It is that time again when many of us will be considering a vacation. Hopefully, you have already planned it, but if not, there are several travel planners that can assist you in planning the best vacations. With the hustle and bustle of everyday life, it is important to consider using a travel agent to make sure the vacation experience is relaxing and rejuvenating.

I also realize that many people may be either skipping your vacation this year or downsizing the plans. For example, you may be going to the beach instead of taking a cruise. My wife and I have made this decision as well as we are going to the beach instead of taking a long and expensive vacation. We will actually be leaving for the beach on Saturday and return the next Sunday.

The beaches of North and South Carolina are great for either a long weekend or a week vacation and the cost is usually minimal. In our current economic times, I am sure there are plenty of great deals available, but you may even get a better deal if you travel early in the season or late in the season. Try to negotiate with the hotel to see what type of deal you can actually get.

The beaches have many options to pass your time to include great restaurants, golf, putt-putt courses, nightlife, amusement parks, and many more. I would encourage you to plan your vacation to the beach by researching the many alternatives and seeing what may interest you and your family.

The greatest ingredient to having a successful vacation is quality family time. To better assure that your time with your family is quality is by having a plan so you are not wasting valuable time deciding where to eat or what to do. And always make time for family exercise by riding bikes, long walks on the beach, or several other things that may interest you.

The first thing I will do each morning next week will be to take the dog to the beach and go for a long jog/walk and enjoy the solitude that only the beach can offer. As a child growing up in Michigan, we did not have the benefit of going to the beach, so if you live near the beach, you should take full advantage of it and enjoy it.

Enjoy your vacation and re-charge your batteries. Despite the economy, I think it is important for everyone to take a vacation of some sort. There are always low cost options if you just look for them.

Despite a difficult year for many around the nation, the Triangle (Raleigh/Cary, Durham, Chapel Hill) is holding its own during these difficult times. Unemployment is up from last year, but we have seen some positive moves with the area’s unemployment. Additionally, housing sales are starting to get stronger as we delve into the Spring and Summer buying seasons. Finally, local retailers are holding on and trying desperately to withstand this slumping economy. After all, I was at Michael Deans on Sunday for brunch and the restaurant was packed and I am sure you are seeing similar signs throughout the area at stores and restaurants. With all of this said, what is the condition of the local economy and the housing market as a whole. Will we see an improvement in the housing market and the economy? Or are we in for a long and trying depression? Some of these will be answered (or at least attempted to be answered) as you read this posting.

I am sure you have heard that our unemployment is up from last  year. This is to be expected during a recession and is not new. Businesses hire during good times and reduce staff during bad ones. Every business has a payroll to maintain while attempting to make a profit. You may have also heard that the unemployment went down in March to 8.5% from February’s 8.7%. Whether or not this is a true picture of the unemployed, the positive to take from this figure is that it is lower than the state’s unemployment rate, which is currently at 10.9%. Furthermore, the Triangle rate has dropped where the nation as a whole has increased to 9%. The Triangle, due to its diverse economy, tends to be holding strong in these troubling times which makes for a positive for the citizens of Wake, Durham and Orange counties. Compared to my home state of Michigan, whose unemployment has skyrocketed to 13.4%, up from 8.% in August 2008, we are doing wonderful.

There are many positives aspects of the Raleigh economy but just as many negatives. Many people are concerned that inflation will be a major issue in the next couple of years. Should inflation hit some of the marks that we saw during the last 70s, then we may also see the high interest rates that was experienced shortly after that in the early 80s when interest rates were in the double digits. Of course, if we see higher interest rates, then there is no telling what will happen with the housing values.

Will they fall or rise? There is no easy answer to this question and I don’t even know what will happen if we see higher interest rates. I am convinced that the reason that housing values have risen so much over the last 20+ years is directly related to the low interest rates that we have experienced for a number of years. With lower interest rates, people can afford more house. Will the opposite happen if the interest rates rise dramatically? Of course, household income has risen in the same period by nearly the same rate as housing values, so it would not have as dramatic effect, but it may cause a number of potential homeowners to be priced out of the market.

Please comment if you have any ideals about the local economy as I am open to discussion on this most important topic. For a more immediate response, please email me.

