The McVicker Team

Housing Crisis to End in 2012 ?

Kevin McVicker — Wed, 21 Mar 2012 13:00:17 +0000

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generate actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

Raleigh Tops Forbes List

Kevin McVicker — Tue, 17 Jan 2012 01:44:48 +0000

Forbes 13th Annual List: The Best Places For Business and Careers
The recession spared few U.S. cities, wiping out 9.4 million jobs between November 2007 and August 2009. Many will never return, and those that do you probably won’t find on the East or West Coast. For the most active areas of job creation (and lower costs of doing business) you have to go to the heartland, home to 80% of the top 25 regions on our list of Best Places for Business.
In most of these hot hubs you’ll find a strong university or two, providing rich cultural life and the kind of technology transfer that sparks entrepreneurial activity—giving that educated population lots of reasons to stick around.
Topping our 13th annual list of the Best Places for Business and Careers is Raleigh, N.C. It is one of those locales with a strong university presence helping fuel growth in the area (albeit in an East Coast state, a rarity in the upper part of the list). Raleigh and nearby Durham (ranked No. 31) get a strong boost from three elite schools in the surrounding area in University of North Carolina, Duke University and North Carolina State.
Raleigh ranks No. 1 after dipping to third last year. Low business costs (18% below the national average) and a smart labor force (42% have a college degree) make North Carolina’s capital an attractive spot for employers like First Citizens Bank and Progress Energy. Job seekers get it: The net migration rate to Raleigh was the second highest in the U.S. over the past five years.
Our look at America’s Best Places for Business showcases the stark contrast between Texas—with its low-cost, pro-business regulatory environment (5 cities among the top 25, led by Austin at No. 7)—and overregulated and wildly expensive California (home to 8 cities that rank in the bottom 25, including No. 200 Merced). Texas was one of the last economies to succumb to the recession and one of the first to bounce back, while California is limping along with an unemployment rate of 11.7% (only Nevada’s is worse).
Besides Austin, Texas also placed San Antonio and Dallas in the top 10. San Antonio, ranked No. 8, is among the fastest-growing metro areas in the U.S. (the population increased 25% since 2000). It has been buoyed by defense spending and hiring at Toyota Motor’s truck assembly plant. Dallas (No. 10) has been one of the most resilient economies during the recession and could add 190,000 jobs in the next three years.
It’s not all bad in the Golden State. Aside from nice weather, California does have bright spots in San Jose (No. 35) and San Francisco (No. 37), both of which made the top 40 thanks to a rich arsenal of educated and talented workers.
Demographer Bert Sperling argues that much of the recent success of the heartland can be attributed to “extractive industries” like oil, gas and mining as well as record-high crop prices that have provided jobs and revenue to the center of the U.S. “These economies run in cycles, and these booms and busts are often decades in the making,” he says.
Our ranking of Best Places looks at the 200 largest metropolitan statistical areas in the U.S. These range in size from the New York City metro, with to 11.6 million people, to Laredo, Texas, home to 252,000 people (click here for a list of the Best Small Places for Business). We consider 12 metrics relating to job growth (past and projected), costs (business and living), income growth, educational attainment and projected economic growth.
We also factor in quality of life issues like crime rates, cultural and recreational opportunities and net migration patterns. Lastly we included the number of highly ranked colleges in an area per our annual college rankings. A tip of the cap to Moody’s Economy.com, which provided much of the data, including the economic forecasts. Bert Sperling, founder of Sperling’s BestPlaces, put together a culture and leisure index for Forbes and also crunched the crime numbers for us. College attainment data is compiled by the Census Bureau.
Des Moines, Iowa, last year’s No. 1 dropped one spot as employment fell 0.9% in 2010. The area still has plenty to offer with business costs 16% below the national average and household incomes that are expected to increase 4.2% annually through 2013, eighth best in the U.S. Workers at big employers like Principal Financial and Wells Fargo enjoy cheap housing (median price $148,600) and 20-minute average commutes.
Another big metro that made the top 10, in addition to the three Texas locales, is Denver, which ranks No. 9. U.S. economic growth has been tepid since the recession ended, but Denver’s economy grew 3.9% last year and is expected to grow 3.9% annually through 2013 according to Economy.com. Denver’s great quality of life and educated workforce make it a favorite with companies in industries from aerospace and bioscience to energy, financial services and information technology. Major employers include IBM, Lockheed Martin and Wells Fargo.
A big mover in the rankings this year is the New York metro, which ranked No. 45, up from No. 99 in 2010. Yes it is still the most expensive place to do business in the U.S. at 51% above the national average, but the job and economic forecasts are much improved for the area. The economy is forecast to expand 4.5% per year and household income are expected to increase 4.1% annually the next three years, 12th best in the U.S.
New York also scores well on quality-of-life issues. It ranks first on Sperling’s index among cities for culture and recreation, and its crime rate is 11th-lowest in the country. The biggest draw might be its talented, educated work force with 36% having a college degree–only Washington, D.C. is higher among the 10 largest metros. The concentration of big firms is unmatched as well. It is the corporate home for 80 public companies with more than $1 billion in sales.

