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Real Estate Recap December 2023
In looking at the Haywood County real estate sales results for December, the same trends that we have been discussing are still happening.
In December 2022, we had 61 new listings come on the market. December 2023 we only had 55 new homes come on the market, an almost 10% decline from last year.
In December 2022, we sold 82 homes. December 2023 we only sold 62 homes, a 24% decrease from last year, although pending home sales rose 17% from last year partially offsetting the 24% decrease.
In December 2022 the average sales price was $395,084. December 2023 the average sales price rose over 12% to $442,735.
In December 2022 the average days on the market from list to close was 92 days. December 2023 this dropped to 78 days. This was probably a result of fewer homes closing enabling attorneys to close quicker.
In December 2022 we had a 2.5 month’s supply of homes on the market. December 2023 this fell to 2.2 month’s supply. (A balanced market is usually defined as a 5 to 6 month’s supply of homes.)
As I said in my opening sentence, the same trends continued in December that have been going on for some time. Fewer homes on the market leads to higher sales prices as buyers compete for homes to buy.
Please let us know if we can help you find a home. Also, if you’re thinking of selling a home, let us do a current market analysis for you. Your home may be worth more than you think.
Musings from the Mountains
Wishing everyone a Happy New Year from all of us at Mountain Dreams Realty.
The last 4 years have certainly been challenging in real estate. We experienced a pandemic starting in 2020. At the start of the pandemic, none of us knew what was ahead for us in real estate. I believe that most of us thought the pandemic would really curtail sales, as many of us stayed home more and were reluctant to venture out among the public. And certainly, at first this happened. However, the pandemic caused many to work from home, rather than go to the office, where they would be more exposed to others. Then those “at home” workers started realizing they could work from anywhere. If anywhere was an option, why not go to the mountains, seashore, lake, or other desirable location? So, a migration of sorts occurred. Many workers moved to their dream locations. Those that could afford a second home also joined the migration away from crowded cities. Real estate sales really started to swell in 2021. That swell continued into 2022, as many of us in real estate had our best sales year ever in 2022. Then in 2023, sales began to slow down, although we still had lots of potential buyers. Lack of inventory became an issue. Record sales had drastically reduced the number of available homes for sale. Also, a parallel issue developed. Inflation was rising too fast for the Federal Reserve, so they began a series of rate increases to slow inflation. This caused interest rates on 30-year mortgages to rise from the 3 and 4 percent range to the 6 and 7 percent range. Homeowners with existing mortgages in the 3 percent range were not going to list their homes for sale and upgrade to a newer home with a mortgage rate twice that of their current home. This created additional pressure on inventory levels, as fewer homes were listed for sale. Real estate prices have always been based on supply and demand. As inventories dropped, buyers were competing to purchase fewer homes. This drove home prices upward almost 50 percent over a 3-year period in some areas. Consequently, many of us in real estate had record low sales in 2023, in stark contrast to 2022.
So, that is my take on our real estate market for the last 4 years. What will 2024 bring? I really don’t know, but I am curious to see how it develops. Rest assured if you are looking for a home to purchase, or wanting to list your existing home for sale, let us know. We know the market; we know the area. Put our expertise to work for you.
Real Estate Recap November 2023
I just wanted to take a moment to reflect on our local market in November. All the same trends that have been happening for most of 2023 continued in November, no real surprises.
New listings were 5.7% ahead of November 2022, which was a good thing. Also pending sales were 25% above November 2022, which is a very good thing. Closed sales in November were down 4% from November 2022, 95 this year versus 99 last year.
The average sales price rose 18.8% from last year to $446,926 in November, while the average listing price for homes rose to $485,908 this year. Cumulative days on the market until sales rose 10.3% from 39 in November 2022 to 43 this November.
Our inventory of homes for sale in November fell from 268 in November 2022 to 224 this November. This decrease in inventory resulted in a 2.6 month’s supply of homes compared to a 2.8 month’s supply of homes in 2022. A balanced market (same number of buyers and sellers in a market) is usually considered between a 5 to 6 month’s supply of homes for sale.
As I mentioned at the beginning, the same trends seem to continue month after month. Our shrinking supply of homes for sale, contrasted with a persistent supply of buyers, continues to put pressure on home prices, pushing the average home price higher and higher.
Whether you’re thinking about selling or buying, or just have a question, we can help you navigate our market. Just give us a call or an email, we’re happy to help.
Musings from the Mountains
It seems the very warm November we were having was briefly interrupted by some cooler weather this week. Also, although we are still pretty dry, recent rains have alleviated our drought conditions somewhat. Wednesday morning we recorded lows around 17 degrees which is the coolest morning in many months. The cooler weather was a boon to Cataloochee Ski Area as they opened officially for the ski season. Cataloochee has a great snow-making crew and state-of-the-art snow-blowing equipment. They actually opened from the bottom all the way to the top of the mountain, which requires making a huge amount of snow. This coming week the weatherman is predicting some cool mornings in the 20’s. So, snow conditions should remain good next week for skiing. Come on up and take a few runs!
The DOT is still working on two of the bridges over I-40 between mile markers 15 and 20. Traffic has been backing up several days a week due to the bridge work. If you are traveling from Waynesville west toward Knoxville, you may want to allow more time for travel.
As you know, we have had a shortage of homes for sale in Western North Carolina, but several new subdivisions have been started with hopes of easing the housing shortage. Also, there are at least two new apartment complexes that hopefully will ease the rental housing shortage in Haywood County. One of the large apartment complexes is on Russ Avenue in Waynesville, where the old Bi-Lo Shopping Center was located. This complex is finally completed and currently taking applications for rentals.
That’s the news from the mountains, please let us know if you have any questions or comments.
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.
