Blog
Real Estate Recap October 2023
At the risk of sounding like a broken record, it seems the same trends in real estate sales keep repeating themselves every month. The big story when analyzing the numbers for October are still low inventories and higher prices.
We had 131 new listing come on the Haywood County market in October 2023, versus 127 new listings in October 2022, for a slight increase of 3.1%. Even with that slight increase our month’s supply of inventory was 2.6 months, compared to a 2.8 month’s supply in October 2022. A balanced market is usually defined as a 5 to 6 month’s supply. (A balanced market is neither a seller’s nor a buyer’s market.)
In Haywood County 78 homes were sold in October 2023 versus 95 homes sold in October 2022, for a decrease of 17.9%. This decrease was mostly due to the shortage of available homes for sale. That shortage also resulted in a rise in home prices in October. The average sales price in October 2023 was $473,879 compared to $369,049 in October 2022, for a whopping 28.4% increase year over year.
Last year in October, the average home was on the market only 35 days until sale. This year the average days on the market increased to 51 days.
Interest rates are still over 7% for new home sales, which has definitely hindered sales, particularly for first home purchasers. The higher interest rates are also keeping homes from coming on the market. Many homeowners with mortgages in the 3% range do not want to sell their homes and risk having a 7%+ interest rate on their new home.
If you are considering buying a new home, or selling your current home, please let us know. We will share our years of knowledge and help you negotiate this difficult market.
Musings from the Mountains
Happy Halloween! As you welcome the little trick or treaters to your door tonight, you’ll feel a bit of a chill in the air. After a couple of gorgeous Fall days in the 80’s, the weatherman is calling for a low of 21 degrees Wednesday morning and 22 degrees Thursday morning. These two mornings will produce the coldest temps we have seen this Fall. Don’t forget, it’s getting time to winterize those second homes, if you’re going away for the Winter.
There has been a lot of discussion lately about the new housing developments coming to the Jonathan Valley area. 3 new developments have been announced that could bring between 300 and 500 homes to the valley. Some have asked “why all the new homes in one area?” Two reasons: First, the Jonathan Creek valley has mostly flat land, which is hard to find here in the mountains. Second, Maggie Valley water and sewer lines run all the way down the 6-mile-long valley. The developments can survey smaller lots, hook up to Maggie Valley sewer and not have septic tanks, which would require larger lots. Also, they can hook onto Maggie Valley city water and negate the need for wells. Maggie Valley has excess capacity to supply both water and sewer to these developments. To gain access to these utilities the developments will become satellite areas within the Maggie Valley city limits. Which, undoubtedly, will increase town revenues from the property taxes on these homes.
Some residents are against developing this area, which has been pasture or crop land since it was first settled. Other residents see the need for more homes, as it is becoming more difficult to find a home to purchase, particularly in lower to mid-price ranges. It becomes a glass half full, or half empty question, with both sides making valid points. Some residents cite traffic issues, but I don’t see that as much of a problem. Jonathan Creek Road (Hwy 276) was widened to a divided 4 lane highway when it served as temporary Interstate 40. The last section of I-40 through these mountains was between what is now Exit 27 and Exit 20. I-40 at Exit 27 moved you to the Smoky Mountain Expressway, then by Lake Junaluska, and then out Jonathan Creek Road to rejoin I-40 at the present Exit 20. That section of I-40 was opened in 1974 if I remember correctly.
Well, that’s the news from the mountains. Remember, it’s only 3 weeks to Thanksgiving. Time to start deciding the menu.
Real Estate Recap September 2023
Sales were down 23.3% from September 2022. New listings coming on the market were also down 30.3% from September 2022.
The average sales price of homes rose 5.8% from September 2022 to $420,941.
The percent of original list price received rose to 96.9% this September versus 95.4% in September 2022.
The average list price of homes listed for sale in September 2023 was $468,082 up 10.6% from September 2022.
The months’ supply of inventory was only 2.6 months’ supply in September versus 2.9 months’ supply in September 2022. A balanced market is considered around a 6 months’ supply of homes.