1412 Van Page

Kevin McVicker — Tue, 03 Jan 2012 19:35:52 +0000

Located in the Heart of The Triangle. Inside Wade is one of the Triangles most talked about “new” neighborhood. Just 10 minutes to downtown Raleigh and 15 minutes to RTP. Homes in this neighborhood feature 10 foot ceilings, gourmet kitchens, luxurious master suites, detatched rear entry gargages.

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Are you interested in this property? Please fill out the form below and indicate any additional information you may need. I will respond to your inquiry within 24 hours. For faster response, you may call me during normal business hours at (919) 369-4926.

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306 Holly Blossom Drive

Kevin McVicker — Tue, 03 Jan 2012 16:13:33 +0000

New home for sale in Durham county. Located just 7 miles north of Research Triangle Park and east of Duke University. Beautiful 4 bedroom home with dramatic, open floor plan. Loaded with upgrades including hardwood floors, granite counter tops, upgraded cabinetry, stainless steel appliances and contemporary style center island (see picture below). The family room is open to the kitchen, making it ideal for gatherings.

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302 Holly Blossom Drive

Kevin McVicker — Tue, 03 Jan 2012 15:57:09 +0000

New Construction in Durham County. Located just 7 miles north of Research Triangle Park. Loaded with upgrades, including hardwood floors, stainless steel appliances, granite counter tops, upgraded cabinetry, 9 foot ceilings, glamour bath in the master and so much more! Nice level lot with beautiful wooded view in back yard.

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Mortgage Rates at All Time Low

Kevin McVicker — Sat, 17 Dec 2011 16:37:54 +0000

30-Year Fixed-Rate Mortgage Matches All-Time Record Low at 3.94 Percent

In Freddie Mac’s results of its Primary Mortgage Market Survey® (PMMS®), the average fixed mortgage rates at or near their all-time lows. The 30-year fixed matched the average all-time record low of 3.94 percent, and a new all-time record low was set for the 15-year fixed, both previously set in the October 6, 2011 Freddie Mac PMMS. The 5-year ARM also set a new all-time record low at 2.86 percent for the week.

30-year fixed-rate mortgage (FRM) averaged 3.94 percent with an average 0.8 point for the week ending December 15, 2011, down from last week when it averaged 3.99 percent. Last year at this time, the 30-year FRM averaged 4.83 percent.
15-year FRM this week averaged 3.21 percent with an average 0.8 point, down from last week when it averaged 3.27 percent. A year ago at this time, the 15-year FRM averaged 4.17 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.86 percent this week, with an average 0.6 point, down from last week when it averaged 2.93 percent. A year ago, the 5-year ARM averaged 3.77 percent.
1-year Treasury-indexed ARM averaged 2.81 percent this week with an average 0.6 point, up from last week when it averaged 2.80 percent. At this time last year, the 1-year ARM averaged 3.35 percent. Quotes attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.
“Mortgage rates were at or near all-time record lows this week amid a rough environment for housing. In its December 13th monetary policy announcement, the Federal Reserve reiterated the housing market remains depressed. Over the first nine months of 2012, households lost almost $400 billion in property values which contributed to a $1.4 trillion reduction in overall net worth. In addition, serious delinquency rates (90 or more days delinquent plus foreclosures) on mortgages increased slightly between June 30 and September 30 of the year, breaking a six-quarter consecutive decline, according to the Mortgage Bankers Association.”

Published: December 16, 2011

Crismark at Indian Trails

Kevin McVicker — Sat, 17 Dec 2011 15:03:31 +0000

Wonderful opportunity to own a beautiful home in Indian Trails. Priced $65,000 below tax value. This home features hardwood floors through out the first floor, new stainless steel stove and microwave, fenced-in back yard with deep wooded views. The house is located on a nice landscaped lot, in a quiet cul de sac.

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Panther Creek – Durham

Kevin McVicker — Mon, 14 Nov 2011 19:37:13 +0000

Totally remodeled 2 story home with new carpet, paint and appliances. Looks new again! Open floor plan with relaxing sunroom, family room with fireplace, kitchen with center island. Three bedrooms plus a large loft upstairs. Great opportunity for local buyer or investor! HomePath financing available. Investors can own this home with just 10% down.

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3012 Courtney Creek Blvd

Kevin McVicker — Fri, 24 Jun 2011 20:36:57 +0000

$140,000 – Former Model Home !

Three story town home with 1 car garage. Wonderful southwest Durham location, just minutes from Research Triangle Park. Upgrades include hardwood floors, gas log fireplace, intercom, center island in kitchen, wet bar and built-in desk in family room.

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708 Big Twig Lane

Kevin McVicker — Fri, 24 Jun 2011 20:05:59 +0000

$99,900 !! Four bedroom home located 5 miles from Duke University.

Living room, Dining Room, Kitchen and half bath on the first floor. Four good size bedrooms up stairs. Fireplace in the living room. One car garage. Great house for the price.

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