Economic predictions are starting to come true. As homes for sale continue to decline in a growing number of housing markets, sellers are facing less competition price are starting to increase. Inventory for homes for sale have dropped 23% compared to a year ago and we have already seen a fall of 6% between December 2011 and January 2012. Asheville Real Estate has seen a 26% drop in inventory from the same time last year.

Home prices for sale have increased 3% over last year nationally and will continue to increase as inventory declines.

Florida home sales play a big part in Asheville home sales. In fact 60% of all homes sold in Asheville, Weaverville, Maggie Valley and Waynesville are to Buyers from Florida.

West Palm Beach for example homes for sale is down 18%, Miami 32.75%, Fort Myers 21% and Punta Gorda down 21%. So as Florida’s home sales increase so will Asheville home sales.

With the low interest rates and home prices housing affordability rose to a record 20 year high during the fourth quarter of 2011. This is a good indication that Asheville home sales will continue to be strong this year and with a 30 fixed mortgage still under 4% will keep the affordability strongly in favor for the buyer.

Investors have been taking advantage of the bank owned and low prices but know there are a new investor out there you and me. With rental property in demand for example Asheville rental vacancy rate is below 5% the small scale investors  is stepping up to the plate. Their strategy is to buy homes at rock-bottom prices, rent the properties out to cover all of the costs of home ownership for several years, and then one day sell the homes when prices recover. 

We also have that home owner that wants that mountain getaway are taking advantage of the low prices and buying Asheville mountain cabins and placing them in a rental program. Allowing them to enjoy season usage and offsetting the cost with rental income.