Real Estate Market

You Might Not Need 20% Down on a Home

May 12, 2021 by lkw_df Leave a Comment

Many people, especially first time buyers are discouraged from entering the real estate market because they can’t come up with 20% of the purchase price for a down payment. Conventional wisdom has always held that you put down that amount so you don’t have to pay private mortgage insurance (PMI). These days, there are many options so that you don’t have to have to pay that much money up front, and in some cases, don’t have to put down any money at all.

There are now a variety of loan programs available that allow buyers to bring less money to the table. One of the most popular of these recently is the 80/15/5 loan. This type of loan allows for a large loan of 80% of the purchase price and a small loan for 15% of the purchase price. The 5% is the amount the buyer pays up front. This makes it look like you have 20% down so you don’t have PMI on the loan. The smaller 15% loan typically has a higher interest rate so many buyers choose to refinance once they have 20% equity in the home so they can get rid of the higher rate loan and not have to pay PMI.

If you qualify, another way not to have to bring as much money to the closing table is by getting an Federal Housing Administration (FHA) or Veterans Administration (VA) loan. These loans typically have lower money down requirements like 5 or 10 percent of the purchase price but they can come with more stringent inspection requirements or other requirements to qualify.

First time buyers can also apply for grants and financial assistance that can help with down payments. There are many of these programs out there so make sure to ask your lender if you qualify.

Finally, many lenders have come up with additional loan products to help buyers. These can vary by lender so you should talk with your lender to see all of the options available to you. It is important to have all of these conversations with your lender before you start looking for homes so you know realistically how much home you can afford. This helps steer your home search and helps you to be ready to go in this fast paced real estate market so you can be competitive and secure the home of your dreams.

To get started, give us a call at 803-831-8588. To view current listings and create customized searches for homes, click here.

Lake Wylie Lumber Prices More Than Double

April 26, 2021 by lkw_df Leave a Comment

Due to slowdowns at the factories and increase in demand from builders and home improvers alike, lumber prices are up over 200% from pre-pandemic prices. These prices impact the entire industry helping drive already high prices even higher still.

With many people spending more time at home during the pandemic, home improvement stores have seen profits soar as homeowners decided to tackle projects. Many of these ranged from painting to bathroom remodels, to creating home offices, to dedicated school rooms. Most of these didn’t need lumber, but there have been shortages of items, and long lead times for special order items as well.

For the larger jobs, getting a contractor is increasingly difficult with many so busy that they can’t even return calls for potential new clients. Contractors are also having a hard time pricing jobs and accurately predicting completion dates due to lags in supply shipments and scheduling demands of sub-contractors.

New construction is facing lags as well, and is having to pass off increased costs of construction onto the buyers. This is causing cost and timeline overruns on many new construction homes. Most new construction neighborhoods are experiencing long wait lists for homes as there is not much supply, but there is tremendous demand.

These slowdowns don’t just affect people doing renovations on their homes. You also see slowdowns for people trying to get repairs done. This can even affect a typical real estate sale when you are trying to get repairs done. This could lead to sellers offering money towards closing costs instead of making a repair because they can’t get it done in a timely manner. We are also seeing buyers waiving repair negotiations to make strong offers in our competitive market.

If you are ready to buy or sell a home, call us at 803-831-8588 to get started on the process. We can help you get your home ready to sell for top dollar, or help you get the best deal when buying a new home. You can view current listings and create custom searches on our website here.

March Market Report Greater Lake Wylie Area

April 14, 2021 by lkw_df Leave a Comment

Real estate inventory has been at historic lows for a while now, but for the first time in the Charlotte area, homes are on average selling over asking price. The new report from the Canopy Realtor Association shows that in March, the percent of original list price received was at 100.1%. We are seeing multiple offers on listings driving prices higher than list price.

The average list price in the Charlotte Region is now up to $370,706, up $55,719 from last March, or 17.7% higher. Despite the rise in prices, homes are spending only 24 days on average before a sale. This is down from 46 days last March.

