Real estate market report

Recession? Yes. Housing Crash? No.

Recession? Yes. Housing Crash? No.

Recession? Yes. Housing Crash? No. | MyKCM

With over 90% of Americans now under a shelter-in-place order, many experts are warning that the American economy is heading toward a recession, if it’s not in one already. What does that mean to the residential real estate market?

What is a recession?

According to the National Bureau of Economic Research:

“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”

COVID-19 hit the pause button on the American economy in the middle of March. Goldman Sachs, JP Morgan, and Morgan Stanley are all calling for a deep dive in the economy in the second quarter of this year. Though we may not yet be in a recession by the technical definition of the word today, most believe history will show we were in one from April to June.

Does that mean we’re headed for another housing crash?

Many fear a recession will mean a repeat of the housing crash that occurred during the Great Recession of 2006-2008....

Real Estate Precations During COVID-19

It should surprise no one to learn there are some recent and upcoming changes in our local real estate market due to COVID-19. 

For the time being, I will be working from home.  Not to worry, though, as I have a pretty sweet setup.  

I will still be accessible by phone call, text & email, DM, Messenger, etc. and I am experimenting with ZOOM for face to face video chats.

Keeping it Real (Estate) #RealEstateMadeSimple #Disruption #Opportunity

Let’s go ahead and rip it off now. There will be disruption to the real estate market and there will be some inconveniences which will require everyone’s patience and cooperation.

However, the real estate market WILL CONTINUE ON, and thanks to modern technology, we are set up to handle this better than anytime ever before!

There is still HIGH BUYER DEMAND due to corporate relocation, households expanding and contracting, and first time buyers taking advantage of record low interest rates.

Additionally, new houses continue to be listed FOR SALE every day.

Most likely, the overall level of sales and activity will be suppressed while we navigate through this health crisis, and pent up demand...

This is Not The 2008 Real Estate Market All Over Again: The Mortgage Lending Factor

Believe me, rates are great right now, but lenders are not just “giving away” mortgages. There is a lot of verification that takes place and buyers need to actually be able to afford to purchase a home.

I’ve recently run into a few situations where some of the guidelines actually violated common sense. Fortunately, I’ve been able to find workaround solutions with some of my more creative lending partners. And by creative, I mean those who will look at the whole situation and dig into the gray areas while remaining in full compliance.

Real estate is not black and white and it often requires creative solutions and problem-solving to get to the closing table. That’s part of the job that I’ve really grown to love and where I begin to shine. 

Why This Is Not 2008 All Over Again...

Real Estate Market Shows Strong Activity Heading Into Fall Months

Here is the latest Weekly Market Activity Report as of October 1 from the Carolina Regional Realtor® Association:

This week the National Association of REALTORS® reported that nationally, August existing-home sales rose 2.6% from a year ago.

Additionally, the Federal Reserve announced a rate cut for the second time in seven weeks, though this was widely expected and largely factored into mortgage rates already. 

A strong economy along with mortgage rates near their lows for the year continue to support healthy housing demand. In the Charlotte region, for the week ending September 21:

• New Listings increased 0.5% to 1,166
• Pending Sales increased 69.4% to 1,081
• Inventory decreased 15.8% to 9,600

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Waxhaw Real Estate Market Update

 

7808 Spanish Oaks Drive in Waxhaw's The Oaks on Providence is available for $325,000 as of August 29, 2019.

Like the economy, local real estate sales were up again in July 2019 as the Charlotte area’s hot real estate market showed little sign of cooling off.

Fueled by low unemployment and comparably low interest rates, buyers continue to outnumber the supply of available homes. It will be interesting to see how events unfold if there are changes in the general economy anytime soon.

Market Report

According to the Charlotte Regional Realtor Association’s most recent data on Waxhaw real estate comparing statistics from July 2018 and July 2019, new listings were down 7.3% from 137 to 127, pending sales were up 5% from 119 to 126, and closed sales were up 4.5% from 134 to 140.

The median sales price in July increased from $410,000 to $435,000, and the average home sales price went up from $476,500 to $491,091.

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