Pat Riley
Allen Tate Company
By Sheila Cottringer
      
Bill Constangy introduced a record 23 visitors at this week's meeting. Tom Hutchins presented Health and Happiness by sharing the many confusing aspects of the English language which caused a healthy dose of laughter for us all.
 
Cecily Durrett introduced Pat Riley, President and COO of the Allen Tate Company by comparing his strengths to that of Tight End, Jerry Richardson of the Baltimore Colts. This dependable, "go-to" guy has been in the real estate business since 1972 and with Tate since 1991. He now oversees operations of 44 branches in Charlotte, Triad and Triangle regions with sales of $6.78 billion in 2006.
 
Pat explained the ins and outs, ups and downs of the residential real estate industry and state of the residential real estate market nationwide, statewide and locally. Pat stated, "America is in love with residential real estate." We have recently experienced the longest run of favorable conditions in the residential real estate history in the years 1992 - 2006. The government decided in 2006 that the interest rate lever needed to be pulled in order to control inflation.
 
He went on to say that, residential real estate is an emotional commodity and the largest percentage of the wealth of Americans.
 
Pat told us that current indicators show most markets are experiencing a downturn in the housing market. What goes up must come down and many areas are in the middle of an adjustment period. The residential real estate market is self-adjustable just as is the stock market.
 
Pat went on to say that, one of the most important factors for those considering a move is schools. Good schools are tied to appreciation rates in all areas of the country. Convenience is another factor as the trend is that people are moving back into the city. Cost of affordable housing is a concern. Those who can afford homes under the $200,000 range make up 42% of the market. The simple economics of supply and demand affects the price of homes.
 
A few months ago, Pat would have placed 1/3 of the country in a falling market, 1/3 in a flat market and 1/3 doing just fine. Charlotte was in the "just fine" category. Today, Pat puts 2/3 of the country in a falling market and 1/3 in a flat market, which could be falling. The markets really suffering are places like Atlanta and Orlando. They are experiencing a market that have an over abundance of housing in some price points and some areas. Those markets are flat and falling. South of the Mason Dixon line and North of Florida are still doing well.
 
Other interesting facts are that the Miami and Detroit areas have only 5% of owners paying mortgages. The remaining 23 markets measured showed 95% - 97% paying mortgages. Out of 28 markets measured, only the Charlotte and Triangle areas showed appreciating values with other markets flat or falling. Good news for many Charlotte Rotarian homeowners. The secondary home market is very soft at this time but expected to rise when more baby boomers begin to think about retirement.
 
New trends in housing appear to be smaller homes with less square footage and more amenities. Remodeling will continue. Porches are back. A whopping 82% of home shoppers begin their search on the web. Another trend is that people are moving from Charlotte to South Carolina, which was virtually unheard of a few years ago.
Pat's final words to us were to express his thoughts on the Property Transfer Tax. He feels it is not dependable and is unfair because it only taxes a small number of people. When asked if he would consider running for governor, we heard an emphatic "absolutely not!"
   
Head Table: Bob Freeman, Bill Loftin, David Zimmerman, Cecily Durrett, Lila Rash, Gary Scott;
Invocation: Floyd Davis
Visitors & Guests: Bill Constangy; Health & Happiness: Tom Hutchins; Song: Meg McElwain; Piano: Thomas Moore

• Ron Kimble has been promoted to deputy city manager; Phil Van Hoy commented on the Jim Black legacy in the Observer Forum; Leland Park took a part in the farewell reception for Davidson College President Bobby Vagt by reading a proclamation from Mayor Pat McCrory. Leland recently retired as Director of the Davidson College library and his successor has been hired as the Leland M. Park Director of the Davidson College library.
       
• PDG Joe Morris was on hand to thank members of Charlotte Rotary for supporting District 7680 and also recognized Interact member Lauren Gorry for her work editing and producing the District's newsletter.
        
• President David's Rotary fact: in 1950 members of Charlotte Rotary hand delivered copies of the Four-Way Test to all members of the House and Senate. David also expressed his thanks to Mac McCarley for filling in the last couple weeks while he was in vacationing in Germany with his family.
   
• OFF TO PERU…David Anderson announced plans are underway for a trip to Peru in February. The group will leave at 6:45 PM February 8th and will return either February 16th or 17th. Total cost (depending on the side trip once in Peru) is approximately $2100. A non-refundable deposit of $100 is due by October 8th. Those that made the trip last year returned in awe of the work that has been done and ever mindful of work that needs to be done. If you are interested or need additional information/testimony, contact David at anderso1@carolina.rr.com or 704-499-3277.