Applying for a mortgage is a big step in the home buying process for many, and for most that step can be really intimidating if you don't know what to expect. We often work with Kristian Siemon and Angel Oak Home Loans to help support our clients through the process. And with Kristian and his team the process doesn't need to be scary! 

So what exactly does the process of applying for a mortgage look like?

Know your score! 

Your credit score has a huge impact on your mortgage. Knowing your score will help you see the numbers that your mortgage advisor is looking at to determine your eligibility and rates.

Gather your documents! 

Pulling all the information together helps make the process easier. You can see what documents you might need here on the Angel Oak website. These are things like bank statements, W-2's, and pay stubs.

Lean on the Pros!

Connect with Kristian or one of his team! They are there to help you through the process! Even if you aren't quite ready to move forward they can give you the next steps so that you are in the best possible position when it comes time to purchase your first or next home.

Discuss Types and Terms!

Spend some time researching different types of loans and the terms that apply. Angel Oak offers a variety of mortgage products including Conventional home loans, VA (Veteran Affairs), and FHA (Federal Housing Administration) in addition to some other loans that are not so common, but may be useful if your circumstances are not so common. You can check out Angel Oak's product offerings here.

Get Pre-Approved!

When you are ready to begin your home search getting pre-approval for your mortgage will help you and your Realtor in your home search. You will know exactly how much home you can afford to buy.

The last 18 months changed what many buyers are looking for in a home. It has also brought clarity to homeowners as to what they need in a their homes. Recently, the American Institute of Architects released their AIA Home Design Trends Survey results for Q3 2021.

The survey reveals the following:

• 70% of respondents want more outdoor living space
• 69% of respondents want a home office (48% wanted multiple offices)
• 46% of respondents want a multi-function room/flexible space
• 42% of respondents want an au pair/in-law suite
• 39% of respondents want an exercise room/yoga space

If you’re a homeowner who wants to add any of the above, you have two options: renovate your current house or buy a home that already has the spaces you desire.

The decision you make could be determined by factors like:

• A possible desire to relocate
• The difference in the cost of a renovation versus a purchase
• Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)

In any case, you’ll need access to capital: the funds for the renovation or the down payment your next home would require. The great news is that the money you need probably already exists in your current home in the form of equity. Home Equity Is Skyrocketing The record-setting increases in home prices over the last two years dramatically improved homeowners’ equity.

Odeta Kushi, Deputy Chief Economist at First American, quantifies the amount of equity homeowners gained recently: “Remember U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation adjusted terms, homeowners in Q2 had an average of $280,000 in equity- a historic high.”

As a homeowner, the money you need to purchase the perfect home or renovate your current house may be right at your fingertips. However, waiting to make your decision may increase the cost of tapping that equity.

If you decide to renovate, you’ll need to refinance (or take out an equity loan) to access the equity. If you decide to move instead and use your equity as a down payment, you’ll still need to mortgage the remaining difference between the down payment and the cost of your next home. Mortgage rates are forecast to increase over the next year. Waiting to leverage your equity will probably mean you’ll pay more to do so. According to the latest data from the Federal Housing Finance Agency (FHFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below. If you’re one of those homeowners, you can keep your mortgage rate under 4% by doing it now. If you’re one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.

First Step: Determine the Amount of Equity in Your Home

If you’re ready to either redesign your current house or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home. To do that, you’ll need two things:

1. The current mortgage balance on your home
2. The current value of your home You can probably find the mortgage balance on your monthly mortgage statement.

To find the current market value of your house, you can pay several hundreds of dollars for an appraisal, or you can contact a local real estate professional who will be able to present to you, at no charge, a professional equity assessment report. You can get started with a free market valuation here: Sold Buy Sea Property Valuation Tool

Bottom Line: If the past 18 months have refocused your thoughts on what you want from your house, now may be the time to either renovate or make a move to the perfect home.

While today’s supply of homes for sale is still low, the number of newly built homes is increasing. If you’re ready to sell but have held off because you weren’t sure you’d be able to find a home to move into, newly built homes and those under construction can provide the options you’ve been waiting for.

