The Lexington BBQ Festival is one of the largest gatherings of its type in the southeast.  This 28th annual festival had over 100,000 people in attendance.  That’s about the same number as attended the NC State Fair on the same day.

The atmosphere reminds me of the fair.  Except the setting is historic downtown Lexington, NC rather than the state fairgrounds.  Nine blocks of N Main Street (and a block each way at every intersection) gets blocked off for the event.  There are all kinds of crafts being sold at booths along the street, as well as every type of festival food imaginable.  Yes, that includes candied apples, cotton candy, elephant ears, turkey drumsticks, foot-long hot dogs, and every imaginable fried food substance known to man.  And there’s plenty of entertainment for just about any preference or taste.

There’s a lumberjack show, pig races (you have to see this!), a rock climbing wall, live music throughout the day from a variety of bands, a stunt bicycle show, and several car shows.

I really enjoy looking at classic cars, so I would make the two hour drive from Raleigh just for this.  The Lexington BBQ Festival is a pretty big event, so it attracts some impressive cars for the shows.  One (original!) owner of a mint condition 55 Chevy we met told me more people looked at his car this day than at all other shows throughout the year combined.

And of course, there’s the Western NC style barbecue.  Which is different from Eastern NC barbecue.  And way different than barbecue from any other part of the country.

What’s the difference in Eastern and Western NC barbecue you ask?  Well, in both cases it’s pork.  And it’s a noun, not a verb.  In North carolina, barbecue is a food product, not something you do to meat.

Eastern NC barbecue uses the whole hog (white and dark meat) and has vinegar based sauce.  Western NC barbecue uses only pork shoulders and has a ketchup based sauce.

From my perspective, both are really good and I’ll eat whichever is placed in front of me.  The bottom line is if you make the trip to the Lexington BBQ Festival, you absolutely owe it to yourself to try this tasty local barbecue.

The 2012, 29th annual festival should take place in October next year, so if you’re new to the Raleigh area be sure to mark your calendar and check out a little local NC culture.

Raleigh ranked number two with regards to future prospects for prosperity.  The study looked at the top 52 metro areas and ranked each with regards to past, current and future prospects for growth.

One third of the score was based on job growth over the past two years.  This was done to get an idea of how well each area is dealing with the current economic slump.

The remaining two thirds of the score consisted of a broad range of equally weighted demographic factors including:

• Rate of family formation
• Educated migration
• Population growth
• Attractiveness to immigrants

The rate of family formation was a measure of the percentage growth in children ages 5-17.  Attractiveness to immigrants measured how the area is perceived as a place to settle, make money, and start a business.

This focus on demographic factors was important as a method to capture the attractiveness of the areas to college educated migrants, new families and immigrants.  All of these groups are thought to be critical in determining the future prosperity of towns and cities.

It’s clear that the Raleigh area is doing relatively well during these tough economic times.  This Forbes study supports the findings of a recent United Van Lines study that ranked North Carolina as the number three state in terms of inbound migration.

With great schools and universities, major hospitals and corporations, Research Triangle Park, relatively low taxes, and a mild climate it’s no wonder we end up being a destination for so many families seeking to relocate to a better lifestyle.

Welcome to the next big boom town… Raleigh, North Carolina.

I have always heard that around a 6 month supply is a balanced market.  Less trends towards a sellers’ market and more trends towards a buyers’ market.

Here’s a question.  What would it take to create a sellers’ market?  More buyers absorbing the excess inventory?  It’s interesting how the heaviest buyer activity occurs during a sellers’ market, isn’t it?  When prices are rising and inventory levels are falling, the fear of loss take over and buying activity increases.  And when we have a situation like we do now, prices are at 2003-2004 levels and interest rates are as low as they have ever been, buyers seem to be waiting.

Here are the numbers.

February started out with a good amount of promise compared to the same period in 2010.  Especially considering that the tax credit deadline was approaching during this period last year.  The gap widened in March and especially April.  Just remember when you look at these numbers that the 2010 tax credit pulled a large number of buyers from the second half into the first half of 2010.

What do the months ahead hold for sellers and buyers?  Sellers must realize that the competition can be overwhelming.  Everything has to be done perfectly… from presentation and marketing… to price.

Buyers?  Ask yourself what you’re waiting for.  If you don’t need to move, by all means stay put.  But if you have a real need to move, the time has never been better.  If you’re waiting for prices to fall some more, carefully consider the effect that rising mortgage rates could have on your purchasing power.

If you don’t care to make the 1.5 hour drive to High Point, we have some pretty good alternatives right here in Raleigh.  One of the best local options for a wide range and variety of well built furniture is Whitley Galleries in Zebulon, which is just a few miles east of Raleigh.

