Contact this new Brunswick county community

North Carolina continues to be the 4th fastest growing state in the country and Brunswick County is the 28th fastest growing county.

"In Mill Creek Cove at Sunset Harbor, the development has beautifully maintained landscaping and a slew of amenities, including a pool, tennis courts and even a putting green. But there are only two homes in the 393-lot community, and no signs of new construction."

But they are offering some lots for under $50,000 to spur interest – and, hopefully, a home or two.

Mill Creek has been called a “success story” by Brunswick County officials since its infrastructure – unlike those of several neighboring projects – is fully installed even though home development has stalled.

That included building the amenities up front rather than waiting for a critical mass of residents."

“We’ve taken out the guesswork about whether or not this developer is going to build those amenities,” said broker Sarah Smith of Southport Realty, referring to other developments in Brunswick where the plans for amenities died when the money dried up.

“Not only do we have a pulse, we have a strong pulse,” she continued. “We just need a few pioneers.”

Addressing fellow trade members, media and elected officials, including N.C. Sen. R.C. Soles, they noted positive trends often exclusive to Brunswick County and shared the podium with National Association of Realtors political representative Chris Gosselin, who discussed opportunities available to first-time homebuyers this year.

Congress in 2008 enacted a $7,500 tax credit for first-time homebuyers as a way to reduce the plentiful stock of homes on the market. This year, Gosselin said, Congress has kicked that credit up to $8,000, although the window closes November 30 and would likely not see an extension.

The program reflects the Obama Administration’s effort to assist middle-class individuals and families, Gosselin said, as the credit is reserved for individuals on an income $75,000 at most, or $150,000 at most for married couples who file joint tax returns.

Homes purchased for $80,000 or more qualify for the full incentive while homes less than $80,000 qualify for a credit worth ten percent of the cost. Every tax-credit dollar reduces the homeowner’s income taxes by a dollar. There’s no application process; eligible homeowners will claim the credit on their tax returns.

In the thick of economic struggle and rising foreclosures — 2008 was a dark year, with 902 filings counted by the end of this past January, while there were only 488 in 2007 — county and real estate officials have allied to fight down certain tax or fee increases and the homeowner insurance burden placed upon the coast this past May.

When the rates shifted statewide, the weight went on the coast, which the N.C. Department of Insurance argues is most at risk for hurricane damage. Brunswick County was among the state’s most impacted territories. Despite a legal effort to stop the changes, mainland rates here rose nearly 30 percent, while 17.5 percent on the barrier islands. County commissioners and Realtors at Monday’s BCAR meeting expressed frustration that homeowners farther into the state saw comparatively small increases, while others, such as in the Charlotte-Mecklenberg area, saw reductions.

BCAR governmental affairs d irector Steve Candler mentioned the state’s attitude toward the risk of living along the coast, but said the numbers don’t back it up. The total wind and hail losses statewide between 1992-2005, he said, were $2.44 billion, of which the 18 coastal counties only represented $757 million. The rest was for damage to the state’s interior.

Sen. Soles said he had received plenty of e-mails and materials from BCAR about changes in the process, adding that he has a “unique perspective” on the matter as chairman of the Senate Standing Committee on Commerce, which reviews bills related to insurance.

Market Pullback
Equity markets have pulled back for the week and the month due to profit-taking and weaker earnings reports despite positive economic data which show signs of the economy possibly stabilizing. The broader S&P 500 index snapped a 3-session losing streak on Thursday and closed slightly higher at 918 which is roughly 2.6% lower from the beginning of June. The market has had a tremendous run since coming off its March lows and may have gotten a little ahead of itself which could result in a near-term correction. However, it is a positive sign that job losses seem to be moderating while housing starts and building permits both posted increases last month. Leading indicators also suggested stronger growth going forward while inflationary price pressures remained tame.

Recent news out of the financial sector has also dragged on market performance. Standard & Poors cut credit ratings on 18 financial institutions on Wednesday which included several large national banks re-igniting concerns about the stability of the financial system. President Obama’s recent plans to reform governance on financial institutions also weighed on the sector. There has also been talk of “re-doing” stress tests on banks because the initial tests were=2 0based on assumptions that were too optimistic. While troubles plaguing the financial sector are far from over, the capital they have recently raised put them in more stable condition.

The Economy
Housing starts jumped 17.2% in May to a seasonally-adjusted annual rate of 532,000 units. The jump in starts was mainly due to a sharp increase in the multi-family segment. Single-family housing starts rose 3.3% while multi-family starts rose over 70% in May. Total building permits in May increased 4.0% to a seasonally-adjusted annual rate of 518,000 units. Single-family building permits rose 7.9% while multi-family permits fell 8.3% from the previous month.

The continued increase in the Leading Economic Indicators this past month suggests that economic performance may improve in the months ahead. After falling for six straight months, the index has now increased for the past two consecutive months to a reading of 100.20. Th is was the first time that the Leading Economic Indicators have recorded consecutive monthly gains since March-April 2008, now at its highest levels since September. This month's increase was driven by significant increases in vendor performance, index for consumer expectations, and stock prices.

The Consumer Price Index showed that consumer inflation remained in-check during May. The Consumer Price Index increased 0.1% from last month on a seasonally-adjusted basis while core consumer prices also increased a seasonally-adjusted 0.1% during that time. On an unadjusted basis, headline CPI fell 1.3% from its year ago levels while core CPI increased 1.8% year-over-year in May. This is the third straight month that headline consumer prices have recorded a year-over-year decline and the largest annual drop in prices since 1950.

Housing Market
The national average mortgage rate declined from the previous week to 5.38% in the latest Primary Mortgage Market Survey released weekly by Freddie Mac on Ju ne 18th. This was the first time in the past four weeks that rates have declined. In the week ending June 12th, the MBA’s seasonally-adjusted Purchase Index declined to 261.2 from 270.7 in the previous week.

Both new and existing home sales posted increases in April. Although the gains were minimal, it remains a positive sign that home sales continue to see sustained demand. The rise in sales activity suggests that the housing market may finally be stabilizing.

New home sales increased a slight 0.3% in April to a seasonally adjusted 352,000 homes from a downwardly revised March figure of 351,000. Sales for the previous three months were revised lower by 3,000 units. In April, new home inventories declined to 296,000 from a March figure of 308,000 on a non-seasonally adjusted basis. Non-seasonally adjusted units of unsold inventory have not recorded a monthly increase since May 2007 and are now at their lowest levels since May 2001 as builders continue to scale back building activity. There are now 10.1 months of supply on a seas onally-adjusted basis based on the current sales pace which is the lowest it has been since February 2008. In April, median new home prices increased to $209,700 from a revised March figure of $202,200. Median new home prices in March were the lowest they had been since December 2003 before the increase in April. Median new home prices increased 3.7% from last month but are down 14.9% from the same year-ago period.

Annualized sales of total existing homes in April increased 2.9% from March levels to 4.680 million units. Sales of existing homes are still down 3.5% from the 4.850 million units in April 2008. Median existing home prices in April increased slightly to $170,200 from $169,900 in March. This is the third straight month that existing home prices have increased and the highest they have been since December. Existing home inventory increased for the third straight month in April as sellers put their homes onto the market for the busy spring home-buying season. Inventory of existing homes increased 8.8 percent to a preliminary 3,968,000 units from 3,648,000 units in March. At the current sales pace, there are 10.2 months of supply of existing homes on the market.

Mill Creek Cove In The News