It has been a bit since I really sat down and expressed what in happening in regards to Real Estate in Haywood County North Carolina. I would like to say that we are taking it all in stride, but I will not lie. It has been a challenge. All year we have been looking towards the next “busy time” that will bring an influx of customers into the mountains to buy that special get-a-way. It started in the Spring, the flowers and trees started to bloom and we said “ok, it is coming. The visitors will be back and the sales will increase, but the market did  not pick up.  So , we said school is not out…When it gets out “they will be back” . Well this went on all Spring, Summer, and now fall. Unfortunately, we never had that “rush” of customers.

I guess we should consider ourselves lucky that the market continued even though it was slow. I know there are agents out there that are having a very tough time. Our company has maintained a steady flow of sales. We are ranked #3 in our county and have had over 80 transactions to date (typically we do 150 or so in a year).  We have about 15 transactions in the pipleline so we are better off than most. That said, it has still been a challenge to get from month to month. When your company is set up with an overhead based on a average of 150 transactions and you only do half of that, it creates a problem. I believe we have been proactive for months and knew that the market would be slow, but nobody knew that the global economy would crumble around us.  

All parts of the economy have been affected, but is there a profession hit harder by this than the 1.2 million Realtors in the US? We hear daily of bailouts for the banks, for other financial sectors, for the automakers, soon the airlines, and on and on. It has been the housing downturn that has caused all this so who do you think is affected the most? Yes, anyone associated with real estate especially the Realtors. Are we asking for a bailout? No way! I do not think it is the way our professionals operate. In good times we are accused of making to much money for doing very little work and well folks it is just not true. This is my “second” profession and I can tell you the professionals in this business work as hard or harder than any. Throw in a housing crisis and we have had to work even harder for little or no pay. We come to work each day and try to find answers to a general lack of buyers. How do we get people off the fence, what incentives do we offer, and how do we reach more potential buyers are just some of the questions that we face.

I hope that the bailout monies make it into the system, the financial markets rebound, and the housing industry rebounds. If it does not the unemployment numbers will go up and there will be many that are not accounted for such as Realtors who are independent contractors and many times are not see as having “real jobs”. Call your local Realtor today and tell them you appreciate them and send them a lead! Their families are depending on it!

Meanwhile, median price of a new home drops to four-year low, $218,400

Breaking news

Associated Press

updated 10:36 a.m. ET Oct. 27, 2008

WASHINGTON - Sales of new homes recorded an unexpected increase in September as median home prices dropped to the lowest level in four years, the Commerce Department reported Monday.

Sales of new single-family homes rose by 2.7 percent last month to a seasonally adjusted annual rate of 464,000 homes, Commerce said. Economists had expected sales would drop from the August level.

The median price of a new home sold in September declined by 9.1 percent from a year ago to $218,400, the lowest price level since September 2004, a period when home prices were rising rapidly as the country experienced a five-year housing boom.

The surprising increase in September sales still left them 33.1 percent below the level of a year ago as the country is battered by the worst slump in housing in decades.

The report on a rise in new home sales followed news last week that sales of existing homes rose in September by 5.5 percent, the largest monthly gain in more than five years.

Analysts: No bottom — yet          
Analysts are not convinced that the sales increases are signaling a bottom for the housing market. They note that the September gains came before the latest upheavals in financial markets which have raised new worries about the overall state of the economy.

Many analysts believe the country has already entered a recession. They are forecasting significant increases in job losses which will make it even harder to mount a sustained rebound in housing.

New home sales fell by 21.4 percent in the Northeast and were down 5.8 percent in the Midwest. However, sales rose by a sharp 22.7 percent in the West, a region of the country which has seen some of the biggest declines in prices, a development which has spurred sales. Sales were up 0.7 percent in the South.

The rise in sales left a total of 394,000 unsold new homes on the market at the end of September, down a record 25.4 percent from the number of unsold homes on the market at the end of September 2007.

Builders have been sharply cutting back on production, trying to get inventories more in line with sales.

Even with the latest drop in total unsold new homes, the inventory represents a 10.4 months supply at the September sales pace, still a historically high level.

The inventory of unsold existing homes is also remaining near historic highs as that market is being increased by a record wave of home foreclosures.

The 2.7 percent rise in sales for September new home sales followed a big 12.6 percent drop in August, which was revised sharply lower from the government’s initial estimate. Sales in July had risen by 3.6 percent. 

Below is a look at residential sales in Haywood County NC for the month of September 08 vs 07. There a few positives in these numbers. Comparing back to 07 homes sold for a bit more in September 08 which tells us there was a small level of appreciation. You will also see that sellers came off their listing price futher which tells us sellers are willing to negotitate more. 

Waynesville North Carolina currently has 354 homes on the market. Prices range from $62,000 to $3,950,000. In the past year 218 homes have sold in the Waynesville NC area or an average of 18 homes per month. The current absorbtion rate for Waynesville is 19.6 months which means of no other listings came on the market it would take over 19 months to sell the current inventory.