Right now Whitley Galleries is having their once a year, store wide sale.  It happens this weekend, May 21-22.

I’ve personally purchased furniture from Whitley Galleries before and was very pleased.  Their city-block showroom offers lots of selection to view.  It makes a big difference to be able to see what you are buying.

They have very good service too.  I once had a brand new piece that I had purchased and it got scratched after it was delivered.  Clearly my problem, not theirs.  I made a quick call and they dispatched a guy who worked some magic and made the scratches totally disappear.  And they didn’t charge a penny for this service.

So if you’re in need of furniture, this would be the perfect weekend to check out Whitley Galleries.  Have fun!

I’ve lived here all my life and honestly it’s hard for me to imagine the Raleigh area as a destination for people seeking to retire.  But it is.  I help lots of people relocate to Raleigh who are at or near retirement.

The biggest reason people look for retirement communities in Raleigh is to be near adult children and their grandkids.  There are also a decent number of folks who don’t have family here, but still seek out the Raleigh area for the stable economy, moderate weather, and our just-right-size.

What I mean by just-right-size is that we are large enough to have excellent healthcare facilities, major universities, and most of the other amenities that you’d expect to find in a big city.  But we’re not all that big.  Yet.

Let’s take a look at the Raleigh area’s top three retirement communities.

Carolina Preserve at Amberly

Carolina Preserve is a Del Webb community.  These guys may be one of the most well known developers of retirement communities in the United States.  Carolina Preserve is located in the Northeast corner of Cary, NC.  It’s convenient to NC 540, the airport, I-40, and many other local attractions.

This place has the amenities!  There’s a 34,000 square foot clubhouse complete with a fitness center, indoor pool, ballroom, kitchen and activity rooms.  There’s a club or group for just about every interest imaginable.  Just a few of the current groups include; bocce, golf, cooking, photography, poker, pottery, square dancing, tennis, and yoga.  That’s a lot!

Outdoors there are walking trails, tennis courts, bocce ball courts, putting greens, another pool, and a large lake.  I’m betting you could easily find something to do at Carolina Preserve.

Heritage Pines

Heritage Pines is also located in Cary.  Not far from Carolina Preserve as a matter of fact.  Heritage Pines is a smaller, more intimate community.  There are no where near as many homes.  And the clubhouse is scaled accordingly.

But, there’s still plenty of activities and things to do!  The clubhouse features a large multi-purpose room, library room, exercise facilities, activity rooms, and a kitchen.  It sits adjacent to an outdoor heated pool, spa, bocce courts, tennis courts, shuffleboard court, and horseshoe court.  There are also walking paths and a neighborhood pond.

Planned activities include; dining clubs, talent shows, book clubs, poker and all kinds of card games, dart clubs, pocket billiard clubs, bocce, shuffleboard and horseshoe clubs, bingo, needle groups, art groups, and even a model yacht and sailboat club.  Plenty to do here too!

Four Seasons at Renaissance

This one’s brand new.  As a matter of fact, construction is scheduled to begin on the first pre-sale and model homes this month.  Four Seasons will be similar to both of the other retirement communities in the Raleigh area and will be positioned in size somewhere between the two.

A 6400 square foot clubhouse is planned complete with a ball room, sports bar, crafts room, library, exercise room, and two covered porch areas.  Also planned are a swimming pool, tennis courts, horseshoe courts, bocce ball courts, and a putting green.

And the location can’t be beat.  It’s near the Briar Creek area.

If you’d like more information on any of these great retirement communities in the Raleigh area, just contact me and I’ll be glad to answer any questions you have or to schedule a private tour for you.  If you’re move is a little farther in the future just let me know that too and I’ll be glad to set you up to receive information about homes in any or all of these communities as soon as they come on the market.

People ask me all the time how to do things related to owning a house. Most of the time I have some pretty good answers because in my business I run into lots of people doing all kinds of things related to home ownership.  I’m kind of an aggregator of information.  After getting asked the same question a bunch of times, and seeking answers for clients, I usually end up with a pretty good consensus on how to do stuff.

No so with cleaning stainless steel. Just look at the appliances in my house and you’d know that.  Hope my wife doesn’t read this.  I’m not saying our appliances are a dirty mess.  Actually we’re more likely to get accused of being obsessed with keeping things clean.  It just gets tiresome cleaning the stainless steel non-stop to keep fingerprints and smudges off.

I’ve casually asked for advice on cleaning stainless steel appliances over the years and it seems everyone I’ve asked is looking for a good answer to this question themselves.  And the common complaint seems to be fingerprints and smudges.

