New job incentives in Iredell

Iredell to use millions of dollars in incentives for local projects and in Statesville, Troutman and Mooresville.

Another big leap for home sales

NEW YORK (CNNMoney.com) -- After surging 10% in October, sales of existing homes jumped again in November, growing 7.4% compared with October to an annualized rate of 6.54 million units, according to the National Association of Realtors.

"This clearly is a rush of first-time buyers not wanting to miss out on the tax credit," said NAR's chief economist, Lawrence Yun.

November was originally going to be the last month in which sales to first-time homebuyers would qualify for a federal tax credit of up to $8,000. However, that deadline was extended and expanded, and buyers now have through June to purchase homes.

The strength of sales in November surprised the industry. A panel of experts compiled by Briefing.com had forecast month-over-month sales growth of just 2.5% to 6.25 million from 6.1 million a month earlier.

The sales total was also a huge improvement over a year ago. Sales rose 45.7% over the paltry annualized rate of 4.49 million units during November 2008.

The contribution made by first-time buyers is evident in a separate survey NAR conducted of its members. They estimate that 51% of sales in November were by newcomers to the market, up a point from 50% in October. Normally, first timers account for about 40% of sales.

Also propelling sales higher were rock-bottom interest rates. The average for a 30-year, fixed-rate loan during the month was just 4.88%, down from 4.95% in October and 6.09% a year ago.

With rates that much lower, homebuyers can save more than $150 a month on a $200,000 mortgage.

The industry expects home sales to slacken December, partially because of the tax credit's originally scheduled demise. That caused some buyers to push up their closing, stealing sales from December.

However, sales will not fall off a cliff, though, according to Walter Molony, a NAR spokesman. "The psychology seems to be turning around," he said. "Potential buyers, who had been staying on the fence, now believe we're at or near the market bottom."

                                                                                        DON’T FORGET
Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

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A place to cozy up to movies

Our Town Cinemas in Davidson provides a more intimate space to watch and munch.

DAVIDSON The Charlotte area's newest cinema shows "Sherlock Holmes," "It's Complicated" and other first-run films.

But other than the popcorn, soft drinks, pretzels and nachos, that's about all it has in common with other big-screen venues.

Our Town Cinemas, with four screens, debuted Dec. 25 in a shopping center space near Davidson College that previously housed a pizzeria and a dollar store.

Refurbishing vacant shopping center space for movie theaters in small towns is unusual, said Patrick Woodie of the North Carolina Rural Economic Development Center in Raleigh. It's often the other way around, with new uses found for abandoned theaters, he said.

Yet Our Town Cinemas has already received inquiries about opening similar ventures elsewhere in the Carolinas and Georgia, and expansion will happen, said 38-year movie industry veteran Curtis Fainn of Concord, who'd dreamed of opening such a theater for years and helped launch Our Town Cinemas.

The more intimate setting is a return to downtown cinemas of old, said Robert Lauer of ADW Architects in Charlotte, who designed Our Town Cinemas.

Our Town Cinemas consists of two 90-seat theaters and two 40-seat theaters. It plans to add an arts and special-film series and open its theaters to community meetings.

"In their heyday, every little town had a cinema, and we're just trying to bring that back," Lauer said.

Its concession stand sells White Castle hamburgers, Nathan's hot dogs and, soon, personal-size pizzas from nearby Brick House Tavern. Draft beer and wine are on the way.

Some of the seats at Our Town Cinemas swivel and can be adjusted for height. They come with bistro tables. Coffee, tea and hot chocolate are served in mugs.

Lauer, who lives in Davidson, has designed more than 250 cinemas across the country over 18 years, "but none like this one," he said.

As a college town with many walkers and bicyclists, Davidson was the perfect setting for such a venture, Lauer said.

Fainn and Lauer teamed with Kosta and Dino Pappas of Vrettos Pappas Consulting Engineers of Charlotte, Tim Smith of general contractor Proline Construction of Davidson, and marketing and advertising veteran Jan Black of Cornelius.

Fainn, whose expertise is in film buying and programming, said plans for Our Town Cinemas took greater shape after he and Black attended a workshop on entrepreneurship at the North Carolina Rural Economic Development Center two years ago.

"How could we do something different with the talents we have?" Black said. "The response has just been amazing."

Moviegoers gave the new venue a thumbs-up last week.

"The swively chairs rock," Elizabeth Mills of Davidson said.

Katie Sumner, 17, of Huntersville said she appreciated the student discount and more personal setting.

"I don't like going to big-box theaters," Sumner said before watching "Sherlock Holmes" with friend Kate Sherrill, 17, of Davidson. "And this is part of the community."

Mortgage interest rates rise, set to climb higher in 2010

Mortgage interest rates crept up for the fourth week in a row Thursday, a troubling sign for borrowers hoping that home finance will remain near historic lows during the new year.

The rate on a 30-year fixed loan rose to 5.14 percent, from recent lows below 5 percent, the Mortgage-industry giant Freddie Mac reported. The cost of adjustable-rate home loans also edged up in the report, the final weekly survey of the year.

"[Mortgages] still remain affordable by historical standards,” said Frank Nothaft, Freddie Mac vice president and chief economist.

But some analysts worry that uptick in recent weeks may portend a continued rise toward 6 percent in the new year. While that still would not be high by historical standards, that would dampen the buying power of home shoppers at a time when the housing market is still struggling to recover.