Trying to tie together the above stats, it’s obvious that a supply shortage of homes for sale has caused sales to drop from September 2022. This shortage of supply has also driven prices higher as buyers compete for available homes. Home mortgage rates have increased to about 7.25%. While this is keeping many potential buyers from purchasing a home, there is also another side of this rate increase. Many homeowners still have mortgages with a 3% or less rate. Those homeowners are extremely reluctant to list their homes for sale. No one wants to give up a 3% mortgage and take on a 7.25% mortgage rate. This disparity in rates has contributed significantly to the current low inventory of homes for sale. October is usually a banner sales month for the mountains, due to all the tourists taking in our beautiful fall leaf season. We will see what this month brings. From my point of view, the shortage of homes on the market will continue to cause sales to be off from last October, and prices will continue to rise.
Please let us know if we can help with your real estate needs, or feel free to call us if you just have a question. (Answers are still free!!)
Musings from the Mountains
We are getting some new home developments in Haywood County. There is a development under construction on Jonathan Creek Road (Hwy 276 North). The development is in the valley, between the highway and Jonathan Creek. According to the earlier press release, there will be a row of town homes, and the remainder will be single family detached homes. No homes have been built yet, as they are still doing grading, adding sewer & water lines, and other infrastructure work. There are also two more developments in the planning stages off Jonathan Creek Road.
Waynesville, and Clyde also have developments in the works. As reported in the Waynesville Mountaineer, the developments in Waynesville may be placed on hold. It seems the sewer system for Waynesville is at maximum capacity currently. I don’t know what the outcome of the sewer situation will be. I suppose we will have to see if Waynesville can find a way to increase capacity or expand their sewer plant.
The new homes would be a boon for the county, as there is still a shortage of homes on the market. Also, there is a need for more rental homes in the area. Rental rates have gone up considerably. Case in point, a home for rent near me is on the market for $2950.00 per month. This home is a modular home with 3 bedrooms, 3 baths, and about 1520 square feet of heated area. In my opinion, a most of Haywood County residents could not afford a $2950.00 rent payment each month.
Obviously, our real estate market is a challenging one currently. If you are looking to purchase a home, or looking to place your home on the market, please contact us. We can help you navigate the challenges.
Real Estate Recap August 2023
Our sales last month in Haywood County (Waynesville, Clyde, Canton and Maggie Valley) were off almost 26% from August 2022. Of course, we all know the market was going crazy in 2022. The average sales price of homes sold in August 2023 was $444,137, which is 12% above August 2022. Inventory of homes currently for sale is only 209, compared to 269 in August 2022. That corelates to a 2.3 month’s supply of homes for sale. (A 6 month’s supply is considered a balanced market.) This certainly places us in a seller’s market.
A few other facts: The current average list price of homes coming on the market is $518,218, which is 27% higher than in August 2022. Days on the market until sale is 40, compared to 25 days in August 2022. (It’s taking longer to get a contract.)
To summarize, sales have dropped this Summer (18.5% in July and 26% in August, compared to corresponding months in 2022). However, average sales prices have continued their upward trend, due mainly to the scarcity of homes on the market.
It continues to be a good time to sell a home, definitely a seller’s market. If you are a buyer, finding a home in your price range can be challenging. Let us help you in this unusual market.
Musings from the Mountains
The Return of the historic Waynesville Arch
From 1933 until 1972 downtown Waynesville had an arch over Main Street to welcome tourists and direct them to the Great Smoky Mountains National Park. Thanks to a concerted effort by citizens of the area, the arch is returning. The new arch will be 60 feet wide, 26 feet high at the highest point, with a clearance of 21 feet beneath the center of the arch.
T. Pennington, an artist and gallery owner on Main Street in Waynesville is creating an artist’s rendition of the arch in her signature style. Prints will be sold by Pennington with 100% of the proceeds to go to the arch fund. She will also be conducting a raffle for a framed print of the arch. Pennington is a renowned local artist who does magnificent work with colored pencils. If you haven’t seen her work, you owe it to yourself to visit her gallery at 51 N. Main Street in Waynesville.
Donations toward building the arch can be made on waynesvillearch.com or by visiting the T. Pennington Gallery at 51 N. Main Street in Waynesville.
If you’re in our area, don’t forget to stop by our office to visit a spell.
Real Estate Recap July 2023
Overall, sales of homes in Haywood County were down 18.5% from July 2022. The main reason for this was a continued lack of inventory.
Here are the numbers below:
This year in July we sold 88 homes, compared to 108 homes in July 2022.
The average sales price this year in July was $401,183 compared to $395,221 in July 2022.
