TLMS Data of Closed Home Sales by Month and Year from 2007 to 2011

The graph to the left reveals that June is historically the busiest month (with the exception of 2009 where July had 50 more sales) and January is the slowest, with a few exceptions. Even at the peak of home sales in 2006, it is the inventory levels that drive sales and home prices. An abundance of inventory provides for a buyers market and likewise for a sellers market with not enough inventory. We may not see the number of homes sales on a monthly or yearly basis of 2006 or 2007 however, based on current inventory levels and market activity, we will see that the decline of sales will level off and show much improvement. This will provide for a healthier market where home prices will remain steady. Note that in the last 6 months of 2011, there has been constant growth in home transactions as compared to 2010. All but December has produced double digit increases. This is the bright spot in a gloomy market. I believe this trend will continue and our activity in the first weeks of January are showing positive results.

The next graph shows just the closed transactions for Wake County. Similar to the pattern of all of Triangle transactions, the largest decline was between 2007 & 2008. Also important is that the same growth over the past 6 months shows double digit increases with the exception of December which posted an 8% gain.

As the growth of Wake County continues to prosper and the market begins to rebound, it is important to understand inventory levels. Inventory levels pertain to the number of available homes in the specific markets (new construction vs. re-sale) and  price points. Any price point that has an inventory of under 5 months is an Extreme Seller’s Market. Any price point that has an inventory of 5+ to 8 months supply is a Good Seller’s Market. Any price point that has an inventory greater than 8 months is a Buyer’s Market. Currently, in Wake County much of the landscape is a Seller’s market with only the price range of $475,ooo to $500,000 of Re-Sales Listings showing a 10.5 month inventory. So, next time you hear that the real estate market in weak – look at the facts and figures and know that growth is happening. Get ready for a HOT spring market in Wake County and surrounding communities. Here at The Jim Allen Group, optimism is abundant and we are excited about the new year and  selling some houses!

Wake County Transactions based on Monthly and Yearly Activity since 2006. Data from TMLS

Wake Forest, Area 14 - Inventory Levels by Price Point & Type

Tri-County Parade of Homes Builder Team

The Tri-County Parade of Homes encompasses Franklin, Granville and Vance counties and runs until the 15th of October. This year the parade had 35 entries and The Jim Allen Group represented 17 of those. The neighborhoods include: Ashton Meadows, Hawthorne, Rivers Edge, Stoneridge, Winston Ridge, Woodcroft and Woodford. The custom builders of these fine homes are partners with The Jim Allen Group and are among the finest in the area.

On Wednesday night, there was a banquet held at Green Hill Country Club in Louisburg where all winners were announced. There where 8 categories determined by price point and within each category, a Gold, Silver and Bronze Award was given. We are thrilled to announce that a majority of our of our 17 entries won an award!

We serve the finest group of new home builders and appreciate the opportunity to partner with such outstanding group! Here is a list of our building partners:
Lawrence Homes, McDuffie Custom Homes, Pinnacle Custom Homes, Foxwood Builders, Inc., Sumner Construction, Satterwhite Construction, NRV Homes, LLC, Grayson Homes, MBC Homes LLC, Brandywine Homes, Grant Construction, Inc., Sawyer Homes, Matt Baldwin Homes, LLC, Ross Construction and Imperial Custom Homes.

HAWTHORNE: 681 Juliette Court, Lot # 118 Built by Pinnacle Custom Homes

ASHTON MEADOWS: 80 Cranbrooke Drive, Lot #20 Built by Satterwhite Construction

STONERIDGE: 145 Siltstone Drive, Lot 62 Built by Grayson Homes

WOODFORD: 20 Banbury Road, Lot #17 Built by Ross Construction

HAWTHORNE: 3047 East Bay Court, Lot #128   Built by Sumner Construction

RIVERS EDGE: 220 Rivers Edge Drive, Lot #56 Built by NRV Homes, LLC

WINSTON RIDGE: 280 Plantation Drive, Lot #10  Built by MBC Homes, LLC

WINSTON RIDGE: 236 Plantation Drive, Lot #96 Built by Sumner Construction, Inc.

WOODFORD: 65 Middleton Drive, Lot #48 Built by Imperial Custom Homes

HAWTHORNE: 669 Albin Place, Lot # 26 Built by Lawrence Homes

HAWTHORNE: 3042 East Bay Court, Lot #116 Built by McDuffie Custom Homes

WOODCROFT: 20 Ardmore Court, Lot #242 Built by Sawyer Homes, Inc.

This beautiful neighborhood located in Wake Forest offers a wide array of conveniences including grocery stores, shopping, restaurants, area attractions, close proximity to schools, parks and recreation. Lots in Majestic Oaks are approximately 1/3 acre in size and homes start in the $300′s.

Jill Morin, of Allen Tate Realtors won the iPad and was thrilled by the event and even more so by winning the grand prize!

This weekend is the opening of the Wake County Parade of Homes and The Jim Allen Group will represent 34 of these homes in the neighborhoods of: Bartons’ Creek, The Meadows, Majestic Oaks, Heritage, Stowecroft, Wakefield and North Ridge. If your looking for something to do – Its a great time to view some beautiful homes and see some of the latest and greatest in home construction and energy efficient building technology!

Despite these facts, homeownership rates have taken a hit since the recession in 2009. Falling home prices along with reduced access to credit has kept many would-be buyers from entering the market. According to Morgan Stanley, the current homeownership rate is around 59.2%. This is lowest rate since the Census Bureau began tracking in 1965. Has this reduction been a fear-based one?