The latest Census data shows the inventory of new homes is increasing this year.

With more new homes coming to the market, this means you’ll have more options to choose from if you’re ready to buy. Of course, if you do consider a newly built home, you’ll want to keep timing in mind. The supply includes homes at various stages of the construction process – some are near completion while others may be months away.

According to Robert Dietz, Chief Economist and Senior VP for Economics and Housing Policy for the National Association of Home Builders (NAHB):

“28% of new home inventory consists of homes that have not started construction, compared to 21% a year ago.”

Buying a home near completion is great if you’re ready to move. Alternatively, a home that has yet to break ground might benefit you if you’re ready to sell and you aren’t on a strict timeline. You’ll have an even greater opportunity to design your future home to suit your needs. No matter what, your trusted real estate advisor can help you find a home that works for you.

If you want to take advantage of today’s sellers’ market, but you’re not sure if you’ll be able to find a home to move into, consider a newly built home. Lean on your trusted real estate advisor to guide you through the sale of your house and discuss your homebuying options.

There’s a well-known economic theory – the law of supply and demand – that explains what’s happening with prices in the current real estate market.

Put simply, when demand for an item is high, prices rise. When the supply of the item increases, prices fall.

Of course, when demand is very high and supply is very low, prices can rise significantly.

Understanding the impact both supply and demand have can provide the answers to a few popular questions about today’s housing market:

Why are prices rising?

Where are prices headed?

What does this mean for homebuyers?

Why Are Prices Rising?

According to the latest Home Price Insights report from CoreLogic, home prices have risen 18.1% since this time last year. But what’s driving the increase?

Recent buyer and seller activity data from the National Association of Realtors (NAR) helps answer that question. When we take NAR’s buyer activity data and compare it to the seller traffic during the same timeframe, we can see buyer demand continues to outpace seller activity by a wide margin. In other words, the demand for homes is significantly greater than the current supply that’s available to buy.

This combination of low supply and high demand is what’s driving home prices up. Bill McBride, author of the Calculated Risk blog, puts it best, saying: “By some measures, house prices seem high, but the recent price increases make sense from a supply and demand perspective.”

Where Are Prices Headed?

The supply of homes for sale will greatly affect where prices head over the coming months. Many experts forecast prices will continue to increase, but they’ll likely appreciate at a slower rate.

Buyers hoping to purchase the home of their dreams may see this as welcome news. In this case, perspective is important: a slight moderation of home prices does not mean prices will depreciate or fall. Price increases may occur at a slower pace, but experts still expect them to rise.

What Does This Mean for Homebuyers?

If you’re waiting to enter the market because you’re expecting prices to drop, you may end up paying more in the long run. Even if price increases occur at a slower rate next year, prices are still projected to rise. That means the home of your dreams will likely cost even more in 2022.

Bottom Line

The truth is, high demand and low supply are what’s driving up home prices in today’s housing market. And while prices may increase at a slower pace in the coming months, experts still expect them to rise. If you’re a potential homebuyer, connect with a trusted real estate advisor today to discuss what that could mean for you if you wait even longer to buy.

If you’re looking to maximize your sale and minimize your effort, you need to work with a real estate professional. In a sellers’ market like today’s, it can be tempting to list your house on your own – known as For Sale By Owner (FSBO). But the truth is, a real estate professional can save you time and money by managing every step of the process, from pricing your home to reviewing documents and handling negotiations.

Before you decide to sell your house on your own, here are five reasons why working with an agent is your best bet to maximize the sale of your home.

1. First impressions are everything – and an agent knows how to make a great one.

Prepping a house for sale requires a significant amount of time and effort, even though it may seem simple at first glance. Doing it right so it stands out takes expertise and an understanding of what buyers are looking for. An agent considers things like:

• Should you take down any personal art or pictures?
• How much landscaping should you invest in to boost your house’s curb appeal?
• What wall colors are most appealing to buyers?

