Home prices fell further than expected last year

U.S. home prices dropped further than expected last year, showing the housing industry remains significantly stressed despite recent reports suggesting otherwise.

The Standard & Poor's/Case-Shiller Home Price Index, which measures home prices in 20 cities, fell 3.8 percent in December from November and 4 percent from a year ago.

Prices in the Charlotte metropolitan area fell 2 percent from November and were down 2.3 percent from December 2010, according to the index, which tracks repeat sales.

Nineteen of 20 cities saw prices decline on a monthly basis, with Phoenix yet again being the only city to post an increase. On an annual basis, Detroit was the only city on the index to post a gain. Prices there nudged up .5 percent.  Atlanta continues to suffer among the most, posting a nearly 13 percent drop from December 2010, followed by Las Vegas with a 8.8 percent annual decline.

“In terms of pricing, the housing market ended 2011 on a very disappointing note, said David Blitzer, Chairman of the Index Committee at S&P Indices.”While we thought we saw some signs of stabilization in the middle of 2011, it appears that neither the economy nor consumer confidence was strong enough to move the market in a positive direction as the year ended.”

The housing market had shown promising signs, according to a report by The National Association of Realtors. The group recently said its Pending Home Sales Index, based on contracts signed in January, increased 2 percent to 97.0 -- the highest reading since April 2010.

But Tuesday's gloomy report suggests the market may falter again this year.

Since housing prices began falling rapidly in 2006, the market has had two years of a market "that is bottoming out but not yet stabilized," Blitzer said. "Up until today's report we had believed the crisis lows for the composites were behind us."

But, he said, "The pick-up in the economy has simply not been enough to keep home prices stabilized. If anything it looks like we might have reentered a period of decline as we begin 2012."

Visionary commercial real estate leaders being honored today

Some of the area's most innovative thinkers in commercial real estate will gather today to honor their peers for creativity and problem-solving when it comes to issues involving real estate.

The Counselors of Real Estate will hold its 4th annual Creative Thinkers Awards at Carmel Country Club. The group, which is an invitation-only group of real estate professionals, will be recognizing winners for their out-of-the-box thinking, treating obstacles and risks as opportunities for novel solutions, and making cutting-edge decisions.

Winners include: Philip Dubois, chancellor of the University of North Carolina at Charlotte; Ted Rollins and Mike Hartnett of Campus Crest Communities and Kyle and Pattie Petty for their work founding Victory Junction, a camp for children with chronic medical conditions or serious illness.

Past real estate visionaries honored include developer H.C. "Smoky" Bissell and Ned Curran of The Bissell Cos., Larry Wheeler of the North Carolina Museum of Art and John Kane of Kane Realty Corp.

Established in 1953, The Counselors of Real Estate is an international group whose members include professionals working in the real estate, finance, legal and accounting industries as well as leaders of government and academia who provide advice on real estate matters.

Career fair being held Wednesday for people interested in the apartment industry

The Greater Charlotte Apartment Association is hosting a career fair for college students Wednesday to share information about a future in the apartment industry.

While most of the commercial real estate industry has remained stagnant since the market weakened three years ago, the multifamily industry has soared. Investors are buying apartment complexes and developers are building new projects across Charlotte and the rest of the country. Occupancy rates have been rising and rents are expected to keep growing - good omens for building owners and managers.

At least 10 local apartment management firms are expected to be at the fair.

The industry employs more than 1 million people, according to a trade group. Typical salaries range from $20,000 for a leasing consultant to more than six figures for regional managers, according to the apartment association.

Typical positions include leasing manager, concierge, marketing manager, groundskeeper and maintenance technician. The industry tends to draw jobseekers with experience in the retail, sales, customer service, construction and hospitality industries.

The fair will run from 4 p.m. to 7 p.m. Wednesday at the William R. Davie Park's Conference Center at 4635 Pineville Matthews Road. For more information, go to http://www.greatercaa.org.

National Association of Home Builders names Charlottean as first vice chairman

Charlotte-based home builder Rick Judson was elected as the 2012 first vice chairman of the National Association of Home Builders during the association’s International Builders’ Show in Orlando.

Judson is the owner of Evergreen Development Group in Charlotte, and has worked for several decades in land development and construction of single-family, multifamily and commercial projects.

In a statement, he said the trade group's focus will be to help home buyers and home builders gain better access to credit.

“As the housing industry begins to gradually emerge from its worst downturn since the Great Depression, our focus this election year will be to ensure that housing and homeownership remain a national priority,” Judson said. “We will be urging policymakers to restore the flow of credit to home buyers and home builders alike, to resolve a faulty appraisal process that has negatively affected property values and to maintain a federal backstop for housing to keep homeownership affordable.”

