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Real Estate Recap September 2024
In September the sale of homes in Haywood County decreased by over 37% when compared to September 2023. The trend in decreasing home sales has continued since March of this year. September 2024 was affected some by Hurricane Helene the last 5 days of the month, however, this trend of decreasing sales has continued for the last 7 months. On the bright side, the inventory of homes for sale in Haywood County increased by almost 58% in September. This increase in inventory gives us a 4.7 month’s supply of homes for sale. (If sales continued at the current rate and no new homes came on the market, it would take 4.7 months to sell all the homes on the market.) For a long time, we have not had enough inventory to fill buyer demand. This shortage of inventory has driven prices up as buyers compete for too few homes. A balanced market (one where there are an equal number of buyers and sellers) is usually considered to be a 5 to 6 month’s supply of inventory. With a current inventory of a 4.7 month’s supply, we are approaching a balanced market. Hopefully, this will ease the upward rise of prices.
Below are a few key stats for September 2024 home sales:
Closed Sales dropped by 37.4% compared to September 2023
The Average Sales Price rose 9.8% to $465,383 when compared to September 2023
Cumulative Days on the Market Until Sale rose to 49 days, a 40% increase compared to September 2023
The Average List Price of homes coming on the market rose to $495,694, an 8% increase compared to September 2023
Inventory of Homes for Sale rose to 381, a 58.8% increase compared to September 2023
If you are considering selling your home, or purchasing a home here, please let us guide you through the process. Our goal is to help you be successful, and to make a friend. That is why so many of our clients and friends are repeat customers. Thank you!
Life After the Flood
It’s a bit strange to have electricity, water and the internet again after being without those things for 5 days. It’s amazing how much you miss having a warm shower. However, many residents of the county are still hurting. Some are without homes, others have lost loved ones, any many are trying to get the mud out of their homes and basements. The low-lying areas of Waynesville and Maggie Valley did have flooding issues. One campground on Jonathan Creek was completely destroyed, other campgrounds suffered much damage. The Cruso area of Haywood County, south of Canton, suffered much damage. This was the same area devastated by tropical storm Fred. The towns of Canton and Clyde suffered much damage also. To make matters even worse, the eastbound lanes of Interstate 40 at milepost 6 were washed away. It will perhaps be a year before this damage can be repaired. So, I-40 northwest of Waynesville is closed. Sections of two interstate bridges on I-26 north of Asheville in Tennessee were washed away. Needless to say, it is somewhat difficult to leave western North Carolina towards Knoxville, or the tri-cities areas of Tennessee. Yesterday the National Park Service announced they were opening US 441 from Cherokee to Gatlinburg (over Newfound Gap). This will give us a route toward Tennessee, but with additional traffic it may be a slow route adding about an hour or more from here to Knoxville.
As bad as it was in Haywood County, Buncombe County and Asheville were much worse. Historic Biltmore Village in Asheville had catastrophic flooding. The Wendys Restaurant in Biltmore Village had water almost up to the roof. The River Arts District of Asheville was almost completely washed away. The town of Swannanoa was also hit hard.
Please keep the people who lost so much in your thoughts and prayers. Also forgive us if you have called the office and we did not answer. We just got internet and phone service restored today. Cellphone service has also been spotty to non-existent.
Real Estate Recap August 2024
It looks as if the same trends I noted for Haywood County in July continued into August. Real estate sales were off from August 2023, and inventories were up considerably. It appears the market is rapidly heading from a seller’s market to a balanced market, if not a buyer’s market.
New listings increased almost 23% in August 2024 compared to August 2023.
Pending sales were down over 6% in August 2024 compared to August 2023.
Closed sales were down over 2% in August 2024 compared to August 2023.
The median sales price fell from $399,900 in August 2023 to $370,000 in August 2024, down 7.5%.
The average sales price fell from $451,320 in August 2023 to $444,593 in August 2024, down 1.5%.
The average list price of homes coming on the market in August 2024 actually increased from $501,529 in August 2023 to $611,685 in August 2023, a 22% increase. This is mainly due to some high-end homes coming on the market in August.
Our inventory of homes on the market in August 2024 for Haywood County rose to a 4.8 month’s supply versus a 2.8 month’s supply in August 2023. A balanced market is usually defined as a 5 to 6 month’s supply of homes. At a 4.8 month’s supply, we are very close to a balanced market. If inventories continue rising, we could go into a “buyer’s market” in the near future.
If you’re thinking of selling your home or will be searching for a home in our area, or just have questions, please let us know. It would be our honor to help you navigate the process.