An expert real estate advisor relies on their experience to answer these questions and more so you don’t invest in the wrong things. Your time and money are important – you shouldn’t waste either.

2. Agents have tools to maximize the number of views your home gets.

Put plainly, the more buyers that view your house, the better your return will be. In our current market, homes are receiving 3.8 offers on average per sale, according to recent data from the National Association of Realtors (NAR). While that’s promising for the sale of your home, it’s important to understand your agent’s role in bringing buyers in.

Agents have multiple tools at their disposal – from social media to agency resources – to ensure your home is viewed by more prospective buyers. Leveraging the tools available to your agent and your agent’s expertise may help boost your sale price as well.

3. An agent won’t miss anything in the fine print.

Your agent can also save you time by taking any guesswork out of navigating the required documentation. Today, more disclosures and regulations are mandatory, meaning the number of legal documents you need to juggle is growing.

Because there’s so much to take care of, it can be hard to truly understand all of the requirements and the fine print. That’s where an expert advisor can truly shine. They’ve been through the process before and can be your guide to avoid any costly missteps.

4. Expert advisors know the market and how to price your home.

Another way your agent maximizes the sale of your home is by making sure it’s priced right. Real estate professionals have the experience to compare your house to recently sold homes in your area. They also understand the market at large and can factor in any upgrades you’ve completed to your home. Combining these factors is the key to making sure your home is priced to move quickly – and at a competitive price.

When you FSBO, you’re operating without this expertise. Even with your own research, you may not find the most up-to-date information and could risk setting a price that’s inaccurate or unrealistic. If you price your house too high, you could turn buyers away before they’re even in the front door. This could also cause problems when it’s time for the appraisal.

5. Your agent will be an expert negotiator.

In addition to their experience navigating sales, real estate professionals understand how to negotiate every aspect of a deal. They also know all the parties that will be involved with the sale, including:

• The buyer, who wants the best deal possible.
• The buyer’s agent, who will use their expertise to advocate for the buyer.
• The inspection company, which works for the buyer and will almost always find concerns with the house.
• The appraiser, who assesses the property’s value to protect the lender.

An agent relies on their experience and training to make the right moves during the negotiation. They’ll know what levers to pull, how to address each individual’s concerns, and when you may want to get a second opinion. Selling your house as a FSBO means you’ll need to be prepared to have these conversations on your own.

Selling a house takes time, effort, and expertise – don’t go at it alone. If you truly want to maximize the sale of your home, work with a trusted real estate professional.

Purchasing Coastal Real Estate.

With almost 330 miles of ocean shoreline, North Carolina boasts some of the most spectacular beaches in the nation. And quite a few of those beaches are right here in our backyards, with Wrightsville Beach, Carolina Beach, and Topsial Island.

But before buying, you should be aware of other factors that accompany the pleasures of owning property near the beach. Most oceanfront real estate in North Carolina is located on barrier islands. These narrow strips of land between the sea and sound are particularly vulnerable to ocean forces such as storms and beach erosion that can threaten your prospective property and undercut its value. This post focuses on questions you should ask as a potential purchaser of coastal real estate, whether you are considering an undeveloped lot or an existing building.

*Information shared below comes from the NCREC Q&A Brochure on Purchasing Coastal Real Estate in North Carolina. Copyright 12/1/2018, North Carolina Real Estate Commission (NCREC), Raleigh NC, This work was partially supported by grant NA46RGO087 from the National Sea Grant College Program, National Oceanic and Atmospheric Administration, to the North Carolina Sea Grant College Program   

What unusual hazards can affect real estate along ocean shorelines?

Real estate near the ocean or an inlet is at risk for shoreline erosion. The property boundary adjacent to the water is influenced by forces of nature and changes from day to day and year to year.

What causes shoreline erosion?

