying Garner as this year’s Board leadership are R.J. “Alex” Alexoudis as President-Elect, Jody Wainio as Vice President, Karen Parkin as Past President and Cliff Ray as President of the REALTORS® Commercial Alliance of Southeastern North Carolina (RCASENC). Also taking the oath to serve as a Director were Sandra Beals, Faye Brock, Deborah Butler, Ryan Crecelius, David Eggleston Jr., Thomas Gale, Amy Holcomb, Neal Johnson, Sherri Pickard and John Pierson.

Other Officers for the RCASENC include Will Leonard as President-Elect, Tom Wolfe as Secretary/Treasurer and Amy Spicuzza as Past President. The RCASENC Directors are Henry Adams, Madelyn Bodford, Brian Eckel, Stephen Hall, Stephen Hobbs and Nick Silivanch.

This exquisite semi-formal event was held at The Terraces on Sir Tyler, WRAR’s new banquet and event venue, located on the third floor of its office at 1826 Sir Tyler Drive near Mayfaire. The banquet is an annual event for all WRAR members to attend. One of the other major highlights of the evening was the awarding of WRAR’s most prestigious annual awards.

Mary Martin of Network Real Estate was honored as the 2011 REALTOR® of the Year. Mary earned this highest award because of her outstanding service to WRAR, her profession, the State and National Associations and to her community.  She was WRAR’s 2010 President and continues her service to her fellow REALTORS® by serving on several committees at the Association while also working as a Trainer and Broker-In-Charge at her firm.

Clinton Howlett Jr. of Century 21 Brock & Associates was selected as the 2011 Salesperson of the Year due to his closed transactions and dollar volume while also actively dedicating his time to the Association through committees. He exemplifies team spirit, leadership, loyalty, cooperation with peers and dedication to community service making him the prime choice for this award.

Phillip Galloway of Intracoastal Realty was selected as the 2011 Hall of Fame Award winner. Phillip earned this award for his outstanding lifetime contributions to the real estate industry and his contribution of consistent outstanding service to the REALTOR® profession.

Earlier in December, WRAR also announced the recipients of its other annual awards at its fourth quarter membership meeting:

  •   2011 Allied Member of the Year – Chrystal Fray, State Farm Insurance
  •   2011 Cathy Clark Memorial Award – David Eggleston Jr., Intracoastal Realty
  •   2011 Paul Sullins’ Community Service Award – Deb Hays, Intracoastal Realty

For more information on all of these annual awards, please visit www.wrar.com/awards.

Lending standards increased sharply after the financial crisis in 2008, and even after the recession ended in 2009. Lenders have yet to ease their stricter standards, according to a report by Goldman Sachs economists Hui Shan and Jari Stehn.

Why? The researchers say it’s mostly because there’s less money available to lend.

“During the housing boom, as brokers produced a flood of new mortgages, Wall Street bankers churned out a torrent of mortgage-backed bonds for investors waiting to snap them up,” an article at MSNBC.com notes, in describing the study’s findings. “That market has all but vanished; 90 percent of new mortgages written today are backed by the government.”

Also, researchers found that lenders are swamped with more paperwork, which is also causing delays in processing. Many lenders have issued stricter documentation requirements before they’ll approve a loan. Nowadays, nearly 90 percent of mortgage applications require “full documentation” before getting approved. From 2000 to 2006, less than 60 percent of applications required “full documentation,” researchers found.

Source: “Tight-Fisted Mortgage Lenders Pressure Home Sales,” MSNBC.com (Jan. 27, 2012)

Editor’s Note: Another reason banks have tightened up their lending is because Fannie Mae and Freddie Mac are requiring banks to repurchase some of the loans they’ve made. As reported by Bloomberg News, banks don’t want to get hit with more mandatory repurchases, so they have added “overlays” (such as minimum downpayment, debt ratio, etc.) to FHA, Fannie, and Freddie standards, and are only making the most conservative loans.

If you’re given a choice to either invest $1,000 in a two-year bank certificate of deposit or bury that money in your backyard, don’t spend too much time thinking about it, because for all practical purposes you’ll come out the same either way.

Researchers at the University of Alabama at Birmingham (UAB) say you’ll earn 83 cents more with the CD than burying your money, so the CD’s probably the better deal. But after you factor in the gas to get to the bank to buy your CD you’re probably better off going with the buried money and just taking advantage of inflation.