I have had numerous people ask me recently whether or not it is the right time to buy a home in Raleigh, North Carolina. The concerns come from lending issues to declining housing values and whether or not the market has reached the “bottom”. First of all, the answer is a RESOUNDING, YEEEEEESSSSS!!!!

There has never been a better time to buy a home in our market then today. Many real estate professionals have predicted that the Wake county housing market will see a minor depreciation in values throughout 2009, especially with re-sale homes to primarily keep up with the price reductions that we have been seeing in new construction for the past year and a half.

If this is true that the market will see depreciation this year, why is it still a great time to purchase a home in Raleigh? Simple, interest rates are low and there is no guarantee that they will remain this low. Tax credit for new home owners that will end on December 1, 2009. Even if you are not a homebuyer who would benefit from the tax credit, the financial are in place to purchase today. If we see depreciation this year, it will be minimal like 2-5%. If you purchased a home for $200,000 today. If values fell by 5% this year, then you would possibly loose $10,000 in value by the end of the year. However, since this market usually sees around 5-7% appreciation annually, then you can easily make up this difference in your first year in the home. Furthermore, the rates may be higher next year as better economies tend to have higher interest rates, so you may actually have a higher mortgage payment if you waited until next year for the proverbial “bottom” to hit then you would pay today.

Let’s face it, a single year of 5% depreciation can easily be turned around within the first 3-5 years you are in the home. Traditionally, homes will appreciate over time so whether or not you get the absolute bottom price today is diminished over time. The longer  you are in a home, the less it becomes important.

When is it not a good time to buy a home? It would not be a good time to purchase a home today if your finances are not in the proper condition to allow you to purchase today or your credit needs some work before you can get a great rate. If you are planning on purchasing before the end of the year to take advantage of the Tax Credit, then you may want to begin to speak with a lender today to see if there is any credit issues that need to be repaired. If you wait for the last minute to speak with a lender, then you may not be able to purchase a home for another six months while you go through the process to correct your credit issues or raise the required down payment. However, if you begin the process today, you will know exactly what you need if you want to purchase a home by the end of the year.

For more information or contact information for a quality mortgage lender, please let me know and I will be happy to give you the information you need.

I wanted to add just a few words about the real estate business and what is occurring in it. As usual, real estate is always local so your individual market may or may not be similar to the Raleigh-Durham-Chapel Hill market in North Carolina.

The general brokerage report that came out a few days ago from Stacey P. Anfindsen of the Triangle Area Residential Realty (TARR) has some very informative information for any buyer or seller in Raleigh, North Carolina.

First of all, the number of listings have gone down slightly and there are currently just over 8,500 residential listings for sale in Wake County and only about 225 are classified as being owned by a financial institution or have been listed as a foreclosure. Of course, this does not include those short sale possibilities. Therefore, foreclosure listings represent about 2.5% of all current inventory.

Stacey points out that foreclosure activity, as defined by the transfer of title from the Trustee t the financial institution, has accounted for 4.5% of Wake County closings within the past 13 months. He also points out that the average sales price of a foreclosure has been $178,500 and the overall average sales price is $262,800.

The average percent per year loss compared to prior sales price was 3.58% for homes transferred from the Trustee to the financial institution and 3.83% for homes transferred from the financial institution to the new buyer. This means that buyers of banked owned homes are potentially getting these homes for a discount and over time, should have built in equity.

Sandlin Branch, Wakefield and Hedingham are the leading developments where financial institutions have taken title from the Trustees, which means these communities currently have an increase in foreclosure listings on the market.

The majority of foreclosure activity has taken place in Little River-Eastern Wake (10.5%), St. Marys-Garner (10.85%), ad Marks Creek-Eastern Wake (13.45%). White Oak Township, which includes Apex and western Cary has the least amount of activity at .49% of all closings.

This can be spinned either way you want to spin it, whether positive or negative. I choose to be positive and say that the foreclosure market in Wake county is a very small portion of the market and does not impact the overall market. I have found buyers calling and seeing these foreclosures, but in the end, will probably purchase a resale as there are fewer cosmetic issues to address. If a higher portion of our market’s sales are due to foreclosures, at least these homes count as sales in the marketplace and we are reducing the number of foreclosures on the market. As I mentioned before, nearly 60% of all foreclosures in the U.S. are isolated in 6 states, and fortunately, North Carolina is not one of those states. We ranked 1st in population growth last year so we are still a place where people want to live. Additionally, unemployment in Wake county is less than most metropolitan areas throughout the nation.

