Sunday Brunch

Can't wait for the N.C. State Fair? Apparently, neither can the News & Observer.

Kate and Scott have the right idea...next stop, Vieques!

Now this is a contest I can appreciate.

Raheem DeVaughn made an impromptu visit to my friend's birthday party last night, even sang "Happy Birthday". Never know who you'll meet in the Bull City! (There's sound on this site, Raheeem's new single, turn down the speakers if you're at work.)

Cramer vs. NAR

Jim Cramer started a mini war with the National Association of Realtors this week, when he appeared on the Today Show to say that buyers who purchase homes in today's market will lose money. The National Association of Realtors promptly demanded a correction, arguing that all real estate is regional and we are in a buyer's market, making it a great time to buy. So is real estate primarily an investment, or is it the place to live, grow, and raise a family, regardless of its financial benefit? Let the games begin..ding ding!

Round 1: Jim Cramer discusses the housing market with Meredith Viera


Cramer discusses slumping homes market

Round 2: Jim Cramer debates the housing market with President Elect of NAR Charles McMillan

Cramer on the plunge in home sales


Round 3: Jim Cramer says what he really thinks on CNBC
http://www.cnbc.com/id/15840232?video=534767113

We'll Miss You Bob!

Bob Bruss, real estate investor and nationally syndicated columnist, passed away on Wednesday. I read Bob's column every week. He always offered consistent and concrete advice. Through his column he taught people that you can make money in real estate if you are creative, attentive, honest, and willing to listen. In a world filled with "no money down, get rich in 90 days with no experience" real estate gurus, Bob was a class act. Here's a link to his last column.

Holistic Real Estate

A fellow Realtor just told me about Amberly, a huge planned community in Cary. OK, OK, that's not exactly a unique concept. But this community's plan apparently goes way beyond your typical "cut down trees, grade land, insert clubhouse and pool here" concept of real estate development. Amberly actually has a vision statement based around what they refer to as the Four Elements - Environment, Wellness, Technology, and Education. The neighborhood features an amphitheatre, office and retail space, displays by local artists, and a REALLY big health and fitness center.


Amberly bills itself as having all the elements of an urban location. That's a truly lofty goal for a neighborhood that was likely an empty field a few years ago. But it gets me thinking...a few years ago I attended a Main Street seminar where the presenter described one of the primary functions of buildings as a place for people to gather, where they could form communities. In other words, buildings in and of themselves aren't the most important thing. Buildings are important to the extent that they create places for people to gather, to become neighbors, and to form the bonds of a community. In many of the older, urban, and historic neighborhoods across the Triangle, neighbors and newcomers are fighting over scarce real estate resources - becoming enemies as they battle over bricks and stone. So are developers on the right track when they go to the idea of creating homes and amenities in a way that offers us the opportunity to create community without baggage?


Some define this as sprawl. But as Americans become established in their careers and start families, they are heading for the suburbs en masse. We've become a community of newcomers as people leave dense urban areas in the Northeast and seek out the slower pace and bigger space of the Triangle. I used to wonder why they would leave the beauty and bustle of places like New York City for a place where a good pastrami sandwich is still a rare find. I don't wonder so much anymore, which means my established career and 2.5 kids must be just around the corner.

Sunday Brunch

A little of this, a little of that...a few interesting articles from around the web.

A tribute to Durham staple The Green Room. If you've spent much time on Broad Street, chances are you've entered this hallowed pool hall. (The News & Observer)

For Sale By Owner 2.0 - new website takes the "sell your own home" industry completely online. (RealEstateJournal.com)

The Fed cuts rates, but mortgage interest rates go up. What is going on here? (RealEstateJournal.com)

Advice for sellers in a down real estate market: Keep the house, buy new furniture instead. (The New York Times)

New views of Mangum 506

Check out the new elevation for Mangum 506. There's also a really cool 3D flyby on the website.

Sales down, prices up

The Raleigh News & Observer reports that home sales are down Triangle wide, with the local market starting to feel more of the pain that has been afflicting the national market. This trend started early this year, and the recent nationwide slump has definitely affected our ability to bounce back.

The bright spot in all of this is that average home prices are up to the tune of 8.7% in Durham, to $199,729. So if you have a well maintained house in a desirable neighborhood, you might actually get more money for it. I'm seeing the best homes get snapped up. The ones that are overpriced and in not-so-good condition are languishing on the market.

Sellers with great houses and buyers with great financing are finding real estate bliss. For everyone else, it may be time to hunker down and prepare for a bumpy landing. 2008 and 2009 will tell the tale for our market. All of those adjustable rate mortgages are waiting in the wings - we can only guess at the impact when they take center stage.

Register now for 3rd Annual Community Dinners

I received this invite from Reyn Bowman. After all the negative publicity surrounding town-gown relations, it's great to see this event going into its third year.

Durham Residents:

In October, freshmen students from Duke University and residents of Durham will come together for the 3rd Annual Community Dinners project.

Residents can sign-up, now through September 28, to host 2-4 new students for dinner in their homes one evening, October 8-31.

The Community Dinners were created as a grassroots effort to give students new to Duke University and Durham the opportunity to get to know their Durham neighbors and immediately expand Duke-Durham relationships beyond the campus walls.

The project is supported and facilitated by Duke University and the Durham Convention & Visitors Bureau, with plans to expand its scope with support from North Carolina Central University in the coming year.

Please visit www.durhamtowngown.com for more information and to register.

Consumer Alert: American Home Mortgage Fails to Make Tax, Insurance Payments

If your home loan is being serviced by American Home Mortgage and your property taxes and home insurance payments are escrowed into your monthly payment, please read this!