Shoreline erosion is caused by many factors including seasonal fluctuations in the width of the beach, storm- induced erosion, long-term erosion, a gradual rise in sea level, and inlet migration/oscillations. Generally, North Carolina’s beaches are seasonally narrower in the stormy fall and winter months. The mean high water line may move landward temporarily by 75 to 100 feet during the stormy season. This "seasonal" erosion usually recovers for the summer tourist season. A severe storm can cause dune erosion between 25 and 150 feet. While much of the storm-induced dune erosion may be temporary, it can sometimes take years or even decades for the dunes to recover. Chronic, long-term erosion is the accumulation of many causes which result in the permanent loss of sand from the beach and dune. Some sand may be lost offshore in the worst storms. Storm waves may also overwash low islands, moving sand to the backside of the island and into the bay. where sand may also be trapped by the inlets. A gradual rise in sea level also contributes to shoreline erosion. Sea level in North Carolina has risen 1 to 1.5 feet over the last century and could increase an additional 2 to 11 inches by 2045. By 2100, sea level may rise more than 3 feet. Ocean beaches react to sea level rise by eroding farther inland. Tidal inlets between the barrier islands also can be extremely volatile. A few of North Carolina's inlets persistently migrate in one direction at over100 feet per year. Inlets also can cause the ocean shoreline for some distance away from the inlet to oscillate, as first one side and then the other side traps sand and builds dunes as the other erodes over years or decades.

What is the typical erosion rate of a North Carolina shoreline?

North Carolina Division of Coastal Management studies show an average long-term erosion rate of approximately 1.6 feet annually for the entire coast over the last 70 years. Some areas have lost over 13 feet per year. Ocean shorelines near inlets and inlet shorelines usually experience the greatest fluctuations, on the order of 10 times non-inlet erosion rates for a decade or longer.

For information on erosion rates, contact the N.C. Division of Coastal Management or the local permitting office.

For erosion rate maps: http://www. nccoastalmangement.net/Maps/SB_Factor.htm

For shoreline change maps and inlets: http:// www. nccoastalmangement.net/Maps/shoreline_mapintro.htm

Will I automatically be informed about erosion, erosion rates and oceanfront building setbacks?

Not necessarily. North Carolina law does not specifically require that the information be disclosed to buyers other than the original builder. Purchasers should be sure to research coastal hazards and their potential impact on the property. If you are working with a licensed real estate broker, the broker has a duty to disclose material facts that the broker knows or reasonably should know. Although real estate brokers may not always know the erosion rates or setback location for particular oceanfront properties, they should advise you of the possibility of erosion and direct you to available sources of information. If the broker knows the erosion rate or building setback for a particular property, the broker should disclose it to you.

If I purchase undeveloped oceanfront property, where should I build on the lot?

North Carolina regulations require that new construction be a certain distance or setback from the ocean. The setback is measured landward from the line of stable, natural vegetation nearest the sea, usually near the base of the frontal dune. Other restrictions also may apply. Local permit officers can locate the minimum setbacks on your lot. Purchasers should note that the required setback does not guarantee a safe location. In fact, it implies that if erosion occurs as expected, a new building could be sitting on the beach or destroyed in 30 years (about the time the structure is paid for under a traditional 30-year mortgage). Because the ocean shoreline is eroding, it may be in your best interest to build farther landward than the minimum distances allowed

What building construction features help reduce or prevent storm damage?

Several features can prevent or substantially reduce the likelihood of damage from severe storms or erosion. Piling foundations can raise the first floor above expected flood elevations and waves. Avoiding the storm surge and waves is critical for storm survival. Determine the floor elevation relative to local flood predictions. Higher elevations are safer.

Embedding the tip of pilings deeper than five feet below sea level can help a building stand during temporary storm-induced dune erosion episodes and long-term erosion. Building code changes in 1986 make it more likely that later oceanfront buildings will have deeper foundations. Purchasers should consider researching the depth of the existing pilings relative to the depth of potential erosion.

Any walls constructed between pilings should be designed to break away when hit by waves without damaging the elevated building. Generally, the enclosed space in the floodplain may be used only for parking, storage or access to the elevated building but may not be used for living area.

