Carolina and Kure Beach

What Does Warren Buffet Think About Buying A Home?

2012-01-30T09:55:00.000-05:00

What Does Warren Buffet Think About Buying A Home?

Warren Buffet is seen by many as the greatest investor of our time. When he speaks, people listen. Like anyone else in his position of influence, he is criticized by some for using his bullhorn to promote his own business agendas at times. That makes it very interesting when we occasionally learn of how he privately advises those closest to him.

Such a situation occurred this week. Debbie Bosanek, Warren Buffet’s secretary of 37 years, recently purchased a second home in Surprise, Arizona.

In an article in the Omaha World Herald, Mrs. Bosanek discussed her reasons for purchasing a second home and the personal advice she received from Mr. Buffet.

“I just thought it was time to buy a home. Warren tells me that it will be the best opportunity in my lifetime. Mortgage rates are low and prices have dropped dramatically…I share Warren’s view about the future of America, and we believe that our country will do just fine. I’m happy to make this investment.”

The greatest investor of the last century privately has told the people closest to him that buying a home right now “will be the best opportunity in [their] lifetime”.

That’s good enough for me. How about you?

Reprinted from KCM Blog Site

Where Are People Moving To and From?

2012-01-27T09:17:00.002-05:00

Where Are People Moving To and From?

InfoGraphic

Why Deals Die

2012-01-26T10:09:00.000-05:00

I have seen estimates stating that 29% of deals that go to contract and require a mortgage, don’t close. That number boggles my mind. It means that even after a buyer and seller come to terms on a sale (not an easy feat these days), 3 out of 10 transactions fall apart. What are some of the more common reasons?

§ Appraisal issues – In many markets, we are still seeing declining values. Appraisers are in a difficult position, and with so many transactions (including seller’s concessions to assist buyers with closing costs) values aren’t always coming in at sales prices.

§ Short Sales not being approved by the current lender – With so many sellers owing more than their home is worth, buyers’ proposals need to be sanctioned by the lender (who will be receiving less than they are owed). Some of the offers are too low, but often, the lender isn’t local and they really don’t know what the property is worth today.

§ Bad pre-approvals from the loan officer – Today, loan officers who are not reviewing tax returns, analyzing bank statements, and asking for detailed explanations and documentation on credit blemishes, are truly hurting the customers. Issuing pre-approvals based on the representations of the customer is reckless and a cause for dismay later.

§ A lack of transparency – Whether it’s a seller or agent not disclosing property issues, or a buyer trying to sneak things by an underwriter, too many people think they can cut corners. That is not the world we live in anymore. Everything is uncovered. Being honest in the beginning, gives you the best chance to overcome obstacles.

It is clear by the numbers that closing loans can be more difficult today. However, with proper planning and integrity, many of the challenges can be dealt with early and successfully. Agents documenting values of the homes, loan officers doing complete reviews of the loan profile up-front, and everyone telling the truth helps get deals to a successful conclusion and avoids horror stories.

Another Bear Turns Bullish on Real Estate

2012-01-25T10:15:00.000-05:00

Two weeks ago, I posted When the Prophet Says Buy – BUY! In that post, I explained that a major bear on housing, John R. Talbott, is now bullish on the real estate market. Last week, another bear turned bull.

Chris Thornberg, a former UCLA economist and a founding principal of Beacon Economics, was very skeptical of the housing market in 2007. However, in an article by the Orange County Register on January 13^th, he is quoted as saying that now is:

“…a great time to buy a home…If you’ve been thinking about buying a condo in Vegas or buying a condo in Miami, buy now.”

We started off 2012 with two of the biggest bears on housing converting to bulls and telling
us to BUY NOW! It might just be time to buy!!

What Value Does Your Loan Officer Add?

2012-01-19T10:40:00.000-05:00

For the longest time, I have listened to loan officers talk about why people should do business with them; and 95% of the time their presentations boil down to three things – price, product, and service. On the pricing front, they talk about low interest rates and/or closing costs; on the product side, they position themselves as experts in a particular loan program (like a 203K or reverse mortgage); and on the service side, they discuss turnaround time or how available they are.

Let me just say that, in today’s marketplace, virtually every lender (and therefore, every loan officer) has very similar pricing, pretty much all the same products, and service is difficult to prove until you give them a loan to work on. My point being is that the changing lending landscape (tougher underwriting guidelines, loan officer licensing, stricter appraisals, and such) has eliminated virtually 70% of loan officers in America. The remaining people have been vetted and represent a very high quality group of professionals. (Not that there aren’t always a few bad apples, but there truly are very few.)

So, when borrowers shop for loans on the old “price/product/service model”, how does a consumer differentiate between loan officers?

§ Ask for referrals – If you have a friend, co-worker, or family member who had a good lending experience, ask who they used. Talk to people who deal with multiple lenders (real estate agents, attorneys, accountants, etc.) and leverage their comparative experience into making good choices. Loan officers who earn referrals typically go beyond price/product/service.

§ Seek out a mortgage advisor – Even today, with limited loan programs, there are many factors to consider when choosing the right mortgage. Your future income, the length of time you expect to be in the home, and your risk tolerance should be discussed before ruling out adjustable rate mortgages, for example.

§ Look for transparency – Demand a lender who freely and competently discusses rates and likely rate movements. Don’t buy into the idea that rates are conjured up in a mysterious way. Rates are derived by activities in the bond market and your loan officer should be able to explain, in layman’s terms, the factors that affect rates and upcoming events and economic reports, as well as, the most likely impact they will have.

§ Accessibility of information – Are you looking for printed materials and/or videos to guide you through the process? How about online workshops or home buying seminars?

§ Seek out a resource – You may need other professionals when buying a home (from insurance people, to home improvement people, to legal help). A good loan officer has a network of high quality referral partners to help you.

Many of the criteria for choosing a loan officer are less tangible than the old “price/product/service model”, but frankly, they may prove more valuable over time.

Feel free to give me a call and I will gladly provide you with a list of proven loan officers that my clients have used in the past.

Where Are House Prices Headed in 2012?

2012-01-18T10:49:00.000-05:00

There is no shortage of opinions as to where home prices are headed in 2012. From Clear Capital’s expectation that prices will show a ‘slight uptick’ this year to Fitch’s projection that prices ‘will fall another 13 percent’, there seems to be no consensus as to where real estate values are headed. How can there be such a disparity of opinion among industry experts? Prices are determined by the relationship between supply and demand and there are many unanswered questions regarding both of these components.

Questions about Demand

Will this be the year that the 5.9 million adults between the ages of 25 and 34 that are still living with their parents decide to purchase a home of their own?

With mortgage payments lower than rent payments in the majority of the country, will first time buyers finally decide it makes more financial sense to buy rather than rent?

Will the baby boomers take advantage of the great deals available and start purchasing vacation and retirement homes?

Will investors continue to purchase large quantities of distressed properties?

Will hedge funds negotiate a deal with the banks for bulk purchases of foreclosures?

Questions about Supply

Will 2012 be the year that builders again increase inventories of newly constructed homes?

Will baby boomers put their primary residences up for sale and relocate to their retirement destinations?

Will 2012 be the year that the shadow inventory of foreclosures finally makes its way to market?

If prices depreciate, it will force more homes into a negative equity situation. Will this create another surge in short sales and foreclosures?

Will the government put together a plan to convert large numbers of foreclosures into rental properties?

Bottom Line

With so many unanswered questions regarding both the demand for housing and supply of properties, it is very difficult to determine where prices will be at the end of the year. Please give me a call and we can discuss pricing and where values are headed in our area.

When the Prophet Says Buy - BUY!

2012-01-09T09:08:00.000-05:00

John R. Talbott, previously a Goldman Sachs investment banker, is a bestselling author and economic consultant. When it comes to the housing market he is also a prophet. When housing prices started to skyrocket in 2003, he published The Coming Crash in the Housing Market correctly warning us that a real estate bubble was forming. Then in January 2006, he called the absolute peak of home prices in the US by releasing a new book, Sell Now! The End of the Housing Bubble.

Mr. Talbott, the person who accurately predicted the housing bubble and its bust, now has a new prediction – IT IS THE TIME TO BUY A HOME! In a recent article, Homes – Buy Now!, Talbott simply explains:

“I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt.”

He goes on to explain that his conclusion is based on four different metrics, all of which favor buying today:

§ Home Prices Relative to Peak Prices During the Bubble

§ Home Prices Relative to Construction Costs or Replacement Costs

§ Home Prices Relative to Incomes and Rents

§ Home Prices in Real Terms, Not US Dollar Terms

Bottom Line

If the person who called the real estate bubble and its bust says now is the time to buy, we believe it is time to buy.

5 Real Estate Trends to Look For in 2012

2012-01-03T15:23:00.000-05:00

Predicting trends during the most volatile housing market in American real estate history is no easy task. We strongly believe these are the five real estate items we should keep an eye on in 2012:

1. Buyers Will Return

In 2011, a lack of consumer confidence in the overall economy dramatically impacted the housing market. Buyers were afraid to make a purchasing decision on any big ticket item. By the end of 2011, consumer confidence began to return and sales increased. Economic conditions will continue to improve throughout 2012 and consumer sentiment will solidify. Once that happens, home buyers will realize that now is the time to buy.

2. Foreclosures Will Increase

The ‘shadow inventory’ of foreclosures which has been growing since the robo-signing challenges of late 2010 will finally be introduced to the market. Distressed properties sell at discounted prices. They will impact the housing values of the non-distressed homes in the area.

3. Prices Will Soften

As more and more foreclosures come to market, there will be greater downward pressure on the values of houses in the region. Foreclosures impact values of non-distressed properties in two ways:

§ They will eat up some of the buyer demand in the market.

§ They will impact the appraisal on ALL transactions in the area.

An increase in foreclosures will have a negative impact on values. This will cause more homes to be underwater.

4. Short Sales Will Increase

As mentioned above, we strongly believe that home prices will soften through at least the first half of 2012. Falling prices will force more homeowners into a position of negative equity. Negative equity is one of the triggers that cause people to strategically default on their mortgage obligations. If this happens, there could be an increase in the number of foreclosures. However, we predict that banks will take preventative measures which will help many of these homes avoid foreclosure by easing the requirements in the short sale process for both homeowners and real estate professionals.

5. Great Agents Will Be VERY Successful

Real Estate professionals who have invested the money, time and energy to truly understand what is happening and why it is happening will separate themselves from their competition and do very well this year.

Those who take that next step of learning how to simply and effectively communicate the market to their clients will be seen as industry leaders. These experts will dominate their markets.

