Real Estate Information

Home sales are on the rise in the Asheville/ Waynesville area.  The average price per square foot for Asheville NC was $139, a decrease of 6.1% compared to the same period last year. The median sales price for homes in Asheville NC for Apr 10 to Jun 10 was $191,998 based on 310 home sales. Compared to the same period one year ago, the median home sales price increased 7.3%, or $12,998, and the number of home sales increased 37.8%.

I was quoted from a lender last week a 4.5% interest rate 30 year fixed. I do not remember interest rates being so low for so long. This is a great time to either refinance or purchase a home. http://bit.ly/axLhub

Even though the mortgage rates are at an all time low Mortgage Bankers Association note that demand for loans have fallen in six out of the last seven weeks.

Average interest on a 30-year fixed mortgage fell to an all-time low of 4.69 percent this week, down from 4.75 percent a week ago, reports Freddie Mac.

Although rates have held below 5% the consumer does not seem to be taking advantage of the low interest rates they seem to be concerned about employment and the current economy.

We know that timing is everything so we try to make the right decision based on our knowledge or talking to financial advisers. Few rely on their real estate broker for advice when thinking about making that important investment in a home.

Here is some food for thought, I have never seen home price as low as they are now or interest rates. Will homes continue to drop? For the rest of 2010 home prices will continue to drop however if you are planning on financing the low interest rates will make a big difference in the monthly mortgage payment.

When buying a home we must keep in mind that most families will live in their home for an average of five years. The home owner will rarely live in their home long enough to pay the mortgage off. So what really needs to be in front of your mind when investing? The answer is will you be able to sell your home for more than you purchased it for three to five years later.

Most of the economists feel that residential real estate recovery will be in 2 ½ years. So the answer would appear to be yes your home will be worth more and you have enjoyed a very comfortable monthly payment.

Areas in North Carolina like Asheville Homes or Waynesville Real Estate seem to be much stronger market than many other areas.

So what is the answer? A good friend of mine told me it is hard to when the Lottery if you do not buy a ticket.  

I was talking with a contractor yesterday that told me one of the biggest challenges they are facing with new home construction with Asheville homes is when the bank orders an appraisal for the loan that the value is appraised under the cost of construction. Materials for new construction continue to increase in cost making it even more difficult to build if financing is needed.

New home starts are down it may not be because the consumer does not want to build but because it is a stronger investment to buy an existing home. I believe this will continue to be the trend for some time.

Home size continues to decline and the buyers increasingly opt for single story homes. The average home size is 2438 sq ft; last year was over 2500 sq ft. This does not actually bring the cost of building down as the smaller the square foot to more expensive it will become in most cases.

Waynesville real estate for existing homes continue to be strong as well as Asheville homes. 

There has not been a better time to buy an existing home plus the interest rates are still an all time low.    

The experts tell us that housing shortage may be here soon. But I find it interesting that figures may not always give us a true picture of what is going on. Because of unemployment many young families are moving back in with their parents, some are doubling up and renting. So what is the future of new housing? There are over 7 million homes vacant but not for sale, financing is difficult so it will still be sometime I believe before we see any kind or shortage impact. The Waynesville and Asheville North Carolina home sales are increasing but mostly resale homes.

Those builders that are still in business and the developments that still have plenty of vacant land to build on will still need to wait for another year or two I believe and once the banking industry stops being so difficult we will start seeing a positive up-swing in new homes. http://bit.ly/bHKYmI

I try to stay up with the statistics on home sales, by reading the articles of different experts on when they think things will turn around. So what is really going on?

Home sales figures indicate that everything is looking better. Sales have increased over the same time last year from 7% to 21% in past months. The figures are also telling us that in some areas home prices are stabilizing and in some cases increased. But one of the most recent articles I read said it will not be until 2013 before real estate market turns around.

So what the heck will it be another two and a half years before we see real estate getting better? Home sales figures in past months are inflated because of the tax credit. Over 40% of home sales are because of the tax credit and we will still see these inflated numbers through June and perhaps July.

I believe that each market will dictate its own future. Areas like Florida where home sales figures went through the roof years ago will take longer to turn around but are already seeing some positive swings in increased sales. Asheville homes and areas like Waynesville real estate that did not have as crazy inflation in years past will see a faster turnaround and are currently seeing more activity.

The good news for Buyers is that home prices are at an all time low, interest rates are the lowest they have been all year and banks are lending.

Because new construction has almost stopped within the next two years we could see a shortage of homes and this will start a big swing in building that will put a lot of people back to work and home prices will start increasing at a faster pace.

Well years ago when the stock market started having its problems I asked my broker what I should do? He said George I do not know! I must admit I do not know how fast it will turn around and frankly I do not believe the experts know either but I do know that it needs to be a slow process to have a lasting impact.

We must keep in mind if the experts are right and real estate will not be turned around until 2013 the process needs to start at a point long before that date and I believe it has.

This is great news and employment is the key. Asheville and Waynesville area is starting to feel the optimism of the consumer as real estate sales continue to grow. Home sales have increased nicely however vacant land continues to be slow. There has never been a better time to purchase an Asheville or Waynesville Home with the prices and interest rates at an all time low.
N.C. employers will add jobs at a modest pace this year as the state continues its economic rebound, UNC Charlotte economist John Connaughton said Tuesday in his quarterly economic forecast. He predicts that the state's economy will grow 2.2 percent this year over last.
http://www.charlotteobserver.com/2010/06/02/1472601/economist-nc-is-on upswing.html#ixzz0phZB3Y8L

New Home Sales Soar 15 Percent in April
New home sales soared in April as homebuyers rushed to claim the tax credit that expired at the end of the month. New home sales rose 14.8 percent in April to a seasonally adjusted rate of 504,000 and improved 47.8 percent when compared to the previous year. http://money.cnn.com/2010/05/26/news/economy/new_home_sales/index.htm

Existing-home sales rose again in April with buyers motivated by the tax credit, improving consumer confidence and favorable affordability conditions.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.
http://www.realtor.org/press_room/news_releases/2010/05/ehs_april

The Real Estate Market Reports for March 2010, Asheville home values were Up 1.16% compared to February 2010 and Up 2.61% compared to March 2009. http://bit.ly/aNsOW2

U.S. home prices will begin a gradual recovery by next year, according to a survey of 92 economists and other housing analysts. The analysts on average expect home prices, as measured by the S&P/Case-Shiller national index, to rise about 12 percent in the five years ending Dec. 31, 2014. http://bit.ly/9tMaCU