Judson has been active in the group's leadership structure at the local, state and national levels. He has served on NAHB’s Board of Directors since 1979 and has been a member of the NAHB Executive Board since 2002. He has twice served as NAHB State Representative from North Carolina and is a two-time NAHB national area chairman representing North Carolina, South Carolina and Georgia. In 2008, he chaired the NAHB Housing Finance Task Force, which developed association policy relating to Fannie Mae and Freddie Mac.

Judson served as 2004 president of the North Carolina Home Builders Association and was named its associate of the year in 1988.

The National Association of Home Builders is a Washington-based trade association representing more than 140,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units this year.

S.C. home prices up in January, Realtors group says

South Carolina Realtors reported Wednesday that home prices have started the year on an "up note."

The median sales price in South Carolina rose to $145,000 in January, up 3.4 percent compared to last year, according to the trade group.

Pending sales rose 19.7 percent to 4,024 and the number of days a home was on the market fell .6 percent to 143 days versus the same time last year.

Inventory levels shrank 15.2 percent to 47,916 housing units, and months of supply of inventory fell 16.9 percent to 11.7 months during the same time. A healthy housing market is thought to have six months of inventory.

"The media sometimes obsesses over the negatives, but last year brought several important improvements in key metrics that should not be brushed aside, such as an improved inventory picture," the group wrote in its report. "As we delve into a new year, we're seeing mostly positive signs."

The statistics do not include shadow inventory, distressed homes that aren't yet on the market. Shadow inventory includes homes that are crawling through the foreclosure process, properties that have been foreclosed on but not put up for sale, or houses whose borrowers are so delinquent they are unlikely to recover. Such homes are typically excluded from monthly sales statistics compiled by trade groups.

An Observer analysis found the seven counties surrounding Mecklenburg had more than 17,300 homes in shadow inventory at the end of last year. In contrast, the seven counties had 8,636 homes listed for sale.

Lancaster County in South Carolina led the region with nearly four times the amount of shadow inventory as for-sale listings.

Shadow inventory is not a new phenomenon. But because of the housing meltdown and recession, banks are taking back a record number of homes. The foreclosure pipeline is also swelling as banks take longer to complete foreclosures and more borrowers fall behind on their loans. When shadow inventory comes on the market, it typically sells at a steep discount, depressing values.

Southeastern buys Joe Mann, plus two other real estate veterans make career moves

Southeastern Construction and Development has bought Joe Mann Builders. Both Charlotte companies specialize in commercial construction.

Five employees of Joe Mann Builders will join Southeastern, whose clients include Bank of America, Sedexo, Inc. and Morehead Properties.

“We’re seeing a good market now for our interior upfit business, both office and retail,” said Kevan Smith, a partner in Southeastern. “We’re also seeing more activity in new construction.”

Joe Mann Builders had been looking for new leadership following the death of founder Joe Mann in July. Southeastern Construction and Development was founded by president David Fry in 1997.

Other changes occurring in the commercial real estate world:

Ron Lordo is joining Cresa as a Senior Vice President focusing on the healthcare industry.
Lordo, who has more than 22 years of real estate experience, will represent those who use the space and advise clients with strategic and financial planning, new leases, renewals, expansions and disposing of surplus space.

Most recently Lordo served as AVP of Real Estate Services for Charlotte, Carolinas HealthCare System. He directed leasing and property management activities for CHS’s portfolio of over 5 million square feet.

Cresa is an international corporate real estate advisory firm that exclusively represents tenants.
With more than 55 offices, Cresa is the largest tenant representation firm in North America.

And last week, Jim Gambrell joined Trinity Partners to lead the firm's tenant representation team. Gambrell has more than 28 years of experience and most recently managed his own commercial real estate firm, Oakway Properties.

"Operating my own brokerage business has been enjoyable, but an opportunity to team up with a group like Trinity Partnes, people I have known and admired for years, was too good to pass up," Gambrell said.

New construction sprouting in South Park

Drivers along Fairview Road soon will be seeing something this region hasn't seen much of in a while: New construction.

Work has begun on the new southern regional headquarters for the Bank of North Carolina and steel is scheduled to rise out of the ground next week, according to J.D. Goodrum Co. Inc., the project's general contractor.

The bank is building its 13,000-square-foot headquarters at 5980 Fairview Road. Construction is expected to take 10 months.

When finished, Bank of North Carolina customers will be banking at new 2-story steel structure wrapped in a glass curtain wall system, according to the contractor. The interior will feature a lounge with a fireplace. There will also be a drive-through teller option.

Cranes and construction crews were common place around the Charlotte area in the 2000s, until the recession began in late 2007 and new construction ground to halt.

Established in 1991, the Bank of North Carolina has roughly $2.2 billion in assets and offices in North Carolina and South Carolina.