  The Glimmer of Change Grows Brighter Last month, we reported a glimmer of hope as the luxury market, for the first time in 2023, witnessed an increase in the number of sold properties and new inventory entering the market compared to the same month in 2022. This encouraging trend continues this month. The Numbers are Up Compared to November 2022, the number of sales last month rose 5.1% for single-family homes and 13.7% for attached homes. This is not the only growth statistic that could show the start, albeit a slow one, of a market comeback. The number of new listings entering the market last month also increased compared to November 2022, by 21.1% for single-family homes and 29.3% for attached properties. The rise in new inventory entering the market is equally significant as it shows a growing confidence by sellers compared to last year. Lack of new inventory has been one of the most significant challenges to the growth of sales during most of 2023, as it created a roadblock for opportunity. This was especially significant in a market where buyers had become highly specific in their property specification preferences. As we noted last month, an increase in new listings has opened the door for this uptick in sold properties. This would not be the outcome, especially at this time of year, if the market was moving in a downward trajectory. Other statistical parameters are also showing growth indications. The median sold price rose year over-year just under 2% for single-family homes and over 5.3% for attached properties. The sold price-to-list-price ratio also increased slightly by 0.2% to 98.2% for single-family homes and 0.6% to 99.0% for attached properties. It is important to reiterate that these are not month-over-month increases, nor should there be an expectation of growth at this time of year. However, importantly, what has happened is a much NORTH AMERICAN LUXURY REVIEW slower rate in the slowdown of sales and new inventory than typically expected in November. This, again, is a positive indicator of seller and buyer optimism.  Interest Rates Trend Down This turn of events has also been bolstered by the much-publicized decreases in interest rates over the last month. Not because the rate has decreased significantly, but for the first time since March 2022, there is a definite indication of a halt in the rise of mortgage costs. So, the big question is will interest rates fall in 2024? Fannie Mae forecasts that rates will drop from 7.6% to 7.1% during 2024. The National Association of Realtors is slightly more optimistic, with predictions of 7.5% in Quarter 1 and 6.3% in Quarter 4. The Mortgage Bankers Association predicts an even lower rate of 6.1% by the end of 2024.1 In Canada, rates are predicted to fall even further. Currently around 7.2%, the Prime Rate is expected to drop as low as 5.95% by the end of 2024. However, much of this depends on whether the Canadian government can reach its target of a 2% inflation rate.2 As economists continue to feel optimistic that interest rate hikes are done, especially after recent rate falls and signs of slowing inflation, it will still be the right combination of factors that will ultimately control the speed of the market’s recovery. Controlling Factors Rising inventory, lower mortgage rates, and economic stability are the factors that will see buyers and sellers return to the market. More inventory would ease the upward pressure on home prices. However, if mortgage rates drop too fast, demand is likely to surge, which would likely result in prices rebounding again. Keith Gumbinger, Vice President at mortgage website HSH.com, shared a sentiment that many would agree would be the best solution for controlling the market’s comeback. “Better that rate reductions happen at a metered pace, incrementally improving buyer opportunities over a stretch of time, rather than all at once.” He adds that mortgage rates returning to a more “normal” upper 4% to lower 5% range would also help the housing market, but over time, so it could return to 2014-2019 levels. However, most experts predict that a surge of inventory is unlikely because many homeowners are still “locked-in” to even lower mortgage rates and new construction has continued to decrease despite the demand for new stock. Consumer Sentiment Although the year-over-year increases in sales and new inventory levels indicates greater optimism by buyers and sellers comparatively, which is also certainly responsible for driving some of the market upticks, this is not to be confused with the current consumer sentiment, which remains cautious.  Overall, in even the affluent demographic, there continues to be a considered approach to buying and selling in the luxury market, with little change anticipated, especially in the first quarter of 2024. Where purchasing or selling a home is more often a “want” than a “need,” the affluent are expected to continue prioritizing searching for properties that offer value for money, are move-inready, and match their lifestyle choices. A little more inventory would certainly assist in their endeavors, but equally this slower market affords them the time to assess what is available against their requirements. And often they are willing to wait for the property that fulfils these goals. A recent survey by Fannie Mae3 on consumer sentiment indicates it has not changed significantly as of the end of October 2023. The report reveals that many buyers and sellers are still on the fence. But then again, perhaps it’s a little too early to expect a significant change in sentiment, given that trends typically occur before perceptions of the reality catch up.