The wind resistance of the building depends on good connections from the peak of the roof to the bottom of foundation. The resistance of all the exterior surfaces to wind-blown water is also critical to reduce interior damage. Wind-blown debris damage can be reduced by storm shutters or impact-resistant glass. Consider hiring an inspection professional to determine if the building meets the present building codes or can be improved to meet them.

Discounts on your homeowners insurance may be available for some building features. Click Here for more info. 

Sand dunes also provide significant protection from erosion and waves during severe storms. Generally, the bigger the dune and the farther landward it is located, the more storm protection it offers. However, it is important to understand that sand dunes offer little protection from longterm erosion. For more details on dune protection and erosion see the Dune Book

If my oceanfront property becomes threatened by erosion can I construct a seawall?

No. Seawalls, bulkheads, revetments, groins, jetties or breakwaters are generally not allowed along the ocean beaches of North Carolina. These “hardened” erosion-control devices can damage the beach and adjacent properties.

If my oceanfront property becomes threatened by erosion can I construct temporary erosion-control structures such as sand bags?

If a building is imminently threatened by erosion, a property owner may be permitted to place large sandbags or build artificial sand dunes for temporary protection to allow the building to be relocated or until short-term erosion has reversed. Both size and time limits are placed on each temporary sandbag structure. [For information on site-specific erosion control projects, contact your local permit officer or the N.C. Division of Coastal Management.]

If my oceanfront property becomes threatened by erosion can I replenish the eroding shoreline by placing sand from an outside source onto my property?

Yes. Beach nourishment may be permitted in North Carolina. However, it provides only temporary relief and requires regular additions of sand for maintenance. To be effective, it must extend beyond the beach in front of a single property, generally along a mile or more of shoreline. It is, therefore, a community solution, rather than an individual property owner solution.

If my oceanfront property becomes threatened by erosion can I move my house away from the eroding shoreline?

Yes. If space allows, a structure can be moved landward on the same lot, or it can be relocated to a new property. If the building is relocated with private funds, it must be relocated the maximum feasible distance landward on the present property. If relocated with public funds, it must meet the current setback requirements

If my oceanfront property becomes threatened by erosion can I be required to move my house away from the eroding shoreline?

Yes. As of 1993, new development permits for oceanfront buildings require owners to move or dismantle erosion-threatened buildings (buildings that are less than 20 feet from the line of stable dune vegetation nearest the sea), unless natural shoreline recovery or beach nourishment takes place within two years and the structure is no longer threatened. [For information on site-specific erosion control projects, contact your local permit officer or the N.C. Division of Coastal Management.]

Can I get insurance for damage resulting from erosion and flooding?

Probably, but not always. You may be able to purchase a flood insurance policy (separate from a standard homeowner’s policy). The National Flood Insurance Program (NFIP) makes flood insurance available nationwide to eligible properties. NFIP policies are written by private insurance companies for a processing fee, and based on federally-mandated terms and costs. Discounts on annual premiums are available for buildings in some flood zones if constructed above the minimum floor elevation standards. To determine if NFIP insurance is available in your area, contact your insurance agent or see N.C. flood maps online. For elevation discounts and tips on rating existing buildings, see: http://www.ncfloodmaps.com/ pubdocs/grandfathering_letter.pdf. Determine the availability and cost of flood insurance in advance, and any limits on coverage. Private insurance coverage may be available for excess flood coverage or property not eligible for the NFIP.

Is flood insurance mandatory for coastal property? 

Sometimes. If the property is in an identified flood-prone area, federally insured lenders, including most banks, savings & loans and mortgage lenders, are required to have the building owner provide proof of flood insurance coverage for the life of the lien. Outside flood-prone areas, lenders still may require flood insurance to protect their lien and may declare the balance of the loan due and payable if coverage is not maintained. If a loan is not federally insured or there is no loan, no law requires flood insurance. Flood-prone areas are identified on Flood Insurance Rate Maps. (See above for sources.) Even if not required, when building or buying near the ocean, flood insurance is always a good idea. [For information about flood insurance and discounts, contact your local building official, insurance agent, the North Carolina Floodplain Mapping Program or the National Flood Insurance Program.]

What are the limitations of flood insurance?

