The Latest on the Housing Stimulus Plan!

While the Stimulus Plan does not include the proposed $15K tax credit for ALL homebuyers (as many of us had hoped for), there are still some great measures to help the housing industry and homeowners.

Read the Latest (White House papers) here!

Dianne Dunn

www.NewBernHomes.com

Search ALL New Bern Listings Here

Subscribe to New Bern Homes Blog Cast by email:

New Bern Market Comparison

According to NAR® surveys, the total existing-home sales fell 6.4 percent to 4.70 million units in the fourth quarter of 2008 from 5.02 million units in the third quarter. They were 5.9 percent below the 5.00-million unit pace recorded in the fourth quarter of 2007.

Home sales rose in only six states, while distressed sales, including foreclosures and short sales, accounted for 45 percent of all transactions during the fourth quarter.

Nevada led all states with an increase in sales of 133.7 percent in the fourth quarter from a year ago. California, Arizona and Florida followed with sales gains of 84.7 percent, 42.6 percent, and 12.5 percent, respectively. These were also the states that had the steepest declines in single-family home prices during the housing market downturn.

The national median price of existing single-family homes was $180,100, down 12.4 percent from the median price in the fourth quarter of 2007.

The most affordable metro area was Saginaw, Mich., where the median home price was $43,900. The least affordable place was Honolulu, with a median home price of $610,000.

For our Local New Bern area market, the chart shows the number of homes Sold from January 1, 2009 thru Feb. 18, 2009, compared to the same time-frame in 2008.

The Good News is, . . . while the number of home sales fell from 152 to 94, the median price range has managed to squeek out a modest appreciation!

So, if you're considering a move, a second home or an investment property, this is a great time to buy! The interest rates are still at all-time lows, and we have a nice inventory to select from!

Dianne Dunn

http://www.newbernhomes.com/

Subscribe to New Bern Homes Blog Cast by Email

Search ALL New Bern Listings

Instant Stress-Busters for Healthy Living!

Are we stressed out as a nation today?


We seem to so much going on in our lives, and the media is full of economic crisis. A good real estate friend of mine, Alice Held, shared the following article from Reader's Digest, and I would like to share it with you!


Click here for 79 Instant Stress-Busters, to start your week - Enjoy!


Dianne Dunn

www.NewBernHomes.com

Search ALL available properties in New Bern!

Subscribe to New Bern Homes Blog Cast by Email

Real Estate Outlook: What's in Store for 2009?

I just read an article by a long-time columnist, Ken Harney, and he says that while it's easy to look at all the negataive economic news in the headlines and say that there's no sign that 2009 is going to be much better than 2008, there's a different perspective to consider.

A vereran financial analyst, Richard Bove of Ladenburg Thalmann, an investment banking company said that he sees a positive dynamic taking shape in the current cycle, and I must agree with him.

The government has intervened aggressively in the markets to push interest rates down -- most notably in the home mortgage sector. Though it takes awhile for low-cost money to begin having its effect, Bove said he expects "housing prices to stabilize and/or rise (in 2009) after a likely boom in mortgage refinancings as rates fall and loan applications increase."

While I disagree with him about housing prices rising in many areas of the country just yet, I would expect that they WILL stabilize, and we'll start to move some of the inventory that we currently have, which is about three times the inventory of homes that we had on the market in New Bern in the early and mid 2000's.

Coupled with the economic Stimulous package that's being put together on Capital Hill -- there's a good chance we're going to see a gradual transformation of the downward cycle into a slow rebound over the coming several quarters.

I met a mortgage banker today in one of the local stores. He said that mortgage applications are off the charts right now, with about 80% in refinances, and still another 20% in new loans, where people are taking advantage of the affordable prices and the low interest rates.

Rates continue to hover at 50-year lows - five percent and even four and three quarters percent for 30-year mortgages, and still lower for 15 and 20 year mortgage terms. Plus, we're all paying a lot less at the gas pump, and sharply discounted prices for retail goods and autos.

And guess what else Ken Harney says? Americans are actually SAVING again, -- the national savings rate took a nearly three percent jump last month. That might sound small, but it's hugely important if it is the start of a trend.