Did you know that Carl Johnson is certified as an Institute for Luxury Home Marketing Specialist, CLHMS, which means he offers superior knowledge and experience in the luxury market? His CLHMS membership also provides him with access to an elite network of contacts and resources that help to find you your dream home from Swansboro to Beaufort and beyond. If you have a high-end listing, using the most up-to-date marketing information, Carl positions your listing ahead of the market curve. Call 919-880-0904 for a consultation or CLICK HERE.
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 Original Content by Carl Johnson
We sat down with a local tax expert and licensed CPA to ask some questions for you, our homebuyers and home sellers, to better understand year-end tax considerations while in the housing market and dealing with your main residence. As always refer to an expert for personal tax needs and questions but enjoy our interview with our local CPA to help you gain some insight into main residence tax homeownership. Q: Closing costs can be a big additional expense homebuyers don’t often think of while purchasing or selling a home? Are these costs something that can be tax deductible? A: “Closing costs generally reduce gain on the sale of your home, if you are selling; closing costs related to buying a new home generally do not have any tax effect at the time of purchase.” Q: North Carolina and the Triangle are popular locations for out of state people to look for homes as jobs pull them into the area. How does buying a new home or selling a home while moving states affect my taxes? Do state taxes vary based on which state your home is sold in even if you live in a new state? A: “Tax on gain realized on the sale of property is generally levied by the state in which the property is located.” As the homes are still in demand and sellers are getting asking price if not more on their homes, capital gains is something for our clients to be aware of. Capital gains tax is defined as “the levy on the profit that an investor makes when an investment is sold” (Capital Gains Tax: What It Is, How It Works, and Current Rates (investopedia.com)) and varies depending on the amount of years the property is owned for. Q: If I sold a home in the beginning of the new year but haven't bought another home during the year, will I get hit with capital gains tax? Or do I have a few years to reinvest that money into my next home purchase? A: “Whether a home sale generates capital gains tax is not related to whether or not you purchase another home after, or the details about the purchase of your new home; you do not have a few years to reinvest into another main residence to avoid capital gains tax, any gain related to the sale of your main residence will be recognized in the year of the sale.” Q:What tax benefits (or negatives) can I expect to see on my personal taxes if I am… Closing in December as a Seller? A: “Depends, you may have taxable gain to recognize in 2023 - eligibility for the Home Sale Exclusion and the amount of gain realized with the sale are some factors to consider.” Closing December as a Buyer? A: “None generally.” Closing January as a Seller? A: “Depends, you may have taxable gain to recognize in 2024 - eligibility for the Home Sale Exclusion and the amount of gain realized with the sale are some factors to consider.” Closing January as a Buyer? A: “Depends, if you have a mortgage you may benefit from including the interest on your 2024 return if you itemize deductions, but that determination includes many other factors.” Q: Can moving expenses be considered tax deductible? A: “Generally no (only in niche situations related to military service)” Q: If I as a buyer or a seller closing on my home at the end of the year, will I get all the paperwork I need to file my taxes in time? Or does it take a while to get the proper paperwork? A: “Depends on the agent/bank/broker and how quickly they provide those documents.” Q: When are new tax changes announced for next year’s tax filing? For example are 2024 tax rules/changes already made available. Would people benefit from waiting to see if new changes come about for home sellers/purchasers? A: “There are no tax changes related to buying/selling a home that I'm aware of.” As we stated above taxes are personal for each individual and you should consult with a licensed CPA for questions or help. But as a Real Estate Broker we realize that the buying and selling of a home is a unique experience for many and we are here to help you each step of the way. We like to keep our clients informed with the best and most up to date information from the housing marketing, sales reports, even tax incentives, and share our many resources with you. This is why we are a trusted and award-winning team at Carl Johnson Real Estate. CLICK HERE to see one of our great resources on a first-time homebuyer checklist to get yourself ready! PLEASE NOTE: This article is intended to assist with general knowledge for tax preparation and is not advice or information for any individual’s needs. Consult with a CPA for your individual needs. Carl Johnson Real Estate does not claim any responsibility for the content in this article as it was supplied by another party.  Get ready to take your holiday gift presentations to the next level! Dive into these clever tricks to wrap and showcase gifts without relying on regular wrapping paper. You'll learn how to use stuff you already have at home or find affordable options at discount stores. These ideas will totally shake up gift-giving, adding that extra special touch to each present that's thoughtful and unique.  At Carl Johnson Real Estate our direct and intentional approach is customized to each buyer client. CLICK HERE or call us today—919-880-0904—to learn more about how we help get you to where you want and need to be in any market and at any time of year.
