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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.
Real Estate Recap May 2023
May was an odd month statistically. For the first time this year, May 2023 home sales exceeded May 2022. In fact, May 2023 home sales exceeded May 2022 home sales by 14.8%. Also pending home sales in May 2023 increased over May 2022 by 21.6%.
The average sales price of homes that closed in May 2023 was $424,519. This was a 26.4% increase over the May 2022 average sales price. This is a huge increase in the average sales price for just one year. I am sure that our lack of lower priced homes on the market was the principal driver of this huge increase in prices. It’s getting difficult to find a stick-built home for under $300,000. Most of our home inventory under $300,000 is comprised of mobile homes and doublewides currently.
Many homes on the market here are still selling for the listed price, or sometimes above the listed price. The average home sold in May for 95.8% of the original listing price.
As I commented above, our inventory of homes for sale is still thin. We only have a 2.1 month’s supply of homes on the market in Haywood County. (Meaning if no new homes came on the market and home sales rates remained the same, we would be out of homes for sale in 2.1 months.) A balanced real estate market is usually considered to have close to a 6 month’s supply of homes for sale. We are far below that number. A balanced market has close to an equal number of buyers and sellers. Less than a 6 month’s supply means there are more buyers than sellers, thus a seller’s market. More than a 6 month’s supply means that are more sellers than buyers, thus a buyer’s market. Real estate sales prices have always been determined by supply and demand. When supply exceeds demand, prices go down. When demand exceeds supply, prices go up.
If you have any comments, concerns or questions, please let us know. We are here to help you negotiate the real estate market.
Musings from the Mountains
First, I will try to summarize the real estate market in our area. The market continues to be strong sales wise, and pricewise. We are still dealing with a shortage of homes on the market. This shortage has kept home prices stable, with many homes selling for the listed price, with few discounts. (This is especially true for log cabins and any home in great shape.)
The weather here was cool over the Memorial Day weekend. Sunday the temperature at my house stayed in the 50’s all day. However, temps have risen into the 70’s the last couple of days. Just a few weeks ago the trees were budding, and green leaves were marching from the valleys to the mountain tops. Now the leaves are all mature, and the mountains are a lush green again. Time flies!
There is a lot going on with new building in the Waynesville area. A new housing development is beginning off Jonathan Creek Road, just a short distance past the Jonathan Valley School. Another development is taking shape just off Ratcliff Cove Road, not far from Asheville Road. A new apartment complex is taking shape off Russ Avenue, by Richland Creek. This is a large complex with several multi-story buildings. I would think these apartments may be leasing by mid to late summer. Also, some new homes are being built by the Waynesville Inn and Golf Club. The Inn and golf club are under new ownership. The new owners have been working on revamping the golf course for the past year. The first 9 holes should open soon. This is a much-anticipated revamp of the Donald Ross course originally opened in 1926.
One more item. Last month I mentioned the new location of BearWaters Brewing on South Main Street in Waynesville, which is now open. This location joins their other locations in Canton and Maggie Valley.
Just trying to bring you up to speed on the happenings in the area. Please let us know if you have any questions about real estate. We are here to help.
Real Estate Recap April 2023
Lack of inventory continues to drive the market in Haywood County.
Last year in April we had 139 New Listings come on the market. This year in April we only had 113 new listings.
Last year in April we sold 101 homes, but we only sold 84 this April. However, we do have 113 Pending Sales from April 2023 versus 95 in April 2022.
Last year in April, the Median Sales price was $305,000. This year in April the Median Sales Price rose to $325,000. I believe this increase mainly reflects on inventory. We have fewer homes coming on the market under $300,000, but more coming on the market over $300,000.
Last year in April homes were spending an average of 34 days on the market before being sold. This year in April the days on the marker before being sold has increased to 43 days. However, log homes, and other homes with great curb appeal are still going under contract quickly, as they are in high demand.
One more number, Average List Price of New Listings, was $434,806 in April 2022, but had increased to $473,419 in April 2023.
Getting back to lack of inventory, last year in April we only had a 1.5 month’s supply of homes on the market. This year in April we had a 2.0 month’s supply of homes on the market. That increase was substantial, but keep in mind a balanced market is usually defined as a 5.5 to 6 month’s supply of homes.