Where mortgage rates head from here, by affecting the health of the housing market, will also affect the tone of economic recovery in 2010.

Even higher rates ahead?In recent months, demand for homes has strengthened and recession-linked declines in home prices have stopped. Government tax incentives for first-time buyers have helped fuel housing demand, and the Federal Reserve has helped to keep interest rates low by buying up mortgage-securities. (The Fed's demand for mortgage-based bonds is essentially pumping money into the market for housing finance, making it easier for lenders to provide credit.)

Both those forces appear set to retreat during 2010. The tax breaks are slated to end by midyear. And – in a move that's potentially important for interest rates – the Fed has said it will stop buying mortgage bonds within about three months.

The lower interest rates remain, the more buyers can afford to spend when they commit to spending perhaps 30 percent of their income to buy a house. If interest rates rise, it could put downward pressure on home prices, unless the interest-rate rise is offset by rising incomes.

Still a good deal historicallyIn releasing the numbers Thursday, Mr. Nothaft gave an example of how low rates have been helping home buyers this year. “Based on today's median loan amount of $138,000, monthly principal and interest payments for a 30-year fixed-rate mortgage are close to one-third less than a decade ago when rates peaked at 8.6 percent in May 2000."

The rate on a 30-year loan ends the year not far from where it stood a year ago, at 5.10 percent.

Along with official interest rates, another key barometer of the housing market will whether bank lending standards get looser or not. A good interest rate only helps if borrowers can get a loan approval, and lending conditions now are tight. It's a delicate balancing act.

A primer for picking a school

Advice for rush month as parents mull public magnets, charters and private schools.

It's time for parents to start figuring out where their kids will go to school in August. Charlotte-Mecklenburg Schools is launching its monthlong magnet application period for 2010-11, with letters about options going out this week. Many private and public charter schools are also holding open houses and taking applications.

Choosing a school is a lot like buying a house: You've got to do research to avoid unpleasant surprises. But crunching numbers isn't enough to figure out what school will feel like home.

Anyone with access to a computer can click up plenty of data about academic performance, teacher credentials, safety ratings and other indicators of what's happening at a school. Checking those reports can flag trouble spots and prepare parents to ask smart questions.

But the numbers never paint a full picture of a school. Savvy parents say they may use data to narrow their list, but school visits and conversations with other families reveal which school is right for any given child.

Here's a user's guide to delving into school data - and insights from some parents who are making choices.

School already?

Lee Teague's son, Samuel, won't start kindergarten until 2011, so Teague just started thinking about schools.

He checked the Observer's profile on Park Road Montessori, a public school near Teague's south Charlotte home. One thing caught his attention: Most students who get into the high-demand magnet through the lottery do so as pre-kindergarteners. That means he'll need to apply this month for the 4-year-old to get a seat in August.

Safety, location and a challenging academic environment are the big things on Teague's list. In looking at test scores, he didn't just look at the percentage who passed, but also the percentage scoring above grade level on the state exams. His son is bright and well-prepared, he says, and he wants him surrounded with other children likely to excel.

"I don't want it to be easy," he says.

There's data online about violent incidents at schools, as well as what teachers and students say about safety on CMS surveys. But especially for young children, Teague thinks a visit will reveal what he wants to know: "You can pretty much walk into a school and look at the students, talk to the parents."

Charter route?

Deborah Albritton chose First Ward Elementary's "accelerated learning" magnet for her two children because the school was close to her uptown workplace.

This year CMS abolished that magnet as part of a shuffle to relieve crowding at nearby Eastover Elementary. If she sticks with CMS, Albritton will have to check out middle schools for her rising sixth-grader and elementaries for the child that's a year younger.

She's intrigued by KIPP Charlotte, a charter school that serves grades 5-8. It's part of a national chain that focuses on college preparation for minority and low-income students.

Albritton is just starting to check out options. Among the things she wants to know: What do test scores show? Are there good after-school activities? Are there teachers with National Board Certification, a voluntary credential awarded to recognize experience and expertise? Is the school safe?

Charters are public schools, even though they're not part of local school districts. That means state "report cards" list extensive data about test scores, teacher qualifications and measures of safety.

The KIPP Charlotte Web site lists additional information about the school's philosophy and requirements, including the contract students and parents must sign for admission.

Being flexible

When the Rose family moved from California to Charlotte six years ago, they made a common choice for newcomers who care about education. They bought a home in the south suburbs, where their kids would attend some of the district's highest-performing and most affluent neighborhood schools.

By the time son Gregory approached high school, they'd heard great things about Myers Park's International Baccalaureate magnet. He got in. When the school board proposed moving IB students from their neighborhood from Myers Park to East Meck, Leigh and Nicholas Rose fought hard.

Plenty of data about test scores and IB diplomas was tossed around. But what softened Leigh Rose's resistance was personal contact. From the school's Web site, she got contact numbers for East Meck parents. She learned about a fundraising effort to support teachers, which impressed her. She called the band director, who invited her for a tour.

No one in her family has attended schools where whites are in the minority (about one in four East Meck students are white). That worried her at first. But she visited the school and liked what she saw. Now she's hopeful that East Meck will give her son strong academics, with diversity as a plus.

"This school is a lot better than what's been out there," she says. "When I went over there, everything seemed fine."