According to the S&P/cast Shiller Home Price Index, Charlotte’s home prices improved in March by .3 percent. That’s good news. And, in Myers Park there was more activity recently….as of the end of May there were 7 properties that had gone under contract, and 10 that had closed during the month. Of these, 5 were listed at $500,000 or less, and 5 were listed for more than $500,000 (and of these five, three were over $1 million). But, there are 213 active single family listings in Myers Park, of which 83 are listed for over $1 million. So in this high end market, the market absorption rate is still not good at all.

On another note, interest rates went up recently which will not help the real estate recovery, although rates are still historically low.

The headline of today’s The Charlotte Observer highlights another factor affecting the Charlotte real estate market “Charlotte loses clout at Wells”. Whereas Wachovia had nearly all it’s top excutives based in Charlotte, now five months into the Wells Fargo-Wachovia merger there is just one executive in the city. These top executives obviously commanded top salaries. Although some of the others are still with the organization they have been “bumped further down the corporate ladder”. Also the investment bank, another source of high paying jobs, is projected to have 75 additional jobs eliminated. This does not bode well for the high end real estate markets in town.

I recently read an article about why McMansions are unpopular with neighbors. Supersized in- fill homes or “McMansions” turn people off when they tower above surrounding homes, and when the style is incompatible with the rest of the neighborhood. This article appeared in the May/June 2009 issue of The Residential Specialist, a magazine published by the Council of Residential Specialists.

According to a study by Jack Nasar, a professor of city and regional planning at Ohio State University, it’s not the size in general, or the width of a home, but the height that is the most offending factor. When a home is twice as tall as surrounding homes neighbors find it offensive.

Consumers surveyed did not seem to believe that new or remodeled homes had to be exactly the same architectural style as existing homes, but they did seem to be concerned when homes were not compatible or visually appealing, which are both arbitrary. There is no accounting for taste, as they say.

The purpose of the Myers Park Homeowners Association, according to its mission statement, is to preserve and enhance the historical character and quality of life envisioned in the original garden park design for Myers Park. They do this by helping to enforce deed restrictions and overseeing development in the area. See the Myers Park Homeowners Assocation’s website www.mpha.com for more details. A part of what is currently considered Myers Park is listed on the National Historic Register. The website for the North Carolina State Historic Preservation Office has information that pertains to historic properties.

New industry wide appraisal standards went into effect at the first of this month. Now, mortgage companies will not be able to directly order appraisals, or request specific appraisers. Mortgage brokers and loan officers actually will not know who is doing an appraisal until after the fact. A mortgage company will request an appraisal, which will then be ordered by a new middleman, a third party vendor management company, or AMC, Appraisal Management Company. The mortgage company will receive the completed appraisal, at which time they will know who the appraiser was.

The theory is that mortgage brokers and loan officers, because of their vested interest, should not be allowed to choose or influence appraisers. This change came about as part of the new Home Valuation Code of Conduct. These new rules have been designed to enhance the accuracy and integrity of the appraisal process. Freddie Mac will no longer purchase mortgages from sellers who do not adhere to the HVCC.

In spirit all this is supposed to give a more accurate picture of what a property is worth. Also new is the Market Conditions Addendum to appraisals, which is designed to provide lenders with insight into market trends and conditions by requiring additional information including the number of similar homes sold in the last 7 to 12 months, the last 4 to 6 months and the last 3 months, and the market absorption rate. It has never made sense to me how prices could go up if they had to be justified based on past sales alone. And, this new system seems like it will keep us locked in a vicious cycle. The FAQs in regard to the new standards address what to do if there are not enough comparable sales. It states that a lack of data may speak to what the market trends are. Following this logic, how can we expect things ever improve?

What happened to the idea that a home is worth what a buyer is willing to pay for it? And I’m afraid the old real estate adage, Location, Location, Location may fall by the wayside if independent appraisers are not in tune with specific areas enough to know the added value of in-town and hot, highly desirable areas such as Myers Park.

It is what it is has been my new favorite saying. A colleague yesterday added, and it’s not what it was! That is so true!

When I started in real estate 12 years ago in Charlotte writing multiple offers for clients was common. If you had shown a house and there was interest, you had to call right away to make sure it was still available. Often you would “miss out” on a house because there were multiple offers and once your buyer had gotten over the loss, you’d go on to the next one and write another offer.

We’re back to writing multiple offers for clients… but for different reasons! Clients want “a deal” and will sometimes write a low offer, negotiate, and if they are not satisfied with where the negotiations wind up, they’ll move on to their next pick.

Over the course of my real estate career in Charlotte, homes have historically sold for about a 3% discount off list price. In highly desirable areas, like Myers Park that ratio was often less. And frequently when there were multiple offers, homes could sell for more than list price! The list to sales price ratio on average for 2009 has been 88%… in Myers Park!!! But it is what it is… a buyer’s market. And that’s not what it has been!

Myers Park in the spring is amazing. Charlotte has returned to near normal temperatures for this time of year…highs in the high 60′s.. Trees and flowers are blooming and people are outside enjoying the longer days. There is a steady stream of walkers along the Sugar Creek Greenway, in around the lake at Freedom Park, and it appears people are out looking at real estate on the housing market more!

The average priced home on the housing market in Myers Park is $1,150,000 and the statistics on showings.com indicate that showings in that price range in Myers Park almost doubled in March when compared to the previous month on the housing market. But, only two single family homes in the $1 million price range in Myers Park were reported in MLS as going under contract in March. One of these was a foreclosure. This is no surprise that as close to 20% of all U.S. real estate transactions in the past year involved a foreclosed property, according to Zillow.

What is selling in the Charlotte housing market are properties under $200,000 and there are some of those in Myers Park… if you are interested in a condo or town home. This is a great way to get into the Myers Park housing market; Myers Park being one of the most desirable locations in town. Also, it is a strong buyer’s market for condos and town homes in Myers Park, so there is potential for buyers to get a good deal.  And, if you buy a condo or town home, then you’ll have more time to stroll along the greenway yourself or hang out at your favorite coffee shop or restaurant… and there are plenty of those in Myers Park!