There are also some signs that housing prices are stabilizing in some parts of the country. The latest monthly Federal Housing Finance Agency index found home prices UP by six-tenths of a percent in the Mountain states and UP by two tenths of a percent in New England.

You can ridicule small regional gains as statistically irrelevant, but here's an economic proposal to you for the New Year: Keep your eyes open for the small positive signs that are accumulating out there … because all downcycles tail off and come to an end.

The smartest players in real estate -- consumers and the industry - will make the most of the positives -- low-cost money, low prices, stabilizing local markets -- and thrive in the new year!

Dianne Dunn

Click here for information on New Bern.

To search our MLS for ALL available properties, www.SearchNewBernMLS.com

$15,000 Tax Credit Proposed by Senate!

Several economists have said that the condition of the housing industry is a major factor in leading the way to providing more jobs and improving the economy. While I'm not a trained economist and I don't have a crystal ball, after 33 years in the real estate business, it certainly makes logical sense to me!

Why? When people are buying homes, it's not only the Realtors® who are earning a living, -- jobs are created for builders, subcontractors, plumbers, electricians, carpenters, roofers, appraisers, inspectors, loan officers, and many other trades and professions.

As these professions and trades are earning a living, then they'll be spending money in numerous other areas that also create new jobs, - the retail industry, automotive industry, food chains, medical professions, etc.

The US Senate unanimously passed a bipartisan amendment last night, (offered by two senators --one Republican and one Democrat) to the Economic Stimulus Bill, creating a $15,000 tax credit to individuals who purchase a home in the next year.

While the final details are still being debated, the key parts are:

• The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less.
  
• The bill applies to ANYONE purchasing a home within the next year.
  
• Must be principal residence.
  
• Purchases must be made within one year of the legislation’s enactment.
  
• Tax credit would NOT need to be repaid, unless the home is sold within 2 years of purchase.
  
• The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

I encourage you to voice support for this amendment, by contacting your Senators and Congressmen: Click on the following link, enter your zip code and your US Senators and Representative names will appear:

http://www.congress.org/congressorg/home/

While there could be several revisions before (or if) this bill passes the House and is signed by the President, it could certainly be a bright spot for the real estate undustry and the economy!

Dianne Dunn

Keller Williams Realty

www.NewBernHomes.com

www.SearchNewBernHomes.com

Local New Bern News - Market Update

This column is customized each month so that I can share with you, the current monthly statistics. Please feel free to contact me if you have any questions! Or, visit my website at www.NewBernHomes.com

HOMES SOLD (Closed), January 1 through January 31. (From NB Board of Realtors MLS System)
Under $100K = 7
$100K-$159,999 = 13
$160K-$199,999 = 10
$200K-$249,999 = 8
$250K-$299,999 = 2
$300K-$399,999 = 6
$400K - $499,999 = 1
Over $500,000 = 2

Total January 2009 = 49
Total January 2008 = 97
Total January 2007 = 144

NEIGHBORHOOD PROPERTIES "SOLD"

NEIGHBORHOOD PROPERTIES "FOR SALE"

For the BEST Internet Marketing, and the Most Responsive Service in New Bern, Contact DIANNE!
Email Dianne
(252) 636-3301 or Toll Free: (888) 781-8800

It's SNOWING in New Bern North Carolina!

Wow! . . . what a beautiful scene, and it's soooo unusual for our area of Eastern North Carolina.

Tomorrow is supposed to be warmer and sunny, so I'm enjoying it while it lasts! ;-)


CLICK HERE to see a short video:


Dianne Dunn
www.NewBernHomes.com

Fabulous CyberStar Real Estate Convention!

Just returned from my 8th CyberStars Summit this past week in Phoenix/Scottsdale, Arizona. I always consider this annual event to be THE BEST real estate seminar or conference, (and I’ve attended numerous real estate seminars/classes and conventions over the past 30 years!)


It was really awesome to see so many top-producing friends again (from many different companies), and to meet new ones. It’s an annual educational/learning event, attended by Cyberstars™ who are passionate about real estate, and we all share new ideas with a positive attitude, about ways to help the housing industry. Real estate should still be your first and most important investment strategy!

