CHARLOTTE METRO REAL ESTATE TRENDS AND STATS

Leading Economic Indicators
April 20th, 2009 3:52 PM

Leading Economic Indicators

The index of leading economic indicators (LEI) is a weighted average of eleven economic variables that "lead" the business cycle. It is constructed for forecasting future aggregate economic activity. The eleven variables that make up the LEI measure workers' hours, initial unemployment claims, new factory orders, vendor performance, contracts and orders for plant and equipment, new housing permits, changes in unfilled orders, prices of raw materials, stock prices, money supply and consumer expectations.

Each of the variables that comprise the index has a tendency to predict (or lead) economic activity. For example, new orders for manufactured goods, new orders for plant and equipment, and new building permits are all direct measures of the amount of future production being planned for the economy.

Analysts monitor the LEI in an effort to predict future economic growth. When the LEI report is up, mortgage market participants expect credit demand to increase and inflationary pressures to build. Thus, when the LEI report is rising, interest rates tend to rise as well.

The LEI report is a valuable forecasting device that correctly predicts most economic turning points. The percentage change in the LEI is reported monthly and is an indication of the activity that will occur within the next three to six months. The LEI tends to turn down before peaks in the business cycle. Continuous declines are generally accepted as evidence that a recession continues.

Nine of the eleven components that make up this index are known before the release of the report, so the index is easy for economists to predict. Thus, although this is important predictive data for market participants, market volatility does not usually surround the release of this data. However, considering there are few data releases this week mortgage interest rates may have a stronger than normal reaction to any disparity between the consensus estimate and the actual result of the release.


Posted by Philip Jernigan, SRA on April 20th, 2009 3:52 PMPost a Comment (0)

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MORTGAGE RATES - 5/2009
April 29th, 2009 4:23 PM

mortgage rates

powered by Bankrate
Mortgage Type National Local
15 yr fixed mtg 4.61% 4.57%
30 yr fixed jumbo mtg 6.4% 6.57%
30 yr fixed mtg 4.85% 4.88%
5/1 ARM 4.71% 4.59%
5/1 jumbo ARM 5.26% 4.89%
7/1 ARM 5.19% 5.13%

Posted by Philip Jernigan, SRA on April 29th, 2009 4:23 PMPost a Comment (0)

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news clipping
April 15th, 2009 12:11 PM
Nationally, housing prices have been in free fall for two years. According to the Altos 10-city Composite Price Index, there are some fragile signs of stability. Though the hardest hit markets, Las Vegas in particular, has not seen any slowing in the housing bust.

The Altos 10-City Composite Price Index increased by 1.1 percent during both March and the first quarter of 2009. Prices of properties listed for-sale increased in 18 of 26 major markets and were down in eight markets according to the Real-Time Housing Market Report, jointly published by Altos Research and market analysis consultancy Real IQ.

Asking prices fell at the fastest rate during March in Salt Lake City followed closely by Las Vegas - down 4.0% and 3.9% respectively. Listing prices of single-family homes rose at the fastest rate in San Francisco-up 3.8% in March. Prices in seven markets-New York, Boston, Houston, Los Angeles, San Diego, Miami and Charlotte-are now showing three months of sequential listing price increases.
 

Posted by Philip Jernigan, SRA on April 15th, 2009 12:11 PMPost a Comment (0)