American Home Mortgage (AHM) has been accused of failing to pay property tax and homeowner insurance payments on behalf of thousands of homeowners. The company filed for bankruptcy last month. According to the Wall Street Journal, American Home Mortgage stopped paying taxes and insurance on loans it services in late August. Government sponsored agency Freddie Mac is attempting to gain access to the lender's files, so that it can facilitate payment of tax and insurance bills. However, AHM is resisting, hoping to sell its loan servicing business to create income so that it can pay its creditors.

I would encourage AHM customers to contact your local property tax administration office and home insurance provider to confirm that your account is in good standing.

Triangle Real Estate is STILL Affordable

Don't get me wrong. Quality housing is not dirt cheap in the Triangle, especially for those who depend on hourly or shift wages to make it. The days of a $100,000 starter home are all but done. But it's always nice to keep some perspective. Areas with our wonderful quality of life are often much more expensive. Witness this article from today's USA Today:

http://www.usatoday.com/money/economy/housing/2007-09-12-affordability_N.htm

Apparently, there are lots of places in this country where the mortgage, property taxes, and insurance eat up more than half of people's monthly income. Where even high wage earners, like doctors and professors, cannot afford to own the roof over their heads. Where $1.5 million dollars gets you an average home.

The median sales price for a home in Durham County in July was $170,000. In Wake County, it was $225,000. Our area has found that magical balance of beautiful weather, a strong job market, wonderful social life, and affordable home prices.

Support A Local Affordable Housing Developer

Durham Community Land Trustees (DCLT) will host its yearly benefit concert on September 26 at the Carolina Theatre. This year's concert is Bela Fleck and the Flecktones. I went last year - there was a great reception before the concert, and the concert (NNenna Freelon) was wonderful.

Get info on tickets at www.dclt.org. DCLT is celebrating 20 years of providing affordable homes in Durham. They use a fairly innovative approach, which you'll hear more about if you read this blog regularly. Although if you just can't wait to learn more, check out their website.

Opt Out of Prescreened Credit Offers

I finally got tired of shredding those "Pre-Approved" credit card offers. They used to trickle in through my mail box every now and than, but recently the trickle is looking more like a flood. Credit card companies have decided that since so many of us are no longer able to refinance our homes, they should be good neighbors and step in with offers of easy credit.

I admit it, I'm a horrible procrastinator about some things. I advised my newsletter readers to opt out a while ago, but didn't take the plunge myself. For any one that wants to join me in my new found empty mail-box bliss, you can opt out at http://www.optoutprescreen.com/ or by calling 1-888-567-8688.

Jobs Report and Countrywide

A double whammy for the economy this week. The Labor Department released its monthly jobs report on Friday. The economy shed 4,000 jobs in August, the first decline in job creation since August 2003.

Also on Friday: Countrywide, the nation's largest mortgage lender (and the fourth largest in North Carolina), announced that it will cut up to 12,000 jobs in an attempt to salvage its retail lending operation. Rumors and reports about major layoffs at Countrywide have been swirling over the past week, but this number exceeds any reports I heard. The company continued to expand even as other lenders fell into bankruptcy earlier this year. Not a horrible strategy; someone will have to be there to lend money after the mortgage fallout is over, and Countrywide was well positioned to be one of the survivors. It remains to be seen whether they underestimated the size of the mortgage industry meltdown in their bid for (future) market domination.

Tips and Secrets for Landing Your Dream Home

Starting September 18, I'll be heading up a 5 week homebuyer seminar with Duke Continuing Ed. I'm trying to make this as different as possible from the typical homebuyer seminars you see advertised in the local paper. No, really. Lots of local info and real life examples (trust me, truth is so much more fun than fiction in real estate). No heavy handed pitches to drum up business for my company. Absolutely no party line, "it's ALWAYS a good time to buy a home" and "how to buy a home for NO money down" rhetoric. Just good information, lots of time to ask questions, and a truthful approach to real estate. More info and registration at
http://www.learnmore.duke.edu/weekend/courses/classdetail.asp?ClassCategories=Self&Submit=SEARCH&ClassID=11171.

Just Listed - Duke Park bungalow

We just listed a 2 bedroom, 1 bath bungalow in Duke Park. Walking distance to the Durham Farmers Market, downtown YMCA, Carolina Theatre, and great restaurants like Rue Cler and Piedmont. It's listed at $95,900. Check out the details and pics at http://www.621wmarkham.com/.

Market Fatigue - Or Maybe Not?

I've become somewhat of a CNBC junkie over the past few weeks - understandable, given that they've managed to tie every financial story to the "credit crisis" in the mortgage market. My goal with this blog is to figure out the local impact of national housing data. Historically, the Triangle market has weathered the housing storms fairly well. You don't see 20% per year appreciation; then again, the bottom doesn't tend to fall out of the market either. And homes remain affordable, which is a great recruitment factor for area businesses. That being said, we have felt some of the pain of the housing downturn. An article in today's News & Observer notes that if we do enter a nationwide recession, North Carolina will suffer more than many other states. However, the Triangle tends to be more economically resilient than other parts of the state. Locally, we've lost some lenders (Charter Funding, American Home Mortgage, HomeBanc to name a few), and sales have slowed. Relocating buyers are more likely to rent as they are unable to sell their old home in California, DC, or the Midwest. This story will continue to play out at least until 2009, as a bulk of adjustable rate mortgages reset to potentially higher interest rates. Will there be some pain in the Triangle? I think so. Will it be as bad as the rest of the country? History says no. I'll keep watching...