The First Question You Should Ask Your Listing Agent

2011-12-27T09:22:00.000-05:00

What is the most important thing a seller should look for when hiring a real estate agent to sell their house? We are often asked this question. Is it the size of the company they are licensed with? Is it their marketing program? Their years experience in the business? Should you choose the agent who suggests the highest listing price?

There are many things that should be taken into consideration when hiring someone and giving them the responsibility for selling your home. In our opinion, the most important question you can ask a potential listing agent is a simple one:

Do you truly believe that now is a good time to buy a home?

Why should this matter when hiring someone to SELL your home? Buyers are nervous about purchasing right now. They want to know they are making an intelligent choice. We believe, especially in today’s market, you need to hire someone who realizes that this is one of the best times in American real estate history to buy. If an agent doesn’t believe that, how will they be able to convince a potential buyer to buy your home?

When interviewing a real estate professional, ask them to explain why purchasing a home makes sense today. They should be able to explain it simply and effectively. See how many of the following facts (which should be shared with every potential purchaser) the agent knows:

The Wall Street Journal last week stated:

“With home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents the best low-risk buying opportunity out there today.”

Donald Trump was just quoted saying:

“I’m pretty sure this is a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to Donald Trump’.”

John Paulson, a multibillionaire hedge fund operator and the investment genius who made a killing betting against housing a few years ago, is now bullish on residential real estate market. He recently said:

“If you don’t own a home, buy one. If you own one home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home.”

A recent Gallup Poll showed that 67% of American’s think that now is a ‘good time’ to buy a home. The Gallup Organization went on to say:

“Overall, there is good reason for most Americans to think now is a good time to buy a house. Interest rates remain near historic lows. Home prices are down sharply, providing many incredible buys.”

The iconic financial paper in this country, the country’s most famous real estate investor, the most successful prognosticator of the housing market and 2/3 of all Americans say now is the time to buy a home. Shouldn’t your agent agree?

Bottom Line

Selling is nothing more than the transference of conviction. How can agents transfer that conviction if they themselves are not convinced? Find a listing agent who truly believes that someone should buy your home – TODAY! This is the single most important thing you should look for in a potential listing agent.

A Better Indicator of a Healty Market: Liquidity

2011-12-13T10:10:00.000-05:00

Today, we are again honored to have Ken H. Johnson, Ph.D. — Florida International University (FIU) and Editor of the Journal of Housing Research as our guest blogger. To view other research from FIU, visit http://realestate.fiu.edu/.

What is the definition of a healthy housing market? Is it a housing market in which home prices are decreasing? Few would agree with this. Is it a market in which home prices are increasing? At first glance, many would agree with this definition. However, increasing prices cannot be used to diagnose a healthy housing market. If increasing prices indicate market health, then in 2005 housing markets were “very” healthy, and we know that this is not true.

If pricing does not indicate market health, then what does? The answer is simple: it is market liquidity and not pricing that indicates the health of a housing market. Liquidity has been defined in many ways but it basically boils down to: can an individual seller, at a time of their choosing, successfully market their property at or near market value? We often hear of rates (turn-over and absorption) that are related to this concept. Unfortunately, these measures are difficult to estimate and they all have something to do with outstanding inventory. What really matters, regardless of outstanding inventory, is the likelihood that a property will close. This is the most basic meaning of market liquidity and it can easily be proxied.

All of the data necessary to proxy a particular market’s liquidity (and thereby its health) is available on the daily “hot sheets” of almost every MLS in country. Since liquidity is really just a batting average all that needs to be done is total the successful transactions (closed properties) and divide these by the failed listing transactions (Expireds + Withdrawns + Cease Efforts + Cancelled)[1][2]. The resulting number is a very close approximate to the probability that any given property listed in that market will close and an increasing trend in this number indicates improving market health.

Implications

Pricing trends do not indicate the health of a housing market. Keep in mind. For almost every sell in an increasing market, there is a repurchase at a higher price. For almost every sell in a decreasing market, there is a repurchase at a lower price. Thus, pricing is a “double edged sword”. Gains/Losses on a sell are almost always accompanied by higher/lower repurchases. Thus, pricing trends can never indicate the health of a particular real estate market. Instead, it is market liquidly, which can be easily proxied, that actually indicates market health. After all, the real goal is for a seller of property to be able to transact at or near market value with a high degree of certainty. Fortunately, most MLS’s around the country have the information at their fingertips to estimate the health of their particular market.

It is liquidity (not price) that matters.

Endnotes

[1] Different MLS’s have similar but not exact designations for these various categories. The goal is simply to divide successes by failures.

Reprinted by Permission KCM

Common Sense Isn't Common Practice

2011-12-08T10:17:00.000-05:00

It used to be that there was logic applied in the world of mortgage lending. An appraiser determined the value of a home by the axiom, “what a reasonable buyer would pay a reasonable seller”. An underwriter weighed the plusses and minuses of a file (after analyzing the income, the assets, the credit profile and the appraisal) and made a judgment call based on their experience.

Loans with sizable down payments used to be more flexible with how income was documented or what quality of credit was required. Even the decision of what made up “good credit” has been reduced to a FICO score. Determining the risk of a loan affected its approval or denial. Further, loans deemed riskier were given less favorable terms (higher rates and/or costs or larger down payments).

But today, everyone has tried to quantify everything and put everything into a matrix. Credit scores are numerical, and the number determines eligibility and cost. Gone is the concept of explaining why you have defects in your credit. We don’t care why, we just look at your score. Appraisers now are being scored and their data being scrutinized to a level most would find mind-boggling. Amenities that make a home worth more for a particular buyer (like a pool or upgraded basement) are virtually ignored. Underwriters have primarily become fact-checkers and quality control as a computer software program underwrites the vast majority of mortgages today.

Gone is common sense. It has been replaced by numerical formulas and a cover-my-behind, justify-everything-with-data mentality. Basically, the pendulum has swung too far. It used to be that lending was too easy (see the subprime debacle), but now we have eliminated too much of the human element. We need common sense back.

People who have saved 30% for a down payment know what they can afford monthly. Don’t they?

People who had a medical challenge two years ago that is not likely to reappear should not have a twenty year credit history destroyed. Should they?

People aren’t likely to overpay for a home with so much inventory and all the media exposure about falling prices. Are they?

Bring back some common sense when we need it most!

Intracoastal Is Again #1

2011-11-30T09:09:00.000-05:00

It's official, Intracoastal Realty is the number 1 real estate company in New Hanover County with a total volume of over $288 million. This is $36 million ahead of #2 and almost $100,000 per sale higher.

Home Sales Increase Across the Country

2011-11-29T09:38:00.000-05:00

The National Association of Realtors recently released their 2011 3rd Quarter Housing Report. In the report, they showed that combined sales of single family homes, condos and co-ops increased in EVERY state as compared to the 3rd quarter of last year. Here are the state-by-state

The next time someone says houses aren’t selling, ask them which state they live in and show them the chart.

Why You Need an Expert - Part II

2011-11-22T10:50:00.000-05:00

Yesterday, I explained that having someone who truly knows the market was crucial if you were planning to buy or sell a home today. This expert should know what is happening in real estate, understand why it is happening and be able to simply and effectively explain each point to you and your family. Today, I want to discuss the consequences if you don’t have a true industry professional on your side.

When families enter into a contract to buy or sell a house, two things are true:

1.The buyer wants to own the home.

2. The seller wants to sell the home.

In order for both these things to take place, the transaction must be completed. That is not an easy task in the current market. The National Association of Realtors (NAR) released their Existing Homes Sales Report yesterday. In the report, NAR announced that one out of every three contracts to purchase a home in October never made it to a closing table. How does that ratio stack up against previous numbers? Here is a graph showing previous rates of cancellations:

Cancellations have more than quadrupled in the last 14 months! According to NAR, cancellations are caused by:

“… declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including home inspections and employment losses.”

Bottom Line

No one can guarantee you won’t face challenges. However, the best agents and mortgage professionals know how to manage the expectations of all the parties involved thus dramatically increasing the chances your deal will close and you and your family will be able to move on with your lives. Hire that true professional!!

Reprinted by Permission from KCM

You Need an Industry Expert in This Market

2011-11-21T11:13:00.000-05:00

In today’s real estate market, it is easy to get confused. There seems to be an overabundance of information and much of it seems to be conflicting. As an example, we offer you two headlines that appeared within 24 hours of each other last week.

National Delinquency Rate Falls to Lowest Level in Three Years

- Mortgage Bankers Assoc. 11/17/2011

Second Consecutive Increase in First Mortgage Default Rates

- Standard & Poors 11/18/2011

(Remember, foreclosures impact home values and the cost of mortgage money. This makes current delinquency rates an extremely important data point.)

Though these headlines seem to be saying opposite things, both are actually correct. Each report was looking at different data points over different periods of time.

In their article regarding the MBA report, DSNews explains:

“Industry data released Thursday indicates the number of borrowers in the United States behind on their mortgage payments is showing signs of improving. The Mortgage Bankers Association (MBA) reported that the national delinquency rate for residential home loans fell to 7.99 percent in the third quarter.”

In their post, S&P claims:

“First mortgage default rates rose from 1.99% in September to 2.08% in October.”

Bottom Line

Make sure you are dealing with local real estate and mortgage professionals. They will help you and your family decipher the hordes of information available so you can truly understand your best options.

2011-11-18T12:52:00.002-05:00

How Much Should You Put Down

2011-11-17T10:40:00.000-05:00

Like most questions, the answer is “it depends”. Today, I thought I’d give you some things to consider.

Let’s begin the discussion with loans that don’t require Mortgage Insurance. The suggestion is to borrow as much as you can afford. As an example, borrowing $310,000, as opposed to $300,000, will increase your mortgage payment by about $51 at 4.5%. Recognize that by doing so, you will have $10,000 in the bank. It is my experience that it is easier to find $50 more every month than it is to save $10,000. Even if you had the discipline to set aside the $50 monthly, it would take you 200 months to re-accumulate the $10,000 in principal (longer with lost interest).

Understand too, that the interest paid on the extra money borrowed is tax-deductible. In a 25% tax bracket the $51 additional has a real cost of about $38!

Having the $10,000 liquid has other potential advantages as well:

1.If rates go up in the future, you could potentially make more interest than you are spending.

2. If you can avoid using credit cards for furniture, home improvements, etc., you can save a bundle on those non-tax deductible interest rate costs.

3. In a world where home values have declined, the more you borrow, the less you have at risk. You transfer the risk of the future value of the home to the lender.