The Cyberstars™, founded by Allen Hainge in 2001 with 4 original members, has grown to approximately 200 real estate agents from the United States, Australia, Bahamas and Canada. It's a very exclusive group “by-invitation-only”, and I’m very honored and proud to be affiliated since 2002. There are only 7 Cyberstar™ Realtors® in all of North Carolina and I am the only New Bern area member. Each CyberStar™ member must:

• Be a Top-Producing Realtor® in his/her marketplace.


• Demonstrate a commitment to the use of technology and a custom website, to better serve their clients.
  
• Share real estate technology ideas, tips and strategies with other CyberStars™.

The end result: Better client service, more productivity, sharing of knowledge, and more fun!

CLICK HERE to view ALL CyberStars

I'm always amazed to be in a large room with top Realtors® sharing real estate and business technology and ideas, in a very fast-paced learning environment. Every Realtor® in the room had a laptop PC and it's awesome to see over 110 PCs in one room!

Over time, I will be sharing some strategies and tips that I have learned, and have already implemented a few. Watch my BLOG for exciting CyberStar™ idea implementations.

SIGN UP HERE to subscribe to the New Bern Blogs as they are posted - it's easy!

Tour New Bern on my website: www.NewBernHomes.com

Search ALL property listings in the New Bern MLS area:

Feel free to email me with any questions - I'd be delighted to hear from you!

Dianne, (charged and excited about 2009!)

Local New Bern News - Market Update

This column is customized each month so that I can share with you, the current monthly statistics. Please feel free to contact me if you have any questions! Or, visit my website at www.NewBernHomes.com

HOMES SOLD (Closed), December 1 through December 31. (From NB Board of Realtors MLS System)
Under $100K = 6
$100K-$159,999 = 30
$160K-$199,999 = 10
$200K-$249,999 =14
$250K-$299,999 = 6
$300K-$399,999 = 7
$400K - $499,999 = 2
Over $500,000 = 4

Total December 2008 = 79
Total December 2007 = 119

NEIGHBORHOOD PROPERTIES "SOLD"

NEIGHBORHOOD PROPERTIES "FOR SALE"

For the BEST Internet Marketing, and the Most Responsive Service in New Bern, Contact DIANNE!
Email Dianne
(252) 636-3301 or Toll Free: (888) 781-8800

Happy New Year - State-of-the-Market!

Happy New Year, Everyone!

While 2008 has been a very challenging year for real estate and our economy, Eastern North Carolina continues to be a favorite place for relocation, retirees and second homes. For most of our out-of-state buyers, their biggest concern is selling their current home first.

Total Number of Homes Sold in 2008 was 1457, which is down 26% from 2007.

Total Days on the Market (average) went from 102 in 2007 to 151 in 2008.

While the "average" sales price for the entire MLS was +3%, several neighborhoods and areas have experienced depreciating prices.

We have a large inventory of properties on the market for sale, so it's definitely a Buyer's Market here!

View ALL New Bern Listings here! Or, contact our team

Dianne and Team

List Now? . . . or Wait til Spring?

Many prospective home sellers have asked that same question: "Should I list my house NOW? . . . or wait until Spring?

The answer really lies with the seller's personal goals. For example: Do you have definite plans to move soon? Is there a specific date for your business transfer? If there's no urgency, then it really doesn't matter.

However, if you need to move quickly, then consider these factors:
1. Inventory - How many other sellers are waiting until the spring? If you list NOW, you will have less inventory to compete with in March, April or May!

2. Motivated Buyers - Many buyers will often wait until spring to start their search, also. The buyers who are house-hunting through the holidays are serious buyers!

3. Interest Rates - Rates for home mortgages are currently at a 4-year LOW, so smart buyers are searching now!

4. Accomplish your Goals Now - When all is said and done, wouldn't you rather have your house sold by March or April and move on with your personal plans? By listing now, you are positioning yourself to accomplish your goals sooner than later!

5. Reverse Fear - While I don't buy into the media's doom-and-gloom, there's always a risk that the housing market could deteriorate more, instead of improving by the middle of 2009. By listing now, you avoid that extra layer of uncertainty!