Please let us know if we can help you with your real estate questions or needs.
Musings from the Mountains
First, a few words about the housing market here in the Maggie Valley, Waynesville area. Housing inventories remain thin (not enough homes currently for sale). As housing prices fluctuate with supply and demand, this shortage of inventory has housing prices remaining elevated as they have the last 2 years. I believe housing prices will remain stable unless inventories rise considerably.
Second, a word about our weather. Many folks coming here to live, or choosing to purchase a vacation home here, do so for the beauty of our mountains, and our mountain weather. After much of February, March and April having above average temperatures, this week has been cooler with showers. Next week, at least according to the weatherman, will be drier, but still cool. Daytime temperatures next week are forecast to be in the mid 50’s to the mid 60’s. This will be great for getting that garden started, and maybe planting tomatoes.
Third, I want everyone to know about the closing that has been announced for the Evergreen Packaging paper mill in Canton. This closing will directly impact 1000 employees and many other associated businesses such as the chipper mill in Waynesville, and all the loggers in the area who cut pulp wood for the plant, and many others who depend either directly or indirectly on the mill for their livelihood. This is a challenging time for Canton, especially. Kudos to Zeb Smathers, the mayor of Canton, who has been working tirelessly to help displaced workers find other employment and set up training programs to help these workers train for other job opportunities. Many of these workers are second and third generation employees of the plant.
Lastly, I have had customers ask about Pickleball in our area. Pickleball is known as the fastest growing sport in America, and even the world. Many folks coming from Florida have been playing Pickleball there. I can tell you from personal experience that Pickleball is alive and well here in the mountains. The Waynesville Recreation Center has indoor pickleball courts in the Rec Center on Vance Street and the Old Armory on Boundary Street in Waynesville. There are also outdoor courts at Lake Junaluska and more outdoor courts planned in the Allens Creek Park off Allens Creek Road in Waynesville. The town of Canton just opened 6 new pickleball courts in Canton at the rec park across from the Canton Middle School. Also, Bear Waters Brewery is opening a new location on South Main Street in Waynesville, near Walmart. They are remodeling an old warehouse and will have some indoor Pickleball courts according to a newspaper article.
Thanks for reading this. See you next time!
Real Estate Recap March 2023
Looking at the final numbers from March 2023, we are beginning to see sales and prices moderate, although inventories of homes for sale are still tight. The lack of inventory is keeping prices up.
In March of this year, we sold 95 homes in the county, compared to 103 homes in March 2022.
The average sales price this March was $364,678 compared to $379,245 in March 2022. (a drop of 3.8%)
One interesting number from the stats was the percentage of original sales price received. Last year in March the average home sold for 96.6% of the original list price in MLS. This March the average home sold for 93.2% of the original list price. This shows that more sellers are willing to negotiate the sales price a bit. Negotiations of sales prices were rare last year when buyers were often paying over list price.
Last year in March we had 139 homes in the county for sale. This year we have 189 homes currently for sale in the county. Even with the increased number of homes for sale in the county we still only have a 2 month’s supply of homes for sale. (In other words, if no new homes came on the market for sale and current sales rates remained the same, we would sell all our homes within 2 months.) A balanced market (neither a buyer’s nor seller’s market) is usually considered a 6 month’s supply.
To sum up, inventories of homes for sale have risen, but it’s still a seller’s market. Home prices have really gone up in the last 3 years but are beginning to stabilize. If you have any real estate questions, please let us know. We are here to help.
Musings from the Mountains
Good morning. The first thing on my mind today is real estate mortgage rates. We all know that rates have risen considerably from the few years where we enjoyed rates in the 3 to 4 percent range. When the Federal Reserve began raising rates last year to combat the post pandemic inflation, mortgage rates started climbing. Earlier this year rates climbed to almost 7 percent for a conventional 30-year home mortgage. I am happy to say that recently rates have begun lowering. Currently, 30-year mortgage rates for a conventional loan are about 6.125 percent. FHA mortgage rates are currently at 5.625 percent. This month I represented a client who received an FHA mortgage loan for 5.25 percent when buying a home. Of course, I am quoting rates for primary home mortgages. Secondary home mortgages and investment property mortgages will be somewhat higher. Sometimes we, as humans, try to “time the market” on rates. In other words, if rates are declining, we tend to wait until they lower more before we pull the trigger. Always remember, if rates come down a year or several years after you purchase a home, you can always refinance. If rates go up, and you have a fixed-rate mortgage, your rate stays the same, no worries.