So, where should you put your money? Andreas Rauterkus, an assistant professor of finance at the UAB School of Business, says you should buy a house.

“First-time home-buyer rates are around 3.8 percent for a 30-year mortgage, so if you can afford a $1,000 mortgage payment monthly for 30 years then you can buy a $250,000 home right now,” says Rauterkus.

Lary Cowart, an assistant professor of real estate and finance at the school, says you don’t want to wait too long, though. Because once prices start moving, it won’t take long before price changes affect the advantage of today’s low rates.

“Holding out to try and find the lowest price is not a good strategy because if the house were to go down 10 percent but the interest rate goes up 1 percent you are not gaining anything,” says Cowart. “If rates go up 1 percent, say from 4 to 5 percent, that is a 25 percent increase in the interest rate; so the mortgage payment goes up by more than 10 percent and the amount of house that can be purchased goes down by more than 10 percent. People fail to realize that and it is another little thing that will cost them big over the 30-year life of the loan.”

Of course, whether you can buy at all depends on lenders’ willingness to make a loan today to anyone except those with the best credit profile and plenty of money for a downpayment, and that’s a big question today. It makes you wonder if the reason banks aren’t lending is because they don’t have any money available because it’s all buried in the bankers’ yards.

Read the UAB press release in which the researchers talk about buying a home today.

More on lenders’ tight lending policies

More from NAR on why home ownership matters

In its December Housing Pulse Tracking Survey, the company found that investors accounted for one out of three real estate transactions last month, and about 74 percent of those purchases by investors were made using all cash.

“Investors have an over-sized command on the market since their ability to pay cash in the majority of transactions puts undue downward pressure on home prices,” an article at Housing Predictor notes about the study.

Cash buyers can be attractive to home sellers, banks, and mortgage companies, since they do not usually come with contingencies, require extra time to secure financing, and tend to move more quickly to closing. As such, cash buyers tend to make purchases at lower prices than those who may need financing or come with contingencies.

Source: “Cash Buyers Pushing Home Prices Lower,” Housing Predictor (Jan. 24, 2012)

Give us your feedback!  We want to hear from you… Email Ashley at President@WRAR.com with topics & issues you want him to discuss throughout this year. Thanks for watching & engaging with your Association!

Only three zip codes had an increase in average list price from 2.1% to 11.7%. Concessions offered to buyers were offered in 22% to 45% of the transactions in fourth quarter 2011. Our median sales price for two zip codes reflects an increase from 2.6% to 10.3%. Our overall average days on the market increased for four zip codes from 140’s to about 187; while 28409 and 28451 had an average decrease of 23 to 34 days.

Analyzing the growth within the six major zip codes in our region, an average of the zip codes shows for the fourth quarter of 2011:

•    Our average sales price has decreased by 4.8% from third quarter 2011.
•    Of the 597 sellers in fourth quarter – 33.0% paid some sort of concession toward the purchase of the house.
•    Our list to sales price ratio for fourth quarter is 94.0%, a decrease from 94.8% for third quarter 2011.
•    The average list price of the sold properties is $245,760 and is down 3.9% from third quarter 2011.
•    The average number of days a property remained on the market for fourth quarter was 158 days compared to 152 days for third quarter 2011.
•    The median sold price of $179,268 for fourth quarter has decreased 2.0% from third quarter 2011.

The areas of focus in this analysis were:  

•    Selling Price – The price the seller accepts for his or her house.
•    Sellers Concessions – The amount of money a seller of a house contributes toward the buyers purchase.
•    List to Sales Price Ratio – The difference between the list price and the selling price shown as a percentage.
•    Days on Market – The number of days a house remains for sale, from the listing date to the date the property is placed under contract.
•    List Price – The amount of money a home is listed on the market.
•    Median Price – The middle price of all the properties sold in the given time period.

4th Quarter 2011            28403 Zip Code
•    The average selling price of $211,141 has increased 6.1% from 3rd Quarter 2011 average selling price of $198,995.
•    26% of sellers paid a concession compared to 24% in 3rd quarter 2011.
•    The average list price of $230,836 for 4th Quarter has increased 7.8% over 3rd Quarter 2011 average list price of $214,048.
•    The average number of days a property remained on the market for 4th Quarter was 187 days compared to 185 days for 3rd Quarter 2011.
•    The median sold price of $156,000 for 4th Quarter has increased 2.6% from 3rd Quarter 2011.
•    Sold homes in 4th Quarter received 91.4% of the asking price, a decrease from 92.9% for 3rd Quarter 2011.