For more information about the real estate market, please feel free to contact me via email or phone.

2484 Sapphire Valley Drive

This morning, I had the pleasure of speaking to a room full of business people at the weekly meeting of the Western Wake Leads Group. As I spoke to the group, I pointed out many statistics that attempt to explain the market in Raleigh, Cary and the Triangle. I pointed towards a number of articles that I researched as well as reports from the Triangle Area Residential Realty (TARR) reports.

One of the articles that I mentioned was actually a new story on WRALthat aired on Oct. 23, 2008. It mentioned several facts that were pertinent t the local real estate market. For instance, it pointed out that Raleigh-Cary foreclosure were down in Sept. 2008 from the previous month by 17% and NorthCarolina foreclosures were down 46% during the same period. Furthermore, the article talked about the fewer foreclosures for the 3rd quarter of 2008 of 16.7%. The most telling figure that was in this article is that all of the foreclosures in the Raleigh-Cary area was 1,279 or 0.31% of all properties in this area. I pointed out that many articles point to the large increases in percentage points, but fail to actually mentioned the actual number of homes in terms of total properties. Finally, the article mentioned that six states, California, Florida, Arizona, Ohio, Michigan and Nevada represented 60% of all foreclosures in the nation and California represented more than a quarter of all foreclosures. Is this really a national issue or is it isolated to a few states? The positive news coming out of California according to this article, foreclosure resales accounted for more than half of all sales of existing homes during Sept. 2008. Homes sales jumped 6 5% during the month while prices fell 34% from Sept. 2007 for the state of California.

The next article spoke about the reduction in foreclosures in North Carolina for Jan. 2009 of 7.3%. While North Carolina is the 10th largest state in population, we rank 33rd in the nation in foreclosure rates. This article also mentioned that 1 in every 76 homes in Nevada and 1 in every 173 homes in California were in foreclosure proceedings.

The next article came from the Las Vegas Sun and pointedout that Nevada was again the number one state in foreclosure rates, despite a 4% reduction in Jan. 2009. It also pointed out that foreclosures in Nevada were up 137% from Jan. 2008. California metro cities accounted for 6 of the top 10 metropolitan cities foreclosure rates in the nation.

Finally, I addressed the TARR reports that came out recently. The general Brokerage report mentioned that the U.S. home prices dropped 8.2% during the 4th quarter 2008. The South Atlantic dropped 5.86%, but North Carolina increased 1.2% from the 4th Quarter, 2007.  As a general rule, average re-sale prices in Wake county increased 3.02% during this same period.

According to Stacey P. Anfindsen, Birch Appraisal Group of Cary and author of the TARR report, the Triangle has a few “Ugly” items and a few “Good” ones as well. The Ugly includes 23 consecutive months of lower pending sales and 15 consecutive months of lower showings. 58% of all price points in the Triangle have an oversupply of housing products(Buyer’s market). Additionally, Dec. 2008 expired listings were 194% higher than Dec. 2007 and for the first time since 2001 v. 2000, Dec. 2008 employed workforce was lower than Dec. 2007.

The Good according to the TARR report is that annual closings were the 6th highest in this decade. Current supply of 7 months is much lower than the national current supply of 11 months. Additionally, average house price appreciation in the Triangle Multiple Listing Service (TMLS) has been 4%, where the national rate was -8.9%. Finally, houses priced correctly sell in an average of 65 days and sell for 97.5% of the list price. Other houses sell in an average of 128 days and for 90% of the final list price.

Finally, another great aspect of our market in North Carolina is the business climate. The BizJournaland Portfolio.com have released its annual report of the Top 10 Cities for Small Business and Raleigh topped the rankings with Charlotte coming in second. The top 2 cities are in North Carolina, which will only be positive for migration into the state to continue in the coming years.