The average home sold this year in July sold for 94.8% of the original listing price compared to 97.2% in July 2022.
The cumulative days on the market until sale this year was 46 days, compared to 22 days in July 2022.
Our number of available homes for sale this year in July was 200 vs. 260 last year in July. (A 23.1% drop in inventory)
As I stated in the beginning, lack of inventory is still driving average sales prices up. This continues to be a seller’s market with more buyers than sellers.
Please let us know if we can help you navigate this market. If you’re thinking of selling, we can do a market analysis of your home to help determine its value in this market. If you’re thinking of buying a home here, we can set up a search inside our MLS, so you get information on new homes for sale as soon as they come on the market.
Musings from the Mountains
While browsing the internet today, I came across an article on Waynesville, NC. Travel and Leisure Magazine posted a wonderful review of Waynesville, emphasizing some of the things that make Waynesville a great place to visit. I loved the comment by Esther Blakely, owner of Cataloochee Valley Tours: “Waynesville is nestled among the Great Smoky Mountains, and they seem to envelop you as soon as you arrive.” This sentence really struck me, as I had exactly the same feeling about Waynesville when I came here over 50 years ago.
The article goes on to mention a charming downtown filled with art galleries, restaurants, antique stores, breweries and nearby hiking trails. They also mention The Swag resort near Waynesville which earned the top spot on the list of resorts in the South in the 2023 Worlds Best Awards. The article goes on to mention the Cataloochee Ranch, Andon-Reid Inn Bed and Breakfast, The Yellow House on Plott Creek Road, and Boyd Mountain Log Cabins. (All great places to stay in my humble opinion)
The article further lists activities in the area, as well as shopping and restaurant suggestions.
Here is a link to the article if you would like to read it in full: http://www.travelandleisure.com/waynesville-north-carolina-guide-7566149
Real Estate Recap June 2023
I realize that I must sound like a broken record, but it seems the same trend in our local real estate continues month after month. Our new listings in June were down 35.1% from June 2022. Our closed sales in June were up 7.1% over June 2022. Our average sales price was up 21.9% over June 2022. Our month’s supply of inventory was down 12.0% from June 2022. The trend seems to be as inventories get smaller, prices keep going higher.
By the numbers:
New listings fell from 185 in June 2022 to 120 in June 2023, a drop of 35.1%.
Closed sales increased from 98 in June 2022 to 105 in June 2023, a rise of 7.1%.
The average sales price increased from $393,407 in June 2022 to $479,707 in June 2023, a rise of 21.9%.
The average list price of homes coming on the market was $451,569 in June 2022, and $479,190 in June 2023, a rise of 6.1%
Our inventory of homes for sale was 265 in June 2022, but only 209 in June 2023, a drop of 21.1%
It’s interesting to note that the percentage of rise in the average sales price was very similar to the percentage of drop in our inventory of homes for sale. Again, supply and demand rules. As inventories go down, prices go up.
If you’re thinking of listing your home for sale, let us know. We can look at your home and prepare a Comparative Market Analysis for you. Your home may be worth more than you think!
If you’re a buyer looking for a home, let us help you navigate this crazy market.
Musings from the Mountains
I can report that we had one of the coolest June’s I can remember. I have friends in Mississippi, Florida and Texas that have been sweltering in the heat, but not so here. Most days have been in the 70’s with a few low 80’s thrown in. At our house, we still have the heat pump set to heat, as many morning lows have been in the 50’s. Tomorrow is July First, and we still have not turned on the air conditioning.
Thunder in the Smokies starts today and runs through Sunday July 2nd. This is the largest and oldest motorcycle rally in Maggie Valley. It runs 11AM to 11PM today, 9AM to 11PM on Saturday, and 9AM to 3PM on Sunday. There will be tour rides, vendors, a bike show, bike games, prizes, concerts and fire dancers. All you bikers come on up and join in the fun!
On July 4th, come on up to Maggie Valley and join us for a Backyard Fourth! The Maggie Valley Festival Grounds will open the gates at 6PM on the 4th. Bring you blanket, chairs, picnic basket and yard games. The fireworks display will begin at dark!
There is also a fireworks display at Lake Junaluska on July 4th beginning just after dark. Do be prepared for a bit of traffic around the fireworks displays, at both locations.
If you have the time, come on up to the mountains and celebrate with us.
