05 Nov Mortgage News Roundup for Fall
Home prices across the United States have been on the decline for five consecutive months. In Charlotte, present conditions in the housing market may be indicative of a change. Meanwhile, in addition to facing home repairs and rebuilding after Hurricane Florence, Wilmington-area homeowners still must pay property taxes on homes that were damaged or destroyed during the storm. Here is more on the mortgage news stories we are watching:
Five Consecutive Months of Decline for Home Prices Nationally
August marked a deceleration of home prices for the fifth consecutive month. According to a recent report by the S&P CoreLogic Care-Shiller, the 20-city home price index rose 5.5% in August year-over-year yet dropped .4% from the month prior. The slowdown is attributed to the increase in home interest rates and reflects a large reduction in the strength of the country’s residential real estate market. Nationally, sales on existing homes decreased for six months in a row, and new home sales have declined the past four months. The average rate for a 30-year fixed mortgage rose slightly to 4.86% from last week. Last year at this time, the rate was 3.94%.
Is the Charlotte Region’s Residential Real Estate Market Changing Course?
Those who live in the greater Charlotte area know firsthand how tight the residential housing market has become. Home prices have jumped in the past several years, increasing nearly a third of their current average value since 2012. Many homeowners are enjoying this boon. At the same time, fewer homes are on the market. Right now, less than half of the homes that were available at the start of 2012 are available today. It is possible that swelling home prices and limited supply are affecting sales and that the Charlotte region is poised for a change. Most experts expect prices to continue to rise for at least another year. While Charlotte is not showing up on the list of U.S. cities with the worst home price-to-income ratio, after looking at the average household income ($53,274) and median home list price ($289,900), it is not as affordable as originally thought with the region having a home price-to-income ratio of 5.4%.
Property Taxes Do Not Go Away Even If Your Home Was Damaged By Hurricane Florence
Cape Fear-area homeowners are responsible for paying their 2018 property taxes regardless of how much or little damage their home suffered from Hurricane Florence. Payments are due on September 1 each year and there is a four-month grace period before penalty fees are incurred. The New Hanover County tax administrator has announced that there are no adjustments for 2018; however, payments plans are available to assist homeowners. Many people who own property do not realize that their property tax bill was determined and set by January 1, 2018, which means that regardless of how much damage a home and property receive, the homeowner is still responsible for taking care of the tax bill in full. This rule applies to the entire state of North Carolina. Homeowners whose properties suffered damage from Hurricane Florence can visit the New Hanover County Tax Department website to report the damages.
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Rivenbark, Jeff. “Homeowners Still Have To Pay Property Taxes Despite Hurricane Or Flood Damage.” Web blog post. WWAY TV3. 2 November 2018. Web 2 November 2018.
Rugaber, Christopher. “US home price gains weaken for 5th straight month.” Web blog post. The Charlotte Observer. 30 October 2018. Web 30 October 2018.
Smith, Andre. “There’s Reason to Think Charlotte’s Housing Market is Headed for a Correction.” Web blog post. Charlotte Stories. 2 November 2018. Web 2 November 2018.