On another note, the weather here has been wonderful the last couple of months. We have had some cold mornings, but overall temperatures have been above normal, with warm, sunny afternoons. I have lived here for almost 50 years, and I can honestly say that winters here are getting milder and milder as an overall trend. We get many buyers here from Florida, and some now from Texas. When I ask why they want to live here, or purchase a secondary home here, the most common answer is “I want to get away from the hot summers.” Our cool mountain evenings in the summer are truly a gift.
By the way, if you’re already fortunate enough to own a home here, and may be thinking about selling, please give us an opportunity to do a market analysis on your home. It may be worth more than you think. We really need inventory right now. We have more buyers currently than we have sellers.
If you’re in the area, stop by and say “Hello”!
Real Estate Recap February 2023
Looking at the final numbers for Haywood County in February, it’s a real mixed bag of statistics. Compared to 2022 new home listings were down from 77 last year to 66 this February. We really need more homes to come on the market, as we have more buyers than sellers currently.
Closed home sales this year in February dropped from 77 last year to 56 this year, a 27.3% decrease. However, pending home sales rose 15.2% from last February. (76 this year versus 66 last year)
The median sales price rose from $329,000 last year to $356,900 this year, an 8.5% increase. (Median sales price means the middle price: the same number of homes sold for less than median and the same number of homes sold for more than median.)
The average sales price actually rose 23.8% in February compared to February 2022. $354,100 last year and $438,521 this February. This anomaly is mainly caused by a lack of homes in the lower price ranges. We sold more homes in the higher price ranges, because there are more homes available in the higher price ranges. The lower price ranges have extremely tight inventories.
Average days on the market increased from 32 days last year (when buyers were offering quick cash closings) to 75 days this year, which reflects a more normal market.
Our month’s supply of inventory has increase from 1.2 months last year in February to 1.8 months this February. A balanced real estate market, one where there are an equal number of buyers and sellers is considered a 5 to 6 month’s supply. Obviously, we are still in a seller’s market here in Haywood County.
As you can see from the above statistics, the current real estate market is complex. We are here to help simplify the details and make your next real estate transaction painless. Y’all come see us!
Musings from the Mountains
Today I want to mention a few happenings in real estate today, and a bit of my opinion about short-term rentals in our area.
Typically, home buyers with FHA mortgages pay lower down payments than home buyers with conventional mortgages. This results in their having to purchase Mortgage Insurance until they achieve an agreed upon amount of equity. The Department of Housing and Urban Development recently moved to lower Mortgage Insurance Premiums beginning in March. This reduction in premiums would save the average home buyer $800.00 in their first year of home ownership. With interest rates in the 6% range currently, this would be welcome savings for many home buyers.
We all know that home prices have climbed considerably in the last few years. According to the National Association of Realtors® Chief Economist, Lawrence Yun, home prices nationally have risen 42% in the last 3 years. However, it seems that locally, home prices have stabilized, at least for the time being.
The good, bad, and ugly of short-term vacation rentals: Since the Covid outbreak of 2020, more vacationers have come to prefer renting a vacation property as to staying in a hotel or motel. Originally this was probably driven by vacationers wanting to avoid crowds and come in contact with as few people as possible. Also, others working remotely during the pandemic wanted a place to stay away from crowds. So ultimately, many investors recognized this trend and purchased vacation properties here in our beautiful mountains. A good portion of our homes available for sale were sold and converted from single family residences to short-term vacation rentals. This has contributed to a shortage of homes for sale in our area for both full-time residents and second-home purchasers. Real estate prices are driven by supply and demand. If you lower the supply, and still have demand, prices ultimately rise. Do we have too many short-term rentals now? The jury is still out on that one.
Do you have any real estate questions? If so, please let us know. We are happy to help.
