Our grand opening party was a huge success! While Keller Williams Realty has been in Wilmington for over four years, we just recently moved to a new office space located at 5911 Oleander Drive. The chamber kicked off the event at 4:30PM with a ribbon cutting, and the rest of the evening was a social whirlwind of friends, family, clients, vendor partners, and Realtors. We estimate several hundred guests came through our doors! From the Champagne fountain to the sushi, there was no shortage of great food and drinks. Currently, Keller Williams in Wilmington has just over 80 agents. Nationally, KW has over 73,000 agents and is the fourth-largest U.S. residential real estate firm. Our company believes in treating associates as partners and shares knowledge, policy control and profits on a system-wide basis. This is truly a phenomenal place to work! Thank you everyone who attended our grand opening party- your support is invaluable!

The Housing and Economic Recovery Act of 2008 was signed into law this week by Bush. This $300 Billion rescue plan is aimed at aid struggling homeowners in avoiding foreclosure, as well as boost consumer confidence in real estate. Below are a few of the major points that may impact you:

1. Tax credits: First-time homebuyers who purchase their primary residence on or after April 9, 2008 and before July 1, 2009 are eligible for up to $7,500 in tax credit, provided they haven’t owned a home in the last three years and fit certain income parameters. The credit is generous, but it is actually an interest free loan, paid back over 15 years at $500 per year when taxes are filed.

Special note: Some types of seller-paid down payment assistance programs are being eliminated as of October 1st as well – so purchasing a home before then may gain you a double benefit of tax credits AND seller-paid down payment assistance while it is still available.

2. Larger loans at lower rates: There have recently been provisions in place that have allowed loans larger than $417,000 to qualify for better financing rates than normally would be available for “jumbo” loan amounts of that size, thanks to Fannie Mae and Freddie Mac. Although these provisions were set to expire, they are being extended… however, the top end of the loan size that will be allowed under these programs will be dropping down from $729,750 to $625,500 as of January 1, 2009.

3. FHA Hope for Homeowners: This provision is designed to help homeowners who are “upside down” on their mortgages- that is, they owe more on their house than they can sell it for in today’s market. Essentially, this plan allows homeowners who meet the requirements and are upside down to refinance their mortgage to a new 30-year Fixed FHA mortgage. There are a number of qualifying details that must be met and requirements to be agreed to- including agreeing to split the equity in your home with the government in the future. Still, if you’re upside down on your mortgage and struggling in today’s economy, this is an option worth exploring in more detail.

These are just a few of the provisions that may benefit you, and there are a number of other items that impact the housing and mortgage industry as whole. But the bottom line is, home prices are extremely reasonable right now, home loan rates are low, and new incentives are in place that may help make the decision to buy even more appealing than before. If you’re in the market for a new home or need to make some changes with your current mortgage…there’s never been a better time to act.

Falling U.S. home prices are “nowhere near the bottom” according to Former Federal Reserve Chairman Alan Greenspan in a recent in interview with Maria Bartiromo of CNBC. The interview, in which Greenspan expressed negative comments about our economy and speculated that the U.S. would likely end up nationalizing Fannie Mae and Freddie Mac (the largest sources of money for U.S. home loans), can be seen here. In Q2 of this year, Fannie Mae dropped 5.8 percent in New York Stock Exchange composite trading and Freddie Mac dropped 6.4 percent, according to a Bloomberg update.

What does this mean to home sellers?

If you have a need to sell (as oppose to a want), it’s imperative to aggressively price your home in order to unload it NOW. In addition to a softening market, we are faced with a seasonal slowdown as the summer nears an end. Take a look at the graph below.

When the market was jamming and home prices rapidly increasing, a home seller could throw out a price that was too high and it was just a matter of time before the market caught up and the home sold. It wasn’t until the market turned in 2005 that overpricing a home became detrimental. In our current market, when home sellers overprice their home, they end up “chasing the market” with price reductions without ever reaching the optimum price that produces a sale. The result is a high number of days on market and low selling price. Now take a look at the next graph.

By pricing your home ahead of the market from the get-go, you are able to sell quicker and for higher dollar. Lesson learned: The market shift is here. The seasonal shift is coming. By hoping for a few extra bucks, you could be setting yourself up to lose many. If you’re in a “need to sell” situation, contact a professional real estate consultant to learn how to price your home to sell in this unique market. If you are in a “need to sell” situation and are afraid that the “right” price is less than what you owe, make sure to talk with your Realtor about the possibility of a short sale.

The Star-News recently reported a story about New Hanover County Commissioners offering Titan Cement–a multi-national cement company based in Athens, Greece–$4.2 million in tax incentives to build a large cement kiln in New Hanover County. Click here to read the article. Commission chairman Bobby Greer called it a “win-win” for citizens, the county, and the company. Here’s what is not being mentioned:

1. Cement kilns are enormous energy hogs, burning vast quantities of coal to fire the kilns to 3500 degrees F and significant quantities of electricity to grind raw materials and rotate the kilns. Many often serve as waste incinerators, adding shredded tires, paper, wood debris, packing material, as well as other combustibles to the fuel, even some materials classified as hazardous wastes, including paints, solvents, used oils, and other chemicals. They are major producers of sulfur dioxide and modest contributors of nitrogen dioxide, two primary components of smog. They also produce large amounts of particulate matter, an air pollutant that can have serious health impacts.

