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Buying in a Tight Market
Our market continues to be tight, that is inventories are extremely low and we have more buyers than sellers. (A sellers’ market)
I found the below advice about buying in a tight market and thought I would share with you.
HOW TO Buy in a Tight Market
Increase your chances of getting your dream house in a competitive housing market.
Get prequalified for a mortgage.
You’ll be able to make a firm commitment to buy and your offer will be more desirable to the seller.
Stay in close contact with your real estate agent.
Your agent will be on the lookout for the newest listings that meet your criteria. Be ready to see a house as soon as it goes on the market — if it’s a great home, it will go fast.
Scout out new listings yourself.
Browse sources such as realtor.com and local real estate listing sites. Set up alerts for the neighborhoods and characteristics you’re looking for. Drive through your target neighborhoods, and if you see a home you like for-sale, send the address and listing agent’s name to your agent, who can schedule a showing for you.
Be ready to make a decision.
Spend plenty of time in advance deciding what you can afford and must have in a home so you won’t hesitate when you have the chance to make an offer.
Bid competitively.
Your first inclination may be to start out offering something less than the absolute highest price you can afford, but if you go too low in a tight market, you will likely lose out.
Keep contingencies to a minimum.
Restrictions such as needing to sell your home before you move can make your offer unappealing. Remember that, if the market is tight, you’ll probably be able to sell your house rapidly. You can also talk to your lender about getting a bridge loan to cover both mortgages for a short period.
But don’t get caught in a buying frenzy.
Just because there’s competition for a home doesn’t mean you should buy it. And even though you want to make your offer attractive, don’t neglect inspections that help ensure the house is a sound investment.
The above is courtesy of Realtor® Magazine
Sales Stats from January 2022
I wanted to mention a few statistics from home sales in January. Inventory, or lack thereof, remains front and center. In January 2021 we had 208 homes on the market in Haywood County. This year, January 2022, we only had 122 homes on the market. This is 0ver 41% less available inventory than last year. That is only a one-month supply of homes. A balanced market is considered to be a market where the number of buyers and sellers are approximately equal. The real estate industry as a whole considers a balanced market to be a 6.5 months’ supply of homes. This means we have a market where we have far more buyers than sellers. For every home that comes on the market we have multiple buyers looking and possibly making offers, which leads to competition between buyers, which leads to higher selling prices. For example, in January 2022 the average home price rose to $382,304 from $353,126 in January 2021. This was an increase of over 23% from year to year.
Another stat of interest was Percent of Original List Price Received. Last year (2021) was a very good year in real estate sales and the average home sold for 93.6% of the original listed price. This year in January the average home sold for 98% of the original list price. Many homes sold for well over list price.
Also, even considering the lack of inventory in January 2022, we had an 8.5% increase in the number of homes sold.
Will home prices continue to rise this year? Well, I wish I knew, but I don’t have the proverbial crystal ball. I do believe, however, that home prices will continue to remain high and probably increase a little more as long as inventories remain so low.
These beautiful mountains of Western North Carolina continue to bring workers who can work from home, retirees who want to live out their lives here, or city dwellers who want a second home where they can get away from the city and make some cash renting their home on VRBO or Airbnb.
If you are considering selling your home, I cannot think of a better time to do so. If you are looking for a home here, let us know. We can help you negotiate this crazy market.
Cold January but Hot Market
So far, we have had a bit of snow each weekend in January. At my house the depths have ranged from a trace to a couple of inches, 5 inches, and once 7 to 8 inches. At least it has warmed up enough during each week to melt most of the snow before another one hit. The morning lows have been cool, with lots of mornings in the teens and low 20’s.
It has been an especially sad month for Barbara and me, as we lost Dakota. He was our beloved 14 years old Goldendoodle that was a member of our family since he was 7 weeks old. He will be missed greatly.
