Coastal Real Estate Market Improves

Bill Hitchcock

IBL Newsletter
HEADLINES:
- Big gains for coastal NC real estate
- Has the bottom already fallen?
- North Carolina mortgage rates still under 5.5%
- Stocks Rise After Home Prices, Bernanke Announcements

Coastal Real Estate Market Improves. Has the bottom already fallen?
Inner banks

Sometimes the facts can not only be surprising, but pleasant. I was researching the data bases for the Neuse River Board of Realtors and the Crystal Coast Board of Realtors. I wanted to see what lot prices were doing over the past three months.

Inner_Banks_8_25_09

Sidebar: I like using three month time periods for monitoring coastal NC real estate. The four seasons have a great impact on our market place.

I was delightfully surprised to see that sold prices for lots have actually risen in both markets when compared to 2008. This is great news! It shows a confidence level and willingness not seen since 2005.

Inner_Banks_Price_8_25_09

It also means that if you have been fence sitting about purchasing a lot-You may want to do it now. Everyone seems to want to wait for prices to bottom out before they buy. But the only way you can know when a market has bottomed out is after the fact.
Is it now, “After the fact?”

Average Rate 5.45% in North Carolina
Aug. 25, 2009 (Bankrate.com) — Average rates on 30-year fixed mortgages in North Carolina rose 4 basis points to 5.45 on Tuesday, according to Bankrate.com’s daily Your Best Interest report. A basis point is one-hundredth of a percent. The mortgages in the survey had an average of 0.71 discount and origination points.

A 30-year fixed mortgage is a loan that has an interest rate that stays the same for the 30-year term of the loan. Someone taking out a $165,000.00 30-year fixed mortgage at the current average would pay $931.68 a month for the life of the loan.

The highest rate in North Carolina on a 30-year fixed mortgage was found at one institution that charged 10.000 percent. The lowest rate was found at four institutions that charged 4.750 percent. Six months ago, the average rate in North Carolina was 5.21 percent.

To see all of the results of Bankrate.com’s surveys, go to www.bankrate.com.

Stocks Rise After Home Prices, Bernanke Announcements
By Emma L. Carew
Washington Post

Major stock indexes were up in early trading, investors encouraged by better-than-expected reports on home prices and consumer confidence paired with President Obama’s announcement to nominate Federal Reserve Chairman Ben S. Bernanke for a second term.

“….for the second month in a row, home prices rose, up 1.4 percent in June over the month before.”

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Author’s Yougler Profile is at  Bill Hitchcock.

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