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stats for Charlotte Metro area
April 10th, 2009 3:44 PM
01 - Mecklenburg County (N) 1561 $11,900 $2,544,633 $260,562
02 - Mecklenburg County (E) 1092 $29,700 $1,300,000 $187,918
03 - Mecklenburg County (SE) 674 $49,900 $1,200,000 $241,511
04 - Mecklenburg County (SSE) 962 $38,000 $4,990,000 $484,196
05 - Mecklenburg County (S) 1498 $89,900 $7,890,000 $727,976
06 - Mecklenburg County (SSW) 459 $40,900 $1,450,000 $323,869
07 - Mecklenburg County (SW) 523 $15,000 $1,100,000 $184,188
08 - Mecklenburg County (W) 626 $15,000 $3,900,000 $137,393
09 - Mecklenburg County (NW) 825 $19,500 $2,950,000 $218,408
10 - Union County 2805 $19,900 $4,850,000 $428,189
11 - Cabarrus County 1786 $19,900 $2,800,000 $283,780
12 - Iredell County 1156 $14,900 $9,000,000 $240,489
13 - Lake Norman 1726 $25,000 $8,000,000 $706,012
14 - Lincoln County 540 $20,000 $1,500,000 $221,442
15 - Lake Wylie 589 $75,000 $6,325,000 $613,650
16 - Gaston County 1663 $10,000 $2,900,000 $181,529
17 - York County 1447 $14,950 $1,650,000 $275,218
18 - Resort 1 $65,000 $65,000 $65,000
19 - Other 26 $20,000 $4,250,000 $540,838
20 - Alexander County 100 $24,500 $999,000 $226,303
21 - Rowan County 895 $7,900 $2,100,000 $222,681
22 - Cleveland County 453 $9,000 $1,200,000 $182,035
23 - Stanly County 354 $16,900 $699,000 $204,492
24 - Lancaster County 620 $16,000 $2,400,000 $305,824
25 - Anson County 106 $9,900 $625,000 $112,754
26 - Caldwell County 51 $20,200 $1,300,000 $259,005
27 - Burke County 22 $49,900 $699,900 $238,740
28 - Davidson County 21 $29,900 $699,000 $285,308
29 - Catawba County 388 $20,000 $2,900,000 $260,990
30 - Montgomery County 134 $22,500 $1,950,000 $372,308
31 - Davie County 25 $74,900 $1,495,000 $318,788
33 - Moore County 1 $87,500 $87,500 $87,500
35 - Chester County 51 $15,900 $1,500,000 $166,030
36 - Chesterfield County 36 $20,000 $4,060,000 $318,211
37 - Yadkin County 10 $69,900 $790,000 $245,070
38 - Avery County 2 $425,000 $1,290,000 $857,500
39 - Wilkes County 12 $51,000 $2,575,000 $479,633
40 - Ashe County 1 $285,000 $285,000 $285,000
41 - Surry County 1 $499,900 $499,900 $499,900
42 - Mtn. Island Lake 216 $62,500 $1,500,000 $335,918
43 - Watauga County 9 $149,900 $5,300,000 $897,547
44 - Alleghany County 2 $144,500 $220,000 $182,250
45 - Rutherford County 10 $34,900 $549,000 $124,190
51 - Forsyth County 1 $1,995,000 $1,995,000 $1,995,000
99 - Uptown Charlotte 4 $269,099 $450,000 $374,749

Posted by Philip Jernigan, SRA on April 10th, 2009 3:44 PMPost a Comment (0)

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Cleveland County Stats
April 10th, 2009 8:58 AM
Sales Statistics
for CLEVELAND County NC
Realist's most recent recording date for this county is 03/18/2009
 Single Family Residence
 Time Period Number of Sales Median Sale Price 
 Feb 2009 27 $89,000 
 Feb 2008 76 $91,000 
 Jan 2009 42 $94,250 
 Jan 2008 73 $95,000 
 2009 YTD 94 $94,250 
 2008 843 $99,000 
 Condominium
 Time Period Number of Sales Median Sale Price 
 Feb 2009 - $- 
 Feb 2008 - $- 
 Jan 2009 - $- 
 Jan 2008 - $- 
 2009 YTD 1 $100,000 
 2008 2 $161,000 

Posted by Philip Jernigan, SRA on April 10th, 2009 8:58 AMPost a Comment (0)

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Grass watering
April 8th, 2009 9:12 AM

Go Green - Water Your Lawn Less and Reap the Eco-Benefits

By Beth BottsPrint Article Print Article

lawn-webRISMEDIA, April 8, 2009-(MCT)-With Earth Day just around the corner (April 22), many of us are thinking of ways in which we can live a greener lifestyle. Now that spring has arrived, one of the best ways to go green at home is to use less water in both your yard and garden. 

April brings showers and showers revive grass, but soon thereafter, people start showering their lawns.

The average lawn rarely needs to be watered, said Bruce Augustin, chief agronomist for Scotts Miracle-Gro Co., a garden products company. Many homeowners think they have to water their lawns because everybody does it, Augustin said. Yet federal research shows only about 15% of homeowners actually do, and the other 85% still have lawns. Here’s why - even if you and your grass are completely hooked on the sprinkler - you can (and should) start weaning your lawn.

For example, the Chicago area gets about 36 inches of rain a year on average; its grasses need about 43, Augustin said.

Overwatering is bad for your grass. It encourages weak, stunted roots that can’t keep the grass alive when the weather gets dry. It fosters fungus diseases and provides a perfect home for root-munching grubs.

Too much watering also pushes grass to grow faster. Lay off the sprinkler and you can mow less often.

What happens to water that your grass doesn’t need and can’t soak up? It runs off into storm drains and, combined with sewage, increases the load on treatment plants. If you’re also overfertilizing, as many people do, the runoff can carry nitrogen and phosphorus that pollute rivers and lakes.

There are other environmental costs that come with watering your lawn too much. The water from your outdoor faucet had to be taken from either a lake or a well; filtered; treated with chemicals to make it safe enough to drink and pumped to your house, at a cost in energy as well as tax dollars. Using potable water for lawns is wasteful, and “your lawn doesn’t really need fluoride,” said Debra Shore, commissioner of the Metropolitan Water Reclamation District of Greater Chicago.