View ALL New Bern Listings here! Or, contact our team

Happy New Year!
Dianne and Team

5 Reasons for Buyers to get off the Fence!

We are witnessing some great opportunities in the New Bern real estate market, that have not been seen for years! If you are one of those buyers who are "sitting on the fence", it's time to cross over and accomplish your goal. Why now?

1. Mortgage Rates are near all-time LOWS! One lender just quoted 5% for a 30-year fixed rate loan. Yes, rates may trend lower, but there's no guarantee for how long.


2. Large Inventory to Choose from! Our New Bern market has nearly 3x the inventory that we had a few years ago, so there's a great selection, and buyers are in a better position now to negotiate their best terms. As soon as the inventory starts to decline, negotiations will be more favorable to sellers.


3. Inspections: This is the time when sellers are more willing to negotiate for repairs or offer financial concessions for inspection items. When the market turns, there will be many more sellers who will not be as liberal with concessions. Why? There will be less inventory, and more buyers who are interested in their property.


4. Time of Year: Many sellers believe that activity falls over the holidays and winter season, so now is the time for "serious buyers" to act, to get their best terms!


5. Tax Credit, $7,500 for First-Time Buyers! ( See our prior post on this tax credit). Buyers have until June 30, 2009 to close on a property and take advantage of this incentive. Yes, it is an interest free loan but how often does that ever happen ?

No one has a "Crystal ball" to time the exact bottom of the market (wish we did!). However, I know from over 30 years of real experience that when the market turns around, it's generally quick, and buyers only recognize it as they chase the market back up!

View ALL New Bern Listings here! Or, contact our team for more information on how we can help YOU achieve your goals!

Wishing you all a Happy Holiday season and a wonderful New Year!

Sincerely, Dianne and Team

Local New Bern News - Market Update

This column is customized each month so that I can share with you, the current monthly statistics. Please feel free to contact me if you have any questions! Or, visit my website at http://www.newbernhomes.com/

HOMES SOLD (Closed), November 1 through November 30. (From NB Board of Realtors MLS System)
Under $100K = 8
$100K-$159,999 = 22
$160K-$199,999 = 18
$200K-$249,999 = 8
$250K-$299,999 = 4
$300K-$399,999 = 3
$400K - $499,999 = 0
Over $500,000 = 1

Total November 2008 = 64
Total November 2007 = 121

NEIGHBORHOOD PROPERTIES "SOLD"

NEIGHBORHOOD PROPERTIES "FOR SALE"

For the BEST Internet Marketing, and the Most Responsive Service in New Bern, Contact DIANNE!
Email Dianne
(252) 636-3301 or Toll Free: (888) 781-8800

Wishing you a very Merry Christmas and a Happy and Healthy New Year!

Sincerely, Dianne and Team

Local New Bern News - Market Update

This column is customized each month so that I can share with you, the current monthly statistics. Please feel free to contact me if you have any questions! Or, visit my website at http://www.newbernhomes.com/

HOMES SOLD (Closed), October 1 through October 31. (From NB Board of Realtors MLS System)

Under $100K = 15
$100K-$159,999 = 26
$160K-$199,999 = 23
$200K-$249,999 = 13
$250K-$299,999 = 6
$300K-$399,999 = 3
$400K - $499,999 = 4
Over $500,000 = 4

Total October 2008 = 94
Total October 2007 = 128

NEIGHBORHOOD PROPERTIES "SOLD"

NEIGHBORHOOD PROPERTIES "FOR SALE"

For the BEST Internet Marketing, and the Most Responsive Service in New Bern, Contact DIANNE! Email Dianne (252) 636-3301 or Toll Free: (888) 781-8800

Local New Bern New - Market Update

This column is customized each month so that I can share with you, the current monthly statistics. Please feel free to contact me if you have any questions! Or, visit my website at http://www.newbernhomes.com/

HOMES SOLD (Closed), September 1 through September 30. (From NB Board of Realtors MLS System)

Under $100K = 16
$100K-$159,999 = 32
$160K-$199,999 = 22
$200K-$249,999 = 13
$250K-$299,999 = 13
$300K-$399,999 = 6
$400K - $499,999 = 7
Over $500,000 = 3

Total September 2008 = 112
Total September 2007 = 150

NEIGHBORHOOD PROPERTIES "SOLD"

NEIGHBORHOOD PROPERTIES "FOR SALE"

For the BEST Internet Marketing, and the Most Responsive Service in New Bern, Contact DIANNE! Email Dianne (252) 636-3301 or Toll Free: (888) 781-8800

What Constitutes a Buyers' or Sellers' Market?

