Thinking about buying or selling a home this year?
During her guest appearance on WCNC-NBC’s Charlotte Today, Nancy Braun, owner and broker-in-charge of Showcase Realty, talked about how the real estate market will look like in 2019.
Nancy started off with a description of the real estate market last year, highlighting that it was a strong market. However, there were actually fewer homes on the market at the end of the year as compared to 2017.
She then went on to explain that for 2019, buyers and sellers should anticipate a continuation of shortage. She also mentioned that there will be some affordability issues because of the expected increase in interest rates. Because of this, what buyers can qualify for is going to change, it’s gonna go down. And the ones who will be greatly affected are the first-time home buyers. She explained that they may have to reduce their qualification - how much they can afford to buy.
The good news is, Nancy’s company, Showcase Realty, offers help to first-time home buyers. Nancy and her team work with really great preferred lenders who know all the different programs that are out there, such as forgivable down payment assistance programs.
Nancy also talked about the pitfalls that buyers and sellers should steer clear of this year. She cautioned home sellers of the dangers of overpricing their homes.
Whether you're looking to buy or sell a home this year, it helps to know what you're up against.For more information, Nancy has a free report called “What’s Ahead For Real Estate in 2019?” Visit www.CarolinaPropertyReport.com for your copy. You can also call Nancy directly. It’s 704-488-3109.
Eugene Robinson: If you’re thinking about buying or selling a home this year, it’s important to know what Charlotte real estate market will look like in 2019.
Colleen Odegaard: Here with more is Nancy Braun. Nancy’s the owner of Showcase Realty. Nancy, great to see you. Thanks for coming today.
Nancy Braun: Good morning.
Colleen Odegaard: Okay, first off. Let’s start with this. How did Charlotte do in the real estate market last year?
Nancy Braun: It was a strong market. We saw a shortage of the inventory which means we had greater amount of buyers than there was homes to sell to them. And, we still saw some multiple offer situations and prices kept on going up. So we do see an appreciation which also can affect affordability. So, it ended strong but we actually had less homes on the market at the end of the year than we did in the previous year.
Eugene Robinson: So what is the expectations for 2019, Nancy?
Nancy Braun: So, we anticipate a continuation of shortage, and we also expect some affordability issues coming up because interest rates will probably rise, maybe 1 or 2 more times. And they’ve already risen since last year, so we’re now hovering on just under 4 ½%. We anticipate possibly going as high as 5% on a conventional.
Colleen Odegaard: Okay, so with that being said, what does that mean for buyers, sellers and investors?
Nancy Braun: Right, so as prices keep going up but wages stay flat, and interest rates go up, now, what buyer can qualify for is going to change - obviously it’s gonna go down. So, if interest rates keep rising and inventories still out there, we might not see a continuation of home selling for a lot more than they had been. If you look back to 2014, some homes in Charlotte have doubled. You know, we’ve seen such enormous price gains, and, how much more are people really making today than they were in 2014? It’s actually not matching up.
Eugene Robinson: Well how would this impact first time buyers?
Nancy Braun: It impacts them the most, cause they’re usually just qualifying barely for certain amount. So they may have to reduce their qualification - how much they can afford to buy. Maybe instead of a hundred and eighty thousand, they can get a loan for a hundred and fifty thousand. Well we all know, it’s barely anything out there in the Charlotte inner city area for a hundred and fifty. So that means they might have to go out further into the suburbs, which is what we’ve seen.
Colleen Odegaard: So what is Showcase Realty, your company, doing to help these first time home buyers?
Nancy Braun: So, our first time home buyers, we have really great preferred lenders that we work with, and they know all the different programs that are out there, including forgivable down payment assistance programs. So you can have someone who has great credit, graduated from college, but not a lot of money saved; you know, they just came out of college. So we can find them a program that can give them the downpayment assistance, and then we can ask in the offer for the seller to pay closing costs. So in certain situations, they can come into this with $500 and buy house.
Colleen Odegaard: That’s great.
Eugene Robinson: So what mistakes should buyers and sellers avoid this year?
Nancy Braun: Well, overestimating your value. There are a lot of sellers, when they keep on hearing that prices are going up, prices are going up, they’re gonna think their house is worth a lot more than it is. And if you overprice, overshoot the market, you’re inevitably going to have to drop your price over time, and end up selling your house for a lot less than had you sold it in the very beginning. Cause the first two weeks of your marketing, that’s when you really wanna get your offers. So if you’re not getting showings, or you’re not getting offers, it’s down to price.
Colleen Odegaard: You have to price it right. Yes, cause the biggest question on everybody’s minds: are we heading for a real estate bubble again?
Nancy Braun: Well, I don’t know. I’m not an economist, but, there’s such strength in Charlotte’s market, we see cranes all over the city, in the suburbs. Everything’s growing, growing, growing, lots of companies are moving here. I don’t anticipate a bubble, but maybe a softening of this, increase in prices. And, we certainly aren’t seeing multiple offers in the level that we used to see. Those investor hedge fund groups that were coming in right after 2014 and just, taking half the market up, they are really in play right now. They’re kinda holding still until prices drop again. So we’re not competing with the huge amount of hedge funds that have unlimited cash. So it’s more of a traditional market, I would suppose.
Colleen Odegaard: Nancy, great information. Thank you so much. To learn more, Nancy has a free report called “What’s Ahead For Real Estate in 2019?” Visit CarolinaPropertyReport for your copy, CarolinaPropertyReport.com is the website to go to. You can also call Nancy directly. It’s 704-488-3109. Again 704-488-3109. Nancy Braun, thank you.
Nancy Braun: Thank you.