Autumn in Oriental

It appears that autumn is upon us in Oriental. We got a little frost last week, and our neighbor's tree is looking pretty in it's fall colors. It was supposed to reach 75 degrees today, though it may not get quite that warm unless the rain clouds clear away. Our ginger is still blooming and also the large pink rose bush. And I expect the lawn will need to be mowed at least once more before the end of the year.

Business had slowed down a bit since Labor Day, but is now picking up again. It's nice to see the number of available homes start to decrease, after watching the inventory constantly increase over the past year. There are some good deals to be had, and some lucky buyers are making their move now in order to get the lowest possible price. Some of the builders are offering very attractive incentive packages on their new homes also.

The Spirit of Christmas celebration and parade will be here on December 8th, just over a week away. Hope to see many of you there.

Coming Events in Oriental

Spirit of Christmas - December 8th – Sponsored by local merchants, churches and civic groups, The Spirit of Christmas in Oriental is an event during which the town literally shines. Held on the second Saturday in December, Oriental becomes a Christmas wonderland, a sight sure to put anyone in a holiday mood. The annual Christmas parade is held in the afternoon, followed that evening by a display of brightly shining luminaries lighting the length of Broad Street.

This year at the Christmas Parade, Santa's elves will be collecting coins and donations for Toys for Pamlico Kids. New items for ages newborn to 18 yrs old, in their original packaging (not gift wrapped) are highly appreciated. Monetary donations are used to purchase shoes and coats where needed. Call Sallie Ransom at 249-1111 if you would like to join the elves.

The Running of the Dragon - December 31st – The town of Oriental annually observes New Year’s Eve with the Running of the Dragon. Twice during the evening, at 8:00 and 11:00, an enormous dragon magically appears beside the harbor. It winds its way slowly through the streets to welcome in the new year, powered by as many children and adults as can fit under its colorful, flowing canopy. It is said that if you touch the dragon as it goes by, you will have good luck throughout the new year.

Pin the Tail on the BOTTOM of the Market!

The majority of this information comes from CyberStar colleagues John Kurtzer and Dianne Dunn. It's an excellent representation of what we're seeing in the real estate market today. There are some great opportunites to find homes and investment properties which are well under prices from earlier this year or even last year. We've all been working with prospective buyers here in the New Bern/Oriental area, and many of them feel that they should wait until the housing market is at the bottom before they buy. Let's look at an interesting take on "the Bottom of the Market", and how it will affect your buying decision.

In this graph, the "V" represents the housing market. The left side represents the market going down to the "V point", and the right side represents it going up. If we were to ask you where the housing market is right now, most would probably select somewhere near the Red arrow.

If we think that the market is moving towards the bottom, . . . How will we know then it actually does hit the bottom?

Experience tells us that the housing market has hit the bottom when prices start to go back up. It will be difficult to be sure that the market has hit bottom for a few months. It’s not a sudden shift, it’s a gradual shift. You’ll be able to tell that the market has turned when prices reach this point (green arrow).

What is the difference in housing prices between the red arrow and the green arrow? Not much… but there is another difference and it is major.

If you buy a home on the left side of the graph, it is considered a buyers market. You would be more likely to get concessions from sellers or builders including price reductions, repairs, upgrades, closing costs, etc. If you wait until the market turns and you buy on the upswing, you and every other buyer that has been waiting for the market to hit bottom will be bidding on the same house. Those types of situations create a sellers market.

There really is no better time to buy a house than now for a few reasons:
1. There is a wonderful selection of homes to choose from right now.
2. Sellers are very willing to negotiate on price, terms and perks.
3. Interest rates are still at an historical low.

I'm suggesting we take a good look at the above examples and decide what percentage the prices will have to drop before a buyer thinks housing prices have hit bottom and offer that price. For example, if you think that prices will go down another 5%, then submit an offer at 5% below the asking price. Sellers will either counter, accept or decline. Then look at a loan payment based on current low interest rates. On a $200K home with $10,000 cash down, the payment would be approximately $1140 at 6% interest rate. If the interest rates were to go up only half a point to 6.5%, you would have to find a home priced at no more than $190K to keep the same payment, and therefore, your buying power has decreased.

The message here is to take advantage of the market today! The opportunity is knocking. November and December are historically the best months to buy Real Estate, since demand is low. The Real Estate market always increases after the holidays and rates start increasing as the demand turns back up.

If you would like me to share what I see as the best bargains on the market today, just contact me and I'll put my experience to work for you!

Joe Brant, Keller Williams Realty - 252-675-3038.