On the MOVEThe Helen Adams Realty Monthly Market Update

January 2016

In 2015, national residential real estate, by and large, had a good year. Supply and demand were healthy in an environment rife with low interest rates and improved employment. The Federal Reserve finally increased short-term rates in December, and more increases are expected in 2016. Housing markets have shown a willingness to accept this. Save for a few expensive outliers where low inventory and high prices have become the norm, a balanced market is anticipated for much of the country for the foreseeable future. Improved inventory and affordability remain key factors for continued optimism.

New Listings in the Charlotte region decreased 11.7 percent to 2,396. Pending Sales were up 14.1 percent to 2,540. Inventory levels fell 24.2 percent to 10,445 units.

2015 Low Interest Rates & Improved EmploymentReprinted from December 2015 CRRA Monthly Indicators

P2 Vital Signs

P3 Why 2016 is a Great Time to Sell ... Or Buy

P4 Beth’s Bits: Tax Season

InthisIssue

Prices continued to gain traction. The Median Sales Price increased 2.8 percent to $190,000. List to Close was down 7.0 percent to 119 days. Sellers were encouraged as Months Supply of Homes for Sale was down 33.3 percent to 3.0 months.

Gross Domestic Product increased at an annual rate near 2.0 percent to close 2015, and that rate is expected to increase next year. Residential real estate is considered a healthy piece of the national economy. Contributing factors from within the industry include better lending standards and foreclosures falling back to more traditional levels. Declining unemployment, higher wages and low fuel prices have also conspired to improve personal budgets.

www.helenadamsrealty.com

Ballantyne Office15235-J John J. Delaney Dr.

Charlotte, NC 28277

Beth HaemmerleinBROKER/REALTOR®

Cell: 704.243.8773 beth@helenadamsrealty.com

The Vitals:A look at Charlotte’s Overall Real Estate Market

• Inventory levels were down 24.2 percent.

The Single-Family property type decreased

the least amount, at 24.2 percent.

• For the 12 month period, Pending Sales in

the Charlotte region were up 15.1 percent.

• The price range with the largest gain in

sales was the $200,001 to $300,000 range,

which increased 24.7 percent.

• In December, condos were the property

type with the strongest sales.

• The price range that tended to sell the

quickest was the $150,001 to $200,000 range at 49 days.

Change in Closed Sales

PendingSales

Change inNew Listings

AverageSales Price

Total Active Listings

Average DaysList to Close

Months Supply of Homes for Sale

-2.6%

3,007

-11.7%

2,396

-7.0%

119

+14.1%

2,540

-24.2%

10,445

+3.4%

$241,094

-33.3%

3.0

(1)

(1) Data Represents change in data since this time last year. (2) Data Represents the most recent month’s data for CMLS.

(2)

Monthly Market Snapshot

Charlotte, NC and the Surrounding Areas

Market Updates

Monthly Average 30-Year Fixed-Rate Mortgage Ratesas reported by www.freddiemac.com

3.86

3.67

3.71

3.77

3.67

3.84

3.98

4.05

3.913.89

3.8

3.943.96

3.5

3.6

3.7

3.8

3.9

4

4.1

Dec. 14 Jan. 15 Feb. 15 Mar. 15 Apr. 15 May. 15 Jun. 15 Jul. 15 Aug. 15 Sep. 15 Oct. Nov. 15 Dec. 15

Monthly Market Snapshot

Why 2016 is a Great Time to Sell ... Or BuyHome prices have been on the rise since 2012, after taking a huge hit during the recession. This has been great news for many home owners – of course we all love to see our investments grow. While in 2014 and 2015 we saw prices inflate almost to the point of excluding many buyers, 2016 will likely be a year of normalization – with an increase in home values at a normal pace.

In many places, it still remains a “Seller’s Market” – which typically means that inventory is so low that buyers have less choice and are required to pay the prices being asked or drop out of the market all together. It gives the seller the upper hand, and is often measured in “month’s supply of inventory,” which shows the number of months it would take to sell off the inventory in a certain location. When this number is under six months, it is generally referred to as a “Seller’s Market,” and when the number is over six months, it’s a “Buyer’s Market.” Ideally it remains balanced, between five and seven months, meaning the market is good for everyone.