Federal flood insurance covers only building and contents damage—including damage from waves— caused by flooding. Technically, damage caused by chronic, long-term erosion is not directly covered unless it occurs during a storm event. Federally-backed flood insurance coverage does not cover damage to the land caused by flood, waves or erosion. Therefore, much of the purchase price for oceanfront property is not insured if the land erodes. When a building is so damaged that it cannot be repaired or rebuilt, flood insurance may be inadequate to cover the cost of removing the structure and/or repaying the loan. Even if the building is undamaged, erosion that makes the lot “unbuildable” for new construction may cause the property value to significantly decline.

Should a prospective buyer inquire about flood insurance premiums before buying?

Yes. Congress amended the NFIP in 2012 and 2014. Additional amendments are under consideration. Annual premiums for some buildings have been raised significantly. It has been proposed to deny coverage to some buildings with higher claims. It is impossible to predict when or if Congress will modify the NFIP or how those changes may affect annual premiums. Additionally, all 20 of North Carolina’s coastal counties are scheduled to get new flood maps in 2018. The best advice for a prospective buyer is to research this issue thoroughly before making a purchase decision.

Can I get insurance for wind damage to coastal property?  

Probably. Because of the high risk in coastal areas, some private insurance companies exclude coverage for wind damage. For that reason, the N.C. Department of Insurance has established the Coastal Property Insurance Pool, formerly known as the “Beach Plan,” to provide wind coverage in areas where it is not otherwise available. Residential Windstorm Mitigation Credits are available at varying levels for several types of roof construction and re-roofing. Refer to the NC Joint Underwriting Association/NC Insurance Underwriting Association-Coastal Property Insurance pool for further information. (https://www.ncjuanciua.org) [For more information about the Beach Plan or homeowner’s policy coverage, contact your insurance agent or the North Carolina Department of Insurance.]

Can I rebuild or repair my building if it is damaged by a coastal storm, fire or other hazard?

Maybe. If the damage is less than 50 percent of the building’s market value immediately prior to the damage, you may be able to repair it at its original location. However, if the building is more than 50 percent damaged, repairs must meet the latest setback requirements, floodplain regulations and other building code requirements. Permits are required, as if it were new construction. In addition, repair or replacement on the lot would be prohibited if erosion has left insufficient space to meet the setback at that time. Purchasers should determine if the lot and building presently meet the setback for new construction and eligible for a replacement building, keeping in mind the risk that erosion may make the lot unbuildable in the future.

Additional Resources

North Carolina Division of Coastal Management 

252-808-2808 / 1-888-4RCOAST (1-888-472-6278) 

www.nccoastalmanagement.net

North Carolina Real Estate Commission

(919) 875-3700

www.ncrec.gov 

North Carolina Department of Insurance

For general information: 1-800-546-5664

http://www.ncdoi.com

For Beach Plan information: 1-800-662-7048

http://www.ncjua-nciua.org/ 

National Flood Insurance Program

http://www.ncfloodmaps.com/

http://www.floodsmart.gov/floodsmart/

When supply is low and demand is high, economics 101 tells us that prices will rise. And that is what we are seeing in today's housing market. But that basic economics equation is causing some challenges when it comes to home appraisals.

Home prices are appreciating at near-historic rates, and in recent months we are see more and more appraisals come in below the contract price on the house. 

Shawn Telford, Chief Appraiser for CoreLogic says "Recently, we have observed buyers paying prices above listing price and higher then the market data available to appraisers can support. This difference is know as the appraisal gap..."

Why does an appraisal gap happen?

Basically, with the heightened buyer demand, purchasers are often willing to pay over asking to secure the home of their dreams. If you’ve ever toured a house you’ve fallen in love with, you understand. Once you start to picture yourself and your furniture in the rooms, you want to do everything you can to land the property, including putting in a high offer to try to beat out other would-be buyers.

