1. On the MOVEThe Helen Adams Realty Monthly Market Update
January 2016
In 2015, national residential real estate,
by and large, had a good year. Supply and
demand were healthy in an environment
rife with low interest rates and improved
employment. The Federal Reserve finally
increased short-term rates in December,
and more increases are expected in 2016.
Housing markets have shown a willingness
to accept this. Save for a few expensive
outlierswherelowinventoryandhighprices
have become the norm, a balanced market
is anticipated for much of the country for
the foreseeable future. Improved inventory
and affordability remain key factors for
continued optimism.
New Listings in the Charlotte region
decreased 11.7 percent to 2,396. Pending
Saleswereup14.1percentto2,540.Inventory
levels fell 24.2 percent to 10,445 units.
2015 Low Interest Rates & Improved Employment
Reprinted from December 2015 CRRA Monthly Indicators
P2 Vital Signs
P3 Why 2016 is a Great
Time to Sell ... Or Buy
P4 Beth’s Bits: Tax Season
In
this
Issue
Prices continued to gain traction. The
Median Sales Price increased 2.8 percent to
$190,000.ListtoClosewasdown7.0percent
to 119 days. Sellers were encouraged as
Months Supply of Homes for Sale was down
33.3 percent to 3.0 months.
Gross Domestic Product increased at an
annual rate near 2.0 percent to close 2015,
and that rate is expected to increase next
year. Residential real estate is considered
a healthy piece of the national economy.
Contributing factors from within the
industry include better lending standards
and foreclosures falling back to more
traditionallevels.Decliningunemployment,
higher wages and low fuel prices have also
conspired to improve personal budgets.
www.helenadamsrealty.com
Ballantyne Office
15235-J John J. Delaney Dr.
Charlotte, NC 28277
Beth Haemmerlein
BROKER/REALTOR®
Cell: 704.243.8773
beth@helenadamsrealty.com

2. The Vitals:
A look at Charlotte’s Overall Real Estate Market
• Inventory levels were down 24.2 percent.
The Single-Family property type decreased
the least amount, at 24.2 percent.
• For the 12 month period, Pending Sales in
the Charlotte region were up 15.1 percent.
• The price range with the largest gain in
sales was the $200,001 to $300,000 range,
which increased 24.7 percent.
• In December, condos were the property
type with the strongest sales.
• The price range that tended to sell the
quickest was the $150,001 to $200,000 range at 49 days.
Change in
Closed Sales
Pending
Sales
Change in
New Listings
Average
Sales Price
Total
Active Listings
Average Days
List to Close
Months Supply of
Homes for Sale
-2.6%
3,007
-11.7%
2,396
-7.0%
119
+14.1%
2,540
-24.2%
10,445
+3.4%
$241,094
-33.3%
3.0
(1)
(1) Data Represents change in data since this time last year. (2) Data Represents the most recent month’s data for CMLS.
(2)
Monthly Market Snapshot
Charlotte, NC and the Surrounding Areas
Market Updates
Monthly Average 30-Year Fixed-Rate Mortgage Rates
as reported by www.freddiemac.com
3.86
3.67
3.71
3.77
3.67
3.84
3.98
4.05
3.91
3.89
3.8
3.94
3.96
3.5
3.6
3.7
3.8
3.9
4
4.1
Dec. 14 Jan. 15 Feb. 15 Mar. 15 Apr. 15 May. 15 Jun. 15 Jul. 15 Aug. 15 Sep. 15 Oct. Nov. 15 Dec. 15

