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How Affordable Housing Affects Surrounding Neighborhoods

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The Low Income Housing Tax Credit program is the federal government’s primary vehicle for encouraging new affordable rental housing in the United States.How Affordable Housing Affects Surrounding Neighborhoods

This program has created over 1400 projects with more than 100,000 housing units per year since 1995. There have been numerous studies on the effects of affordable housing on surrounding neighborhoods. The research analyzed these projects on distressed, high opportunity, and moderate poverty neighborhoods.

In distressed neighborhoods, this program increases surrounding property values and reduces crime rates. In high opportunity neighborhoods, the project has no effect on crime rates either positive or negative but a small impact on property values. Property dollars are slightly decreased in these neighborhoods although only within a one 10th of a mile of the neighborhood. In moderate poverty neighborhoods, the research has been relatively sparse and not conclusive.

Both local and federal governments continue to use this program to build affordable housing in both distressed and low poverty neighborhoods. Developers and advocates can use this research to help overcome certain objections to affordable housing in high opportunity neighborhoods. Certain objections by groups called Not In My Back Yard (NIMBY) are opposed to any type of multifamily housing and is extremely common to get pushback.

But this type of housing is increasingly needed to strengthen distressed communities and increase access to higher opportunity neighborhoods. Producing this type of housing in distressed neighborhoods positively impact the surrounding neighborhood overall in terms of modest property value gains and increased safety. Higher opportunity neighborhoods canned experience small property value reductions but no impact on crime. These programs seem to be impressive, positive, and a benefit to all. Affordable housing is simply housing that costs less than 30% of a homeowner’s income. 

For more information on affordable housing or The Low Income Housing Tax Credit program, give us a call anytime!

Are You in the Missing Middle? How the Market is Failing

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Are You in the Missing Middle? How the Market is Failing

Is the American dream downsizing? Have you noticed that there are a lot of lower income housing, smaller properties, and then these large, elaborate estates? But what’s left in the middle? Many people are noticing that when they’re moving from larger cities to suburban areas, the middle class is kind of getting forgotten about. The housing market in different Metro places around the country is very different but a lot of middle-class Americans are simply getting forgotten about.

So what do you consider the American dream? An elaborate 5000 square-foot house or a small 900 square-foot condo on the beach? It seems like the homes in the middle are getting forgotten about; those 1500 to 2500 square-foot properties between $200,000 and $400,000. We see it ourselves. Homes in this price range fly off of the market because there are more people looking for this type of property than the other two.

Larger metro markets have been catering to the more affluent real estate buyers, which results in slowing sales from too few houses that moderate-income buyers can afford. Many developers are calling this the “missing middle housing”.

This is calling attention to the need for more diverse housing choices at affordable prices in markets all over the country. People are looking for walkability, homes that are not right on top of each other, and properties that may even include duplexes, courtyard apartments, bungalows, and multiplexes.

Search all Homes 1500-2500SF | $150K-400K

According to the National Association of Home Builders, more developers are beginning to cater to buyers in the middle, which is a great start, but nowhere near where it’s currently needed. Their data shows that new houses sell for the third straight year 2018 where median square footage on a single-family house decreased from 2500 ft.² to 2300 ft.². Entry-level buyers are still looking for homes under 2000 ft.² so having some options for them, rather than the crazy “unicorn” housing that’s almost impossible to find is really where builders need to focus. Price growth has been the fastest due to lack of inventory in these markets. Younger buyers and millennial’s are trying to find entry-level housing and there’s just not a lot out there.

So what type of impact will this have for the economy as a whole?

Average new house size tends to correlate with economic figures and with smaller houses built during recessions and larger houses built during boom times, the significance of figures as an economic indicator .2 rising interest rates and a 10 year low in housing affordability. [Source]

As we all assumed, builders are now making up for lost time rather than reacting to a market that may have turned. Although this new “missing middle” means more zoning, it also means that buyers may be shying away from the term “density”. Nobody likes to live in a close-knit, dense neighborhood where you’re practically on top of the person next to you. Things like multi-family and multiplex may seem scary to people looking to buy their first home, but if more builders can focus on what starter buyers really want, they can create neighborhoods that appeal to not only first-time homebuyers but multiple return buyers year after year. Many of these housing markets cater to families even though a single person household makes of about 30% of the market.