So I decided to ask some experts how to clean stainless steel appliances.  Mostly fellow Realtors across the country who have probably fielded this same question themselves. I was hopeful they had got better answers than I had. So I posed the question on Twitter and here are the responses I received.

@StacyStateham suggests using CLR Stainless Steel Cleaner.  This is an aerosol spray that is supposed to clean without leaving residue or streaks.  Maybe the streaks are what I’m referring to as smudges.  This sounds promising and costs $7.49 for a 24 OZ can on their website.

@homesbythomas recommends a degreasing soap like Dawn and a Scotch-Brite pad.  One thing I like about the suggestion from Thomas is that I already have these things on hand.  Nothing extra to buy.  The only negative I can think of is that the Scotch-Brite pad is abrasive and may scratch some stainless steel products.  Might want to test this solution on a non-conspicuous place first and definitely rub with the “grain” of the stainless steel.

@klemmju suggested another product I have on hand called Bar Keepers Friend.   We’ve used this product to clean clean our stainless steel sink and it works like magic!  My only reservation here was with the risk of scratches due to the abrasive nature of Bar Keepers Friend.  Judy said to make a paste from the Bar Keepers Friend, rub it on, and polish off.  Just like with the Scotch-Brite pads, be sure to test in a non-conspicuous place first and watch for scratches.

@RealEstateTonya replied that Pledge works great.  This is another product that many of us have around the house.  No cost to give it a shot.

@RealLifeSheri says use Clorox Clean-Up and a simple stainless steel cleaner purchased at Sears for shine.

I also  posted the question on Facebook and got a great answer from a past client and friend, Kelly Hartway.  She recommends Cerama Bryte Stainless Steel Cleaner.  Kelly says they got a free sample when buying an appliance and were immediately sold on the product.  She’s also had good success with Cerama Bryte reducing fingerprints which is a huge plus.

There you have it.  Recommendations from a wide range of people who are using a solution for cleaning their stainless steel appliances that works for them.  Now the next time someone asks you how to clean stainless steel appliances you can send them a link to this article

Most every state has some form of the Mortgage Credit Certificate. Here are the details of how the program works in North Carolina.

The Mortgage Credit Certificate gives qualifying first time home buyers a financial benefit when filing their income taxes that is better than the typical mortgage interest deduction.

You can deduct 30% of the interest paid as a dollar-for-dollar tax credit, with a $2,000 cap!

The Mortgage Credit Certificate gives you a really strong deduction. Here’s an example of how it works on a 30 year fixed rate mortgage of $150,000 with an interest rate of 5%.

• $150,000 – Loan amount
• $7,500 – 1st year interest
• $2,250 – 30% of annual interest
• $2,000 – Actual tax credit with $2,000 cap applied

If you owe $10,000 in income tax the credit would reduce your tax bill to $8,000.  That’s $60,000 saved over the life of the loan.

Keep in mind that the remaining interest of $5,500 (70% of the annual amount) in this example can still be used as a tax deduction, which will further reduce your tax bill.

You can modify your W-4 withholding info with your employer and enjoy the benefits of the tax credit in every paycheck.

There are 4 requirements that must be met to qualify for the North Carolina Mortgage Credit Certificate:

1. First Time Home Buyer
2. Primary Residence
3. Maximum Qualifying Income
4. Sales Price Limit

First Time Home Buyer

Believe it or not, you could have actually owned a home in the past and qualify as a first time home buyer under the Mortgage Credit Certificate guidelines. The rule is you must not have owned a home as your primary residence in the past 3 years. So let’s say you owned a home 4 years ago, sold it, and have been renting ever since. Under the program guidelines you are a first time home buyer.

Primary Residence

The home you purchase must be your primary residence. It cannot be a second home or an investment property.

Maximum Qualifying Income

The qualifying income for the Mortgage Credit Certificate varies for each county in North Carolina. Here are the limits for Wake County. You must earn less than these amounts to qualify.

1 Person – $76,000
2 People – $76,000
3+ People – $88,000

Sales Price Limit

The home you purchase must be priced under $220,000 to qualify. This amount is the same for all counties in North Carolina.

If you are a first time home buyer who qualifies for the Mortgage Credit Certificate, please pick up the phone and call me right away. Homes prices are low, selection is great, interest rates are amazingly low. There’s never been a better time for you to buy your first home.

This 3 bedroom townhome has the master on the first floor and beautiful hardwood floors throughout the living area. The 2 story living room is open to the kitchen which has granite counters, custom cherry cabinets, and stainless steel appliances.

The stairs and the upstairs hallway are adorned with hardwood floors too.  This is a really nice feature because those two areas are typically the first places that carpet begins to show it’s age.  There is a loft area and two nice size bedrooms located on the second level.  One of the bedrooms even has hardwood floors and a really large walk-in closet.

