HomeTowne Realty has recently acquired access to the Fayetteville North Carolina Real Estate Market.  If you are looking for a home around the Fayetteville area, click our Homes for Sale button. 

To better assist you, we have realtors who specialize in that Fayetteville real estate market.  Let us know what you are looking for and we'll see what we can find for you.

The 20 Healthiest Housing Markets for 2010
Which housing markets are the best bets to recover first? We present our annual list of the 20 healthiest housing markets in the country.
By: Boyce Thompson
 
Housing economists have long held that the housing rebound, when it comes, will be uneven. The markets that benefit first will be the ones with the strongest core dynamics; places where house prices never got out of hand, cities where a diverse and progressive employment base drives job creation, towns that continue to draw population despite the economic recession.

Now that the housing recovery is nearly upon us--most economists expect a full-fledged recovery to begin this year--it's time to figure out which markets will be the front-runners. Based on last year's performance, especially the level of building permits pulled in the fourth quarter, it's already clear that some markets are poised to grow at a faster pace this year than others in 2010.

Green shoots may be sprouting in markets throughout the country, but which markets will flower first? That's the question we attempt to answer with the Builder Market Health Index, compiled by Hanley Wood Market Intelligence, our market research arm. Market Intelligence (MI) first input 2009 data and 2010 projections for household formations, resale values, and job and income growth. Then, after sprinkling in some secret sauce to weight these drivers, it ranked by health the top 100 housing markets (determined by permits pulled in 2009).

Not surprisingly, many of the markets that topped our 2009 list are on the 2010 leader board, including most of the major markets in Texas, where low development costs kept a lid on house prices during the boom, and strong local economies provided a cushion from the blow of a national recession.

But Lone Star markets were eclipsed this time around by some relatively hot markets in the Carolinas, which accounted for seven of the top 20 spots. Many of the major cities along the Mid-Atlantic seaboard continue to benefit from a strong influx of people drawn by a comfortable way of life, affordable housing, and growing employment prospects.

As with last year, markets that hit the trifecta--having within their borders a state capital and a big university along with a diversified economy--dominate our list of hottest markets. A strong base of government employment, whether it be from the state or the military, has helped stabilize some markets through the housing recession. In many cases, the government is the biggest employer among the 20 markets on our list.

We present this data with one big caveat. These markets may be healthier than others, but they aren't healthy in the way they were during the housing boom, when it was common to find rising population, employment, and income. Virtually every housing market still has at least one blemish. And for that reason only two received a rating of 50 or more, indicating they are truly healthy. That's an improvement, though; only one scored 50 or higher last year.

Hanley Wood Market Intelligence, which took into consideration forecasts from Moody's Economy.com and other sources, is looking for several of these healthiest markets to break out this year. A few of them witnessed dramatic increases in building permits pulled in the fourth quarter of last year, momentum that is expected to carry over into 2010. Several of the markets on this list are poised for double-digit growth.

Taft Woods West is a section in Flowers Plantation.  A luxury home community with walking trails, community pool.  Close to gym and shopping.  Excellent school in western Johnston County.

THE AUCTION SCHEDULED FOR 79.49 ac. on BUCKHORN RESERVOIR IN WILSON ON SAT., FEB. 13, 2010  HAS BEEN RESCHEDULED TO SAT., FEB. 20, 2010 AT 12 NOON. CALL GARY COBB AT 919.625.9856 (NCAL 3307) FOR MORE INFORMATION.

What goes up must come down...

Most markets are in decline as a result of the economic recession, problems in the mortgage markets and a hangover from the subprime mess.  After years of a strong sellers’ market, sellers were reluctant to recognize the change in affordability as mortgage rates began to creep up in the middle of 2005.  As financing and demand dried up, sellers were forced to re-evaluate their asking prices in an environment of excess supply and economic pessimism.  The delay to re-price exacerbated the price correction.

Looking back on the real estate market in 2009 we find the second quarter, or spring market, had a 32% decrease of closed sales compared to the same time in 2008. 

According to the Triangle MLS data, there were 21,983 closed transactions in all of 2009, down 11% from 2008.  Overall in 2009 there has been a 6% drop in the average sales price.

Tracking the showings of seller listings, can help homeowners see how many buyers are actually out looking at houses, which helps predict future sales.  In April 2009 there were 71,883 showings for the entire Triangle area but in December 2009 there were only 33,602.

Unemployment has complicated our housing market recovery.  When the bottom of our market has been clearly defined, consumers are more likely to gain the confidence that they need to get in the market.