Now, many borrowers today will need some sort of Mortgage Insurance, whether it’s a Conventional Loan with less than 20% down or an FHA Mortgage. These borrowers should sit with their loan officer and run the numbers because the cost of the Mortgage Insurance can vary based on loan-to-value and other factors. Examine the costs and the relative benefits.

The PRICE Is the Same, But the COST Is Less

2011-11-16T15:25:00.000-05:00

There is more and more research coming out showing that it makes great financial sense to purchase a home today . Whether it be rent vs. buy ratios, income-to-price ratios or income-to-mortgage payment ratios, purchasing a home right now is a bargain compared to historic norms. Now we want to look at the COST of a home today compared to pre-peak prices.

According to the most recent S&P Case Shiller price index, residential real estate values have returned to 2003 1Q PRICEs. That, in itself, says something. However, when you factor in mortgage rates, the case for buying a home today becomes even more compelling.

In 2003, 30 year mortgage rates stood at 5.88%. Today, they are 4%. How does that impact the actual COST of a home? On a home purchased for $250,000, here is the difference in monthly cost:

That means you save $285.30 a month, $3,423.60 a year and $102,708 over the life of a 30 year mortgage! You buy the home for the same PRICE but the COST is over $100,000 less.

Bottom Line

This is why so many financial advisors are saying that this may be one of the greatest times in history to purchase a home.

One Thing That Still Concerns Me

2011-11-15T09:43:00.000-05:00

There is no doubt that the housing market is stumbling to a recovery. This past week Lawrence Yun, NAR’s chief economist, predicted a 4% increase in sales next year. Last month, Celia Chen of Moody’s Analytics projected sales to increase over 20% in 2012. Any increase in transactions will be welcomed.

However, we believe there is one headwind that could jeopardize a recovery: fragile consumer confidence. Consumer sentiment, as measured by the University of Michigan, has seen modest improvement in the last few months after nose diving over the previous several months. Moving forward, any hit to consumer confidence will impact a real estate rebound.

Prices are predicted to soften through the first two quarters of 2012 before reaching modest levels of appreciation by year’s end. Falling prices will force more homeowners into a position of negative equity. Being underwater is one of the triggers that cause people to strategically default on their mortgage obligations. If this happens, there will be an increase in the number of foreclosures. This, in turn, could cause a relapse in consumer sentiment.

Bottom Line

We believe that there will be a dramatic increase in residential real estate transactions (both existing sales and new construction sales). The only thing that may stand in the way is a loss of confidence in a housing recovery. The next six months will tell us a lot regarding this possibility.

Is There a 3.8% Tax on Homes in the Health Bill?

2011-11-14T09:31:00.000-05:00

We have received many questions about a possible 3.8% tax which will be put on home sales beginning in 2013. We want to do our best to clarify this situation for everyone. We are not accountants and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.

A little history on the confusion

Fact Check.org explains it this way:

The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.

We can understand how this misconception got started. The law itself is couched in highly technical language that only a qualified tax expert can fully grasp. (This provision begins on page 33 of the reconciliation bill that was passed and signed into law.) And it does say the tax falls on “net gain … attributable to the disposition of property.” That would include the sale of a home. But the bill also says the tax falls only on that portion of any gain that is “taken into account in computing taxable income” under the existing tax code. And the fact is, the first $250,000 in profit on the sale of a primary residence (or $500,000 in the case of a married couple) is excluded from taxable income already. (That exclusion doesn’t apply to vacation homes or rental properties.)

The Joint Committee on Taxation, the group of nonpartisan tax experts that Congress relies on to analyze tax proposals, underscores this in a footnote on page 135 of its report on the bill. The note states: “Gross income does not include … excluded gain from the sale of a principal residence.”

And just to be sure, we checked with William Ahern, director of policy and communications for the nonprofit, pro-business Tax Foundation. “Some home sales would see a tax increase under this bill,” Ahern told us, “but it would have to be a second home or a principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”

Simple Explanation:

The following simple explanation comes from midiShaw:

The tax will affect those sellers of real property who will be otherwise taxed on capital gains under current tax laws. Under current laws, if you sell your primary residence and meet the ‘time ‘ criteria, you are exempt up to $250,000 or $500,000 (filing individually or jointly). Any amount realized OVER that amount is taxable under current tax schedules based on income. As such, this new tax will apparently be added to the current capital gains tax burden IF your income is over $200,000/$250,000 (filing individually or jointly). For those selling second homes and investment properties, the tax, once again, will be applied to the amount of gain realized.

Detailed Explanation:

The following also comes from midiShaw in a comment to the above answer.

Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000. Under the law, the investment tax provisions in Chapter 2A of the Internal Revenue Code are placed under the heading “Unearned Income Medicare Contribution.” In general, this new Medicare tax will apply to investment income that is subject to income tax, which includes capital gains. Pursuant to IRC Section 1402 (C)(1)(A)(iii), the investment income to which this new tax applies includes “net gain” (to the extent taken into account in computing taxable income) attributed to the disposition of property that qualifies as a capital asset under Section 1221 (capital gains), as well as gains on other property that are considered part of ordinary income.

We offer this just as an explanation. Remember, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.

Reprinted from KCM Blogsite

Homeownership: Reports of Its Death are Exaggerated

2011-11-07T11:02:00.000-05:00

There have been a growing number of reports announcing the death of American homeownership over the last two years. Some have said we are evolving into a rental society and even challenge the long standing belief that homeownership should be a part of the American Dream. They look at the falling rate of homeownership as proof of their point. Others say that the younger generations no longer see the value in owning over renting.

However, this past week, two news items might refute these points. First, DSNews reported the homeownership rate actually increased in the last quarter; the first quarterly increase in two years.
“After falling to a 13-year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter, according to a Census Bureau report.”

Then, Fannie Mae released their 2011 3rd Quarter National Housing Survey. We will cover this report in more detail on Wednesday. But we do want to mention a few findings the report highlighted. Both Generation Y (birth date mid-1970s to mid 1990s) and Generation X (birth date mid 1960s to mid 1970s) have stronger beliefs in the importance of homeownership than those of the general population.
Here are the numbers for the three major reasons to buy (as per the survey) with the percentage who believe in each reason:

1. It is a good place to raise children and provide them with a good education:
 Generation Y: 84%
 Generation X: 81%
 General Population: 80%

2. You have a physical structure where you and your family feel safe:
 Generation Y: 77%
 Generation X: 79%
 General Population: 76%

It allows you to have more space for your family:
 Generation Y: 76%
 Generation X: 77%
 General Population: 73%

Both generations also believe in homeownership as an investment. 70% of Generation Y and 66% of Generation X see homeownership as a safe investment while 64% of the general population believes so.

Bottom Line

This country’s belief in homeownership is anything but dead. The younger generations have the same if not a higher level of belief than earlier generations. As the economy improves, more people will make the move into a home of their own.

It's Simple - Now Is The Time To Buy A House

2011-10-31T15:04:00.000-04:00

“The millionaire says to a thousand people, ‘I read this book and it started me on the road to wealth.’ Guess how many go out and get the book? Very few. Isn’t that incredible? Why wouldn’t everyone get the book? A mystery of life.” – Jim Rohn

Mr. Rohn explains that if we want to make the right financial decisions in our lives, we should depend on the same sources the wealthy read. This past month four different iconic financial resources said the same thing:

IT’S TIME TO BUY A HOME!

Here are all four resources.

Forbes Magazine: The Next Mortgage Crisis

Wall Street Journal: It’s Time to Buy That House

MarketWatch.com: Now Might Be the Best Time Ever to Buy a Home

JP Morgan Market Insights: Housing: A Time To Buy

Enjoy reading them!!

Tips To Present a Stronger Mortgage Application

2011-10-06T11:28:00.000-04:00

As underwriting guidelines for lenders become more stringent, we need to re-examine what a good mortgage application looks like. As home buyers begin their search for a home, there are a few items they should be aware of that they can do to help get their loans approved (with the best possible terms), and, at the same time, lessen some of the stress that goes along with the mortgage process.

1. Income documents

Most lenders want to see a full month of paystubs and two years’ complete Federal Tax Returns. Assembling them ahead of time and holding on to every paystub you get is a good idea even before you find a home and/or submit your mortgage application because it will save you time later. Moreover, looking at those documents and being prepared to explain any deductions that show up is crucial. Child support, alimony, garnishments, and Unreimbursed Employee Expenses are often crippling factors that, if explained and dealt with upfront, can make your loan approval smoother.

2. Asset documents

Most lenders will scour your bank accounts for the two months prior to going to contract. They are looking for large deposits because large deposits can signal a new loan that wouldn’t show up on your credit report yet. What’s a “large deposit”? Typically, any deposit that would represent more than your income can support. If you make $5000 a month, after taxes you likely net $3800 (or $1900 a bi-weekly pay period). Therefore, deposits in excess of that will need to be explained and documented. Sold a motorcycle? Have a paid receipt and motor vehicle documents in place. Received a gift? You will need a Gift Affidavit, proof of the donor’s ability and transfer of the funds. Any and all questions should be discussed with your loan officer.

3. Credit Score Optimization

Do your best to curtail your use of credit as it relates to your available credit lines. Target a cap of 30% of usage of available lines to get the best scores. Do NOT cancel credit cards. That will lower your amount of available credit, thereby raising your percentage of usage. That will damage your score. Do NOT shop for a car, explore life insurance, apply for a new credit card or increase the limits on your current cards because the running of your credit by people in other industries will also lower your credit score. Most importantly, don’t do anything that will require having your credit run without first discussing it with a mortgage professional who knows the impact it could have.

4. Appraisal Concerns

It’s unlikely you will make an offer to purchase without checking out comparable home sales. It’s also likely you received that type of data from the real estate agent you are working with. Make sure your agent prepares the same information for the appraiser. Data about similar sales, similar homes currently on the market and maybe even cost estimates for any repairs or improvements anticipated can preempt future problems with appraised values and conditions.

Overall, it is recommended that you hold onto copies of everything financial, think before allowing your credit to be run and work with an agent and loan officer who can use their experience to put your loan application in its best possible light…as soon as you start thinking about buying a home.

Picking the Right Agent is Crucial

2011-10-05T09:51:00.000-04:00

The National Association of Realtors (NAR) released their Existing Sales Report two weeks ago and in the report they discussed a troubling trend: cancelled contracts are increasing dramatically. NAR defined the issue:

“Contract failures – cancellations caused largely by declined mortgage applications or failures in loan underwriting from appraised values coming in below the negotiated price.”

NAR explained that 18% of all contracts were cancelled in August. This compares to 16% last month and 9% in August of 2011.

