Real Estate life in Asheville, NC
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April showers bring may flowers brings uptick in RE sales in Asheville
The weather is nice and the stats have definitely moved in the right direction. While certainly not as good as last year, Asheville did see the Absorption Rate have at about 17 months, down from 19 months in February. We also saw a rise in average home price as well as median price. We will need to see a trend in this to say for sure that home prices have hit bottom, so we will wait until the end of May to be sure. On the flip side the number of homes on the market continues to rise and we have now topped 8,000 residential properties in Western North Carolina. Two years ago we had 2600. What a difference. A lot of buyers in the market now and with a low amount of foreclosures, we should see a change in the Asheville and surrounding area market.
Asheville Real Estate Market uptics
Well, Easter came early and so did the buyers. The daffodils are blooming and a rush of savey buyers have hit the market. The number of contracts written in the month of march doubled February and almost reach the levels of last year at this time. Asheville buyers have many choices as there is still almost 20 months of inventory. The cream of the crop are selling at realistic prices and in many cases there are multiple offers on those properties priced to sell.
Sellers have figured out if you want to sell your house need curb appeal inside and out. A coat of paint, some mulch and de-clutter will attract buyers. While there is still a lot of investors and first time home buyers out there, the regular buyer in back in the market.
The new buyers are not from the traditional Florida source but from those markets that have not been hit too hard. Smart move on there part, especially with interest rates hovering around 5.75%.
If you are a buyer of Asheville Real Estate maybe you should start looking NOW.
Michael
www.kellerwilliamsasheville.com
SAME OL', Same OL'
The market remains sluggish, but does show some signs of life. Asheville is alive with activity but just not real estate. Spring has begun and houses will start to look more appealing. This will help with first time home buyers. The upper end of the market is still pretty good. The worst part of the market is the middle as homes in the $200-300,000 range as the number of homes coming on the market continue to outnumber the ones sold. Until the supply starts equaling the demand we will continue to see a downward pressure on home prices.
We will report on March numbers in early April.
Asheville Real Estate follows the country Trend
As the weather gets better more deals are being made, but February followed the country trend. We now have over 20 months of inventory currently on the market. This means that sales cannot keep up with the number of houses listed. Average sales price continues to drop. March's contracts look better, but not significantly. What is selling? Homes that are priced right. If they are priced right in this market they sell within 7 days. After that, well, they become one of many. Some popular developments like Biltmore Lake have over 50 homes on the market from $399,000-599,000. Biltmore park has over 25 home on the market. These locations were the hot location a year ago. Now they are at the most difficult price point.
Buyers, where to they come from? Mostly they are investors or first time home buyers. The retiree market has temporarily halted due to retirees inability to sell their homes. When they do they buy quickly. We look for some improvement in March, but we will see.
Michael
www.kellerwilliamsasheville.com
Real Estate in Asheville continues national trend
I said it before but I cannot impress enough on potential buyers to take this opportunity to check out houses you thought you couldn't afford. If you are an investor, you may never see this opportunity again. Rents have not decreased and there is still a demand for a 3 bedroom 2 bath home in a popular school district. Rents will range from 1100-1300 so do the math. Ask for buy downs in the rates as they will increase your cash flow.
Seller take note: Listen to your Real Estate Agent! They know the immediate market and will give you the best advice to be ahead of the curve. Price it right today and you will loose less then you might tomorrow. Make your house look good and take care of repairs. There are too many choice for buyers today. They do not need a fixer upper.
The total volume for our market is down 31% for the first two months compared to last year.
This is not a disaster but it is time to look hard at selling and buying prices.
www.kellerwilliamsasheville.com
BEST CASE TO BUY REAL ESTATE IN ASHEVILLE
A recent article in the February 25 issue of Time Magazine gave the case against waiting to buy a house. Basically they said that if you are emotionally ready to be a homeowner, have good credit, plan to stay put for five years and have been waiting for the perfect entry point, it's time to get serious--before and inevitable rise in interest rates wipes out your atvantage. "The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Jim Svinth, chief economist at Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.
Consider a typical home that sells for $218,900. You put down 20% and get a 30 year fixed rate mortgage at today's rate of 5.5%. Monthy principal and interest come to $994.31 Let's say that 12 months from now same house goes for 10% less or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise just half a point, to 6% your monthly payment would be $994.94 and you would have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotitiate. And you have spent a year living someplace you would rather not be.