We will keep watching the showings on listings and number of pending transactions each month.  The pendulum will shift and we’ll be watching and reporting.

HomeTowne Realty is proud to announce today that it has acquired the residential real estate arm of ReMax Classic.

“Purchasing ReMax Classic was a business decision that will benefit all of HTR,” said Barry Woodard of HomeTowne Realty. “We will definitely fill a void in the 42 East area which will make us more accessible and convenient to our current client base as well as ReMax Classic clients.”

HomeTowne Realty, founded on family values and small town know how,  has expanded its reach and has become a major player in this area’s real estate market. With offices located in Smithfield, Garner, Benson, 40/42 and Clayton and more than 100 agents, HTR’s market share has grown. HTR’s new internet marketing plan is second to none and is a proving resource for our builders and sellers alike.

James Lipscomb of HTR said for home buyers and sellers, the deal will not create obvious changes. The ReMax Classic office in Flowers Plantation will remain intact at the present time. “The ReMax signs will come down, and the HTR signs will be going up soon," Lipscomb said. "Those people that own the houses listed with ReMax Classic will be informed of the changes to make sure they agree to bring their listings over to HTR."

HTR and ReMax Classic are upbeat about the merger and are excited to be working together and know that it will bring more exciting opportunities to our group.

"We are looking forward to a really good year, and are excited to get started,” said Woodard.

According to Daniel Nunes of Suntrust Mortgage, the government has not fully announced or rolled out just yet the following but it seems as though this is a good indication of what is to come in the next few days.  In short and to highlight:

It looks as though the down payment will STAY THE SAME at 3.5% pending credit score!  This is great news…  as you read the article however and come across the 580 credit score remember that just about 99% of all Mortgage Lenders are carrying an overlay to the FHA Guideline requiring a 640 minimum credit score, and NO I can’t even tell you of the possible 1% that may be willing to go with a 580.  (I state 99% because stating 100% may get me in trouble J).
Seller concessions will more than likely drop to 3% from 6%.  This will increase the amount a borrower/buyer will need to bring to the table in most situations.  So…….  They leave the down payment requirement alone however they take away 3% of the seller concession.  Cat and mouse as it all comes down to the assets of the borrowers.  With that said I would prefer this way as a lender because I can help your customers with cutting fees, reducing originations etc. if needed where the deal is tight.
UFMIP (Up Front Mortgage Insurance Premium) will be INCREASED from 1.75% to 2.250%.  This is the fee that FHA allows the borrower to roll into the loan amount without penalty against the LTV (Loan To Value).  This fee is a cost from FHA and NOT the lender to insure the loan.  Its main purpose is to help reduce the MONTHLY MORTGAGE INSURANCE PREMIUM making FHA a better loan from a qualifying perspective than a standard Agency 30 yr fixed conventional.

You can reach Daniel Nunes at 919.523.2816 or daniel.nunes@suntrust.com

Harder to get an Uncle Sam mortgage
By Tami Luhby, CNNMoney.com
It's going to be harder to get a government-backed mortgage from now on. Looking to shore up its weakening finances, the Federal Housing Administration is set to announce stricter standards on Wednesday.

The agency, which insured nearly a third of new mortgages in 2009, will increase the premium it charges for its mortgage insurance and require those with weaker credit scores to come up with larger downpayments.

The FHA will also reduce the amount of money a seller can provide a homebuyer for closing costs, as well as tighten its enforcement of lenders.

"Striking the right balance between managing the FHA's risk, continuing to provide access to underserved communities, and supporting the nation's economic recovery is critically important," FHA Commissioner David Stevens said in a statement. "Importantly, FHA will remain the largest source of home purchase financing for underserved communities."

FHA loans have skyrocketed in popularity during the mortgage crisis since the agency backstops banks if borrowers stop paying. But housing experts are growing increasingly concerned about the agency's ability to handle rising numbers of defaults. (Cash cushion shrivels for FHA.)

In November, the agency reported that its reserve fund has dropped to .53% of its insurance guarantees, well below the 2% ratio mandated by Congress and the 3% ratio it had last fall. The fund covers losses on the mortgages the agency insures.

Federal housing officials, who took several steps to shore up the agency's finances last year, promised to do more. The new announcement is the latest set of changes to FHA policies.

What the new rules mean

The agency will increase its up-front mortgage insurance premium to 2.25%, from 1.75%. It will also ask Congress for the right to hike its ongoing premium, currently between .5% and .55% monthly.