The real estate market is super-hot here. I listed a home last Friday afternoon at 5:00PM. By Saturday morning my phone was blowing-up with calls and I had more showings scheduled than I have ever had on a house. By 11:00AM Saturday morning, the house was under contract. That afternoon I had 3 backup contract offers.
The main factor driving this hot market is inventory. Inventories of homes for sale are the lowest I have ever seen them. If you are thinking about selling your home, let us know. We can prepare a Comparative Market Analysis on your home to give you a good idea of your home’s worth in our current market. Also, we do professional photography to make your home really pop on the MLS.
As a side note, Cataloochee Ski Area has had a great January. Currently they have 18 of 18 trails, and 5 of 5 lifts open for both day and night skiing with a base of 39 to 58 inches. It doesn’t get much better than that here in the “banana belt” of ski areas. Stay safe!
December 2021 Sales Results
Customers have asked how 2021 turned out for real estate sales, so I thought I would discuss some of the final numbers for Haywood County, NC for December and the year 2021.
In December we sold 122 homes compared with 125 homes in December 2020. This slight drop was mostly due to the availability of homes for sale. In December 2020 we had 257 homes on the market for sale. In December 2021 we only had 157 homes for sale, almost 40% less inventory.
The average sales price of homes sold in December 2021 was $377,385, compared to $334,447 in December 2020, for a gain of 12.8%
The average list price of homes in December 2021 was $431,126, compared to $376,193 in December 2020, for a gain of 14.6%.
Final year numbers for 2021 were as follows:
- The number of homes sold rose 7.0% from 2020.
- The average sales price of homes rose 18.6% from 2020.
- Number of days on the market dropped 53.3% from 2020.
The above numbers certainly show that home sales are very strong here in the Waynesville/ Maggie Valley area. The biggest issue we currently face is limited inventory for sale. With limited inventory it looks to me that prices will continue to rise as buyers compete for fewer homes. If you are considering purchasing a home, or maybe deciding if it’s time to place your home on the market, please let us know. We can help with honest advice and solid data allowing you to reach an informed decision.
Thank you for your interest.
We Had a Bit of Snow
I took this photo this morning, January 3rd, from my home on Utah Mountain. We had about 3 or 4 inches of snow, depending on where you measure, before it began to melt. It was 71 degrees here on Saturday afternoon. Snow and 29 degrees on Monday morning. I always say, if you don’t like the weather here in the mountains, just stick around.
Cataloochee Ski Area, above Maggie Valley, had closed their slopes last week due to the warm weather and loss of snow on the trails. Today they are blowing snow like crazy, and plan to open tomorrow, January 4th, at 9:00AM. So, get your ski rack on the car, and get your skis waxed. See you on the slopes tomorrow. Cataloochee is now selling lift tickets online. Go to Cataloochee.com/tickets to purchase your lift tickets without having to wait in a line at the ski lodge.
It has been an amazingly warm Fall and Winter so far. Maybe 2022 will bring some more snow and good times on the slopes. See you there.
Thanks for a great year!
I wanted to take a moment to say “thank you” to everyone out there who helped us have a great year. It’s too easy in this hustle-bustle world to forget to acknowledge those who made your business a success. With Covid-19, the Delta and Omicron variants, shortages of inventory, rising real estate prices, and inflation in general, it’s easy to forget to say a simple “thank you”.
As the Christmas season is upon us, please consider those around you that may not be doing so well. That veteran soldier and the widow or widower down the street who almost never comes out of the house and lives alone. Give them a call during this season to let them know you are there for them. To some, a kind word from a neighbor could mean a lot.
Merry Christmas and Happy Holidays to you all. May 2022 be an even better year.