Take advantage now of high inventory and low rates. With this scenario you really can't fail to come out on top.
www.kellerwilliamsasheville.com
Cold month of Real Estate in Asheville
The month of January is over and the closed business is down 35% over last year. The written or new contracts is down only 15% which is an improvement over previous months. How the market plays out in the winter months is always affected by weather. When it is warm and sunny people buy homes. When it is cold, snowy or icy, they stay home. Let's hope Asheville" Real Estate market has a bright sunny warm future. Next week an analysis on home prices in the Asheville market.
Michael
www.kellerwilliamsasheville.com
Glad to be back in Asheville
My winter vacation in Puerto Vallarta was great, as was the warm temps and the sun. The whales were jumping and the seas were calm. The Real Estate Market was also jumping. Appreciation rates were over 20% in a year, now that US citizens can get mortgages. Where can you get beachfront property for $3-400,000? The only problem is the closing costs which amount to about 8%---OUCH!! That's $25,000 on a 300K property.
Anyway, the market in Asheville is still lingering but there does appear to be light at the end of a short tunnel. With mortgage rates at 5.5% and prices at their lowest and great selection, this would be the time to buy. So buyers get off your couches and start looking before the market explodes.
MDZ
www.kellerwilliamsasheville.com
New Year Brings Hope for Better Market
The last quarter of 07 certainly wasn't the greatest, but the number of written contracts for December hint at a better start than expected. Over 988 homes' listings expired on December 31, a record for this MLS. Asheville sellers are getting the message that getting real on pricing will be necessary in order to sell their homes. RE companies will have to help sellers get better educated on the market for their homes to sell or we will again see a glut of homes on the market.
Buyers are cautious now, but are still recognizing a good deal when they see it. So whether you are a buyer or seller, look at the numbers first before listing or the competition if you are a buyer before buying.
www.kellerwilliamsasheville.com
Merry Christmas Asheville Real Estate
Well, we got a little Christmas present this year from the Real Estate market. The Asheville market is showing an increase in pendings and certainly more activity than usual at this time of the year. In fact the numbers show that December pendings are better than November, which almost never happens, even in good years.
Certainly the latest report from the National Association of Realtors bears this out: Pending home sales rose for the second straight month -- and were up by 16 percent in the Northeast region and 8.4 percent in the West.
We all know that housing still has a long way to go to full recovery, but Dr. Lawrence Yun, chief economist for the National Association of Realtors, believes that "the worst of the credit crunch has already worked its way through" the system ? and home sales should not only bottom out but register a modest increase sometime during the next 12 months.
Buyers have never had a better time to buy with mortgages still around 6% and eager sellers waiting to sell their home.
I am leaving for London tomorrow and will be back after Christmas. I will have a year end rap up at the end of the month.
Happy Holidays Everyone!!
Michael
www.kellerwilliamsasheville.com
Asheville Real Estate New Home Sales
The biggest problem with our market in Asheville, is the low volume of new home sales. In some cases that market is down over 40%. And with more new construction coming on the market , prospects for 2008 are not looking to good.....for sellers, that is. As for buyers, developers are making all kinds of concessions. If you are in the market for new construction, don't be afraid to ask for all sorts of perks. Want upgrades in floors, appliances, finishes, etc, just to name a few. Maybe you want the developer to bu down the rate from 1/2- 1% point. Good chance they will do it. Make payments for 6 months or a year? Could be.
What they won't do is lower the purchase price, so don't ask. This would effect the appraisal values of other units within the complex. All the perks are not seen in the appraisals. So go out there and find your dream home and give your list of things you want in your new home. You will probably get all or at least most of them. So goes the state of Real Estate in Asheville, NC
Michael...
www.kellerwilliamsasheville.com
Asheville makes the top ten!
We are on so many top ten lists, but this one is very interesting. While the price of homes went up double digits in many other parts of the country, Asheville moved just a little ahead each year. Now while the big boys are in steep declines, Asheville's real estate moves into the top ten of communities with an increase in appreciation. In fact, the value of single family homes went up 9% over last year. Now the fact is that the market is down in total volume about 10% in Asheville Board of Realtors' territory, but what they are buying is up in price. Isn't that interesting. What does that really say. Well, for one thing, it says that maybe there are fewer cheap houses available, period (which I think is the case).
If you are a serious buyer or investor, make December your month to look for property. There never is a better time to buy than December. And sellers, only real buyers come to look now. Don't wait until next year to list your home. Otherwise you will be in with 100's (maybe thousands) of others.
More next week!