The percentage of cancelled contracts has doubled in the past year!!

It is extremely important that both buyers and sellers pick the right real estate professional to assist them with their real estate needs.

BUYERS

Make sure your agent can not only help you find the home of your dreams but also find you professional assistance with all aspects of the transaction (mortgaging, title, etc.)

SELLERS

Realize that your agent must sell the home twice:

1.to a qualified buyer

2. to the bank (through the appraiser).

The second sale may be more difficult in this market than the first.

Bottom Line

It is imperative in this housing market that both buyers and sellers use a true real estate professional to guarantee that the deal will actually reach the closing table.

Short Sale vs. Foreclosure: A Short Sale Always Wins

2011-10-04T10:07:00.000-04:00

Today’s ever changing real estate industry has brought upon some very challenging questions from our clients. We as counselors, want to put forth the best, non-emotional advice that we can, in hopes that we can help our clients and their families navigate the rough waters of the short sale process.

The most prevalent question and one that continues to permeate the industry is:

“Why should a seller go through the short sale process rather than letting their house be foreclosed upon?”

While we cannot speak to every client circumstance, we can say one thing with complete conviction. In almost all instances in which a potential seller is contemplating whether they should short sell their house or let it go through the foreclosure process, a short sale is the better option. The following are examples to consider:

Example A- Short Sale

Mr. Smith owns a home in which he has a mortgage balance of $220,000 and a current market value of $150,000. Mr. Smith has elected to short sell his property. His Realtor successfully obtains a buyer who puts forth an offer price of $120,000 (80% current market value according to Realty Trac Foreclosure Report 5/26/2011). After reviewing the buyers offer and the financial hardship information from Mr. Smith, Mr Smith’s bank agrees to accept the short payoff of $120,000 which would leave a deficiency balance of $100,000.

The transaction closes and is final. Mr. Smith then pulls his credit report 30 days after the transaction takes place. On the report he notices that the mortgage trade line states “Mortgage debt was settled for less than full” and the balance on the mortgage is $0. Mr. Smith is now on the road to financial recovery.

Example B- Foreclosure

For the ease of illustration we will use the same value and mortgage debt amounts as in Example A. However, Mr. Smith has elected to forgo the short sale process and let the bank foreclose on the property. The bank holding his mortgage facilitates the proper legal procedures to foreclose on the property, all of which are costly. Mr. Smith is notified and his property foreclosed upon of which is taken back by the bank to sell as an REO.

Six months later, the bank finally sells Mr. Smith’s home only they sell it for $90,000 (60% of current market value according to Realty Trac Foreclosure report dated 5/26/2011). Remember, as a short sale, the home would have sold for $120,000 keeping the deficiency to $100,000. In addition to the deficiency now being $130,000, the bank has elected to add on legal costs of $15,000 and asset preservation costs of another $5000 for a total deficiency liability of $150,000. Mr. Smith pulls his credit report 30 days after being notified that the bank has sold his property and of his liability.

On the report he notices that the mortgage trade line states “Foreclosure” and the balance is $150,000. Because of Mr Smith’s choice to choose foreclosure vs. short sale his road to financial recovery has taken a major detour. He not only has a foreclosure on his credit report but know has a much larger deficiency balance in which the bank, in most cases, will report on his credit report as a balance owed.

The Best Option is clear

While the financial and credit advantages are clear when choosing a short sale over a foreclosure, other advantages are sometimes overlooked. The most important of all of them is maintaining the seller’s dignity and peace of mind. We have heard too many stories of families having to leave their homes because of a Sheriffs order or some other type of legal action. The short sale process alleviates this negative social impact. The process puts the control back in the seller’s hands so that they can get back on the road to financial recovery and start providing for their families. In the battle of the two evils, a short sale always wins!!!

Selling? Waiting Until the Spring Makes No Sense

2011-09-27T08:32:00.000-04:00

Late last year, banks were warned that they needed to guarantee that the paperwork necessary to start a foreclosure process on a family was both accurate and complete. Since then, the banks have slowed down the foreclosure process while they re-examined their procedures. They are now confident that all the required documentation is in order. We are currently waiting on a settlement between the banks and the state attorneys general which will establish what penalties will be assessed.

Once this settlement is reached, the banks will again move forward on many homes which are currently stalled at some stage in the foreclosure process.

How many homes are we talking about?

There are millions of homes in this category. Calculated Risk quantified the situation:

“There are a large number of seriously delinquent mortgage loans in limbo waiting for this settlement. According to LPS, at the end of August there were about 1.87 million loans seriously delinquent and another 2.15 million loans in the foreclosure process. This is only down slightly from a year ago when 4.4 million loans were seriously delinquent or in-foreclosure. Once the settlement is reached, the pace of foreclosures will pick up sharply.

The pace will “pick up sharply”.

Bottom Line

As more foreclosures come to the market at discounted prices, there will be greater downward pressure on all housing values. Waiting for the spring selling season to put your house on the market may not make sense this year. The increase in demand may be overshadowed by an increased supply of distressed properties.

Reprinted from KCM Blogsite

13,780 Homes Sold Yesterday

2011-09-26T09:55:00.000-04:00

To all those who have declared the real estate market dead, we want you to know that over 13,780 houses sold yesterday, 13,780 will sell today and 13,780 will sell tomorrow.

That is the average number of homes that sell each and every day in this country according to the National Association of Realtors’ (NAR) latest Existing Home Sales Report. NAR reported that sales had increased 7.7% over the month before and 18.6% over the year before. According to the report, annualized sales now stand at 5.03 million. Divide that number by 365 (days in a year) and we can see that, on average, well over 13,000 homes sell every day.

We realize that these numbers are below the record for homes sold in 2006. We also know that we may never see those numbers again (and that is probably a good thing). But to say that the current real estate market is dead or that houses are not selling is totally inaccurate. We have over 13,000 pieces of evidence to prove that.

5 Great Reasons to Sell Your House Today

2011-09-06T09:17:00.000-04:00

We are often asked “Is the time to sell my home?” The answer to that question is based on what your families’ goals are. If you don’t need or want to move for a few years it might make sense to wait for the housing industry to recover and prices to appreciate. However, if you wish to move within the next six to eighteen months, it is probably better to sell sooner rather than later. Here are five reasons why:

Your House Will Get More Exposure Now Than the Winter

Housing sales usually level off in the summer and then regain momentum in September and October. The spring buyers’ market has passed. Don’t miss the early fall market. It has consistently outperformed the winter season.

Distressed Properties Will Impact Prices

Distressed properties (foreclosures and short sales) on the market will increase this fall and winter. This will put tremendous downward pressure on prices for at least the next 12-18 months. Get your home sold before they become your competition.

Mortgages Will Become More Difficult to Attain

Lending standards are continuing to tighten. There is legislation currently being considered that will make it even harder for buyers to qualify. Less demand will equate to lower prices.

It is the Perfect Time to Move-Up

With prices where they are and interest rates at all time lows, there may have never been a better time to move-up into your dream home. If you move into a more desirable home now, you will be in position to gain larger equity as prices eventually appreciate.

You Get to Move On with Your Life

Probably the most important reason to sell is so you can get on with your life. You are considering selling for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you are thinking about moving . Are these reasons really important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.

Reprinted from KCM Blog by Permission.

Money to Purchase AND Renovate Your Home

2011-09-01T09:41:00.000-04:00

This is a great new product that I am actually using personally. It's a little more difficult than your standard loan, but it allows you to do so much more. Please read the blog and give me a call for more information.

Whether you’re looking at a foreclosed home, bank REO, a Short Sale or really any home, you need to be aware of the FHA 203K Program. The general condition of real estate has taken a dip over the past few years, as homeowners are not sprucing up their home as they have in the past.

(Pssst…there’s a recession going on…people are afraid of losing jobs…and they believe they won’t “get back” the money they spend by renovating upon sale).

The 203K loan can be used for small repairs (with a minimum of $5000 of work) such as a new roof or replacing the boiler. It can go all the way up to practically rebuilding the home and anything in between. Maybe you love a home, the neighborhood, etc., but you hate the kitchen cabinets. The 203K may be for you. As long as the existing foundation stays intact, we can talk about any type of repair, upgrade, modernization or expansion.

With one closing, we will give borrowers money to satisfy their contract with the seller AND establish a Rehab Escrow Account to fund the agreed renovations. The Rehab Escrow Account is managed like a Construction Loan. Money is released after work is completed, the property is inspected by the lender and the title is updated.

Like all FHA loans, the property must be owner occupied and loan approval requires full documentation of income, assets and credit worthiness. At the same time, underwriting guidelines have some flexibility built in. (In theory, we can lend up to 110% of the After-Improved Value of the home for example.)

Loans are processed in the same fashion as any other loan (in terms of income, asset and credit) with the exception of the appraisal. Appraisers work in conjunction with the home improvement contractor and a HUD Approved Pre-Planner to determine: “As-Is” Value, “After-Improved” Value, costs of construction and the draw schedule of the renovation portion of the loan. This work typically adds about a week to the approval process, largely because it should be done BEFORE contracts are signed.

SOME UNIQUE FEATURES OF THE 203K

§ Mixed-Use Properties may be eligible! As long as the commercial space is no more than the allowable square footage based on the number of floors in the building and none of the renovation monies are used for a commercial renovation, the 203K gives tremendous interest rates for Mixed-Use Properties.

§ The loan can be used to change property usage (when appropriate municipality approval)…..converting a 1 Family Home to a 2 Family or a 4 Family to a 3 Family or any variation that stays within the 1-4 Family boundaries works.

§ On major renovations we will finance up to six months payments into the loan. In these cases,the house will not be habitable until after the work is completed.

§ There is a Streamline 203K for projects that require less than $35,000 of repairs. Typically, we like to see only one or two items of work that can be done quickly (with one inspection).

It is recommended that you work with an experienced loan officer when exploring the 203K Program, as there are many details that need to be considered (from selecting a qualified contractor to the inner workings of the draw schedule and preparing for different contingencies). While the program is more intricate, with the right education ahead of time, it is extremely manageable.

July 2011 MLS Report - By David Flory

2011-08-15T13:13:00.000-04:00

The attached report comes from David Flory, a Mortgage Banker with Cunningham & Company, a full service mortgage company. There is a lot of statistical information that may not interest everyone. However I have found this to be one of the best month reports on the status of our real estate market here in New Hanover County.