 Get ready to ramp up the holiday cheer! We're thrilled to present four fantastic and distinctive ideas for unforgettable holiday parties that will leave your guests delighted. Additionally, check out the party planning checklist that'll be your go-to guide from inception to the grand finale. From themed festivities to innovative entertainment concepts, these party ideas, coupled with the comprehensive checklist, will ensure your celebrations sparkle!   As we wrap up 2023, here's to a season filled with joy, laughter, and cherished moments. May your holidays be adorned with warmth, love, and the company of those who matter most. Wishing you and yours a merry and bright holiday season, sprinkled with happiness and unforgettable memories. Cheers to a fantastic celebration and a wonderful New Year ahead!
Remember, Carl Johnson Real Estate is always here to answer any other questions you may have about real estate, such as the current state of the market and current mortgage trends. Please feel free to reach out any time! CLICK HERE and let Carl make your home buying/selling process less stressful.  Make sure to review the data located at the bottom of this blog post, which shares information about two counties along The Crystal Coast, from Swansboro to Beaufort. Low inventory and decades-high interest rates continue to weigh on the US housing market, according to a report by the National Association of REALTORS, as reported by the Triangle MSL. Carl Johnson's expertise and knowledge of the market shares this insight. "However in the Triangle of NC and other hot spots buyers are scooping up inventory. The mindset of be married to the house not the rate, as you can refinance in the future when rates are lower." Inventory remains at historically low levels nationwide, with only 1.15 million homes for sale heading into November. Locally, however, the news is much better: new listings in the Triangle region increased 1.4% to 2,917, while under Contract Sales were up 2.9%.  Across the entire Triangle Region, there was a 13.4% decrease in closed sales in November, while the median sales price increased by 1%. The number of days on the market remained the same year-to-date: 27 days in November of 2022 and 2023.  In Chatham County, there was a 10% decrease in new listings in November. The number of closed sales decreased between 2022 and 2023, falling from 113 to 83 or by 26.5%. The median sales price increased by 20.4%, which meant in November, Chatham County's median sales price was substantially above the median sales price for all Triangle MLS listings.  In Durham County, the average November median sales price increased from $410,000 in 2022 to $421,165 this year, or by 2.7%. New listings and closed sales both decreased, by 6.9% and 15.9% respectively. The November median sales price in Durham County was a bit higher than the median sales price across all the Triangle MLS listings.  In Orange County, there were 96 new listings and 105 closed sales in November. While the average sales price was $605,322, the median sales price came in at $452,000 or 9.6% higher than this time last year. Overall, the November median sales price in Durham County has been on the rise and was a higher than the median sales price across all the Triangle MLS listings.  Person County showed the largest increase in new listings: up by 65.2% compared to November of last year. The number of closed sales fell by 18.9%, while the median sales price rose by 19.8% to $289,450. The number of inventory of homes for sale as well as the months supply of inventory also rose. The November 2023 median sales was higher in Person County than across all other Triangle MLS listings.  In Wake County, there was an increase of 3.1% in the number of new listings compared to November of last year. The number of closed sales, however, decreased, by 9.7%. The median sales prices also decreased, by 2.1% year to date, to $459,990, which is on par with the median sales price for all Triangle MLS listings.  In Carteret and Onslow County, there were 1,755 active and 532 new listings in November, comprising residential and multi-family properties. The number of sold properties was 394, which meant there were fewer sales in November than the previous month. While the average list price was $476,066, it shows to be increasing to an average of $513,900 thus far in December, good news for sellers in both Crystal Coast counties.