4th Quarter 2011            28405 Zip Code
•    The average selling price of $262,588 has decreased 13.8% from 3rd Quarter 2011 average selling price of $304,544.
•    22% of sellers in 4th Quarter paid a concession compared to 32% for 3rd Quarter 2011.
•    The average list price of $287,370 for 4th Quarter has decreased 11.8% from 3rd Quarter 2011 average list price of $325,852.
•    The average number of days a property remained on the market for 4th Quarter was 182 days compared to 152 days for 3rd Quarter 2011.
•    The median sold price of $165,000 for 4th Quarter has decreased 7.8% from 3rd Quarter 2011.
•    Sold homes in 4th Quarter received 91.3% of the asking price, a decrease from 93.4% for 3rd Quarter 2011.

4th Quarter 2011            28409 Zip Code
•    The average selling price of $261,680 has decreased 5.8% from 3rd Quarter 2011 average selling price of $277,697.
•    33% of sellers in 4th Quarter paid a concession compared to 38% in 3rd Quarter 2011.
•    The average list price of $279,858 for 4th Quarter has decreased 4.5% over 3rd Quarter 2011 average list price of $293,112.
•    The average number of days a property remained on the market for 4th Quarter was 144 days compared to 167 days for 3rd Quarter 2011.
•    The median sold price of $200,000 for 4th Quarter has decreased 17.1% from 3rd Quarter 2011.
•    Sold homes in 4th Quarter received 93.5% of the asking price, a decrease from 94.7% from the 3rd Quarter 2011.

4th Quarter 2011            28411 Zip Code
•    The average selling price of $253,001 has decreased 13.6% over 3rd Quarter 2011 average selling price of $292,660.
•    45% of sellers in 4th Quarter paid a concession compared to 38% in 3rd Quarter 2011.
•    The average list price of $269,054 for 4th Quarter has decreased 13.4% over the 3rd Quarter 2011 average list price of $310,724.
•    The average number of days a property remained on the market for 4th Quarter was 177 days compared to 132 days for 3rd Quarter 2011.
•    The median sold price of $199,359 for 4th Quarter has decreased 2.8% from 3rd Quarter 2011.
•    Sold homes in 4th Quarter received 94.0% of the asking price, an increase from 94.1% for 3rd Quarter 2011.

4th Quarter 2011            28412 Zip Code
•    The average selling price of $178,025 has increased 1.3% over 3rd Quarter 2011 average selling price of $175,809.
•    31% of sellers in 4th Quarter paid a concession compared to 36% in 3rd Quarter 2011. The best of all zip codes.
•    The average list price of $185,954 for 4th Quarter has increased 2.1% over the 3rd Quarter 2011 average list price of $182,143.
•    The average number of days a property remained on the market for 4th Quarter was 158 days compared to 140 days for 3rd Quarter 2011.
•    The median sold price of $146,000 for 4th Quarter has decreased 6.1% from 3rd Quarter 2011.
•    Sold homes in 4th Quarter received 95.7% of the asking price, a decrease from 96.5% for 3rd Quarter 2011.

4th Quarter 2011            28451 Zip Code
•    The average selling price of $225,322 has increased 10.8% from 3rd Quarter 2011 average selling price of $203,449. The best of all zip codes.
•    33% of sellers in 4th Quarter paid a concession compared to 33% in 3rd Quarter 2011.
•    The average list price of $233,091 for 4th Quarter has increased 11.7% over the 3rd Quarter 2011 average list price of $208,709. The best of all zip codes.
•    The average number of days a property remained on the market for 4th Quarter was 114 days compared to 148 days for 3rd Quarter 2011. The best of all zip codes.
•    The median sold price of $196,300 for 4th Quarter has increased 10.3% from 3rd Quarter 2011.
The best of all zip codes.
•    Sold homes in 4th Quarter received 96.6% of the asking price, a decrease from 97.4% for 3rd Quarter 2011. The best of all zip codes.

Our fourth quarter 2011 shows limited growth in average sales price and median sales over last quarter. Several improving factors on a national, as well as local basis, makes now the most opportune time to purchase a home. Here are just a few more reasons why now is the most opportune time to purchase a home.