Joyce

July 2011 MLS Report

David’s Comments –
I am real pleased to say that we have some good news. Average sold price is up 1.9% over last month, is up 4.5% over Year end 2010 and up 2.1% over July 2010 and up 9.8% over July 2009. We are up 38 sold units over July 2010. Current listing inventory is down by 2.2% from last month and the sellers paid concessions is higher than last month. The average sold price is up $4,506 over last month and up $4,936 from last July. Our sold units hit 403 an decrease of 78 units from last month. Our numbers exceed last July. On August 1 we saw a decrease of 109 homes in our listing inventory; we have 4,739 homes on the market as of August 1^st. This adjusted our month’s supply with just over 11.7 months and increase from last month’s 10.4. Our average list price has continued a small increase each month since the start of the year; we are currently at $352,859. In July sellers paid concessions in about 31.5% of all the month’s transactions about 2% higher than last month. Our average days on the market decreased to 162 days. The list to sold ratio has increased a little to 94.8% this number needs to continue to get better. The number of homes that sold in 15 days or less continues to remain very low, 10.9% of July sold homes. The 30-year fixed-rate mortgage (FRM) averaged 4.32% with an average 0.7 points for the week ending August 11, 2011. We have seen decreases the last 2 weeks. Call me so I can show you or your clients how they can get the benefit of these rates. Have a great week and let me know what I can do to help you and your clients.

Despite all the media comments about our markets we are still lending money for residential mortgages. If a client has income and credit and some sort of down payment; they can get a mortgage. It goes to the basic three C’s – Capacity, Collateral and Character.

Listing Inventory

In July we saw a decrease in listing inventory by 109 units from last month. We are about 861 units under August 1, 2010. We have 4,739 single family homes for sale in our MLS. The average list price of $352,859 is up by $881 from last month about +.03%. This is the highest we have seen since December 2010. In the last 6 months our average listing price has ranged from $342,123 to $353,465. This is the first summer that we have not had an inventory that exceeded 5,000 units; we have to go back to 2005 & 2006 when our inventory was this low. Please note the consistent winter dip in listings – see chart below.

Monthly Average Sold Price

July average sold price ($240,845) shows an increase of 1.9% from last month and up 2.1% from July 2010 and up 9.8% from July 2009. What a great month. Our monthly average sold price is up $4,506 from last month and up $4,936 from July 2010 and up $21,527 from July 2009. Our average sales price is climbing. The gaps are getting closer. July’s average sold price is 4.5% ahead of our yearend sales price of $230,508. From April to July we have an average sales price increase of 16.4%. These are all good signs for our market.

Monthly Sold Units

We are down 78 sold units (16.2%) from June 2011 and up 38 units from July 2010. We are down 48 sold units from July 2009. This July we are up by 10.4% in units sold compared to July 2010, a good month. Last June was our peak month in sold units for 2010; currently our sold units for June 2011 are 481 the best month of 2011 so far. We continue our up down journey with sold units.

Average Sold Price Year to Date

Year over year our year to date numbers have dipped a little.
2003 year end average sale price $ 186,137

2004 year end average sale price $ 210,048

2005 year end average sale price $ 254,080

2006 year end average sale price $ 264,498

2007 year end average sale price $ 273,408

2008 year end average sale price $256,498

2009 year end average sale price $234,379
2010 year to date average sale price $230,508

Our current Year to date average sold price - $223,490 about -3.0% down from Year End 2010

Rolling 12 months

Our rolling 12 months gives us a better look at our production. It helps to smooth out a month that jumps up and down. When we look at August 1^st, 2010 to July 31, 2011 we have 4,484 sold units and when we compare the year prior August 1^st, 2009 to July 31, 2010 we have a 284 unit decrease (4,768 sold units). When we look at the same rolling 12 months for average sold price we see that we are only down by 1.7%. So the dates of 8/1/2010 to 7/31/2011 we have an average sold price of $227,955 while from 8/1/2009 to 7/31/2010 we had an average sold price $231,794. Like I have already said our gaps are getting closer.

Median Sold Price
Our Median sold price increased this month by 1.4% from last month. Our national numbers lag by one month. Our median sales price continues its jagged path – up then down then up and now we start an upward trend. On a National scale the economy is trying to improve, for the first time in many years we have the National Median home sales price cross over our current median sales price. I am hoping we have seen the last dip in Median on a National scale and local level.

Pending

Pending Sales – A sale is listed as pending when the contract has been signed but the transaction has not yet closed. Sales are typically finalized within one to two months from signing. I am counting Active Due Diligence and pending contracts in my total pending sales. I look at the total pending units on a regular basis and this is how they chart out. Our pending index seems to go back on a slight downward trend. In December we bottomed out about 575 units, we have since rebounded and peaked out in June. We currently have 760 pending sales as of 8/13/11.

Market Absorption rate – The number of homes sold in July, 403 divided by the current listing inventory, 4,739 gives us an 11.7 month supply of single family homes. This increased by 1.3 months from last month. We need to keep this inventory under 12 months supply. With rates where they are and plenty of inventory; we can get this number down even more.
List to Sold price ratio – the average list price of the sold properties is $254,093 and the average sold price is $240,845 for July which gives us a 94.8% list to sold price ratio – an increase from last month. We have now managed to stay under 95% for over a year and several months. I want to quit counting the number of months and get this trend reversed. This is one of the lowest ratio’s we have had in a while.

Seller Concessions – We had 31.5% of sold properties report a sales concession for July, an increase of 2%. We want this number to go lower.

Days on Market – The average days on market for the sold properties are now at 162 for July (wow that is a long time) a 3 day decrease from last month. That is about 5 1/2 months to keep a property on the market. Only 10.9% of the properties were placed under contract in less than 15 days for the month of July.
Carolina & Kure Beach

There are currently 371 single family homes for sale and this represents a change of 11 units from July 1, 2011 and 7.8% of our total WRAR inventory. The average list price is $384,379 an increase of about $2,854 from July 1, 2011. In July there were 30 homes sold, divide that by the homes available and you have a 12.3 monthly supply of homes in Carolina and Kure Beach. The average sold price for the month of June was $286,548 and down by $6,066 from last month. Current year to date we are ahead of last year by $7,517 – our year to date sold price is $300,631 and compared to 2010 at $293,114 we are up 2.6%. When we look at a rolling 12 months for Carolina & Kure Beach we are up by 41 units and our sold prices are down by 2.0% from the previous rolling 12 months.
This data was pulled on August 13, 2011, based on information from the Wilmington Regional Association of REALTORS Incorporated, for the period Jan. 1, 2005 through July 31, 2011.
The Market
Market Concerns Produce New Record Low Mortgage Rates
Freddie Mac released the results of its Primary Mortgage Market Survey®, showing mortgage rates continuing to decline with the 30-year fixed averaging 4.32 percent marking a new low for 2011, and the 15-year fixed, 5-year ARM, and 1-year ARM averaging new all-time record lows this week.

30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.7 point for the week ending August 11, 2011, down from last week when it averaged 4.39 percent. Last year at this time, the 30-year FRM averaged 4.44 percent.
15-year FRM this week averaged 3.50 percent with an average 0.7 point, down from last week when it also averaged 3.54 percent. A year ago at this time, the 15-year FRM averaged 3.92 percent.

Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions.

Quotes

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

"Renewed market concerns about the European debt markets led investors to shift funds into U.S. Treasuries, pushing long-term yields lower. Further, in its August 9th Federal Open Market Committee statement, the Federal Reserve noted that economic growth so far this year had been considerably slower than it expected and that overall labor market conditions had deteriorated in recent months, leading the Committee to conclude that an exceptionally low federal funds rate should be maintained at least through mid-2013. These developments helped to ease mortgage rates lower this week.

"Lower mortgage rates will help to maintain the high degree of home-buyer affordability in the market. The National Association of Realtors® reported that its affordability index over the past three quarters has indicated the highest affordability since the inception of the index in 1970."

Freddie Mac

30 Year Fixed Rates

I offer these key statistics to keep you informed as to how our market is changing. With 23 years of real estate sales and management and finance in my background I am able to evaluate the current conditions and provide you with accurate data. With key information from your clients I can evaluate their needs and offer them the best plan for their current mortgage. With our current “Buyer Ready” program we can shorten the due diligence period and take the qualifying fear away from the client. Call me today for a worksheet.

Cunningham & Company is a full service Mortgage Banker - we handle everything in house. We do first time buyers, USDA, FHA and VA loans, Conventional and Jumbo Loans, 100% financing and we have a large selection of adjustable rate loans. Call me today with my background in real estate and the resources of Cunningham & Company working together... you can't miss. A loan in the crowd.

David Flory NMLS #91592

What if You Could Buy Shoes...

2011-08-11T10:35:00.002-04:00

What if there was a shoe store that had:

§ An unparalleled selection of shoes of every size, color, and price range

§ The shoes were discounted 30% or more

§ You had a credit card that would finance the shoes for 30 years at 4.5%

How many shoes would you buy? My bet is there would be a line around the block. Well, today, real estate is like that shoe store (incredible selection, terrific bargains and excellent financing terms). But there’s more….

§Shoes go in and out of style. Homeownership is still the American Dream.

§ Shoes are worth less once you wear them. Homes will appreciate in value over time.

§ Shoes get disposed of. Homes are lasting.

And while many can recount memories created in certain shoes, everyone can remember their first home, their first family gathering, the countless holidays shared. There is also the ability to decorate to your tastes, the stability (and lower crime rate) in homeownership neighborhoods and the higher level of education achieved by kids who grow up there.

If you’d stand in line to buy shoes, what’s stopping you from exploring a home? Despite some media perceptions, there is mortgage money available with reasonable down payment requirements at extremely low rates…talk to a loan officer. There are some great deals out there with short sales, foreclosures and regular transactions also!

Happy Shopping!

Housing Prices: Explaining the Recent Uptick

2011-08-10T09:24:00.000-04:00

Several pricing indices have reported that, on a month-over-month basis, home values have ticked up slightly over the last quarter. This has caused some to call the bottom to the housing market – at least from a price standpoint. We must realize that prices are determined by supply and demand.

Demand has indeed shown improvement in many parts of the country. However, the supply side of the formula is being impacted by legal issues. The number of foreclosures coming to market has been slowed dramatically by the courts as the banks still struggle with improperly filed paperwork. This inventory will eventually find its way to the market and again put downward pressure on values.

Here is a chart showing the challenge:

Bottom Line

If you are selling, there currently is a window of opportunity to get your best price before the distressed properties are released.

Reprinted by Permission from KCM Blogsite.