If you’re ready to buy or sell at the beach in Carteret or Onslow County, Carl Johnson Real Estate can help you at the Crystal Coast. Give us a call at Carl Johnson Real Estate--919-880-0904 to learn more about how we will help. To learn more about the Crystal Coast CLICK HERE.  You don’t have to shiver through the winter to help the environment and potentially save money on your heating bills. You’ll help to lower your heating costs, maintain a cozy home and cut carbon emissions by following these home heating efficiency tips.
1. Schedule furnace/boiler maintenance once a year A broken furnace or boiler can leave you in the cold. And worse, it can be dangerous, spewing microbes and allergens into your home. Carbon monoxide fumes are deadly, and a gas leak can cause an explosion. Lastly, consider the costs. If your system isn’t running smoothly, you are wasting energy and driving up your heating bill. With preventive maintenance, your system runs economically. Yes, you’ll have to spend some money, but maintenance is cheaper than repair — and safer. 2. Install smart thermostats Explore getting a smart thermostat to make home heating more efficient. You can program them according to your preferences and patterns. Many systems learn your home, optimizing how your heating system runs to take advantage of the heat of the sun, when you are sleeping and when you are out of the house. You won’t waste money blasting heat when you are at work or heating a room that is already warm from the sun. 3. Insulate and weatherize your home Keeping warm air in your home can help improve heating efficiency as your furnace or boiler doesn’t have to work as hard. Here are several ways you can retain warmth:
4. Bleed your radiators and install reflectors Prevent cold radiators on a frigid day. Bleed your radiators in advance of cold weather to ensure air doesn’t get trapped in them, blocking the flow of heat. Fortunately, bleeding your radiator to let out trapped air is an easy task:
Beyond improving your home heating efficiency, bleeding your radiators lowers the cost of operating your forced-hot-water boiler. Installing reflectors, thin sheets or foil placed between the coils and the wall, will send more heat into your room. This practice is especially effective for radiators on outside facing walls and walls that are not well insulated. 5. Change your air filter If you’re wondering how to heat your home efficiently, start with the air filter. Old and dirty air filters block the flow of air, which makes your forced-air furnace work harder. Fortunately, this kind of do-it-yourself HVAC maintenance is simple. To ensure that your furnace is heating your home efficiently, replace the air filter regularly. Washable air filters reduce your ecological footprint and work well if you regularly clean it with a vacuum cleaner or give it a rinse under running water. To remove serious grime, diluted dish soap will remove oily buildup. 6. Install a heat recovery ventilator One of the more innovative central heating efficiency tips is to invest in a heat recovery ventilator. These systems capture heat from exhaust air and mix it with fresh intake air. They also remove mold-causing moisture, along with many contaminants and odors, in the process. Most homes exhaust some air through bathroom fans, kitchen oven hoods and appliances. Heat recovery ventilators capture up to 90% of the heat that would otherwise be lost to the outside. 7. Get a new energy-efficient heating system Furnaces last, on average, up to 15 years. The life expectancy of your unit will vary, depending on the quality and regularity of your maintenance. If your furnace is getting near that 15-year mark, it may simply quit without warning. Start shopping before your furnace wears out so that you can make an informed decision without the pressure. With the right choice and an ENERGY STAR™ rating, you may find it quickly pays for itself in energy savings. Newer units are also easier to maintain and may offer performance enhancements, like sound absorption and additional insulation. And some forced-air systems are fitted with advanced air filtration systems to help improve the quality of the air inside your home. Want to learn more about Carl Johnson Real Estate and how we can help you reach your real estate goals! CLICK HERE to read about our Founder, Carl Johnson, and how his experience and unique skills are the best in the business!  Although winter is here, the temperature around Durham has been unseasonably warm this year. For those of you who are waiting for snow, we are sure it is on the way at some point. But, in the meantime, maybe we all should take advantage of the mild weather and check out some (FREE) outdoor activities around Durham. Listed below are a few that you might be interested in:
American Tobacco Company This area used to be home to the Lucky Strike Cigarette Company, but has been transformed into a huge retail and dining area right in downtown Durham. It’s super fun to walk around check out all the different spots. There are all types of restaurants from Cuban to sushi that are excellent. There are tons of activities to do around there during the day as well like giant chess or enjoying a beer outside. It’s definitely a fun and trendy spot right there near downtown. It’s also right next to the Durham Bull’s stadium so it’s a great spot to stop in the springtime to catch a game. Walk Duke University Duke’s campus is gorgeous and is definitely worth walking around. While there, check out the Duke Chapel. They have daily prayers open to the public and it is a lovely, decadent place. The buildings are fun to walk around, there are well maintained trails, and there is even a massive garden to explore. 21 C Art Museum This museum is really interesting. It’s located on the second floor of a modern and new(er) hotel in Durham. is definitely an innovative and interesting idea to have the art in a hotel. Do not be fooled by the odd building’s outside. Once you go in, go to the left up the stairs and you’ll find the museum and hotel check-in on the second floor. See the Durham Bull Bulls have been the symbol of Durham since the 1800s so a trip to Durham isn’t complete without a stop at this famous statue! It’s definitely a very instagrammable spot and is very close to the 21 C Art Museum. Remember that if you need any help with buying or selling real estate around the Durham area, give Carl Johnson a call at 919-880-0904. For more on Durham, visit our Durham resource page by CLICKING HERE.  Winter can still be a good time to sell a house, but you may have to work a little harder to make the space appear cozy, warm, and inviting against the dreariness of the season. Listed below are some tips that might make the difference for you:
1. Snow removal is important. Snow is one of the biggest nuisances when you’re trying to sell a house. It’s important to take the time to clear any walkways so that buyers and agents can use them safely. If there are icy spots, sprinkle rock salt or sand so that no one slips and gets hurt. 2. Illuminate rooms with lots of light. Winter isn’t known for consistent sunshine, but let in what natural light you can. If you don’t have the best view from the windows, close the blinds or curtains and turn on the lights in every room, closet, and even the basement and/or attic. If you have a dark corner, use a spotlight or accent lighting to brighten the area. 3. Make sure everything is sparkling clean. This should go without saying, but if you want to sell your house, it has to be move-in ready. You’ll want to scrub every surface, remove any cobwebs or dust bunnies, and declutter closets and cabinets. If you need to, consider hiring a professional cleaner to do a deep clean every few weeks. It’ll be worth it when the offers start rolling in. 4. Keep your home at a comfortable temperature. Do you like to keep the thermostat above 72 degrees during the winter? Maybe you’re okay with the cooler weather and prefer to keep it closer to 65 degrees. However, when you’re expecting people to come by to see the home, you don’t want it to be too hot or too cold. A comfortable temperature would be about 68 to 70 degrees. 5. Create an environment that’s cozy and inviting. The winter is all about soft, fuzzy blankets, a cozy fire, and an atmosphere where you just want to curl up with a good book. You can create a welcoming vibe that’ll entice buyers by doing a few simple things: · Lay a soft throw blanket across the arm of a chair or on the back of the sofa. · Set your dining table as though you’re preparing for a nice dinner. · Create a reading nook complete with a chair, side table, and a few good books. · Have a few decorations for the holiday, but don’t go overboard! · Consider hiring a home stager who can ensure rooms flow nicely into one another, position furniture, and make sure features are spotlighted. 