When the appraiser comes in, they look at things a bit more objectively. Their job is to assess the inherent value of the home, so they’re going to study the facts. Dustin Harris, Appraiser Coach, drives this point home:

“It’s important for everyone to understand that the appraiser’s job in the end is to remain that unbiased third party, to truly tell the client what that home is worth in the current market, regardless of what decisions have been made on the price side of things.”

In simple terms, while homebuyers may be willing to pay more, appraisers are there to assess the market value of the home. Their goal is to make sure the lender isn’t loaning more money than the home is worth. It’s objective, rather than emotional.

What does this mean for you?

Ultimately, knowledge is power. The best thing you can do is understand an appraisal gap may impact your transaction if you’re buying or selling. If you do encounter an appraisal below your contract price, know that in today’s sellers’ market, the most common approach is for the seller to ask the buyer to make up the difference in price. Buyers, be prepared to bring extra money to the table if you really want the home.

Above all else, lean on your real estate agent. Whether you’re a buyer or seller, your trusted advisor is your ally if you come up against an appraisal gap. We’ll help you understand your options and handle any additional negotiations that need to happen.

Bottom Line: In todays real estate market, it is important to say informed on the latest trends. Work with a Realtor to help you navigate issues, like an appraisal gap, and get the best possible outcome.

Looking for extra storage in your house? The Wilmington, NC area offers some great small housing options with historic homes and seaside cottages.

According to Merriam-Webster normal means conforming to a type, standard, or regular pattern; characterized by that with is considered usual, typical, or routine.

Well maybe we are seeing a new normal start to emerge...but based on this definition we will need to see where the market goes from here before we make a determination if this is normal or not. But right now...this is not a normal market. 

Lets look at five key housing industry metrics, and you will see that we are still nowhere near normal...

Mortgage Rates

Looking at the 30-year mortgage rate, as chronicled by Freddie Mac, we can see the average rates by decade: 

• 1970s: 8.86%
• 1980s: 12.7%
• 1990s: 8.12%
• 2000s: 6.29%
• 2010s: 4.09%

Today the average mortgage rate stands at about 2.87% - which while not quite a historic low, it is pretty close.

So no, current mortgage rates are anything but usual, typical, or routine.

Home Price Appreciation

According to Black Knight, a housing data and analytics company, the average annual appreciation on residential real estate prices since 1995 has been 4.14%.

According to the latest forecast from the National Association of Realtors (NAR), home price appreciation will hit 14.1% this year, which will be greater than any year since Black Knight began collecting this data.

Nope, home price appreciation is anything but usual, typical, or routine.

Months Supply of Inventory (aka how many homes are for sale)

Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Historically, six months of supply is associated with moderate price appreciation, and a lower level of months’ supply tends to push prices up more rapidly. 

As of the latest Existing Homes Sales Report from NAR, the current months’ supply of inventory stands at 2.6. That’s less than half of a normal supply. In looking at our local data, this supply is much lower in the Wilmington, NC Area, when you consider the average price point of our clients. While there is more supply now then at the beginning of the summer (our typical busy season) there is still very low inventory of home in the area. 

The months supply inventory is not usual, typical, or routine.

Days On Market (aka how long it takes to sell your home)

The days-on-market metric gives an indication of how hot a market is and how quickly homes are selling. In 2019, prior to the pandemic, the average days on market stood at 35, according to NAR. Today, that number is cut in half and is now at 17 days.

Nope, another metric that is not usual, typical, or routine.

Number of Offers per Listing

According to NAR, the number of offers per listing stood at 2.2 in 2019. Today, that number is double at 4.5.

So another metric that is not usual, typical, or routine.

When... mortgage prices are a near historic lows, price appreciation is at historic highs, housing inventory is low, the time it takes to sell a home is cut in half, and there are twice as many offers on each house...

it's hard to say that we are in a normal market!

Here's what you need to know about working with agents in North Carolina!

If you have any questions about working with a Real Estate Agent in North Carolina please don't hesitate to reach out!  Check out our team and reach out to any of our agents, they would all be more than happy to help. You can find our team here: About Us 

Thanks to the North Carolina Real Estate Commission for this video. NCREC.gov for more information.