Thank God I Didn’t Buy Gold at $400 an Ounce

2011-07-27T09:54:00.000-04:00

We hope that headline grabbed you. The reason we used it was to bring some perspective to the debate as to whether or not homeownership is a wise investment in today’s troubled market. A family should never look at the purchase of a home simply as a financial investment. It is so much more than that. But, even if we look at it as only an investment, we must look at it in the long term. Let’s use gold as an example.

Gold had dropped from over $400 an ounce to $250 an ounce (a 40% decline) from February 1996 to August 1999. People were so glad they hadn’t bought at $400 an ounce.

Lord William Rees-Mogg, the current Chairman of The Zurich Club, in 1997 said:

“No investment has been so thoroughly exploded as gold; most people think that there will no more be another gold boom than there will be another boom in tulip futures in The Netherlands.”

Everyone knows what happened next. The proclamation of gold’s death was rather premature. Gold rose from $250 an ounce to over $1,500 an ounce in the next twelve years.

If we look at real estate in the long term, we can see that it has been a great vehicle for building family wealth. The Federal Reserve’s Survey of Consumer Finances, conducted once every three years, provides a snapshot of family income and net worth. There survey has shown every time that homeowners’ net worth far exceeds that of renters. Here is the breakdown of the last several surveys:

§ 1998 – Homeowner net worth exceed renters by 31%

§ 2001 – Homeowner net worth exceed renters by 36%

§ 2004 – Homeowner net worth exceed renters by 41%

§ 2007 – Homeowner net worth exceed renters by 46%

The 2010 survey is not out yet but the National Association of Realtors’ has estimated that number to be approximately 41% in 2010. You may be thinking this is no longer the case based on the current fall in home values which have dropped back to 2000 – 2002 prices.

Harvard University just completed a study that showed:

“Even if homeowner wealth fell back to 1995 levels, it would still be 27.5 times the median for renters.”

Bottom Line

We are not predicting that real estate will see the same levels of appreciation that gold did. However, we do believe that the real estate market will rebound strongly.

Distressed Property Sales: Down…But Not Out

2011-07-26T09:22:00.002-04:00

There has been much written about the falling inventories of distressed properties in many market places. Some have looked at the decreasing percentage of distressed property sales reported by the National Association of Realtors over the last four months as a sign that we are finally cleaning out the last remnants of the foreclosures. If you look at the numbers, it could seem that way:

§ March: 40% of all sales were distressed properties

§ April: 37% of all sales were distressed properties

§ May: 31% of all sales were distressed properties

§ June: 30% of all sales were distressed properties

However, in reality the falling percentage of distressed property sales is not an accurate indicator. The reason the percentages are falling is because many homes are currently tied up in the process of foreclosure.

An article in HousingWire quoted James Zeldin, EVP Default Resource on the issue:

“I would absolutely expect an increase in inventory over the next 12 to 18 months. I’m personally expecting that a lot faster. I believe we’re going to see macro forces pushing these institutions to do more REO liquidation.”

Once these properties are cleared through the foreclosure process, the inventories of distressed homes will again increase and the percentage of sales will again begin to climb.

Bottom Line

We are working our way through large numbers of distressed properties every month. However, there are many more which will come to market in the next year to eighteen months.

Assets and Your Mortgage Application

2011-07-21T09:42:00.002-04:00

When lenders evaluate mortgage borrowers, they look at four things: income (the ability to repay), credit (the willingness to repay), collateral (appraised value and property condition) and assets (cash in the deal and cash reserves after closing, mostly). Of the “four legs of the table”, assets are the least discussed, and yet may be the most important.

What do we mean when we talk about assets?

§ Monies needed for the down payment (the difference between the purchase price and the loan amount which may or may not be the same as the money deposit at contract signing)

§ Monies needed for closing costs (fees to the lender and third parties for things like appraisals, title insurance, settlement services, and so on)

§ Monies needed for Pre-Paids (homeowners insurance, flood insurance, real estate taxes, etc.) and establishing escrow accounts for future payments

§ Monies for Reserves- the money you still have left after closing. Monies that would be available, if a problem were to arise

Why do we care about assets?

§ Assets may be the truest reflection of a borrower’s fiscal strength. Their ability to save and properly budget could be a significant indicator to their future paying habits

§ The source of the assets is important. Savings? Gift or inheritance? Lottery victory? Insurance settlement? Sale of a baseball card collection? Each reflects differently on the borrower.

§ Many people don’t show all their income on their tax returns (it’s just a fact). Undocumented income can’t be used to qualify; however, often assets become a truer representation of a borrower ability to pay than their 1040s.

§ Reserves are an issue. A client with $50 in the bank after closing is riskier than one with $50,000. Also, clients who have money in the bank but have some sporadic lates on their credit are looked at differently than those who didn’t have the money to make the payments.

Common Asset Issues in Mortgage Packages:

§ Large deposits (defined as those which are excessive for the income level) raise an underwriter’s eyebrows. Where did the money come from? Maybe the borrower took a loan that doesn’t yet show up on their credit report.

§ Cash deposits are another red flag. In this day and age, people keep their money in the bank, not under their mattress. Where did the cash come from?

§ Gift monies and seller’s concessions, while considered as borrowers assets when doing calculations, will give an underwriter pause when assessing the borrower’s real ability to replay.

Guidelines have tightened. When borrowers are paying off credit cards to get their ratios in line, lenders are asking where that money came from now. That act has nothing to do with the home purchase, but may be a sign of something fragile in the borrower’s financial make up.

The best advice is to consult a loan professional to discuss the proper way to position your assets and the timing of it that will put you in the most favorable light.

Selling Your House? Waiting May Not Make Sense

2011-07-18T09:56:00.002-04:00

There have been some bright spots in the residential real estate market over the last couple of months. Several price indices have reported a stabilization of prices and some regions have even shown small levels of appreciation. This has led some to believe that we may have reached a bottom for home values. We must realize that what we are actually experiencing is a ‘window of opportunity’ as the banks are delayed in bringing certain inventories of distressed properties to the market. Let’s look at what others are reporting:

Bloomberg Businessweek

“The crux of Simon’s analysis is that the loose lending practices seen during the housing bubble allowed 5 million renters to become homeowners, and that the market is in the protracted process of evicting this group. He believes housing prices will decline 6 percent to 8 percent nationally, with 6 million to 7 million more foreclosures yet to come.”

Yahoo Finance

“The problem with the real estate market remains excess inventory. Based on Shilling’s research, there are 2 million to 2.5 million excess homes in the country — a supply that will take 4-5 years to work-off. The result: Housing prices will fall another 20% and underwater mortgages will balloon from 23% to 40%, he says.”

Housing Wire

“Both warmer weather and the drop in distressed sales percentage have contributed to recent home price improvements. However, given the disappointing pace in housing demand recovery, both factors may turn against us in the coming winter and push home prices lower again…

This supply-demand imbalance affirmed JPMorgan analysts’ estimate of a further 4% drop in home prices from the first quarter of 2011 to a new bottom next year.”

DS News

“Home prices have gotten a little bit of a boost in recent months thanks to a seasonal uptick in market activity. Most analysts, however, expect further declines to characterize the later part of the year and possibly extend into next year, largely because of the huge supply of foreclosures on the market.”

Bottom Line

If you are thinking of selling in the next twelve months, you would probably do much better if you sold your house sooner rather than later.

Reprinted from KCM Blogsite

Let's Get Chicken Little

2011-07-07T09:39:00.000-04:00

You all know the story…young chicken, fearful of the worst, runs around declaring that “the sky is falling, the sky is falling”.

In today’s real estate market, there are many people (professionals and amateurs alike) with opinions that make buying real estate sound like throwing money away.

One thing I have learned in life is that opinions are like belly buttons, everyone has one. I certainly have my opinions which are not always universally shared. But, I wanted to share mine today by asking those of you Chicken Littles some questions:

§ If we all agree that homeownership has been the American Dream, what do you propose will replace it? Video games? iPads? A better social media vehicle? Without a dream, civilizations perish.

§ If people stop investing in real estate and values crumble much further, how do you propose stopping our economy from a complete and utter collapse? Moreover, how will it ever recover?

Let’s face it: The real estate frenzy got us into this mess, in the same way that the dot.com bubble overinflated the stock market and eventually popped. But, dot.com companies were only a part of the stock market; therefore, the market could take a hit and limp around for a while yet still fall back on the other industries to regain its footing. It has taken years, but the stock market is credible again.

Real estate is different. When it slides, there is no other sector of the economy that can bail it out. You could try and argue that commercial real estate or even real estate investors who buy and hold for rent can ease the pain. However, they can’t devour all the inventory. Real estate has to be salvaged and supported by the government or the whole economy slides into the ocean.

The government has tried many things from restructuring Fannie Mae and Freddie Mac to appraisal reform to tighter underwriting guideline to artificial manipulation of interest rates to licensing of loan officers and more. They understand the importance of real estate values to our nation’s net worth. They are committed to real estate.

My point, dear Chicken Little, is that if you believe that the United States of America is going to continue to lead the world, you know our economy has to lead the way. In order to do that, we need housing to recover its position of strength. That makes buying a home a safe, long term smart move. If you don’t believe it…..might be time to look for real estate in another country.

The problem with Chicken Little is nothing more than he doesn’t ever propose a solution. He just wants to predict and point out problems. Our faith in the American Dream is being tested. I believe in the Dream. And I think you should too. It may look like a leap of faith more than logic to some but there are few Chicken Littles who ever become wealthy until they change their perspective.

Just my opinion…from my belly button.

5 Real Estate Headlines You’ll See in the Next Six Months

2011-07-06T09:45:00.000-04:00

Making predictions can be the ‘kiss-of-death’ for a blog. Even if we get four out of five correct (80%), there are those in the industry who will kill us on the one we got wrong. We believe strongly that when making a real estate decision for you and your family you must look forward and take into consideration how the housing market may change.

For this reason, we are willing to take on the possible wrath of our counterparts by sticking out our necks and predicting these will be the major real estate news stories from now until the end of the year.

Interest Rates Rise

Many, including us, have been surprised that rates have not risen already. However, the next several months are going to see three distinct changes that will propel rates upward.

1.As the government starts to leave the mortgage market, private industry will step in. Private industry demands a higher rate of return on their investments. Mortgages will be no different. Studies have shown that 30 year mortgage rates could increase by 1 to 3% over the current rate.

2. In many higher priced markets, rolling back Conforming Loan Limits means that rates for the mortgages on these properties will resort back to the rates on private jumbo loans. The FHFA informed us that last year, the difference between mortgage rates for jumbo loans and jumbo-conforming mortgages has varied between about ½ and ¾ of a percentage point.