Despite the anxiety and stress that I experience when I prepare for these presentations, I am always glad that I did it as it gives me factual material to combat the negativity that is expressed when people talk about the local economy and housing market. Sure, as one gentleman pointed out, his neighbor has lost value on her home as she it attempting to sell it now, but isolated spots will continue to happen in any market. The positive is the overall market is good and it relates to a great time to buy a home, if you qualify and can afford that home.

From my limited knowledge and research, it has become obvious to me that the states that are in the most dire situation today, minus Michigan and Ohio, are in their blight due to price speculating on the housing markets and over-inflated appreciation. Currently, these markets are seeing the market correct itself. If housing appreciates at a greater rate the income levels of a certain market, then you will be pricing a large portion of the buying public from the market. The result is a price correction so these buyers can now, buy that home. As complicated as people are attempting to make it, the situation we are facing in certain markets is the direct result of Supply and Demand. If the Supply is high and the Demand is low, then the price will come down. If the Supply is lower and the Demand is greater, then the price will rise. Now that the prices are coming down in California, the Demand is beginning to rise as more people can now afford to buy a home. As these people buy and the supply starts to decline, then a recovery will take place and home prices will begin to inch up.

For more information about the housing market in the Raleigh-Durham-Chapel Hill-Cary areas, please feel free to contact me as I will be happy to talk about it. There are few subjects that I am passionate about and this is one of them. Of course, be warned that I may talk quite a bit when you call or email.

Attention First Time Home buyers...This could be yours!!!

As a real estate professional, the best part of the American Recovery and Reinvestment Act of 2009 is the First-Time Homebuyer Tax Credit. The credit is designed to encourage first time home buyer to get into home ownership at a time when the housing market has been struggling. Combine this tax credit with the fact that home prices and interest rates are at historical lows, and it is an ideal time for many first-time home buyers to purchase a home, NOW!

According to the bill, a first time home buyer is defined as someone who has not owned a home in the last three years. Additionally, single taxpayers with inocmes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. This credit cannot be used to purchase the home from a related party like a spouse, direct ancestor, or direct lineal descendant, but can be used to purchase a home from siblings, nephews, nieces and other such relatives.

If you are married, then both spouses must be first-time home buyers. Finally, if more than one unmarried individual is buying the property, the credit can be split up among all the individuals who qualify, but the total credit taken cannot exceed $7,500 for homes purchased in 2008 and $8,000 for homes purchased in 2009.

For homes purchased between January 1, 2009 and December 1, 2009, the credit amounts is for up to 10% of the purchase price of the home and not to exceed $8,000. Furthermore, the tax credit does not need to be paid back if you continue living in the home as your primary residence for three years without selling it.

The tax credit works as a special provision that reduces income tax liability on a dollar for dollar basis. When filing a tax return, you must include income items, deduction items and the number of exemptions to figure your total tax liability. For instance, if your total tax liability for the year is $8,000 and you qualify for the full $8,000 tax credit, this credit would wipe out all of the tax due If your employer already deducted the $8,000 from your pay checks throughout the year, you would receive a tax refund of $8,000. If you owe less than $8,000 in taxes for the year, you are still eligible for the full $8,000 credit when you file your tax returns. In this case, the IRS will write you a check for the difference between $8,000 and your actual tax bill.

This means a great deal for the Raleigh real estate market as it will allow and encourage many more buyers into the market than are currently there. Potential home owners who have been waiting to see the bottom before buying can have some new assurances that even if they do not get the “rock bottom” price, they can still buy and the tax credit may offset the “would-be” rock bottom price. This may be all that the Raleigh market will need to return the market back to a semblance of its prime in 2006.

Despite this Recovery package, the economy will not rebound completely and immediately. It will gradually improve and take some time for the economy to totally recover. In fact, many experts predict that the economy will begin to improve during the second half of 2009 and unemployment will continue to increase into 2010.

For more information about this tax credit or the housing market in the Triangle, please feel free to contact me as I enjoy speaking about Raleigh and real estate. Remember the wise Biblical words, “This too shall pass”.

Steven W. Nelson Named Accredited Buyer’s Representative (ABR) in Raleigh, North Carolina

By Steven W. Nelson

Dated: 1/30/09        

Raleigh, NC-Steven W. Nelson, a broker with Keller Williams Realty-North Raleigh has been granted the coveted Accredited Buyer’s Representative designation (ABR) by the Real Estate Buyer Agent Council (REBAC).