In a world in which fresh water is growing ever more scarce, those of us blessed with an abundance of it “have a moral obligation to show that we are using it wisely and carefully and respectfully,” Shore said.

Here are some tips to keep your lawn happy and be conscious of the environment at the same time:

Mow it high - It’s the single most powerful thing you can do to get a lawn that uses less water, has fewer weeds and needs less fertilizer: Set your mower as high as it will go and leave it there.

Short grass is weak and needy. Taller grass - 3 to 4 inches - grows deep roots that absorb water and nutrients efficiently, collects more life-giving sunlight and shades or crowds out many weeds. Taller grass doesn’t mean you will have to mow more often, but when you do, leave the clippings on the lawn to return moisture and nutrients to the grass.

Get a rain gauge - Knowing how much rain has fallen will reassure you that you don’t need to water. When tempted to water your lawn, get a trowel and dig out a plug of lawn. If the soil is moist within the plants’ root zone, 3 or 4 inches down, leave the sprinkler in the garage.

Get sturdy grass - Fescues are tough and thrifty with water. Usually fescue seed is mixed with bluegrass, which is less drought-resistant but finer and spreads to knit the lawn together. Use a fescue-rich mix to seed or overseed. If your lawn is all bluegrass, overseed yearly with fescue.

Establish grass well - The only time to water your lawn every day is when you have scattered seed, in early spring or early fall, and are waiting for it to sprout. A brief sprinkle will do, just enough to keep the seed moist. Spread mulch to hold the water around the seed.

Embrace summer dormancy - Grass naturally quits growing and dries out in the hottest part of summer, then revives and greens up when fall rains come. Go with the flow rather than watering to force the grass to stay all-green, and you’ll save water and escape mowing under the hot August sun.

Water long and deep - When you do water your lawn, run the sprinkler long enough to lay down the equivalent of 1 inch of rain. (Use a rain gauge to check). Don’t water again until your trowel test tells you the grass needs it.

Fertilize, but not too much - A good lawn does not require the heavily advertised five-times-a-year fertilizing schedule. An application of slow-release fertilizer once in spring and once in early fall is enough.

Work on the soil - Top-dress the soil with screened compost at least once a year to foster the rich ecosystem of underground organisms that delivers nutrients to roots and makes soil great.

© 2009, Chicago Tribune.


Posted by Philip Jernigan, SRA on April 8th, 2009 9:12 AMPost a Comment (0)

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Bank Information
April 3rd, 2009 8:41 PM

European Banks Favouring Lending Against Prime Real Estate Assets

Edited: Jennifer Brenner Andrade
Source: Cushman & Wakefield

A survey of 83 of the largest European banks by Cushman & Wakefield has found that although 59 per cent are effectively closed to new business and are not lending against commercial real estate, there is appetite from the remainder for lending against well let prime assets with established borrowers.

In the survey, of the 22 that are lending to new clients, many have caveats regarding how much they would lend and to whom. Conditions include the investor having a proven track record with a pipeline of deals or having a minimum net worth. Of these 22 lenders, half preferred deals involving lot sizes of less than £20m with the rest able to finance deals as much as £50m.

In addition to the decline in the number of lenders, loan-to-value ratios have also fallen demonstrating that banks are demanding less risk in acquisitions. In the UK the ratios are 60-70 per cent down from 80-85 per cent before the economic downturn. In Western Europe the ratios are 50-60 per cent down from 85-90 per cent.

Ed Daubeney, partner in Cushman & Wakefield’s corporate finance team, said: “The credit crunch has significantly reduced the availability of debt financing for property transactions and some banks who are over-exposed to the property market have effectively withdrawn from writing new business. The balance sheet lenders that are still lending to the market now have far stricter loan criteria and are demanding higher margins and lower loan to value ratios. There are however pockets of capital available for the right deal. Market dynamics will lead decision making and banks will focus on lending to experienced borrowers on prime properties let to investment grade covenants on long leases in Western Europe and other core markets.

“We consider there to be up to 15 lenders who are actively lending to new clients without many pre-conditions. There is a distinct "flight to quality" in the current debt market. You can still arrange funding for experienced borrowers for prime assets with long leases let to investment grade covenants.”

The lack of lending against commercial property has led to a huge fall in the volume of completed deals. Global investment in commercial property fell 59 per cent in 2008 to $435bn down from 2007’s record total of $1,050bn. This was the lowest annual total since 2004 with a significant decline in investment from foreign investors. Figures from Cushman & Wakefield’s Investment Atlas 2009 also predict that volumes will fall again this year to around $412bn.


Posted by Philip Jernigan, SRA on April 3rd, 2009 8:41 PMPost a Comment (0)

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