Musings from the Mountains
I wanted to mention again the upcoming Music at the Mill. This is taking place Saturday, September 7th at 14 Hugh Massie Road, Waynesville, NC. The featured acts are the Hill Country Band and The Biscuit Eaters. Hours are 11AM until 4PM. There will be crafters there and a milling demonstration at 1PM. The Old Francis Grist Mill is a remnant of the past here in the mountains. The mill invites school groups each year to see demonstrations of how we used to get our cornmill and flour. Mountain Dreams Realty is a yearly sponsor.
The weather was fantastic here last week. Most days the highs only reached the low to mid 70’s and mornings were a chilly 50-55 degrees. However, this week it turned warmer again with highs today in the mid to high 80’s. Next week the temperatures will again dip lower, as it looks to be on the cooler side. (At least according to the weatherman!) I look forward to those cool mornings again.
All the wildlife is foraging for food. We have a mother deer and her fawn coming to the front yard daily to eat the wild cherries that have fallen off the cherry tree onto the ground. Our neighbor had a bear looking for his supper by their home last evening. I have been seeing a flock of turkeys near the house about every morning. Barbara has a beautiful skunk that comes by the house often with her 4 little baby skunks. I do love living in these hills.
Y’all come on up to see us.
Real Estate Recap July 2024
Looking at the final sales numbers from July 2024, it’s apparent that the same trend I have mentioned in previous blogs is continuing. As more and more new listings come on the market, our shortages of inventory are getting better. For July 2024 our new listings gained almost 39% over new listings in July 2023. This is a welcome addition of new listings to our market. As I have mentioned previously, a balanced market (an equal number of buyers and sellers) is usually defined as a 5 to 6 month’s supply of homes. In July 2024 we finally got up to a 4.0 month’s supply of homes. In July 2023 we only had a 2.6 month’s supply of homes. Unfortunately, home prices have not stabilized yet and are still rising. The average sales price of homes sold in July 2024 rose 26.2% over the average sales price of homes sold in July 2023.
Here are some of the raw numbers from July 2024 Haywood County sales:
New Listings rose 38.8% from July 2023
Closed Sales dropped 3.4% from July 2023
Median Sales Price rose 13.5% from July 2023 to $405,000
Average Sales Price rose 26.2% from July 2023 to $506,365
Cumulative Days on Market Until Sale rose 8.7% from July 2023 to 50 days
Average List Price of homes coming on the market was actually down 1.5% from July 2023
Inventory of Homes for Sale rose 48.2% from July 2023 to 332 homes
If you are thinking of buying or selling, and you have questions, please let us know. We will give you honest, informed answers and help you through the process.
Musings from the Mountains
Late today the MLS changes I spoke about last month will become effective. In the past, we have been able to see the buyer agent commissions being offered on a listing in the MLS. Due to some class action lawsuit outcomes, MLS’s will no longer be permitted to post commissions. Now we must call the listing agent for a property to find out how much, if any, commissions the seller is willing to pay a buyer’s agent if the buyer’s agent brings a ready and willing buyer for the seller’s property. Also, we must tell sellers when listing a home for sale, that paying a buyer’s agent is no longer required. If the seller chooses, they may not offer any commission to buyer’s agents. So, how will a buyer’s agent get paid if the seller is not offering any commissions? We will get paid from the buyer! That’s correct, the buyer will have to negotiate commissions with a buyer’s agent, sign a Buyer’s Agent Agreement, then the buyer’s agent will be paid at closing. Also, a buyer’s agent can no longer even tour a home with a perspective buyer until the buyer’s agent has a signed Buyer’s Agent Agreement with the buyer.
As a buyer’s agent, how do I feel about these new rules being forced upon us? Not so great. How will a young couple, probably first-time home buyers, who often have a tough time just coming up with a down payment, come up with extra cash to pay their buyer’s agent? I feel the new rules place a heavy burden on buyers who don’t have the extra cash. At this point there are still many homes out there for sale that are still offering commissions for buyer’s agents. I think this is a very wise move for a seller. If the seller is offering to pay commissions to a buyer’s agent, this solves the problem for a cash-strapped buyer. Commissions have always been around 6% in this area for selling a home. The commission percentage has always been negotiable. When a buyer’s agent brings a buyer with an acceptable offer to the seller, the listing firm would split the 6% commission (or whatever commission was negotiated) with the buyer’s agent. That can still happen on homes where the seller has agreed to a commission arrangement that honors both the listing agency and the agency representing the buyer.
If you are considering selling a home, or buying a home, please call or come by our office. We can help you through all the new rules that we must live by and help you negotiate the process for a successful outcome. Thanks as always!
Real Estate Recap June 2024
Overall, most of the trends observed in the May 2024 numbers also carry through to the June 2024 numbers. Sales continue to be off a bit from June 2023, and the inventory of homes for sale continues to be slim, although improving. The median sales price increased again, but the average sales price only increased minimally. (This could be the result of selling a significant number of more expensive properties.)
Below are the key numbers for June 2024 compared to June 2023 for Haywood County, NC:
New listings increased to 148 for a 22.3% increase.