The FHA will also require borrowers to have at least a credit score of 580 to qualify for the agency's 3.5% downpayment program. Those with lower scores will have to pay at least 10%. However, this rule may have little practical effect since Stevens recently said the average borrower score is 693.

The new policy also will reduce the amount of money sellers can provide to homebuyers at closing to 3%, down from 6%, of the home's price. That change will bring the agency in line with industry standards and remove the incentive to inflate appraisals.

Finally, officials plan to clamp down on lenders offering FHA mortgages. It will more closely monitor their performance and compliance with agency rules, as well as seek legislative authority to require mortgage firms to assume liability for all loans they originate and underwrite.

One thing the agency did not do is to broadly increase the downpayment requirement. Many industry observers said such a step is necessary to reduce the risk the FHA faces.

Agency plays crucial role

As banks have clamped down on mortgage lending, the FHA program has emerged as one of the few ways people can buy a home.

Banks are more willing to make FHA loans because they come with a federal guarantee to cover losses if the borrower defaults. And borrowers can more easily qualify for FHA loans because they only need 3.5% down and can have lower credit scores.

As a result, demand for FHA loans has exploded. The agency guaranteed more than $360 billion in single-family mortgages in fiscal 2009, which ended Sept. 30, more than four times the volume in 2007.

The agency insured about 30% of home purchases and 20% of refinanced mortgages in 2009. Nearly 50% of first-time homebuyers go through the agency.

The agency, however, has also seen a spike in delinquencies amid the mortgage meltdown. Some 14.36% of FHA loans were past due in the third quarter, according to the Mortgage Bankers Association. This compares to 9.64% of all loans.

HomeTowne Realty is proud to announce their Cleveland Area office at 40/42 has been named Real Estate Office of the Month by the Johnston County Association of Realtors. 

HomeTowne Realty contributed to the MeFine Foundation, Inc. during 2009.  Lisa Valentino, Executive Director of MeFine Foundation, has personally thanked HomeTowne Realty for their support.  She wrote the following.

"On behalf of the MeFine Foundation, Inc., I would like to thank you for generously donating $3,775 towards our Selling for the Kids' Campaign during 2009.  Because of your contribution, families with children facing a devastating medical crisis are able to receive financial assistance and to sustain the loss of income from the dramatic lifestyle changes faced during the treatment process.

This month, loyal supporters like you made it possible for MeFine to provide tremendous relief to deserving families experiencing dire situations.  In general, MeFine receives desperate requests that proceed similarly as ... "we have gotten behind in our bills and are facing foreclosure tomorrow"; "we're running out of groceries, can you help?"' "we have no transportation to the hospital for my child's outpatient treatment"; "we can't proceed with our child's service until we pay the funeral home".

Since September of 2004, we have helped nearly 500 families with specific financial needs brought about by very long and unexpected hospital stays, high medical costs, and other expenses associated with long-term care."

HomeTowne Realty recognizes the need to support our community and are happy to help such a worthy non-profit agency.

HomeTowne Realty has launched a Builder/Developer Services (BDS)/New Homes Division and has struck a deal with the Fred Smith Company to market the LionsGate Community.

Cassondra Liles of HomeTowne Realty will head the division and states that, “this is an exciting time for our company. With this new division we can offer a much stronger marketing presence to our current builders and are better positioned to support those with whom we have not yet developed a relationship. With this new partnership with the Fred Smith Company we feel we have the credibility to approach other builders in our community to propose our marketing plan to them.”
"Cassondra is a seasoned real estate professional that concentrates her services on the Clayton/Garner area. As a top producer in our community and a certified e-Pro Realtor she is dedicated to providing high-tech/ high touch professional service to our clients” according to Pandora Pearson, Broker-In-Charge/Partner, HomeTowne Realty Garner.

LionsGate is a planned urban development in the heart of Clayton offering many onsite amenities including a fitness center, pool with a beach entry area and spray ground for children, a waterslide and lazy river. Likewise, there is an onsite child development center and future plans for a shopping area. All yard maintenance is taken care of by the home owners association and is part of the monthly dues. Homes range from the $150’s to the $250’s with many ranch and first floor master plans. Onsite office hours are 10 am – 6 pm on Saturdays and 1 pm – 6pm on Sundays.
Barry Woodard, co- founder and co-owner of HomeTowne Realty comments that, “" We look forward to this unique opportunity to represent LionsGate. It is such a diverse, yet custom, community. Our staff and Agents are up to the challenge of making this a rewarding experience for both HomeTowne Realty and Fred Smith Company."