Several people have asked me “What’s constitutes a Buyer’s and a Seller’s Market?” With over thirty years of full-time real estate experience, I’ve witnessed this type of shifting market in the early 1980’s, and I’ve recently attended a seminar on this subject. Here’s a recap of the most common characteristics:

Sellers’ Market:
· Fewer properties on the market for sale.
· Multiple buyers bidding for the same property.
· Inventory consists of 4 months or less.
· Prices are driven up by the market.

Buyers’ Market:
· Many properties on the market for sale.
· Buyer’s have a wide choice of selection.
· Inventory consists of 6 months or more.
· Prices are driven down by the market.

When the current inventory takes an average of four to six months to sell, it’s considered a “Balanced Market.” This is a transitional period between the buyers’ and sellers’ market and is generally short-lived.

While condition and “staging” are always important with the sale of any home, it’s not quite as critical in a Seller’s market. Since the inventory is low, there are many more buyers who are willing use their imagination about replacing worn carpeting and repairing minor defects. They will view the property the way they want it to be. Pricing can be more liberal, due to the law of supply and demand.

In a Buyers’ market, pricing and staging are critical! There’s a large inventory to select from and buyers are looking for the best condition and the best bargain on price. Listing prices are either IN the market-range where buyers are viewing, or OUT of the market-range. If a property is OUT of the market-range, it will not even be seen by buyers, let alone receive an offer. The “market-range” is determined by properties which have SOLD over the past few months, not the current listing prices.

On the brighter side, if you’re a seller in this market and feel that you’re not getting the top price that you could have received a couple of years ago, you will also be a buyer in this same market, where you can generally negotiate for the best condition and the best price on your next home!

Search our NewBernMLS or feel free to contact me.

Local New Bern News - Market Update

This column is customized each month so that I can share with you, the current monthly statistics. Please feel free to contact me if you have any questions! Or, visit my website at http://www.newbernhomes.com/

HOMES SOLD (Closed), August 1 through August 31. (From NB Board of Realtors MLS System)
Under $100K = 13
$100K-$159,999 = 32
$160K-$199,999 = 26
$200K-$249,999 = 17
$250K-$299,999 = 18
$300K-$399,999 = 12
$400K - $499,999 = 5
Over $500,000 = 8

Total August 2008 = 131
Total August 2007 = 191

NEIGHBORHOOD PROPERTIES "SOLD"

NEIGHBORHOOD PROPERTIES "FOR SALE"


For the BEST Internet Marketing, and the Most Responsive Service in New Bern, Contact DIANNE!
Email Dianne
(252) 636-3301 or Toll Free: (888) 781-8800

Local New Bern News - Market Update

This column is customized each month so that I can share with you, the current monthly statistics. Please feel free to contact me if you have any questions! Or, visit my website at http://www.newbernhomes.com/

HOMES SOLD (Closed), July 1 through July 31. (From NB Board of Realtors MLS System)
Under $100K = 14
$100K-$159,999 = 36
$160K-$199,999 = 26
$200K-$249,999 = 28
$250K-$299,999 = 12
$300K-$399,999 = 9
$400K - $499,999 = 2
Over $500,000 = 4
Total = 131

NEIGHBORHOOD PROPERTIES "SOLD"



NEIGHBORHOOD PROPERTIES "FOR SALE"


For the BEST Internet Marketing, and the Most Responsive Service in New Bern, Contact DIANNE!
Email Dianne
(252) 636-3301 or Toll Free: (888) 781-8800

Huge TAX Benefits for 1st-time Buyers

The Housing and Economic Recovery Act of 2008 has some amazing benefits for first-time homebuyers. When was the last time someone gave you a $7,500 loan that has no interest, no payments for two years, and if you do not make enough when you sell, you do not have to pay the loan back? That’s what first time homebuyers will receive. If you know someone who wants to buy their first home -- this is too good to miss.