Here are the top five benefits of homeownership that have not changed, even in a down economy:

1. Savings:  long-term homeownership is still a way to get big savings.
2. Tax Breaks: Many homeowners are still able to take the mortgage interest deduction (MID) each year, along with great rebates and credits associated with upgrades made to your home.
3. Equity: When you pay a landlord, it’s money down the drain. When you pay on a mortgage, you are paying towards owning a piece of something. You may still owe $100,000, but perhaps the home is worth $200,000. This means you have $100,000 worth of equity you’ve built up over time.
4. Budgeting: Unless you live in a rent-controlled apartment, then each lease renewal could mean a jump in prices. A fixed-rate mortgage, however, means your monthly payment is the same amount for the life of the loan. A $1,000 a month payment on a 30-year mortgage is the same now as it will be in 30 years!
5. Security: When you own, it’s yours. You can paint, improve, and decorate. Most homeowners are in neighborhoods with other homeowners, meaning more time to build relationships and friendships. Recent studies have also shown that homeowners rank themselves as healthier than their renter counterparts.

Should you rent or buy? Each person or couple need to do their home work, figure out the advantages and disadvantages as they pertain to them. Look at the long-term goals and stability of your jobs. Research rental fees and availability and compare to the cost of owning a home. Location is important in both decisions but look into the resale of a home and getting out of a lease.

Experts have recommended for years that if you’re planning on staying put for 5+ years, buying becomes an increasingly better deal. You have time to recoup any extra expenses found in closing costs and are now making an investment in your future through home price appreciation. Home affordability is at near record highs. Now is a good time to run the numbers and see if buying makes good financial sense. If it does, then you’re in store for a wealth of benefits that only homeowners can experience.
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What would make me feel better is knowing where that 35 cents is going? Is it going toward schools, roads and infrastructure? Also, what does this tax amount to on an annual basis?

What are your thoughts as you fill-up at the gas station?

TIP: Here is something that will hopefully save you some $$$ – For the rest of the month of September, if you purchase a Walmart gift card or use a Walmart credit card at the Walmart pump – You can save 10 cents a gallon!

• Cover all of your home’s windows with pre-cut ply wood or hurricane shutters to protect your windows from high winds.
• Plan to bring in all outdoor furniture, decorations, garbage cans and anything else that is not tied down.
• Keep all trees and shrubs well trimmed so they are more wind resistant.
• Secure your home by closing shutters, and securing outdoor objects or bringing them inside.
• Turn off utilities as instructed. Otherwise, turn the refrigerator thermostat to its coldest setting and keep its doors closed.
• Turn off propane tanks.
• Install a generator for emergencies
• Reinforce your garage doors; if wind enters a garage, it can cause dangerous and expensive structural damage.
• Ensure a supply of water for sanitary purposes such as cleaning and flushing toilets. Fill the bathtub and other large containers with water.
• Find out how to keep food safe during and after and emergency by visiting www.FoodSafety.gov.

For more information, see the link below!

http://www.ready.gov/america/beinformed/hurricanes.html#link2

From September 6 – 10, 2011, participating Chick-fil-A^® restaurants are giving away a variety of FREE breakfast entrées to customers who make a reservation online. To make your reservation, visit this website beginning Monday, August 29, 2011 and choose your preferred Chick-fil-A restaurant, the date, time and breakfast entrée

log on to: Chick-fil-A

IRS Summertime Tax Tip 2011-12

The Internal Revenue Service has some important information to share with individuals who have sold or are about to sell their home. If you have a gain from the sale of your main home, you may qualify to exclude all or part of that gain from your income. Here are ten tips from the IRS to keep in mind when selling your home.

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.
2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.
4. If you can exclude all of the gain, you do not need to report the sale on your tax return.
5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.
6. You cannot deduct a loss from the sale of your main home.
7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.
8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return.
10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

For more information about selling your home, see IRS Publication 523, Selling Your Home. This publication is available at www.irs.gov

Recently, new regulations have been established that provide a more defined and clear picture of closing costs that you can expect to pay. As a rule, home buyers can expect to pay closing costs that are equivalent to about 5 percent of their loan amount. This is fees that are in addition too the down payment.

It is no surprise that the Good Faith Estimate is exactly that – an estimate of costs. This paperwork describes the closing fees associated with your mortgage loan and can include: lender related fees, taxes, stamps and processing. You must receive this within 3-days of your close.  In addition, there may be the inspection, appraisal and lawyer fees included in the Good Faith Estimate. In January of 2010, the government implemented restriction and made it illegal for these estimated costs to rise more than 10 percent of what is stated on the Good Faith Estimate.

Costs that cannot change include points, loan origination fees (once the loan is locked) and transfer taxes. Fees that may increase but no more than 10%, include title related services and recording fees, title services not required by the lender, home owner’s insurance and escrow deposits.

It is important to ask questions if something doesn’t make sense. Understand what it is you are paying for and its your right to request clarification on any fees associated with your loan. The more you know – the smoother the process will be. If after you close on your home and realize that a mistake has been made – you have the ability to have the error rectified, especially if you have been overcharged.

If your new to the home buying process, ask friends and relatives for advise and referrals to a good lender. Meet with the lender prior to making an offer on a  home – it’s best to know the important facts and figures of getting a loan before you need one. Don’t get surprised with extra costs or issues at the closing. If you have a good lender – they will assist you through the process.

Right now, interest rates are at record low percentages which makes buying a home a perfect opportunity. Make sure you do your homework and meet with lenders to find out what you qualify for, what to expect and to establish a good relationship with someone you can trust. Then make sure you have a realtor whom will work with you to find the perfect home!