When you look at the numbers for Lake Wylie, you see the same trend. Inventory is down 72.5% from 374 last March to just 103 this March. This represents 0.7 months supply of inventory which is far below the 4-6 month supply needed for a balanced market between buyers and sellers. New listings were up 21.8% from last year, but it is not enough to keep up with demand.

Prices are up in Lake Wylie as well with the average sales price up to $448,731, up 6.4% from last March. In Lake Wylie we are also seeing sellers receive 100.9% of list price on average. This means that we are also seeing multiple offers on listings with homes selling above list price.

With inventory so low, you have to be ready to go with all of your paperwork in order to purchase the home you want. If you are a seller, you need to have your home looking its best to get the best price for your home. We can help buyers and sellers. Just call us at 803-831-8588 to get started. You can view current listings and create custom searches on our website here.

February Market Report Greater Lake Wylie Area

March 17, 2021 by lkw_df Leave a Comment

As expected, the February numbers from the Canopy Realtor Association from the Canopy MLS system are yet again showing low inventory and rising home prices. Homes are selling quickly and new listings can’t keep pace with demand from buyers. This trend looks to continue for at least another month, but with vaccine rates rising, people will soon feel confident to change where they live so we should see a rise in new listings in the coming months.

When you look at the Charlotte Region (which includes 12 counties in North Carolina and 4 counties in South Carolina) you see that we are now down to just 2,958 homes for sale. This is down 64.2% from the 8,267 homes last February which was considered at the time to be historically low inventory. Median home price rose 11.7% from $262,640 to $293,495. New listings were down year over year by 6.2% representing just 4,481 new listings this month. Homes are going under contract on average in 31 days, even including new construction which typically pushes that number much higher.

When you look just at the numbers for Lake Wylie, you see that there are only 83 homes on the market, down 76.2% from the 349 homes last February. This represents just a 0.5 month supply of homes making it an extreme seller’s market.

Many sellers are commanding high prices for their homes, up to and in some cases over list prices. In fact, the average price a seller is getting on their home right now is 101.1% of the list price. The average home is now selling for 20.9% more than last February, up to $445,902.

There were just 119 new listings in February, down 14.4% from the year before. Pending sales were up 19.5% showing that there is still high demand. These homes are selling on average 34 days after listing.

You have to be ready to go for listing or purchasing a home in the current market. To find out what you need to do to be prepared to buy or sell a home in the Lake Wylie area, call us at 803-831-8588. You can view current listings and create custom searches on our website here.

January Market Report

February 15, 2021 by lkw_df Leave a Comment

Well, as expected, the market has gotten even tighter before hopefully a spring thaw. There is now just a 0.7 month supply of homes on the market in the entire Charlotte region, or 3,370 homes. Prices are still on the rise as well with the median home price up 12.9% from last year to $285,000. The average price is up 13.6% to just under $340,000. They are selling quickly as well, with the average days on market before a sale at 26. Listing to closing is happening in an average of 83 days, down 17% from 100 days last January.

When you look at the Lake Wylie numbers, you see the same trend. There are only 118 homes on the market representing a 0.8 month supply of homes. This is down 66.9% from the 357 homes on the market last year at this time.

Homes are selling quickly here as well with the average of 31 days on the market before a sale. This includes new construction homes which are hard to come by as well right now.

Prices are climbing in Lake Wylie with the average sale price up to $415,785 in January. Homes are, on average, selling for 99.1% of their list price as well. This means that buyers can’t expect any kind of discount and in many cases we are seeing multiple offers on a home and sales prices above list price.

Closed sales and pending sales are up year over year. 104 sales closed in January 2021, up 48.6% from 70 sales last January. 187 homes were pending this January versus the 117 last January, up 59.8%.

New listings however, are not keeping up with demand. Even being up 3.8% over last January, demand is far outstriping supply. Analysts are predicting a rise in supply when people who have stayed in their homes during the pandemic will list this spring.

If you are considering buying a home, the time to get prepared is now. Getting pre-approved for a loan is a great first step. The time to start looking is also right now. Homes are selling quickly with lots of interest on each listing.

Call us at 803-831-8588 to get started. Even new construction has waitlists so the time to start is now. Visit our website to see current listings and create custom searches.