Home Prices Continue to Rise
I would like to take a moment to talk about home prices in our area. I am looking at our Canopy MLS Local Market Update for October 2021. (The November update is not published yet.) In October 2020 we had 156 new listings in Haywood County. This year we only had 145 new listings. In October 2020 our inventory of homes for sale was 302. This year our inventory of homes for sale dropped to 206. That is almost 32% fewer homes on the market. This shortage of homes for sale has driven prices upwards. In October 2020 the median sale price of homes sold was $257,000. This year the median price of homes sold in October had risen to $325,000, a 26.5% increase in one year. Last year the average list price on homes on the market was $353,292. This year the average list price in October had risen to $429,042.
The above numbers reflect the fact that home prices are simply based on supply and demand. When demand is strong and supply is dwindling, prices will invariably rise. I have clients who keep asking where are home prices headed? In my opinion, home prices will continue to rise as long as supply remains tight. I would hope that prices rise at a more reasonable rate next year. Of course, there are many factors at play here. The pandemic, politics, war, natural disasters and other unknows cannot be predicted.
Maggie Valley is Growing!
According to the 2020 Census numbers released on August 12, 2021, Maggie Valley had a larger population gain than any other municipality in Haywood County. From 2010 to 2020 Maggie Valley went from 1150 residents to 1687 residents, for a gain of 537 residents or a 47% population gain. To put that in perspective: Canton had a 4.6% population gain, Clyde had an 11.9% gain, and Waynesville gained only 2.7%. Maggie Valley actually had more new residents than Canton and Waynesville combined.
Based on the new tax appraisals, Maggie Valley was able to lower the tax rate from $0.43 per hundred dollars of appraised value to $0.40. This make the tax rate for the town of Maggie Valley the lowest of any municipality in Haywood County.
Maggie Valley will celebrate its 50th year as an incorporated municipality in 2024. It would be great to see our population up to 2000 residents by then. Based on the current rate of increase, this seems entirely possible.
One other bragging right of Maggie Valley- the general fund of Maggie Valley remains completely debt free for a second year.
Thinking of moving to the mountains? Come on up to Maggie Valley; we’ll keep the door open for you.
Millennials to Keep Housing Strong for Years to Come
Avoiding Foundation Problems
©nicolamargaret – Getty Images
7 Fixes to Avoid Major Foundation Problems
Water can damage a foundation in countless ways, so homeowners should look to experts for the dos and don’ts.
Water is not always our friend. Sure, we drink it, swim in it, and need it to survive, but when it comes to homes, it can destroy the foundation, says home inspector Thomas Dabb of Immaculate Home Inspections in South Orange, N.J.
Water can enter a home from the exterior and interior, so buyers and homeowners need to keep their eyes open for signs of its presence—or worse—its damage.
The good news is that there are many experts available to spot and diagnose a problem and suggest the best fix. Water expert Steve Barckley with Exceptional Stone Products in Livingston, N.J., believes that homeowners should start by doing everything possible on the outside of the homes to correct problems and divert water away from a foundation.
Share these seven solutions with clients to help them minimize a foundation’s damage in various scenarios.
1. Improve grading. The slope of a property may direct water toward the base of a single-family house or multifamily dwelling rather than away. Cracks or openings in the foundation then allow it to enter, as well as through higher-level walls, the roof, and other entry points. Fix: “Be sure the grade slopes away from the house,” says Bill Coulbourne, a structural engineer whose eponymous company is near Annapolis, Md. A berm of soil or a swale with planting can prevent water from making its way to a foundation, says Cary Jozefiak, a home inspector with Home Team Inspection in Chicago. Caveats: This approach requires periodic maintenance to be sure the berm doesn’t erode. “It also needs to be directed so water doesn’t move toward a neighbor’s property,” Coulbourne says. Using a French drain to allow water to dissipate slowly from near the foundation into the landscape is more environmentally friendly than introducing it into the street to wash away, says Barckley. French drains also require some preventive maintenance to avoid clogging, Jozefiak says.