The Accredited Buyer Representative (ABR®) designation is the benchmark of excellence in buyer representation. This coveted designation is awarded to real estate practitioners by the Real Estate Buyer’s Agent Council (“REBAC”) of the National Association of REALTORS® who meet the specified educational and practical experience criteria. 

“I am honored to earn such a designation as it represents the highest quality of representation a buyer can expect to receive”, replied Steven. “This designation shows that I have put the effort to be the best agent I can for my buyers and have worked hard to meet their needs.”

Home buyers can be assured that ABR designees subscribe to the strict REALTOR Code of Ethics, have access to the latest technology, and are specialists in helping their buyer clients have ful and aggressive representation when buying a home.

There are four major requirements to attain the ABR designation:

·         Completion of a 2-day ABR core course through an accredited course provider,

·         Completion of one approved elective course,

·         Passing a written examination on the legal and practical aspects of agency representation,

·         Practical experience requirement of acting as a buyer’s representative in five documented and verifiable transactions.

“The values that are attributed to the ABR designation show my past and future clients that I am committed to the highest standard with respect to my representation of them. It naturally feeds into my slogan, Honesty, Integrity, RESULTS,” added Nelson.

Steven W. Nelson joins more than 30,000 real estate professional in North America who have earned the ABR designation.

About REBAC and the Accredited Buyer’s Representative Designation

REBAC was founded in 1988 and currently has more than 40,000 members throughout the world. REBAC is the world’s largest association of real estate professionals focusing specifically on representing the real estate buyer.

About Steven W. Nelson and Keller Williams Realty

Steven is a licensed broker for Keller Williams with nearly 9 years of experience. He has lived in Raleigh for nearly 12 years and has a tireless knowledge of the Triangle market. Steven is an active member of his community as Chairman of the Young Executives at the Capital City Club, member of the Rotary Club of North Raleigh, Committee member of the Big Bad Ball, a black tie charity event to support Hospice of Wake County, volunteer for Jimmy V Celebrity Golf Tournament and Susan G. Koman Race for the Cure among many other activities. For more information about the Triangle market or Steven, please visit his website at www.StevenWNelsonHomes.com.

Contact Steven W. Nelson of Keller Williams Realty by calling 919-604-6135 or email Steven at StevenWNelson@gmail.com.

Keller Williams Realty-North Raleigh

Phone: 919-604-6135

Fax: 919-256-7547

Email: StevenWNelson@gmail.com                                                             

2484 Sapphire Valley Drive

Great 3 bedroom 2.5 bath home in an established golf course community in Northeast Raleigh, minutes from I-440/Beltline and downtown Raleigh. This home offers a spacious family room with gas fireplace, oversized master bedroom and eat-in kitchen. This home also offers community ammenities such as clubhouse, pool, tennis courts, and access to Raleigh Greenway. Hedingham offers a wonderful golf course and great fishing ponds for residents. Home offers close proximity to playground, golf course, and greenway. GREAT STATER HOME AND PRICED TO SELL!!!

This home is close to shopping with a new shopping center less than 2 miles from this home. The shopping center has a new Wal-Mart Supercenter, Ruby Tuesday and many more stores to enhance your new lifestyle. Further east is an even newer shopping center that has a Home Depot, Target, Kohls, Best Buy and any more great stores. Home is minutes from I-540 for an easy commute to RTP and the airport.

Experience a quality lifestyle with the many ammenities that this lovely community has to offer. Relax on the fishing dock or take a leasure hike on the Greenway. Experience an urban lifestyle as this home is only minutes from downtown Raleigh and the theaters and restaurants there.

For more information about this great home, please visit my website at StevenWNelsonHomes.com.

Steven W. Nelson, Broker Keller Williams Realty-N. Raleigh

This past Saturday, my wife and I had decided that we needed a nice evening out as we both had a very stressful week and needed to unwind. We explored our dining options and settled on a new restaurant to downtown Raleigh, Solas. We had heard some very positive things about it as well as a couple of negatives and wanted to check out this new dining oasis.

We made dinner reservations online and were able to get an 8pm time. This is a little later than I typically eat, but it was a weekend and we were up for a nice casual dinner.