6. Play some calming music. Almost every store has some type of music playing overhead. This tactic encourages people to spend more money, unbeknownst to them. You can do the same with buyers. You can use soft music (we like to use classical) to get the buyer to relax and enjoy the atmosphere. Just keep in mind to avoid the radio because commercials will break the mood. 7. Avoid strong aromas. While you want your home to smell good, you don’t want to overwhelm visitors with competing scents. You never know what kinds of smells people are sensitive to. Instead of perfumed sprays or strong scented candles, go for a natural approach. Try spiced cider simmering on the stove before a showing to create seasonally appropriate aromas. 8. Present interesting tidbits about the home. If you have a craftsman home with a lot of original features, create a card or fact sheet that highlights special details. You can mention that the wood floors are original to the house or that the staircase railing is hand carved. You could mention whether the home has had major updates, such as a new roof or appliances. These winter showing tips may seem like small details that are inconsequential to your sale, but you’d be surprised by how far these little touches will go. Cozy staging can help buyers envision what life could be like if they lived there. At Carl Johnson Real Estate, we're committed to providing exceptional service and results to all of our clients. To experience the difference for yourself, give us a call at 919-880-0904 today. For more tips, visit our Resources pages by CLICKING HERE.  Everyone at Carl Johnson Real Estate is in full holiday mode! From shopping, to dining, to special events, this is a great time to experience everything that Durham has to offer. Check out some of the holiday festivities below and who knows… maybe you will just see our team at one of these events!
WALK THROUGH WOOL E. BULL'S WINTER WONDERLAND Where: Durham Bulls Athletic Park When: Select nights Nov. 22 - Dec. 31 Details & Tickets New this year, Wool E. Bull is decking the halls of the Durham Bulls Athletic Park for a winter wonderland that does it all! Bring the whole family to enjoy over 140,000 lights, a frosty fun sledding hill, igloos in the infield, the Bulls Express train in the outfield, shop local artists at the winterland market, an arctic chill tavern and jingle bell bistro. EXPERIENCE A HISTORIC CHRISTMAS TRADITION Where: Duke Homestead, 2828 Duke Homestead Rd. When: Dec. 8, 5:30 - 9 p.m. Jingle all the way over to the Duke Homestead for Christmas by Candlelight. Enjoy storytelling, cookies and cider, live music, singing, and a whole lot of history as costumed interpreters lead you on a candlelit tour. Tickets are available for this unique opportunity to see the Duke family home brought to life. ROCK AROUND TO FESTIVE CONCERTS & EVENTS Festive entertainment abounds this holiday season! Snap up tickets to turn any Grinch into a Who from Whoville. HOLIDAY SHOWS AT DURHAM PERFORMING ARTS CENTER
GATHER JOYFULLY AND AT COMMUNITY EVENTS Get involved with joyful gatherings focused on family, friends, and the fruits of the season. THE DURHAM HOLIDAY PARADE When: December 9, 10 a.m. Where: Main Street in downtown Durham Let the love of community warm your heart as you wave to Santa and cheer on bands, drill teams and local organizations as they show off their holiday spirit with floats and performances on Main Street downtown. Bring your own chairs and blankets. JEWISH FOR GOOD AT THE LEVIN JCC When: Various events, December 3 - 14 Where: Levin Jewish Community Center of Durham, 1937 Cornwallis Rd. Immerse yourself in a full lineup of celebrations at the JCC, including a full day of family fun at Hanukkah festival, Smooze and Nosh at a Musical Hanukkah Brunch, nightly candle lighting, a Hanukkah 8k, a family Hanukkah plunge, Tot Shabbat, and volunteer opportunities to give back to families in need. KWANZAAFEST When: January 1, 2 p.m. Where: Durham Armory, 212 Foster St. Delight in African American Dance Ensemble’s 38th annual celebration of Kwanzaafest with performances celebrating the holiday season and the Triangle's diversity while promoting the traditions of African and African American dance and music to the broad community. We hope each of you has a wonderful holiday season. At Carl Johnson Real Estate, we're committed to providing exceptional service and results to all of our clients. To experience the difference for yourself, give us a call at 919-880-0904 today. CLICK HERE to check out our testimonial page to read what everyone is saying about Carl Johnson Real Estate and see why we are so very grateful for you! |
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