2. Waterproof a foundation. Keeping the foundation dry will prevent moisture from accumulating on the outside or entering inside. Fix: If wet, the best fix is to waterproof the exterior perimeter and interior walls of a basement or crawl space to prevent capillary action from building up, says New York City architect Victor Body-Lawson of Body Lawson Associates. “What we try to do is create an envelope around a building so water can’t enter through its skin, sometimes with a rain screen that drains water down and out to a storm drainage system,” he says. A sump pump will help if there’s moisture and water inside. It must drain far enough from a house, so water doesn’t recycle back inside if the property slopes or there’s an opening. Home inspector David Rose of Astute Home Inspections in Plainfield, N.J., suggests the drain be at least 5 feet from a house. A backup battery will prove useful if power fails.
3. Install gutters and downspouts. Water flowing off a roof will land near a house and possibly cause damage over time. Fix: A good line of defense is to have both gutters and downspouts installed around a home or building’s perimeter. The downspouts should extend far enough to carry away the water rather than have it sit near a foundation. Jozefiak recommends six feet away from a house. To keep gutters and downspouts functioning, they must be cleaned. How often to do so may depend on the trees near a house, Coulbourne says.
4. Keep large trees and bushes away from a house. Tree roots and other plant materials try to grow toward water, which can destabilize a structure and penetrate foundations, says Rose. Fix: If large trees already grow near a house, check that plumbing lines are free, and confirm there aren’t foundation cracks. If problems arise, the tree may need to be taken down or bushes transplanted, Body-Lawson says. Sacramento, Calif.-based landscape designer Michael Glassman suggests consulting a licensed arborist to check roots, stability, and if the tree should be removed. “The best time to remove trees is in winter when they are dormant,” Glassman says.
5. Don’t ignore diagonal cracks. Movement, temperature changes, and time may cause foundation cracks to develop. But large diagonal ones require attention from a structural engineer to avoid bigger issues. “Visual clues appear before structural inadequacies do,” says Madison, Conn.-based architect Duo Dickinson. Among the problems are moisture and salt destroying anything made of steel and non-pressure-treated wood, which may rot, Dickinson says. Fix: Cracks suggest settlement and send a red flag that something might be wrong with a foundation, says Body-Lawson. “It might have sagged but it may not deteriorate further. However, if it continues to do so, the foundation needs underpinning.” Cracks that appear in foundation walls due to settlement may be visible in a first floor’s interior, too, says Coulbourne. Hairline cracks are common, but when it’s a quarter-inch in width and V-shaped, it may indicate pressure on an exterior wall.
6. Check for significant leaks and stains, especially efflorescence in a basement. “An unfinished basement is the best basement because it’s easier to see problems,” says Rose. Fix: When a basement is finished, experts recommend looking for clues. For example, a rust color that shows through paint can be a sign of moisture, says Barckley. Efflorescence—white powder left behind from minerals in water—may also appear. Coulbourne says that mold is another indicator, most likely visible at the base of a wall where moisture accumulates. Use your nose, too, he says. “If you walk into a damp basement, you can smell that,” he says. Sometimes areas covered over need to be checked. For example, Rose may pop open ceiling tiles to examine what’s behind them.
7. Learn why interior or patio floors may slant. It could be that a house is settling, which happens over time, says Body-Lawson. “Old houses may sag a little and then stop,” he says. But if the floor or patio was level and now slants, it might be time to hire a structural engineer, says Jason Chang of Jersey Inspections in Verona, N.J. Fix: Floorboards, tiles, and carpet can be picked up, joists shimmed, and a new layer installed, says Body-Lawson. If water gets under pavers outdoors, they may need to be taken up, the pitch of the patio checked, a membrane or drainage system installed, then pavers put back, Jozefiak says.
Barbara Ballinger
Barbara Ballinger is a freelance writer and the author of several books on real estate, architecture, and remodeling, including The Kitchen Bible: Designing the perfect culinary space (Images Publishing, 2014). Barbara’s most recent book is The Garden Bible: Designing Your Perfect Outdoor Space, co-authored with Michael Glassman (Images, 2015).
Article courtesy of Realtor® Magazine.com