•    The Blue Chip Consensus forecast has around fifty economists representing organizations such as FedEx, Dupont, Ford Motors, and the U.S. Chamber of Commerce. Interestingly though, this Blue Chip average consensus forecast value generally tends to be more accurate than any individual economist’s forecast over the long run. That is to say, it is better to trust the consensus forecast more so than an individual economist’s forecast. So, what is the Blue Chip consensus saying about the bottoming of home values? In the latest January issue, a solid majority of economists said the Case-Shiller home price index will finally bottom in 2012. With 75.6% saying this index of homes prices will finally bottom out in 2012. Lawrence Yun – NAR Chief Economist

•    Lawrence Yun, NAR chief economist, said these are early signs of what may be a sustained recovery. “The pattern of home sales in recent months demonstrates a market in recovery,” he said. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”

•    Freddie Mac released the results of its Primary Mortgage Market Survey® (http://www.freddiemac.com/pmms), showing average mortgage rates changing little amid mixed economic data. Regardless, the 30-year fixed-rate mortgage edged down slightly to 3.88 percent to a new all-time record low marking the seventh consecutive week below 4.00 percent.
All of this makes now the most opportune time to purchase a home. Contact your REALTOR® today!  

An Analysis of information from the Wilmington Regional Association of REALTORS® Incorporated, for the period Jan. 1, 2005 through December 31, 2011 – data pulled on January 21, 2012. Average sold numbers for specific neighborhoods within each zip code can be higher or lower than these stated averages. It is highly recommend that you consult a REALTOR® to determine how these numbers specifically relate to your neighborhood.

In addition to pride, home owners also said they enjoy the freedom and control they have to make improvement and upgrades to their home.

Of the 1,400 home owners surveyed nationwide, satisfaction was found to be highest in the Northeast at 77 percent, followed by the Southeast at 73 percent, the West at 71 percent, and the Midwest at 68 percent.

“The HomeGain 2012 National Home Ownership satisfaction survey shows in spite of declines in the values of homes nationwide, satisfaction among home owners remains high at 72 percent,” said Louis Cammarosano, general manager of HomeGain.

Of the 28 percent of surveyed home owners who indicated they are dissatisfied, price depreciation was cited as the primary cause. Other reasons for their discontent include property taxes, homeowner association fees, and maintenance and repairs.

Noteworthy survey statistics:

• Home owners who paid less than $75,000 for their home were the most satisfied at 77 percent.
• Home owners who paid more than $800,000 were least satisfied at 69 percent.
• Buyers who purchased a home via short sale had the highest satisfaction rate at 83 percent, followed by foreclosed home buyers at 79 percent.
• New-home buyers had a satisfaction rate of 73 percent, and existing-home buyers had a satisfaction rate of 71 percent.
• Home owners ages 55-65 were the most satisfied at 76 percent. Home owners between 18 and 25 had the lowest satisfaction rate at 45 percent.

By Erica Christoffer, REALTOR® Magazine

Here are ways for consumers to show lenders that they are low-risk borrowers, according to a recent article at The New York Times:

Credit score: According to one mortgage broker, ideal borrowers nowadays have a FICO score of 740 or higher to qualify for the best pricing.

Property types: Buyers of a duplex, four-unit building, or condo may have a rate premium added. Also, lenders will charge borrowers more if they plan to rent out the property rather than live there.

Down payment: Borrowers who put down at least 25 percent will most likely attract the best pricing, lenders say. “Lenders offer different breaks on rates if equity is higher, so you should ask what is available,” The New York Times article notes.

Also, borrowers who are able to get a low rate now may want to lock it in if they are heading to closing soon. “Lenders typically agree not to change an offered interest rate for 60 days, but borrowers confident of a quick closing may be willing to accept a 45-day rate guarantee, or even a 30-day lock, in exchange for a small discount, because the transaction’s speed helps the lender reduce its risk,” The New York Times article notes.

Source: “Mortgages: Shopping for the Best Rates,” The New York Times (Jan. 12, 2012)

DESIGNATED REALTORS®
John Hinrichs, Commercial Realty
Steven Shuttleworth, Steve Shuttleworth

NEW OFFICE
Steve Shuttleworth

NEW REALTOR® MEMBERS
Charles E. Alexander III, The Property Shop of the Carolinas, LLC
Amanda Baker, Coldwell Banker Sea Coast Realty
Diana Best, Intracoastal Realty-Rentals
Amy Browning, Coldwell Banker Sea Coast Realty
Grace Ciafardini, Intracoastal Realty Rentals
Kristen Crawford, Intracoastal Realty Corp
Hope Hackler, Coldwell Banker Sea Coast Realty
Courtney Holton, Intracoastal Realty Corp
Thomas Johnson, Intracoastal Realty-Rentals
Adam Rogers, Coldwell Banker Sea Coast Realty
George Elliott Saunders III, Essential Rental Management Company
Steven Shuttleworth, Steve Shuttleworth
Debra Williams, Wilkinson & Associates