Michael
www.kellerwilliamsasheville.com
Late fall splurge in Asheville Real Estate
It seems that November will turn out to be a good month for Real Estate in Asheville. Buyers are trying to get under contract so they can close by the end of the year. Many are realizing that bargains are to be had now. Waiting for winter might not be the best tactic. Chances are many sellers will remove their listings until spring. That is if they can afford to.
Asheville was not hit with the high forclosers that other cities have seen. Most of the purchases over the last 2 years were not subprime mortgages. While there are still some properties going into forcloser the rate is about the same as last year.
Hope everyone had a good Thanksgiving. Now onto the Christmas Holidays. We will give you a report as to the end of the month numbers at the end of the week.
Michael
www.kellerwilliamsasheville.com
Get ready Asheville
Sorry for the delay in blogging this month,but I have been traveling and am currently in Las Vegas at the National Associations of Realtors convention. (Tough life!) While learning the best and latest techniques in getting property sold, I also got to completely understand absorption rate calculation and what it means. In doing the rate for Asheville, we find that we have an inventory of 16 months. This means that it will take 16 months to sell all the houses currently on the market. While that is high (6 months would be a neutral market) it is better than it was 3 months ago (22 months).
So the trend is positive. If I was a buyer I would be looking now for bargains since this probably won't always be the case next year. There is plenty of mortgage money for investors as well as owner occupied homes. I will explore some of the newest tecnology next week.
Michael
www.kellerwilliamsasheville.com
Asheville Real Estate Results for October 2007
The Asheville Market continues its slide but prices are holding. The Asheville area had a 60% drop in total sales for the month of October over last year. While that might seem to be a scary number, the average sales price is and the average days on market has remained the same. Listing continue to be on the rise overall and pendings are still down about 60%. Yet houses do sell and in fact there are several with multiple offers. It just means that if you price the house correctly it will sell, if not buyers will look somewhere else. More analysis of October and YTD numbers later.
www.kellerwilliamsasheville.com
Michael
Mortgage Money for Real Estate in Asheville
Recently, there have been several articles about mortgage money here in Asheville. Let me make it clear, there is money and it is competitive. You still can get a loan even with OK credit. A recent article indicated that you should not use a mortgage company that is part of a real estate company as the rates will not be as good as an outside lender.
While that may be true in some cases, one stop shopping will make the transaction smoother and relieve many of the usual worries. Check around first and then check the inside mortgage company. Remember, they work closely with your agent and would not be there if they could not perform. They also would not be there if their rates were not competitive.
You cannot always control outside mortgage lenders deadlines and requirements, but you can get straight fact from the inside lender and make intelligent decisions.
www.kellerwilliamsasheville.com
Is Asheville a Buyer's Market or Seller's Market?
Well the best answer to the question is....it depends. Asheville has a vast price range. Homes, manufactured homes, cabins begin at $59,000 and range up to luxury homes in the millions. We currently find that the best seller's market is anything below $200,000. From that point Asheville homes become a buyer's market. The higher the asking price the more buyer's market it becomes. Certain neighborhoods are also on the border of seller/buyer market. West Asheville more of a seller's market and Fairview more of a buyer's market. Check with a Keller Williams agent as to the latest report on these numbers.
www.kellerwilliamsasheville.com
Michael
Asheville Real Estate Results for September
The Asheville Real Estate market continues to slide as does all of Western North Carolina. The results of the 5 county WNC Regional Mls system of total home sales is as follows:
September 2006---------------------September 2007
Homes Sold 782 ---------------------- Homes Sold 537
Average Days on Market 87--------- --Average Days on Market 102
Median Selling Price $218,500------- --Median Selling Price $225,000
Sell Price Volume 228,142,543------- --Sell Price Volume 154,915,195
This shows a 32% decrease in volume from last year. Similarly there is a 31% decrease in the number of homes in the Asheville area, sold. This is an accelerated trend from earlier this summer. It could be a cold, old winter for Real Estate in Asheville, if this continues.
Michael
Asheville Real Estate Market Update
The market in western North Carolina continues to stagnate with September numbers showing a 17% decrease in total sales from last year. This is a year to date number. However, the pendings are down a mere 5% which may indicate a leveling off of the market. Expired listings, though, show a 50% increase over last year at this time along with over 50% increase in withdrawls. More information October 1.
Moving to Asheville
So you've thought about moving to Asheville. Is it a good time to buy Real Estate? Are prices going up or down?