If you have not owned a home in three years, you are a first time home buyer. If you buy a home after April 9, 2008 and before July 1, 2009, you qualify for a credit of up to $7,500 off your tax bill. It has to be your principal residence, so rentals do not count.

The tax credit is 10% of the cost of the home, up to a maximum of $7,500. So, if the home costs $65,000, your tax credit is $6,500. If the home cost $100,000, you would get a credit of $7,500. This is not an additional deduction that lowers the amount of income to be taxed, it is a tax credit. In other words, you take $7,500 off your tax bill. What if your tax bill is only $5,000? The IRS will send you the additional $2,500 as a refund. When was the last time the IRS sent you a refund because you bought something?

The loan has no interest, and will be paid back over 15 years. You get the credit on your 2008 taxes, but you start paying it back on your 2010 taxes that are due in 2011, so you get at least two years without a payment. You pay back 6.67% of the credit each year, so for a $7,500 credit the payment is $502.50 per year. If you stay put for 15 years, you pay it off with no interest.

What happens if you sell the house? You pay the balance back at the closing. So, you get $7,500 now, and pay the rest of it back if you make money on the sale of your house.

What happens if you do not make enough money when you sell your house? They forgive the rest of the debt. In other words, get $7,500 now and pay back nothing if your house only breaks even at closing. When was the last time you got a loan on a speculative venture where the person who gave you the loan forgave the rest of the loan if you did not make enough profit on the sale?

The risk of loss in buying now is on the government. In other parts of the country where real estate is going down in value, you can lose 10% of the value of the home (up to $7,500) and the loss is covered by the fact that you do not pay back the tax credit.

Similarly, if you die before repaying the debt, the debt is forgiven. There are special rules for sales as a result of divorce, or if the government takes your property by condemnation.

There are restrictions on the amount of income that you can make and still get the credit. However, the restriction is $75,000 per year for a single person and $150,000 for a couple filing jointly, so the vast majority of people qualify. If you make more than that, you can still get some of the tax credit, but there are complicated rules about phasing out the credit as the income goes up. If you make that much money, you can afford to hire someone to figure out the formula. The restriction on the location of the property is minimal -- it has to be in the United States.

There are minimal restrictions on the financing. If you use a loan that is supported by mortgage revenue bonds, you do not get the tax credit. These loans are normally made by North Carolina housing agencies, but there are not many of them available, and the qualifications limit their use. In other words, nearly every loan allows you to get the tax credit.

What is the catch? You have to buy your first house in three years before July 1,2009, not be super high income, not use bond financing, buy anywhere in the US, Not too difficult, right?

If you know someone who wants to buy a home, call them. If they want to buy in the New Bern area, have them contact us and we will take exceptional care of them. If they want to buy anywhere in the US, contact us and we will find them an exceptional agent anywhere in the US. Toll Free: 888-781-8800.

The government gives tax credits to huge companies – here’s one for the little guy. Don’t miss it.

Thanks to Realtor/Broker Tim Burrell, Raleigh, NC for a full explanation of this new law.

State-of-the-Market in New Bern, NC

While I'm reading and researching the "State-of-the-Market" around the country (as it relates to real estate news), there are numerous statistics which give us a better perspective as to what's really happening and where.

According to Reuters and RealtyTrac, the following states have the highest foreclosure rates:

Nevada = 1 in every 43 households.

California = 1 in every 65 households.

Arizona = 1 in every 70 households.

Florida = 1 in every 78 households.

National average = 1 in every 600 households.

North Carolina = 1 in every 1000 households.

Foreclosures add inventory to the market, and increased inventory encourages price reductions, since it's the old "Supply and Demand" theory.

While North Carolina has also experienced an increase in foreclosures over 2007, we're fortunate that our statistics still remain well below the national average.

In fact, in the New Bern area (coastal NC), while we've experienced a 30% decrease in the number of home sales over the prior year, we still have maintained an appreciation rate of +.01%, which is much better than the US average of -6.8%.

View all homes for sale from the New Bern MLS service.