The beautiful stacked stone wall that is a trademark of Heritage Wake Forest continues in this small townhome community as well.  The front yard of this home is a very good size and the house sits back from the road more than you would expect.  Out back you will find a wonderful outdoor space that consists of a patio and small garden area enclosed by a privacy fence.  The rear entry garage keeps the streetscape uncluttered and keeps your car out of the elements.

Here are the quick facts about this beautiful home in Heritage Wake Forest:

• Bedrooms: 3
• Baths: 2.5
• Square Feet: 1717
• Price: $200,000

Take a look at the video below and then contact me for a personal tour.  This could be the home you’ve been looking for!

No decrease in up front premium this time around.

The recently announced increase in MIP on FHA loans will be 25 basis points, or 0.25%.  This latest MIP increase is scheduled to take effect on all loan case numbers assigned after April 18, 2011.

Keeping with our $200,000 loan example, this represents a $42 per month increase in the payment amount.

Why the increase?  Just as before, FHA MIP rates are being increased in an effort to keep the housing administration operating according to statutes that govern its minimal reserves.  By law the FHA must maintain 2% capital reserves.  According to David Stevens, FHA Commissioner, capital reserves have been below 2% for the previous two accounting periods.  At current rates, best case predictions indicate capital reserves will bot rise above 2% until 2015.  Some predictions actually have the FHA capital reserves going negative, which would require a transfer of funds from the treasury.  Not good.

What a mess, huh?  I’m just speculating here, but two increases in the FHA MIP rates in a six month period probably means someone is very concerned about the solvency of the agency.  I totally get the fact that the FHA running out of funds cannot happen.  But I also understand the potential negative effect of higher monthly payments on consumers.   The home buying public in general has struggled to stay current on mortgages.  Increasing monthly payments will push some marginal buyers out of the market and at the very least challenge some future borrowers dealing with reduced employment.

Personal opinion?  This is the perfect time for private industry to step up and take a big chunk of the mortgage business away from the federal government.  Maybe that wouldn’t be such a bad thing. Several large private firms competing for a place in the mortgage markets could have a positive impact on pricing of consumer home loans.

The bottom line here is, if you are considering buying a house in the next few months, get ahead of this increase.  Get busy looking for a home while interest rates are low and before the FHA implements the new MIP rates.  All you have to do is be under contract by April 18.  That’s about eight weeks from now.  Contact me and I’ll be glad to meet with you and get you started searching for your next home.

I’ve heard a few potential home buyers say they are waiting for the market to hit bottom.  Although that sounds like a noble cause, in reality it’s extremely difficult to get right.

The only way to truly know the real estate market has hit bottom is when you see prices start to increase.

But let’s suppose for a moment the assumption that house prices will continue to fall is correct.  How much is reasonable?

Since 2007, the first year we began to see declining prices in the Raleigh real estate market, prices have declined on average somewhere around 10 – 15%.  That process took four years.

For the sake of discussion, lets assume another 10% decline in prices in the next 12 months.  This would be four times faster than it occurred during the worst decline in most people’s lives.  But we have to have some number to work with here, so let’s go with 10%.

Now back to the effect of rising interest rates. The next big question is will mortgage interest rates stay the same, decrease, or increase?  We consistently hit 4.5% now, which is as low as rates have been in recorded history, so let’s also make the assumption that rates will not decrease.  That leaves us to guess whether they will stay the same or increase.

If rates stay the same, and house prices decline, there is no discussion to be had.  You will pay less for your house.  Period.

But what if home prices were to decrease by 10% and we entered a period of rising interest rates where a 1% increase occurred.  Do you think this combination is likely?  Here’s how the math works out on that scenario.

Most people think declining house prices always means lower cost.  Not always.  In this scenario, rising interest rates destroyed any potential savings.  An increase of 1% in the rate resulted in a slightly higher monthly payment and total interest when applied to a 10% lower house price.

Do you think that scenario is possible?  Declining prices and increasing interest rates?  How about stable prices (the elusive bottom) and rising interest rates?  Let’s look at the math on that one.

That’s a very real $145 monthly increase in payments.  Not to mention the additional $52,000 in interest over the life of the loan.  Is it possible that home prices could stabilize in 2011 and interest rates could increase?  It’s possible.

The bottom line is I really don’t know what will happen with prices and rates.  Neither does anyone else.  But we can talk probabilities.  Rising interest rates will destroy just about any reasonable decrease in house prices.  The only scenario that is a win for a home buyer is for prices to decline AND rates stay the same or drop.  Which are you willing to bet on?