Pending Sales increased to 102 for a 24.4% increase.
Closed Sales decreased to 70 for a 35.2% decrease.
Median Sales Price increased to $427,195 for an 8.8% increase.
Average Sales Price increased to $482,510 for a 1.4% increase.
Average List Price of new listings increased to $503,213 for a 7.3% increase.
Inventory of Homes for Sale increased to 317 for a 31.0% increase.
Months’ Supply of Inventory increased to 3.8 months for a 40.7% increase.
As I pointed out in the beginning, sales continue to drop a bit and inventories continue to rise. Even though we now have a 3.8 months’ supply of inventory, this is significantly lower than a 5 to 6 months’ supply, which is considered a “balanced market”. (In a balanced market there would be an almost equal number of buyers and sellers.) We have been in a “sellers’ market” for some time now. However, with sales falling slightly, and inventories rising, I believe we are heading for a more balanced market.
Please let us know if you have any real estate questions. Whether you are a seller, or a buyer, we can help!
Thanks to Canopy MLS Local Market Update for June 2024 numbers.
Musings from the Mountains
As a Realtor® I don’t usually look forward to July 1st. That is when our forms we use for real estate transactions change each year. The North Carolina Real Estate Commission and the North Carolina Bar Association confer and update our forms as necessary. It seems this year they have outdone themselves. Due to several nationwide lawsuits over seller and buyer paid commissions, much has changed. Multiple listing services will no longer be permitted to list commissions paid to Realtors® for their services and their time involved in a real estate transaction. Also, we now must have a written agreement with a buyer as to the compensation for our services before we can tour a home with that buyer. I believe that most sellers will still want to pay commissions for a buyers’ agent, as they have in the past. However, that is now totally up to each seller as to whether they will offer any compensation for buyers’ agents, and if they do offer commissions, how much they will offer. If I am representing a buyer who wants to make an offer on a home, it appears I will have to contact the listing agent for that home to ascertain if the seller is offering a commission to a buyer’s agent. If there is no commission offered for a buyers’ agent, we can attempt to negotiate a commission into the buyers’ offer. The bottom line though, if the seller will not negotiate a buyers’ agent commission, then the buyer will be obligated to pay the commission agreed upon in the written buyers’ agent agreement. For some buyers, this may not be an issue at all. For others, for instance a young couple who are first-time buyers, this can be very difficult. First time buyers will not only have down payments and closing costs to cover, but also the buyers’ agent commission if none is offered by the seller. Many first-time buyers will simply not be able to write those checks, effectively preventing them from purchasing a home.
All this is very new to us. Hopefully, as we implement the new process, we can get the kinks worked out. If you have any questions about how these new regulations will affect you, please let us know. We will be happy to go over the new forms and procedures with you individually.
Real Estate Recap May 2024
For the first time in a long while, our Month’s Supply of Inventory actually increased from 2.4 months last year in May to 3.4 months this year in May. That means out market is still a seller’s market, since a balanced market is a 5 to 6 month’s supply. However, this is the most inventory we’ve had to work with in some time. Also, the average sales price of homes sold actually dropped, all be it a small amount, from May of last year to May of this year. Does this mean our market is gradually changing from a seller’s market to a buyer’s market? I believe that still remains to be seen. The numbers are still a step in the right direction.
Here are some other results from our May 2024 sales in Haywood County:
Pending sales were off 20.2% from May 2023.
Closed sales were off 13.5% from May 2023.
The median sales price rose 5.2% from May 2023 to $373,000.
The average sales price dropped 0.2% from May 2023 to $420,572.
The average list price of new homes coming on the market rose 10.9% from May 2023 to $597,537.
Our county-wide inventory of homes for sale rose 26.7% from May 2023 to 280 homes.
If you have any real estate questions, or if you are thinking of listing your home for sale, please let us know. We can come to your home and do a Comparable Market Analysis to let you know what your home is worth in this crazy market.
Musings from the Mountains
Downtown Waynesville finally erected a new “Gateway to the Smoky Mountains” sign on Saturday June 1st. The original sign was erected in 1933. It fell into disrepair and was taken down in 1972. I still remember the old sign. I have included a link below from WLOS, TV13 in Asheville, who covered the official unveiling. Click Here to see the Video.
It was very sunny and bright at the house this morning at 3500 ft. elevation. As you can see from the photo above, there was a fog layer over Jonathan Valley. It appeared the fog layer was so thick; one could walk on it.
The weather here in Haywood County has been a bit on the wet side for the last few weeks. Today has been warm with late afternoon showers predicted. That same forecast holds true for most of this week. If the weatherman is correct, it looks like Friday and Saturday may be the pick days this week for good weather.
Not much to add this week. If you do have any real estate questions, please let us know. We are here for you.