The thing about inventory is that it is hyper-local. One Charlotte neighborhood could be operating at a one month supply of inventory, while another Charlotte neighborhood could be operating at an eight month supply. Typically you see a larger supply in the upper-end market, because they take longer to sell. It really takes an expert to analyze for you the trends happening around your home.

So if it’s still a “Seller’s Market”, why is 2016 a good time to buy? Well, mortgage rates are still historically low, and while they will likely remain steady for the bulk of the year, they do have to go up at some point. Right now you can afford more home if you will be getting a loan. Because home prices are becoming steady, there’s less worry about being priced out of the market. Just as home prices have increased, so has the cost of rent in many cities. If you are renting now, you may want to have a loan officer work up a financial worksheet for you to see what a monthly loan payment would be. You may be surprised to find that it may cost less monthly to buy a home.

Beth's Bits: From The Holiday Season to The Tax SeasonWhile I’m not a tax expert (& don’t claim to be), I do know a thing about real estate, and owning real estate can open up many new opportunities for reducing your tax liabilities. There are some stipulations & limitations to any real estate tax breaks, so ALWAYS talk to your accountant or tax professional… but this list will give you an idea of questions to ask and items to bring up (and what documents to search for before you head to the tax office!)

•Yourbiggesttaxbreakisreflectedinthehousepaymentyoumakeeachmonthsince,formosthomeowners,thebulkofthatcheckgoestowardinterest.Andallthatinterestisusuallydeductible,unlessyourloanis more than $1 million.

•Didyoupulloutextracashthroughrefinancing?Ordidyoudecideinsteadtogetahomeequityloanorlineofcredit?Generally,equitydebtsof$100,000orlessarefullydeductible.

•Mortgageinterestonasecondhomemayalsobefullydeductible.Infact,youradditionalpropertydoesn’thavetostrictlybeahouse.ItcouldbeaboatorRV,aslongasithascooking,sleepingandbathroomfacilities.

•Ahomeownerwhopayspointsonarefinancedloan,homeequityloan,orlineofcreditmaybeeligibleforataxbreak, but there are some differences in how the deduction is calculated.

•PropertytaxesmaybedeductedasanitemizedexpenseonScheduleA.

•InDecember2015,CongressextendedtheMortgageDebtReliefActof2007through2017.Underthislaw,homeownerswhowereforeclosedon,completedashortsaleorhadtheirhomedebtreducedbymortgagerestructur-ing may not have to count the canceled debt as taxable income.

•Whileingeneral,homeimprovementsonyourprimaryhomearenottax-deductible,holdontothereceipts.IfyousellyourhomeandmakemorethanamounttheIRSwillletyoukeeptax-free,propertyimprovementrecordsmayhelpyoureduceyourtaxableprofits.

•Thecostofrepairstorentalpropertymaybefullydeductibleintheyearinwhichtheyoccurred.Thismayincluderepainting,fixingguttersorfloors,fixingleaks,plastering,andreplacingbrokenwindows.

•Youmaybeabletodeductthepremiumsyoupayforalmostanyinsuranceforyourrentalproperties.

•Someenergy-savinghomeimprovementstoyourprincipalresidencecanearnyouanenergytaxcredit.Youmaygetacreditforupto10percentofthecostofqualifyingenergy-efficientskylights,outsidedoorsandwindows,insulationsystems,androofs,aswellasqualifyingcentralairconditioners,heatpumps,furnaces,waterheaters,andwater boilers.

•Thereisacompletelyseparatecreditequalto30percentofthecostofmoreexpensiveandexoticenergy-efficientequipment,includingqualifyingsolar-poweredgeneratorsandwaterheaters.Inmostcasesthereisnodollarcaponthis credit.

These aren’t the only tax deductions available to homeowners, but they’re a good place to start a conversation with your tax advisor, accountant or financial advisor as tax season rolls around. Those professionals will be able to find out which deductions apply to your unique situation.