Search all Homes 1500-2500SF | $150K-400K

Like I just said, zoning and municipal codes require a minimum lot or house sizes, so even if the builder wants to create homes that have more demand, zoning laws may prevent it. City and town management require affordable housing but they also want large lot programs, finding a balance is practically impossible. Smaller homes tend to sell for less so building them at a profit is another challenge that developers have been struggling with.

Buyers usually want the largest home they can buy. Not many people will turn away a large house if they can afford it, but the key is “affordability”. Can they actually afford these types of homes? We recommend building equity on a starter home and then moving up in the next 5 to 8 years. This seems to be one of the best options for the choices that are out there.

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Highest Priced Homes in Ocean Isle Beach

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As of January 19, 2018, these are the highest priced homes currently on the market in Ocean Isle Beach North Carolina.

Highest Priced Homes in Ocean Isle Beach

#1. 1 Craven Street – 5 bedrooms – 7 bathrooms – 5875 ft.² – $1,995,000

This beautiful home is located right on the beach in Ocean Isle Beach North Carolina with a stunning three-story design and beautiful backyard with lush landscaping, swimming pool, spa and more.

 

Highest Priced Homes in Ocean Isle Beach

#2. 43 Cumberland St. – 5 bedrooms – 6 bathrooms – 6172 ft.² – $1,895,000.

This beautiful three-story home located on Cumberland Street a little setback from the ocean offers actually to lots. Every convenience and modification is already complete in this beautiful home. The property has a dock off to the Intracoastal Waterway and there is very detailed woodwork throughout the home.

 

Highest priced home

#3. 377 W. 1st St. – 6 bedrooms – 7 bathrooms – 3563 ft.² – $1,649,000

This home is right on the ocean. It’s located in the exclusive West End Islander Resort with pool membership. The home has never been rented and is in pristine condition. They have room for a private pool available on the ocean side of the beach and was originally built in 2003 sitting on nearly a half an acre.

 

99 Ocean Isle West Boulevard

#4. 99 Ocean Isle West Boulevard – 5 bedrooms – 4 bathrooms – 4500 ft.² – $1,549,000

Built in 1983, this a beautiful home on almost a half an acre features direct ocean views and the availability to launch your boat from the sound area. It offers entertaining space both inside and out with massive oceanfront deck and a pool.

 

1 Coggeshall Dr.

#5. 1 Coggeshall Dr. – 8 bedrooms – 8 bathrooms – 4680 ft.² – $1,477,999

This gorgeous a two bedroom, luxury, custom home located at the west end of Ocean Isle Beach in a private community offers the finest in living and sophistication. The master suite features a fireplace, ensuite, walk-in closet and ocean views. The backyard is an entertainer’s dream with swimming pool and large decks on both the second and third floors. This is one of the most beautiful homes in the city.

To personally view any of these homes please call our office to schedule a showing. We’d love to offer more information and details about any of these or other listings throughout Ocean Isle Beach.

Browse all listings currently active and available on our website here for free.

Current Housing Trends and Home Prices in Ocean Isle Beach

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A well, we are well into summer so it’s a good time to take a look at the snapshot for Ocean Isle Beach North Carolina. What’s going on, home prices, it’s a good time to buy or sell and how hot is the market?

Current Housing Trends and Home Prices in Ocean Isle Beach

About 400 properties for sale, the median list price is between 270,000 and 320,000. The discrepancy in price is based on foreclosures, potential sales, changes from listing price to sales price, and whether or not homes come on or off the market or if they have reduced their price on one website versus another. There are very few distressed properties in the market right now, meaning foreclosures or short sales, but that doesn’t mean that they’re not out there. Good deals are still to be had. It’s a somewhat balanced market. This means that we’re not totally geared toward sellers or buyers. This means that it’s a great time for both buyers and sellers to come together at the right price and the right property.

This small coastal town is home to less than 600 people year-round. So you wouldn’t think that be that many properties for sale, but seasonal residents, vacationers, and full timers all make up the real estate market. Ocean Isle Beach stretches from Sunset Beach North and along the intercoastal waterway to the Ocean Highway.

What does this mean for sellers?

It’s a great time to consider selling. The asking price and list price are very similar, which means that the gap between the asking price and selling price is very minimal. According to one website, the median list price is only $210,000 with a meeting closing price of $300,000. The price per square foot runs between $150 and $190. This may help when determining a good price range, but, looking at what has sold, the difference between asking price and selling price, and how long homes of sat on the market are all factors to getting the right market value for your home.