Nationwide housing inventories continue to climb and we are not different in Maggie Valley. As of today in Maggie Valley (including Ivy Hill Township) there are 312 listings with a price range of $62,000 to $2,980,000.

In the last year in Maggie Valley 120 homes have sold or on average 10 homes a month.  Our current absorbtion rate is 31.2 months which means we have just in Maggie Valley over 2.5 years worth of inventory. 

Are you a buyer? Get off the fence and find the deals. There are plenty out there. Come to our home buying seminar and we will have plenty of specials and deals.

Are you a seller?  Get your price down! You are losing money everyday the home stays on the market. If you think you will hold out for a better market it could be years. We do not have a crystal ball, but all economic indicators are not positive. Get it sold now or risk losing even more.

Pending sales of existing U.S. homes unexpectedly jumped in August to the highest level in over a year, data from a real estate trade group showed on Wednesday.

AP

The National Association of Realtors Pending Home Sales Index, based on contracts signed in June, rose 7.4 percent in August to 93.4 from an updwardly revised index of 87.0 in July.

The August reading was 8.8 percent higher than a year earlier, and the highest level since 101.4 in June 2007.

Economists polled by Reuters ahead of the report were expecting pending home sales to drop by 1.8 percent.

The association’s senior economist Lawrence Yun said home buyers responded to improved affordability, with home prices low and mortgage rates down after the government takeover of Fannie Mae and Freddie Mac.

Meanwhile, applications for U.S. residential mortgages climbed last week from the lowest level in a month as home loan rates declined.

Lending conditions remained tight with global financial markets in chaos, crimping mortgage activity, analysts said.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity rose 2.2 percent in the week ending Oct. 3 to 465.5 after falling 23 percent the prior week to the lowest level since the end of August.

Mortgage rates declined last week.

As investors rushed to the safety of U.S. Treasury securities, yields fell on the debt, which is used as a peg for home loan rates.

Fixed 30-year mortgage rates averaged 5.99 percent, down from 6.07 percent the prior week.

The MBA’s seasonally adjusted index of applications for loan refinancings rose 0.9 percent last week to 1,345.8 after tumbling 34.7 percent a week earlier.

The gauge of loan requests for home purchases climbed 3.2 percent to 314.5 after dropping by 10.9 percent.

Major U.S. stock indexes tumbled even after a $700 billion U.S. government rescue program was enacted on Friday and the Federal Reserve this week unveiled new steps to improve financial system liquidity.

The programs are intended to boost confidence and the willingness of financial institutions to lend.

Unemployment is at a five-year high and expected to keep rising, meantime, which could dampen demand for home purchases, analysts said.

Realty World Heritage Realty is trying to do our part to bring buyers and sellers together in these difficult times. The below press release gives the details of our home buying seminar which will take place next week in Maggie Valley. Many of our sellers have agreed to lower the prices on their property for these events. If you are in the market for a home or land we will have some great deals during this event.  

Current Market conditions create a unique “Buying Opportunity” for property across Haywood County. This may be a “once in a lifetime opportunity” to save tens of thousands of dollars on property that you want to own.

To take advantage of this current “Buying Opportunity” a Seminar and Tour of Homes is being organized to bring Buyers and Sellers together. The Seminars and Tours are open to the public and are free.

Sellers will be reducing the prices on quality property and homes through out Haywood County for this special event. Prices will be reduced by up to 10% or more. Creative financing options will also be available on some properties.

Loans for home purchase are readily available in our market and interest rates and terms are very attractive. The recent Housing Legislation provides for first-time home buyers incentives with a $7,500 tax credit.

Despite the difficult headlines regarding home loans; our area has available credit.

There will be lenders on site during the seminar to help buyers take advantage of these loans. Affordable housing in Haywood County is now available.

Higher inventory gives buyers a wide range of properties that may fit the budget and their needs. Rarely in recent history have all of these factors come together to create such a favorable housing market for buyers. Buyers will be shown houses as part of the ‘Tour of Homes & Great Buys’.

The convenience factor of viewing homes that have reduced prices, excellent financing terms, and a wide variety of inventory will not be surpassed. The real estate market has been showing signs of improvement and these favorable conditions may not be available again.

If you have been watching and waiting – then this may be the time to move into the market. Attend the Seminar on Thursday October 16^th at 6:30 (Child care will be provided). Saturday October 18^th at 10:30 will be the last seminar date. Location: Maggie Valley Creekside Lodge, U.S. Hwy. 19, Maggie Valley, NC.

The Tour of Homes will follow the Seminar, or by appointment.

Realty World – Heritage Realty and Action Mortgage are sponsors of this free program. To reserve a seat you may contact them at 828-926-5200. If you are a seller and would like to participate in this event, contact the office. Seminar and Tour info available at www.RealtyWorldHeritage.com