With inventory levels still very high in my local market and demand weak , especially for homes over $225,000 what does a seller to do?

1. Answer this question truthfully to yourself.” Do you have a compelling need to sell at this time?”  If the answer is “NO” then quit reading this and enjoy where you are staying.

If you answer “YES” to question 1…read on.

• Are you prepared to do what you have to do to get the house sold?
• Will you be willing to listen to a REALTOR®, who is FULL-TIME, and knows the market?
• Is it in great condition? NO, deduct $ or fix it up quick
• Is it going to show well, can it compete with new construction or do you have pop-corn ceilings. dark stained trim and shag carpet. If the answer is “NO” on part 1 and “Yes” on part 2 of this question… deduct $
• How many homes are for sale in a 5 mile radius that would get your attention if you where a buyer(including your home of course)?
• How many homes have sold in the same 5 mile radius in the past 3 months? Let’s assume you have to be in L.A for a new job in 3 months.
• Are you ready to price your home so you will be at the front of the line and can sell in 3 months?

This is kind of hard and unemotional but this is the current market.  Be prepared to be “low- balled ”on price and have a  knowledgeable REALTOR® who knows the market and can help you get all you can. Don’t get offended by a low offer, it sure beats no offers. You can always try to negotiate a low offer but you can’t negotiate a nonexistent offer.

Surprisingly enough many homes that go on the market priced too high for the market based on competition and poor condition end up unsold, maybe a short sale or worse, a foreclosure. 

These are just some of the things you’ll have to consider to get the job done. This market is not getting better and we’ll address that in part III.

Shoot me an email if you want to talk more about the local eastern NC residential housing market.  homerray@c21zr.com

It is very exciting to see individuals taking the first steps to become responsible home owners.

Research shows that people who attend these types of classes and programs are 13% less likely to go into foreclosure, after they become home owners.  Information is power.

With all the news about how bad the real estate market is I know you must think I have lost my mind when I predict a housing shortage in the New Bern, NC area.

The real deal is, it’s already here!

Using absorption rates( the time it takes to sell inventory), or turn rates it’s easy to predict how long it will take to sell a house based on how many there are available for sale.

A six months supply is usually considered a “balanced” market. In other words there is a demand and adequate supply for that demand.

In the New Bern market there is already a shortage of NEW homes priced from $160,000-179,999 and also from $180,000-199,999. In addition there is also an impending shortage of NEW inventory priced from $220-239,000.

I know you probably will not believe it but the numbers do not lie. We have under a 6 months supply for sale in all three categories.

The same principles can be used on existing homes for sale and this makes that free Competitive Market Analysis(CMA) obsolete.

All REALTORS® are not equal, so hire one that knows absorption rates, how to use them to your advantage and can get your real estate problems handled!

Homeowners trying to take advantage of the Spring selling season, which is typically one of the best times to sell a home, have been piling homes on the market as well as builders hoping to capture whatever buyer’s are currently shopping.

I have been following monthly inventories in the New Bern, NC  market for over 3 years and do not have records showing inventory levels over 1580 homes “For Sale” at one time.

While “homes sold” track pretty much with 2009 sales year-to-date, the total dollar sales are down about 9 million dollars. The average sales price has slipped from $199,000 to $173,000 thus far in 2010.

Total sales  of homes in 2009 was 1207, so we have well over 1 years supply of housing for sale.  This large amount of housing for sale coupled with foreclosure rates increasing will continue to put downward pressure on prices.

It’s a tough time for sellers. If you don’t have to sell, sit tight.

The buyer’s market continues! If you want to make some money with real estate, not every piece of property is a deal, but there are some to be had. Get a REALTOR® who knows what’s going on to help you find the deals.

You will not be sorry!

You’ll be thrilled and amazed by all the animals and acts brought from around the the world for you entertainment.

Shows start  at 4:30 and 7:30 pm both days.

You can get more information at GOTOTHECIRCUS.COM or call 1-800-796-5672 M-F 9-5

I’ll see you there!

In a series of blogs I will discuss some topics I believe will help you. Let’s get started.

Number #1 The agent and his Company.

Find an agent that will tell you what you need to hear, even if you are not ready to accept the information. This market is very challenging and no amount of money the agent spends on photography, fliers, ads, postcards, internet advertising or any other marketing will hide the fact from buyers that the listing is overpriced or the condition is less than the market demands.

Today’s real estate buyers have access to more information about real estate sales and values than ever before.  Some of it may not be accurate but it is believable and therefore accepted as the “truth” by them. Real estate is local and the national figures issued by lots of organizations including the goverment and the National Association of REALTORS® may not reflect what is going on in your market,

You need to work with a full time agent that can tell you:

• How many homes you are competing with
• The turnover (sales) in your neighborhood for different periods
• The “Absorption Rate” positioning that is indicated for your home
• The “odds of selling” your home in a certain time frame

Any agent can “list” your house in the Multiple Listing Service and buy some advertising..but if they can not discuss the issues above intelligently and have the confidence to tell you the truth, as unpleasant as that may be right now, you have an agent that probably can’t help you navigate this challenging market.

A home that is not properly positioned pricewise will not sell and will be very fustrating if you really need to get out from under the house.

I looked at the Real Estate Trends Indicator from the local Multiple Listing Service this morning for residential sales and compared January 1, 2009-thru March 20, 2009  to January 1, 2010-thru March 19,2010.

Here’s the scoop:

Sales this year vs last  down 2 homes, no biggie there but in terms of dollar sales we are off over 5 million this year vs. last.  5 million dollars on the same number of homes!

Days on the market  averaged 209 in 2009 vs. 210 in 2010. Nothing earth shattering here either.

The dollar amount of 2 and 3 bedroom homes remains fairly similar, however the dollar amount of larger 4 bedroom + homes is off  about 5 million dollars.

So there you have it, smaller homes are holding their own for the most part but the larger homes are “white elephants” in this market.

As far as inventory for sale we have had somewhere around 1500 homes for sale for THREE years. Today we have 1550, in a market that only sold 1200 last year.  That’s over a years supply of inventory. We will not see any price increases until our sales numbers go up and our inventory is cut in half.

If you don’t need to sell right now don’t…but if you want to make some money on real estate..buy now.

If you like to learn more about why this is the time to buy, contact me at homerray@c21zr.com and let me show you why “Now is the time to buy!”

After nearly 3 years of construction, today at 11:00 am. the bridge should be open for business.

This critical link in the downtown traffic pattern of New Bern will make access to the downtown area faster and quicker.  The view is not bad either!

It’s a bluebird day in New Bern this morning and we should have 70 degree temps this week end. 

Come see the bridge!

This annual event is by the conducted by the New Bern Historical Society www.NewBernHistorical.org and the New Bern Preservation Foundation www.NewBernpf.org.

The event runs from 10am-5pm and will feature homes in the four historic districts of New Bern, the Downtown Historic District, the Riverside Historic District, the Degraffenried Historic District and the Ghent Historic District.

A free trolley for ticket holders will be available for transportion between the four districts.

Advance tickets are $15.00, active Military and dependents $13.00, groups of 12 or more $13.00 and the day of the tour $20.00.

For more information call 252-638-8558 or 252-633-6448 or visit the websites above.