Numbers are from the Canopy Realtor Association monthly report covering 12 counties in North Carolina and 4 counties in South Carolina.

December Market Report

January 21, 2021 by lkw_df Leave a Comment

The monthly market numbers have been published by the Canopy Realtor Association, and they affirm that there is a record low supply of inventory. For the entire Charlotte region there is now just a 0.8 month supply and for Lake Wylie it is just 1.1 months of homes. A balanced market between buyers and sellers is generally considered to be a 4-6 month supply. This means that sellers are seeing multiple offers and offers above asking price on many homes.

Homes are selling quickly as well, sometimes before they are even listed for sale. Homes in Lake Wylie are averaging 26 days on the market before a sale, down 64.9% from the 74 days last year at this time. This means that buyers have to come to a home ready to put a contract on it. New construction homes are flying off the market as well and supply is not keeping up with the current demand.

Due to the low supply of homes, prices keep rising higher. The average sale price in Lake Wylie rose 22.8% from $369,460 last December to $453,718 this December. Sellers on average can expect to receive 98.8% of list price.

New listings were down 7.5% from the same time last year and were down 3.4% when you look at the full year. The pandemic has likely caused a lot of people to stay in their homes instead of listing this year. We may see an uptick in home listings as this year continues. Most people are predicting new listings to head up as people who would have sold in 2020 will sell in 2021.

For more information on buying or selling a home in the Lake Wylie area, give us a call at 803-831-8588. You can view current listings and create custom searches on our website here.

Holiday Makeovers

December 21, 2020 by lkw_df Leave a Comment

While many people are in the thick of holiday festivities, many more are taking advantage of the season to improve their homes. This can be a great time of the year to plan an upgrade to your space, even if you can’t schedule contractors to help until after the new year.

Home mortgage rates are at historical lows and are predicted to stay this was for some time. This means that you can borrow money cheaper than ever before. If you are looking to do a large remodeling project or addition on your home, you may want to speak to a lender to see about a home equity loan or a cash out refinance to pay for the purchase. This means that your pipedream of a second floor on your ranch home is a possibility if the finances work out.

These low rates are also great if you are looking for a new construction home. There are many great neighborhoods with lots available where you can use an approved builder or bring your own builder to create the home of your dreams.

So much family togetherness over the past year has many people dreaming of a home office with a door that closes, or a homeschooling classroom, or separate bedrooms for all of their kids. This could be the year to update a dated kitchen or bathroom.

It could also be the year to purchase a new home which means taking care of all of the pesky problems you have lived with in your current home to get it ready for a sale. This would include fixing anything that is broken or in poor repair so you can get top dollar from a buyer.

If you are interested in buying or selling a home in the Lake Wylie area, give us a call at 803-831-8588. You can view current listings and create a custom search on our website here.

November Market Report

December 17, 2020 by lkw_df Leave a Comment

Once again, the trend is continuing that there is not much inventory, and prices are climbing higher. In all of Charlotte, there is just a one month inventory of homes for sale, just 4,554 homes. This is down 52.4% from last year at this time when we thought it was historically low inventory. This year we are really seeing the inventory crunch and when homes are listed, they are practically flying off the market.

The same is holding true when you look just at Lake Wylie. There are just 171 homes on the market in the area, down from 361 at this time last year. This is a reduction of 52.6%. These homes are selling quickly, with just 32 days on average before a sale, down from 55 days last year. This means that homes are selling 41.8% quicker than last year at this time. This is great news for sellers, but is harder on buyers.

Sales prices are climbing as well with the average home selling for $446,518. This is up 10.9% from last year’s average sale price of $402,663. Climbing prices are harder on buyers as well which means if you are in the market to purchase a home right now, you need to be as prepared as possible and could still end up in a bidding war with another buyer.

Realtor.com has ranked the Charlotte area the 3rd best market in the country for 2021 in their predictions. This means that there will probably not be a price correction in the near future, however analysts predict that there will be more homes on the market in the spring as people who delayed listing in 2020 will list in 2021 which could ease some of our inventory woes.

If you are interested in buying or selling a home in the Lake Wylie area, give us a call at 803-831-8588. You can view current listings and create a custom search on our website here.