3. As the economy gets better (and we believe it will), the pressure to keep rates low to stimulate growth will abate.

Some Loan Requirements Tighten but More Can Now Get a Loan

Lending institutions have already started to introduce stricter mortgage guidelines. Whether the Quality Residential Mortgage (QRM) requirements are instituted as originally proposed or eased somewhat, there is no doubt that guidelines will continue to tighten as we work through the year. However, we believe the private sector will again start introducing alternative mortgage financing but at a greater expense to the consumer. You WILL be able to get a mortgage. It will just cost you more.

Housing Sales Increase

Contracted sales have shown consistent improvement over the last six months and we feel this will continue and actually begin gaining even greater momentum. We believe there is a ‘pent-up’ buying demand caused by the volatility of the market over the last several years. When interest rates start to move upward and alternative financing becomes more available, these buyers will start to jump off the fence. We believe there will be a major upswing in sales over the next six months.

Distressed Properties Increase Markedly

More people are paying their mortgage on time and that is great news for housing in the long term. However, the numbers of distressed properties currently in the foreclosure process is still very swollen. These properties will begin coming to the market in the second half of the year as short sales and foreclosures. The numbers will be staggering in some areas.

Prices Continue to Soften in Most Markets

The current housing inventory for sale and the distressed properties about to come on the market will vastly outnumber the increased supply of purchasers we will see over the next six months. There will be more houses for sale then there will be buyers purchasing them. That oversupply will continue to put downward pressure on prices through the rest of this year and into 2012.

You now know what we believe will take place in real estate between now and the end of the year.

Reprinted from KCM Blog

Top 5 Real Estate Headlines in the 1st Half of 2011

2011-07-05T09:35:00.000-04:00

We have reached the midway point of the year. Today, we want to look back over the first six months and give you what we believe were the five items which have had the biggest impact on the real estate industry so far this year.

The Government Wants Out of the Mortgage Business

From the original outline of the Dodd-Frank regulations to the talk of closing Fannie Mae and Freddie Mac to the proposed Quality Residential Mortgage (QRM) guidelines, the government has made it very clear that they want to dramatically limit their involvement in the mortgage industry. What will come of this? Will private industry step up and fill the void created? What will be the increased cost to the consumer? Only time will tell.

Despite Early Headlines, Sales are Increasing

Headlines earlier in the year announced the total collapse of the housing market. To those in the know, it was obvious that comparing sales numbers in the first four months of this year to the same period last year made absolutely no sense. The largest tax credit ever given to home buyers expired on April 30, 2010. Large numbers of transactions were dragged forward last year so buyers could take advantage of the credit. Pending home sales (transactions going into contract) on the other hand have done quite nicely and many institutions (ex. Fannie Mae, Freddie Mac, NAR and Moody’s Analytics) are projecting good sales numbers throughout the rest of the year.

Amid Warnings of a ‘Double-Dip’, Prices Began to Stabilize

Prices continued to retreat for the first few months of the year and brought the bears out. Some called for another major fall in prices (15-20%) and almost all recalculated their projections to show continued depreciation. Just as these new projections were made available, some pricing indices announced that values actually increased (though by a rather minimal percentage). Again, those with the best understanding of the market were quick to explain…

Foreclosures Were Delayed Longer Than Originally Projected

Distressed properties (foreclosures and short sales) have a major impact on the values of all properties in an area. Because of paperwork challenges, the flow of these properties to the market was virtually shut off. At the beginning of the year, most experts believed the banks would correct these challenges by the end of the first quarter. That didn’t happen and therefore many of these properties were delayed coming to the market. This is a major reason why prices seemed to recover: there were fewer discounted properties available for sale. Most now believe that the banks are within 60-90 days of releasing this inventory and that prices will again begin to soften.

Main Stream Media Begins to Announce “Now Is the Time to Buy!”

With prices and interest rates at historic lows and the chance that mortgages will become more costly as the private sector steps in, many in the main stream media are announcing that buying a home now makes sense. In the last 45 days, the Wall Street Journal, Forbes Magazine, National Public Radio (NPR) and CBS Money Watch have all ran articles calling for the readership to consider buying now!

Reprinted from KCM Blog

House Prices Through 2015

2011-06-27T09:18:00.000-04:00

Everyone seems to have an opinion on where home prices are headed. Housing bulls are saying prices may start rebounding as early as later this year. Some housing bears are saying that prices may still drop another 10-15%. What actually is going to happen? No one knows for sure.

However, Macro Markets, a financial technology company, actually surveyed 108 economists, real estate experts, and investment and market strategists for their June 2011 Home Price Expectations Survey. They then averaged all 108 opinions. Here is what the report says about house prices over the next five years:

§ 2011: prices will depreciate 3.52%

§ 2012: prices will appreciate .46%

§ 2013: prices will appreciate 2.18%

§ 2014: prices will appreciate 2.92%

§ 2015: prices will appreciate 3.47%

Accumulative appreciation (including this year’s projected depreciation) will stand at 5.71% in 2015.

Bottom Line

The experts say home prices will begin to see appreciation next year and return to historic levels of annual appreciation by 2015.

Reprinted by Permission from KCM Blog

What's Going On This Weekend On Pleasure Island

2011-06-24T12:56:00.000-04:00

Pleasure Island Chamber Of Commerce

CHAMBER WEEKLY

Public Service Announcement

Support your Chamber Members

June 24, 2011

BLP - Clasic Rock & Dance

FREE SUMMER CONCERT - TONIGHT

June 24th - Ft. Fisher Military Rec Area

6:30 pm - 8:30 pm 910.458.8434

VOLUNTEERS NEEDED !!!

Thursday Night Fireworks & July 3rd

We are looking for a few good people. As you know, the events that are put on by the Chamber of Commerce are not possible without the dedication and hard work of our Volunteers. If you are interested in helping out with the Thursday Night Fireworks or July 3rd fireworks (We have to close the Beach at 3 pm that day), please give Greg a call at (910) 458-8434. Give us a couple hours and your community will thank you. If you have never volunteered before, give us a call and help make your community the 'piece of paradise' that we have grown accustomed to... You will be glad you did!

SHRIMP-A-ROO

Carolina Beach Lifeguard Association

Saturday, June 26th

11:00 am - 3:00 pm

Come early, it usually sells out...

At the Carolina Beach Boardwalk

Lifeguard Station

JIMMIE VAUGHN & the TILT-A-WHIRL BAND featuring LOU ANN BARTON

Seafood Blues & Jazz Festival

RIBBON CUTTING EVENT

Bodacious Boutique

RIBBON CUTTING AND GRAND OPENING

Please plan on joining your Chamber friends as we welcome Jan Cannada & Kim Foust and their new business BODACIOUS BOUTIQUE on Wednesday, June 29th at 5:30 pm. Light Hors d'ouvres and beverages will be served for your enjoyment.

915A North Lake Park Blvd. Carolina Beach 910.707.0404

NEW HOURS ANNOUNCED

Snow's Cut Cafe

BREAKFAST SERVED ALL DAY

Snow's Cut Cafe - Home of the BEST Breakfast on the Island has new houres of operation:

7:00 am - 2:00 pm

Drop in take a break and have a bite

1140 North Lake Park Blvd. Carolina Beach 910.707.0550

NEW INVASIVE JELLYFISH EXHIBIT

NC Aquarium at Fort Fisher

Visitors to the NC Aquarium at Fort Fisher this summer will find a new exhibit in the Exotic Aquatics Gallery. Aquarium staff has added white-spotted jellyfish (Phyllorhiza punctata) to its collection. The Exotic Aquatics Gallery traditionally features non-native marine species. Guests can learn more about the life cycle of a jellyfish while viewing these beautiful animals.

The white-spotted jellyfish species looks almost exactly as its name suggests; they appear blue-gray in color, and white spots adorn the top of their prominent bell. Although native to Australia, this particular species of jellyfish has become invasive in the Gulf of Mexico as well as the Atlantic Ocean near the Cape Fear coast. While they usually grow to between 17 and 19 inches in diameter, the largest white-spotted jellyfish on record, found on Sunset Beach, N.C., in 2007, measured 28 inches.

This exhibit furthers the Aquarium's objective to educate the public on the importance of well-balanced ecosystems. Invasive species can easily disrupt that balance by cutting off resources to other species, changing the chemical makeup of the water, and ultimately causing a shift in the entire food web. This affects every aspect of the way humans enjoy the ocean, from seafood cultivation to a simple day at the beach.

NC Aquarium at Fort Fisher is located just south of Kure Beach, near the mouth of the Cape Fear River, on US 421. The site is less than a mile from the Fort Fisher ferry terminal. Hours: 9:00 am to 5:00 pm daily (closed Thanksgiving, Christmas, and New Year's Day). Admission: $8 adults ages 13-61; $7 seniors 62+; $6 ages 3-12. Free admission for: children under 2; registered groups of N.C. school children, and NC Aquarium Society members. Generalinformation: www.ncaquariums.com

900 Loggerhead Road Kure Beach, NC 910.458.8257

NEW LIMITED HOURS

NC Department of Revenue

Local Surfer in World Surfing Games

Tony Silvagni representing the U.S.

Silvagni won a copper medal in 2009, which helped Team USA win the gold that year.

Growing up with our local waves, Tony said there's more to this competition than just a few big breaks.

"You're getting on a plane, you're flying a long distance, you're getting used to their culture and their food," explained Silvagni. "So, I guess it's just a balance that you have to have. You want to be that person that can do it all."

The World Surfing Games end July 3, so Tony said it would be great to come home and celebrate the July 4th holiday with a gold medal.

Area surf instructor Tony Silvagni will represent the United States this week at the World Surfing Games in Panama. Silvagni will join seven other surfers Thursday for the week-long event. He will compete in the long board competition against 31 other countries.

SUMMER DAY CAMPS BEGIN

NC Aquarium at Ft. Fishert

A young camper enjoys his first day of summer camp on Monday at the North Carolina Aquarium at Fort Fisher. The Aquarium offers four week-long sessions from now through August, with age-specific programs for kids 5-6, 7-9, 10-12, and 13-14. Campers tour the aquarium, explore nearby beaches and marshes, and learn about the beauty and importance of local aquatic environments.

900 Loggerhead Road Kure Beach, NC 910.458.8257

HURRICANE INFORMATION

Town of Kure Beach

WHY EVACUATE?

WHAT DOES THE TOWN DO?

WHAT IF I STAY?

The Town of Kure Beach is sponsoring Hurricane information sessions at Kure Beach Town Hall on the following dates. I encourage you to come and ask questions to support your personal planning.