Obviously, these questions can't be answered with a generic answer. It depends on where and what price category you are looking for. Right now we find most properties under $225,000 are in a sellers' market. This means that these properties are on the market the least amount of time and may have multiple offers.
If you are in the $300-400,000 range, it clearly is a buyers' market. Prices are not rising in this area and very few are going under contract. This is the range that has the most properties for sale and it keeps rising every month. If you are looking in this price arena in the Asheville area you should get a pretty good deal.
The best time to buy in any market in Asheville is late fall and winter. With the prospects a little gloomy right now and for the next 6-12 months, you might just score a great deal in Asheville.
If you are a seller in Asheville, you must price your house right. Not like the others in your price category, but better. Better usually means lower. Other factors are staging and general curbu appeal.
In our next blog we will discuss marketing your home in a buyers' market. Until then......
Michael
July Market 2007 Asheville, NC
The market in July has had its ups and downs. The following information is based on MLS data comparing July 2006 to July 2007. This is just a snapshot, but it will be a good indication of where the market is.
On the up side are listings (up 10%). Also on the upside is the average listing price which is now $255,226 (up 25%). Also up is the closed listing price which is $288,371 (10%). But the actual average selling price is $274,000 which is up 25% over last year.
Pendings are down 20%, but the listing price of those pended is up 20% with the average being $291,604.
The market continues languish with expired listings topping the 1000 mark for the month of July. This is up 40% over last year.
So we still have a high inventory but with an increase in average sales price. Properties that do sell are taking over 112 days to close.
We will have to watch the trend further to see a clearer pattern. Mortgages have thrown a wrench in the equation and until that is corrected, I think any prediction at this point is just a guess.
Shifting Market Closes in on Asheville
You can't be isolated forever. We are now officially in a buyer's market. While nowhere near other parts of the country, the downturn in sales has hit Buncombe County to the tune of 12%. However, Average Sales Price continues to rise. You can look at the numbers several ways, but it is at best flat and at worst down about 20%. New homes continue to sink as credit tightens its noose around the buyer's neck. It may be back to creative financing, with the seller taking back a second, or buying down the rate to the buyer can qualify.
Sellers need to ask their agents what are you doing differently to market my property. How about an Auction, or Ebay, to name a few ideas. Creativity is the name of the game as is correct pricing. Look for experienced agents who have the best record for pricing and who have new ways to market your property.
No one know how long it will continue, but be sure that the credit markets have to come back before the market does.
Michael
Back from another part of the world
It's good to be back in this part of the world especially when you see the prices of real estate in such places as northern Europe. $5-6,000 a square foot is not unusual in Amsterdam, Stockholm or Helsinki. Interest rates are 8-10%. And as for St. Petersburg in Russia, well, home ownership is just out of reach of the average worker.
In the next day or so, I will have time to review our local market and report back.
Have a great 4th and keep it safe.
Summer Real Estate season
The market continues to languish as we enter the summer. Business is still good but not great. The supply of houses continues to rise which puts pressure on prices. Buyers continue to look but with more choices, it is taking longer for them to decide. They know the market is on their side. If you are a seller and have not had great success in selling your home, there are two unique things you can do.
1. Offer a lease option on your property. There are more buyers looking for this type of housing than there are properties on the market. The reason is their inability to sell their home.
2. Buy down the rate for your buyers. This will expand your market of buyers and give them an opportunity to get more house than they thought they could afford.
BOND MARKET
As the bond market yields rise so do mortgage interest rates. And that's just what is happening this month. Rates have gone up for 10 straight days. Not good for a sagging RE market.
If you are a buyer, you have the leverage to get what you want if you are reasonable. Sellers are not ready to give away their property yet. This is true in this market as well as others that have slowed down.
June will give us a clearer picture of the market's direction.
Off on vacation until July 1. Look for more then. Michael
The numbers don't lie.
Asheville can now claim to be a part of the market shift. When you look at the first 5 months of this year compared to the same period last year, it doesn't look so bad, but if you look at just April and May you will discover the market to be down 20% in closed volume from last year at the same time. Prices have held steady with a slight up tic, but listings have balooned to a record levels in WNCMLS with over 6400 properties on the market.
New home sales are suffering the most with over 4 months as the average "time on market."
It is interesting to note that with all this bad news, the numbers really indicate that business is where it was 5 years ago, which was a steady solid business a temperate growth.
Watch for the next wave of new condos, townhouses, and homes this summer. If the weather is any indication it's going to be a long dry, hot real estate summer.