My first impression of this fine eatery was one of gratitude that we now had another upscale, urban-style restaurant that would be impressive to new residents who may have moved here from a larger city. As a real estate agent, I am always looking at new businesses to the area and deciding if this would appeal to my clientele. The elegant and modern decor set a mood that this would be an upscale dining experience.

Many of the tables were separated by shear curtains that were opaque that set a theme of an intimate dinner. The chairs were very comfortable as they were padded to add to the level of comfort that this restaurant affords.

As we were seated, it was not long before a very helpful and informative waiter came to take our drink orders. A manager stopped by our table to ask if we were enjoying ourselves and if we needed anything. As we mentioned that it was our first time dinning here, he took a few extra minutes to welcome us and make us feel welcomed.

The menu is very extensive with many options for any taste-bud. I went with the New York Strip steak while my wife ordered the scallops. The dinner menu is a-la-carte, so we also ordered a couple of side dishes. We had the loaded mashed potatoes, which was some of the best I have had. Also, we had the Broccoli, which I was not a huge fan of as I like my broccoli to be more crispier as this not.

It did not take very long for our meal to be prepared and brought to our table. My wife commented that the scallops were well prepared and the portion was wonderful. My steak was cooked to the “medium” I had asked and the flavored butter that was placed on top of my steak was simply wonderful.

Desert came with a bang as their selection was good. My wife had the Creme’ Brulee and I went with the Flourless Chocolate Torte. My desert was very rich in taste as it should be and I found it difficult to restrain myself from eating the entire torte.

After the wonderful dinner, we strolled up the stairs to the Lounge to investigate the second floor. The lounge was well designed with ample seating as well as sofa lounge areas for intimate gatherings. The bartender was very pleasant and attentive. My wife found a flavored martini to suit her. Being a 40 couple, we are not accustomed to staying out too late at clubs/bars, but we thoroughly enjoyed experiencing the lounge.

As we left, I wanted to ascend to the Rooftop to check it out, but she did not wish to and we left. The valet was efficient in retrieving our car. Although, I think the valets should be paid when we return for the car as most places do it. Nonetheless, the experience was very pleasant and Jan and I will return again to this spot. Maybe next time, we can come early for a drink on the rooftop, then have dinner.

For more information about this restaurant or to make reservations, please visit their website at http://www.solasraleigh.com/.

I have had the pleasure of meeting a HSR Certified Home Stager and Redesigner last week and must admit that I was impressed with her knowledge of home staging and design.

Home stagging is the art of using limited funds and practical creativity to professionally bring out the home’s best potential. This makes the home more attractive to buyers and increases profits in two ways: it increases the value of the property and decreases the time on the market, saving mortgage payments, taxes, etc. Staging involves de-personalizing the home in order for the potential buyer to see themselves living there. Staging includes de-cluttering, rearranging furniture, adding accessories, and making additional recommendations to complete the look of the home. 

Statistics show that professionally staged homes sell for 6%-10% more, which can make a difference of $18,000 to $30,000 for the average homeowner! Remember, this is an investment in your home, not an expense. It can increase profits and reduce exenses by staying on the market less time and not having to reduce your price when it does not sell. In today’s real estate market, it is important to stand out from the crowd and to sell your home for its highest potential.

It is extremely difficult for a homeowner to stage their own home since they lack the objectivity required. Pieces of furniture and keepsakes are like “old friends” and your personal taste is throughout the home. A professional home stager can come in with a “buyer’s eyes”, be objective and de-personalize your home, maximizing it’s marketing potential.

Professional realtors simply do not have the time or resources to professionally stage your home. Their time is better spent marketing and showing your home to potential buyers instead of spending hours rearranging furniture and shopping for accessories.

It is difficult for buyer’s to see the potential in a home. Only about 10% of buyers who walk through your home can visualize its potential, which means you loosing 90% of your potential buyers! They immediately notice “this is too crowed”, “this is too dark”, “this is too small”, etc. Even though buyers have logical criteria, their decision to buy is an emotional one. Think about a model home, it is designed to allow anyone to be able to visualize living there.

The internet is full of information about home staging and I encourage you to research it. As an agent, I have yet to use a stager for one of my homes, but after meeting this lady, I plan to use her to see if the result is positive.