2. Cement kilns need a large local source of raw material, particularly limestone, so they are built near large quarry operations, with their associated dust, noise, off-road diesel exhaust and large truck traffic.

3. Cement kilns are one of the nation’s largest industrial emitters of mercury, a powerful neurotoxin that can cause developmental problems in young children, newborns, and children in the womb. The industry has been reluctant to install mercury controls on its plants, and the current EPA administrator has been reluctant to crack down on their mercury emissions, resulting in numerous lawsuits against EPA.

4. In a study conducted last year by Yale, Johns Hopkins, and Columbia University among others, Wilmington is one of ten mid-sized southeastern cities projected to have worse air quality from climate change induced warming alone–not including the addition of a large cement kiln in New Hanover County that would contribute to smog and particulate matter. That’s bad news for children, particularly those with asthma, the elderly, and anyone else with impaired lung function. This would be important for any community interested in attracting young families or older retirees.

5. Cement kilns are among the primary industrial emitters of carbon dioxide, second only to fossil-fuel burning electrical generation plants, and also significant emitters of methane–both potent greenhouse gases. Coastal North Carolina is among the most vulnerable areas in the United States to sea level rise from climate change. A recent study by researchers from Appalachian State, East Carolina, UNCW and the Potsdam Institute for Climate Change Research estimated that more than $200 million in New Hanover Country property could be lost due to inundation in future decades, in additions to millions in lost revenue from reduced recreation and increased storm damage. The study was based on 2007 IPCC projections of sea level rise of 15 to 24 inches by 2100, but even the IPCC now admits that estimate was far too conservative. Many scientist studying the issue believe sea level will rise at least a meter by then if not more, depending on how successful the world is in reducing carbon dioxide emissions.

Whether or not you believe in local communities essentially bribing industry’s with taxpayer funded incentives, I would suggest that before our commissioners take such actions they should follow Hippocrate’s mantra: first do no harm. In this case, we might as well be offering Titan much of our beaches, much of our tourism business, much of our air quality, even the lung capacity of our children and elderly.

If you share my concerns, please write your county commissioners and voice your opinion.

March numbers show Wilmington home sales down 41%. Six hundred sixty (660) homes sold in March 2007 compare to just 389 in March of this year. Click here to hear CB’s explanation of th market.

I don’t know about you, but this is my favorite time of year in Wilmington. The weather is perfect for enjoying the outdoors- from running the loop at Wrightsville Beach to riding bikes around Greenfield Lake. And, of course, springtime in Wilmington would not be complete without mention of the North Carolina Azalea Festival!

Founded in 1948, the Azalea Festival has emerged as Wilmington’s premier spring event- an annual community celebration and the largest festival of its kind in the state. Each April, a full week of natural beauty, big-name entertainment, festive galas, fun family events and Southern hospitality come together to showcase the charms of the Wilmington area. Festival highlights include the Queen’s coronation, a three-hour parade, two-day street fair, the circus, home and garden tours, and concerts.

Please keep on reading for a summary of events happening this weekend during the festival. I hope to see you there!

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Construction is well underway for the new Keller Williams building located at 5911 Oleander Drive. With over 70 agents, we’re busting at the seams over here on New Centre. The new 6300 square foot space is centrally located and offers more exposure for our growing market center… not to mention it’ll be easier for our clients to find us! The office offers associates a large high-tech training area, over 20 private offices, and easy access to a Port City Java (within 50 feet). Decor includes stained concrete flooring with an imprinted KW logo in the lobby, “black galaxy” granite counters in the reception area and a neutral yet modern color scheme throughout. Next time you drive east on Oleander drive towards the beach, look to your left to catch a glimpse of our new building. We are truly ecstatic and look forward to you visiting us there later this year!

Nearly 3.5 times more homes went under contract in January of this year compared to 2007, according to the president of WRAR. While actual sales in January actually slide 38%, the increase in homes gone pending points to a possible increase in future sales. I speculate this is due to more sellers pricing their homes more competitively. I personally have been witnessing more and more price reductions as of late. This combined with the enticing interest rates may have encouraged buyers on the fence to take the plunge. Please click here to read the full Star News article.

The announcement came at 8:20 am New York time before the U.S. markets opened. Stock futures, which were pointing to a sharply lower open, bounced back but are still indicating a lower open.

The following is the text of a statement released by the U.S. Federal Reserve on Tuesday:

The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3-1/2 percent.

The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth.

While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households.

This mortgage update provided by:

JD Terry Mortgage Banker East Carolina Bank Mortgage Phone: 910-431-6082 Fax: 910-799-7091 JDTerry.com

If you have any questions on how this will effect retail mortgage interest rates please do not hesitate to give JD a call.

The following article is courtesy of Gareth McGrath Staff Writer for the Star News.

This story was of particular interest to me as I’ve been in contact with a man from Charlotte who is considering purchasing a unit at the Riggins. However, this story is about a lot more than Riggins woes. It’s about the role the beach plays in our life and how fragile this is. Beaches naturally wash away and change over time. In an area like Wilmington where we’ve built homes and lives around the coast, a change to that coastline means big changes for us.

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