Home prices over the last six months have remained relatively balanced. Between January 2017 to June 2017, the number of houses that have sold has remained relatively the same. The average sold price and median sold price gone up slightly for both.

What does this mean for buyers?

Because this is not a seller’s market it’s also a great time for buyers.
Including a good deal without having competition. Understanding the sellers and their motivation may also be a good negotiating tactic when making an offer.

If you’d like more information about the current market trends your home might be worth in Ocean Isle Beach give me a call today.


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Sunset Beach NC Housing Market Update

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Real estate report and housing market update for Sunset Beach North Carolina as of May 2017.Sunset Beach NC Housing Market Update

As of the publishing of this post, the median list price is about $189,000 with the median sales price of $160,000 or about $114 per square foot for Sunset Beach North Carolina. There are about 375 properties for sale and for homes for rent.

Prices can vary based on the information and data received. For instance, one site might say that the median sales price is $155,000 and another say it’s around $160,000. What varies is based on the amount of data that site collects. There could be many properties out there that are either not listed, pre-foreclosure properties that should not be listed just yet, or auction properties that can bring down the median sales or list price. Surprisingly, Sunset Beach is some of the more affluent or expensive properties in North Carolina even though they only come in at around $150,000-$250,000 on average. Some property sites may list more homes based on pre-foreclosure properties, for sale by owner, coming soon properties or even auction properties.

Read More: What can you get for $400K in Sunset Beach?

Currently, properties in Sunset Beach range from $14,000 lots to $1.3 million beachfront lots. The highest priced home in Sunset Beach is priced at $1,250,000 for a five bedroom, 3000 square foot new construction home at 1409 Sunset Lane.

Beachfront homes tend to run more expensive between $250,000 and $700,000. Those along Hermitage Lane and other communities away from the beach tender range between $160,000 and $260,000. Over the last month, there have been 98 price reductions.

Currently, Sunset Beach’s home prices and market are geared toward buyers. There are several homes for sale and many price reductions in order to make it more enticing for potential buyers. Zillow’s home index value puts prices at $213,600, a nearly 2% increase over last year at this time.
So, as a buyers agent for Sunset Beach, it is my job to find the best property that matches your search criteria and price and to negotiate the best possible price and terms you deserve.

Call us today to start searching for homes in Sunset Beach and surrounding communities and towns.

Are Interest Rates Finally Rising?

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For several years now we’ve been enjoying low-interest rates under 5% but we always knew it was eventually coming for interest rates were rising. A few months ago,Federal Reserve chair Janet Yellen held a committee to get rid of thrift rates eventually by a quarter percentage point. This would go from 0% to .25%.Are Interest Rates Finally Rising?

It’s one of those things that you know eventually will come but you’re not exactly sure when. If rates do rise it would be good news for our money savers and bad news for debtors. However, financial advisers are telling people not to do anything extreme just yet. Here is what you can do if you’re watching the market closely and would like to stay ahead of the game.

Consider fixing your existing mortgage rate. If you have a floating interest rate which could get more expensive over the years, it might be time to move that to a fixed rate mortgage. Your rates may initially go up but might not go up as high as they would if you had a floating or adjustable rate mortgage.

Consider paying off your debt immediately. Higher interest rates means that debt would already increase in payments could spike on home equity loans, credit card debt and other loans with variable interest rates. It would be a good idea to pay down those debts as quickly as possible.

Consider a bank that rewards deposits. As the Fed rate increases, banks should be expected to raise rates on mortgages and credit cards faster than savings rates. Large banks have a lot of deposits of a have little incentive to try to attract new money. Try to transfer money to smaller banks and online institutions that are eager to attract new deposits and new clients. However, this is not the time to buy a five-year certificate of deposit. Don’t make any large sudden moves but makes small, wise moves that put you in a better position should the Fed rate increase. [Source]

Consider buying a home now. This is really the best time to buy before rates start to rise. I don’t suspect we will see any major jumps in 2017 but they probably won’t drop. We’ve been enjoying these rates for some time now. 

Get on the bandwagon and so something with that loan; either readjust, buy or consolidate. Call us today if you’re interested in learning more or would like to find out how much home you can afford. You might be surprised considering the rate. Most people can afford a larger home now than ever before.

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