REINSTATEMENTS
Tiffany Bickel, Carolina Coast Realty
Steven Fox, Network Real Estate
Rebecca Milligan, Coldwell Banker Sea Coast Realty
Richard Murray, Empire Realty of North Carolina

RESIGNATIONS
Rhonda Babinski, Intracoastal Realty Corp
Madeline Batson, Network Real Estate
Wanda Bell, Bryant Real Estate
Ronald Bond, Brody Realty
Eleanor Brant, Wilkinson & Associates
Angela Brown, Central Realty Co.
Jeffrey Chase, BlueCoast Realty Corp
Arthur Clark, Century 21 Brock & Associates
Dawn Cockman, Wilkinson & Associates
Parker Creech, Parker Creech, Broker
David Currin, Commonwealth Commercial Properties
Caroline Daily, Century 21 Sweyer & Associates
Mary Hicks, Intracoastal Realty Corp
Billy Holt, (Secondary), Dream Living Realty
Carolyn Dunn, Ladybilt Designs
Elizabeth Jensen, Intracoastal Realty Corp
Stephen Johnson, Intracoastal Realty Corp
Alessandra Jones, Century 21 Sweyer & Associates
Leslie King, Leslie King Realty
Christopher Kirchoff, Water Access Realty
Myron Mann, Bryant Real Estate
Scott Maus, Maus, Warrick, Matthews Co
Shirley Mazzeo, Network Real Estate
Linda McKernan, RE/MAX Essential
Eugene Merritt, Network Real Estate
Billie Milligan, Intracoastal Realty Corp.
Claud Buck O’Shields, Intracoastal Realty Corp
Michael Parker, David Greer & Associates
Nixie Peak, Intracoastal Realty Corp
Luanne Pigford, Intracoastal Realty-New Homes
Elanor Rimassa, Wilkinson & Associates
Constance Smith, Sailfish Realty, LLC
Sue Stevens, Stevens New Home Realty, Inc.
Allen Ray Williamson, Dream Living Realty
Kristine Williamson, Century 21 Sweyer & Associates

TRANSFERS
Matthew Costin, Coldwell Banker Sea Coast Realty
Latisha Lloyd, Wilmington Real Estate 4U
Wayne Musser, BlueCoast Realty Corporation
Lori Preble, Intracoastal Realty Corp
Karen Reese, Intracoastal Realty Corp
Lisa Sledzik, Century 21 Sweyer & Associates

TERMINATIONS
James Conlon, Coldwell Banker Commercial SCP
Doug Jackson, Coldwell Banker Sea Coast Realty
Laurence Nicolaysen, Northside Realty Inc
Jean Pratt. Cape Fear Realty Services, Inc.

NONE: TERMINATIONS (FAILURE TO RESIGN OR TRANSFER IN 30 DAYS)

“Mortgage rates eased slightly this week to all-time record lows following mixed indicators in the labor market,” Frank Nothaft, chief economist at Freddie Mac, said in a statement. The economy added 1.6 million jobs in 2011 — the highest number since 2006 — but overall unemployment still remains high, Nothaft noted.

Here’s a closer look at rates and the new record lows they posted for the week ending Jan. 12:

• 30-year fixed-rate mortgages: averaged 3.89 percent, with an average 0.7 point, reaching a new all-time low. Previously, 30-year mortgages’ record low was last week’s 3.91 percent average. A year ago at this time, 30-year rates averaged 4.71 percent.
• 15-year fixed-rate mortgages: averaged 3.16 percent, with an average 0.8 point, dropping from last week’s 3.23 percent average. Last year at this time, 15-year rates averaged 4.08 percent. 
• 5-year adjustable-rate mortgages: averaged 2.82 percent, with an average 0.7 point, dropping from last week’s 2.86 percent average. Last year at this time, 5-year ARMs averaged 3.72 percent.
• 1-year ARMs: averaged 2.76 percent, with an average 0.6 point, this week, falling from last week’s 2.80 percent average. A year ago, 1-year ARMs averaged 3.23 percent.

Source: Freddie Mac