3. Why 2016 is a Great Time to Sell ... Or Buy
Home prices have been on the rise since 2012,
after taking a huge hit during the recession.
This has been great news for many home
owners – of course we all love to see our
investments grow. While in 2014 and 2015
we saw prices inflate almost to the point of
excluding many buyers, 2016 will likely be a
year of normalization – with an increase in
home values at a normal pace.
In many places, it still remains a “Seller’s
Market” – which typically means that
inventory is so low that buyers have less choice
and are required to pay the prices being asked
or drop out of the market all together. It gives the seller the upper hand, and is often measured in “month’s supply
of inventory,” which shows the number of months it would take to sell off the inventory in a certain location. When
this number is under six months, it is generally referred to as a “Seller’s Market,” and when the number is over six
months, it’s a “Buyer’s Market.” Ideally it remains balanced, between five and seven months, meaning the market is
good for everyone.
The thing about inventory is that it is hyper-local. One Charlotte neighborhood could be operating at a one month
supply of inventory, while another Charlotte neighborhood could be operating at an eight month supply. Typically
you see a larger supply in the upper-end market, because they take longer to sell. It really takes an expert to analyze
for you the trends happening around your home.
So if it’s still a “Seller’s Market”, why is 2016 a good time to buy? Well, mortgage rates are still historically low, and
while they will likely remain steady for the bulk of the year, they do have to go up at some point. Right now you can
afford more home if you will be getting a loan. Because home prices are becoming steady, there’s less worry about
being priced out of the market. Just as home prices have increased, so has the cost of rent in many cities. If you are
renting now, you may want to have a loan officer work up a financial worksheet for you to see what a monthly loan
payment would be. You may be surprised to find that it may cost less monthly to buy a home.

4. Beth's Bits: From The Holiday Season to The Tax Season
While I’m not a tax expert (& don’t claim to be), I do know a thing about real estate, and owning real estate can
open up many new opportunities for reducing your tax liabilities. There are some stipulations & limitations to any
real estate tax breaks, so ALWAYS talk to your accountant or tax professional… but this list will give you an idea of
questions to ask and items to bring up (and what documents to search for before you head to the tax office!)
• Your biggest tax break is reflected in the house payment you make each month since, for most
homeowners, the bulk of that check goes toward interest. And all that interest is usually deductible, unless your loan
is more than $1 million.
• Did you pull out extra cash through refinancing? Or did you decide instead to get a home equity loan or line of
credit? Generally, equity debts of $100,000 or less are fully deductible.
• Mortgage interest on a second home may also be fully deductible. In fact, your additional property doesn’t have to
strictly be a house. It could be a boat or RV, as long as it has cooking, sleeping and bathroom facilities.
• A homeowner who pays points on a refinanced loan, home equity loan, or line of credit may be eligible for a tax
break, but there are some differences in how the deduction is calculated.
• Property taxes may be deducted as an itemized expense on Schedule A.
• In December 2015, Congress extended the Mortgage Debt Relief Act of 2007 through 2017. Under this law,
homeowners who were foreclosed on, completed a short sale or had their home debt reduced by mortgage restructur-
ing may not have to count the canceled debt as taxable income.
• While in general, home improvements on your primary home are not tax-deductible, hold onto the receipts. If
you sell your home and make more than amount the IRS will let you keep tax-free, property improvement records
may help you reduce your taxable profits.
• The cost of repairs to rental property may be fully deductible in the year in which they occurred.
This may include repainting, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows.
• You may be able to deduct the premiums you pay for almost any insurance for your rental properties.
• Some energy-saving home improvements to your principal residence can earn you an energy tax credit. You may
get a credit for up to 10 percent of the cost of qualifying energy-efficient skylights, outside doors and windows,
insulation systems, and roofs, as well as qualifying central air conditioners, heat pumps, furnaces, water heaters, and
water boilers.
• There is a completely separate credit equal to 30 percent of the cost of more expensive and exotic energy-efficient
equipment, including qualifying solar-powered generators and water heaters. In most cases there is no dollar cap on
this credit.
These aren’t the only tax deductions available to homeowners, but they’re a good place to start a conversation with
your tax advisor, accountant or financial advisor as tax season rolls around. Those professionals will be able to find
out which deductions apply to your unique situation.