· Sunday, June 26 from 2-3 pm

· Wednesday, June 29 from 6-7 pm

· Thursday, June 30 from 6-7 pm

· Saturday, July 2 from 10-11 am

For more information on personal planning, go to www.fema.gov . I encourage every citizen to create a Family Disaster Plan to be prepared.

and

www.weather.gov/os/hurricane/resources/TropicalCyclones11.pdf

If you have any questions or comments please contact Town Hall at 458-8216 and leave a message for me or email me at heglardw@corning.com. I will reply as soon as possible.

David W. Heglar

Emergency Response Coordinator

Town of Kure Beach

117 Settlers Lane Kure Beach, NC 910.458.8216

SOFTBALL LEAGUE SIGN-UPS

The Last Resort

THE SHIRTS ARE ORDERED NOW WE NEED SOME PLAYERS, FREE AGENTS OR JUST BODIES TO PLAY ON OUR BEER TEAM...

WE HAVE ALREADY SIGNED UP A COUPLE FAMOUS BALL PLAYERS FORMERLY FROM THE MEADVILLE, PA AREA NOW WE NEED TO PUT A TEAM AROUND THEM..

GUYS AND GIRLS CAN PLAY

IF YOU CAN WALK AND TALK AT THE SAME TIME COME ON DOWN AND SIGN UP

IF YOU LIKE TO DRINK BEER, LAUGH, RUN, WALK, SWING A BAT, CATCH FLYS OR JUST LIKE DIGGING IN THE DIRT AT FIRST BASE WE WANT YOU...

CALL BOB @ 910-599-2879 TO JOIN OR JUST DROP IN AND SIGN UP AT THE RESORT...

SEA TURTLE TALKS

Pleasure Island Sea Turtle Project

"LEGENDS IN CONCERT" Bus Trip

Kure Beach Parks & Rec

TICKETS ON SALE NOW!

Make your reservation at Kure Beach Town Hall for the upcoming bus trip to see "Legends in Concert" in Myrtle Beach, SC. The trip will take place on Tuesday, September 27 for the very low price of just $46 per person. The bus will leave from Town Hall at 9:00 am and will return at 6:00 pm. This show is internationally acclaimed and is known as the pioneer of live celebrity impersonator shows. You'll find the greatest collection of celebrity impersonators ever assembled showcasing music legends such as Elvis Presley, The Blues Brothers, Garth Brooks, Tim McGraw, Rod Stewart, Tina Turner, Cher, Madonna and many more. Space on the bus is limited, so reserve your spot today!

For additional information, call Kure Beach Town Hall at 458-8216.

BASKETBALL BY THE SEA

June 27th - July 1st Call 458-2977

The Carolina Beach Parks & Recreation Department will be hosting a youth basketball camp June 27th-July1st (from 9am-3:30pm each day). It is for all boys and girls ages 6-16 and the cost for the full week is $150.00. This camp will be run by Brian Williams and Tarvis Williams. I have attached the camp brochure and registration form. Please contact me at lani.thompson@carolinabeach.org if you have any further questions. We expect this camp to fill up so please register as soon as possible if you are interested.

DODGE BALL LEAGUE

Carolina Beach Recreation Department

The Town of Carolina Beach Recreation Center is trying to find new and interesting way to keep people active and healthy. We are trying to determine if there is interest in a summer dodge ball tournament to be held sometime in July. The team members must be at least 16 years of age. If you or you know someone interested in playing please respond to this e-mail with name, age, and e-mail address.

Greg Anthony, Recreation Leader

Carolina Beach Parks & Recreation Department

1121-B N. Lake Park Blvd.

Carolina Beach, N.C. 28428

910-458-2977 reccenter@carolinabeach.org

JULY 4th CELEBRATION

Step Up for Soldiers

There is no charge to attend; the event includes free food, drinks and great patriotic entertainment for veterans and active duty military families from all five branches as well as Step Up For Soldiers friends, volunteers and sponsors. Come out this Independence Day and reclaim your patriotism with Step Up For Soldiers.

Step Up For Soldiers invites you to its annual 4th of July celebration on Monday July 4, 2011 beginning at 5:30 PM. Location is the USO Building, 120 South 2nd; at the corner of Orange St. in downtown Wilmington. The party will end just in time for you to walk two blocks to the river front fireworks.

JULY 4th CRUISE

WINNER PARTY BOAT

Monday, July 4th, 2011

CRUISE TO SOUTHPORT TO VIEW FIREWORKS DISPLAY!

We are offering a Dinner Cruise departing from the Carolina Beach Marina to cruise to Southport, NC for the annual fireworks display.

Leave the driving to us! Get a spectacular view of the Fireworks show aboard the Royal Winner Princess II.

Boarding will begin at 6:30 pm.

Departure time is set for 7:00 pm and returning to the Carolina Beach Marina at 10:45 pm (approximate)

MENU FEATURING:

North Carolina Barbeque

Honey Baked Beans

Southern Potato Salad

Cole Slaw

Garlic Toast

Dessert

Iced Tea

Adult Fare is $57 and Child far is $37

Reservations can be mnade by calling 910.458.5356. Limited tickets available for purchase.

www.WINNERBOATS.com

hamber Events

Chamber Events Ribbon Cuttings

June 29, 2011

Bodacious Boutique

915A North Lake Park Blvd.

Carolina Beach, NC 28428

910.707-0404

5:30 PM

(910) 458-8434 for more information

The Pleasure Island Chamber Of Commerce offers a ribbon-cutting ceremony for any new business member or relocation of an existing member. If you are interested in having a ribbon cutting ceremony, please contact the Chamber for more details.

Please call

New Members

Jeff & Brinley Christner

Tasting History

Carolina Beach, NC

910.350.8901 Jeff

910.622.6046 Brinley

tastinghistorytours@gmail.com

www.tastinghistorytours.com

Guided Walking Food & HistoryTours. Tours are 2 1/2 hours and stops at five different restaurants in Carolina Beach while mixing the history of Pleasure Island along the way

Chris Oliver

Century 21 Sweyer

106 Ocean View Avenue

Carolina Beach, NC 28428

910-256-0021

coliver@century21sweyer.com

www.coastalcarolinahomesales.com

Jan Cannada &

Kim Foust

Bodacious Boutique

915A North Lake Park Blvd.

Carolina Beach, NC 28428

910-707-0404

bodaciouscb@aol.com

www.bodaciousboutique@vpweb.com

Women's consignment, purses, shoes, jewelry, retail & art

Tell your business acquaintances, friends and associates to join you at the Pleasure Island Chamber Of Commerce

click for more info

SAVE THESE DATES

BLP

Free Summer Concert

Classic Rock & Dance

Friday, June 24th

6:30-8:30 PM

Ft. Fisher Military

Recreation Area

(910) 458-8434

Despicable Me

Sunday, June 26th

8:45 pm

Carolina Beach Lake

(910) 458-8434

Kure Beach Double Sprint Triathlon
June 26, 2011

www.setupevents.com

Fireworks &

Hott Rod

Thursday, June 30

6:30-9:30 PM

Carolina Beach Boardwalk

Independence Day Fireworks Extravaganza
July 3, 2011
Carolina Beach Boardwalk
9:00 pm
www.pleasureislandnc.org

East Coast Got-Em-On Classic King Mackerel Tournamanet
July 8-10, 2011
www.got-em-on.com

South of K

Free Summer Concert

Classic Rock & Dance

Friday, July 8th

6:30-8:30 PM

Ft. Fisher Military

Recreation Area

(910) 458-8434

Free Fireworks and Boardwalk Music at the Beach
Every Thursday in June, July & August
Carolina Beach Boardwalk

Free Summer Movie Series
Every Sunday from May 29th - September 4th
Carolina Beach Lake

Free Summer Concerts at Ft. Fisher Recreation Area

2nd & 4th Fridays of June, July & August
(910) 458-8434
www.pleasureislandnc.org

18th Annual Seafood Blues & Jazz Festival with Jimmie Vaughn and the Tilt-a-Whirl Band featuring Lou Ann Barton

www.pleasureislandnc.org

October 8th & 9th
(910) 458-8434

Visit Our Sponsor

Carolina Beach 4th of July Weekend Farmer's Market and Art Show

Carolina Beach Lake

The Carolina Beach Farmer's Market and Arts and Crafts Show is a "must see" for your holiday weekend. There will be over 70 farmers, artists, bakers and crafters set up around the lake.

This "island-style" market is held every Saturday from 8:00am to 1:00pm and is located on the main street of Carolina Beach. Free parking is provided. On the summer holiday weekends, in addition to the usual 40 vendors the market livens up with an additional influx of artists and crafters of all types.

Come early to enjoy a leisurely morning strolling through the market. The produce is plentiful, there are baked items of all types from local bakers, everything you need for your pets and arts and crafts of many mediums await you. There is a lot to see and do so slip on your flip-flops, don't forget the sunscreen and come spend some time with your friends and neighbors.

For more information please visit the market's facebook page (Carolina Beach Farmers Market) or email Janet Knott at janetshere@earthlink.net

DESPICABLE ME

SUMMER MOVIE SERIES AT THE LAKE

8:45 PM at the Carolina Beach Lake

In a happy suburban neighborhood surrounded by white picket fences with flowering rose bushes, sits a black house with a dead lawn. Unbeknownst to the neighbors, hidden beneath this home is a vast secret hideout. Surrounded by a small army of minions, we discover Gru, planning the biggest heist in the history of the world. He is going to steal the moon. (Yes, the moon!) Gru delights in all things wicked. Armed with his arsenal of shrink rays, freeze rays, and battle-ready vehicles for land and air, he vanquishes all who stand in his way. Until the day he encounters the immense will of three little orphaned girls who look at him and see something that no one else has ever seen: a potential Dad. The world's greatest villain has just met his greatest challenge: three little girls named Margo, Edith and Agnes.

Admission is Free, however we do ask for a non-perishable food donation benefiting the Federal Point Help Center.

PICC CHAMBER WEEKLY PSA

If you are a member of the Pleasure Island Chamber of Commerce and would like to be featured in a future edition of the PICC CHAMBER WEEKLY PSA, please contact Greg Reynolds at (910) 458-8434 or at greg@pleasureislandnc.org. Deadlines are Wednesday at 5:00 PM for the Friday's PSA. Please submit via email including desired text, pictures and logos in a jpeg format. PDF's will be returned. We will run your announcement subject to space availability.

Carolina Beach - Kure Beach
Pleasure Island, North Carolina
"What's your pleasure?"

PICC CHAMBER
WEEKLY PSA

June 24, 2011