Blog
Potential Foreclosures Fears are Fading
Due to the amount of home mortgages that were in pandemic-related moratoriums, many analysts predicted a glut of foreclosure homes when the moratoriums ended on June 30th. However, several large banks have reported that most clients have already exited those programs and began paying their mortgage payments again. JP Morgan reported that about 90% of their customers who were in the forbearance programs have now exited those programs. Also some banks indicated they have their own programs to help clients who still have difficulty with mortgage payments due to Covid-19 related issues. So, it would appear there is to be no glut of foreclosure homes coming on the market anytime soon.\
Inventories of homes available for sale continue to be extremely low. This is causing prices to maintain their current high levels. Also, the cost of building a new home has increased considerably due to the increase in raw materials pricing, and the local shortages of construction laborers. There is some light at the end of the supply tunnel, as homeowners who have been reluctant to list their homes for sale due to the pandemic are now encouraged to do so since the vaccination rate has increased, and infection rates have come down.
In our area here in Western North Carolina, inventories of homes for sale remain low. If a well-kept home comes on the market now, it often has multiple offers within a few days of listing. Some out-of-area buyers are making offers on homes without seeing them, as they fear the home will be sold before they could get to the area.
Some advice to buyers: If you are looking to purchase a home in our area, please be pre-approved for a mortgage, or have a “proof of funds” letter from your bank or brokerage company before you come here to buy. Also, be prepared to put due diligence money upfront, as this indicates you are a serious buyer.
Please, if you have any questions about homes in our area, let us know. We can help.
April Home Sales Stats for Haywood County
April home sales rose again in Haywood County. (Maggie Valley, Waynesville, Clyde, Canton and surrounding area) Closed sales for the county in April increased from 91 last year to 109 this year. Pending sales increase from 71 last year to 162 this year, a 128% increase. The average sales price last year was $271,731. This year the average sales price increased 29% to $350,842. Also last year a home was selling for 93% of the listing price on average; this year in April, homes sold for 99% of the listing price.
In April of last year we had 392 homes for sale in the county. This year we only have an inventory of 187 homes, a 52% decrease in inventory. This means at current sales rates, we only have a 1.5 months supply of inventory. The low inventories are continuing to drive home prices upward.
With inventories so thin, we really need homes to list for sale. We are still offering our “listing special” for a limited time. Please see below, and thank you!
Summer Vacation Rentals are Skyrocketing
Since many of our buyers in this area rent their homes for vacation rentals, I though the below article may be of interest. This article appeared recently in Realtor® Magazine:
As vaccination rates rise, many states are loosening restrictions on travelers, prompting some Americans to look for homes to book for this summer. Short-term vacation rentals are seeing a surge in demand and their owners are prepared for a lively summer.
“This is probably contradictory to what a lot of people may think, but it’s really one of the most exciting times in the industry right now,” Carrington Carter, the co-founder and managing partner of Getaway Society, a luxury vacation rentals company, told The New York Times.
By the end of March, 90% of vacation homes listed on Vrbo for the Jersey Shore and Cape Cod in Massachusetts were already booked for July, The New York Times reports. Vacasa, a vacation rental company, reports the company expects to generate more than $1.25 billion in gross bookings in 2021, which would mark an all-time high—about double that of pre-pandemic levels from 2019, CNBC reports.
Demand is tight, particularly as more second-home buyers choose to live in those homes rather than rent them out. “With the flexibility of remote work, owners are finding that they have more time to enjoy their second homes and are renting them less, or not at all,” Carter told The New York Times. “This reduction in the supply of available homes to rent, coupled with increasing demand, are also factors that are driving rate increases in destinations across the country.”
Airbnb vacation rentals nationwide in July and August are expected to average around $220 compared to last year’s $194 and $185 in 2019, according to Transparent, a vacation rentals data company.
Demand is growing for all types of housing, from large houses to studios and one-bedrooms.
Also, property owners are reporting that more guests want to stay more than just a few days, with some opting to stay multiple weeks. “We’re seeing an emerging trend of ‘slow travel,’ with travelers wanting to spend more time immersing themselves in a destination than they did pre-pandemic,” Mahendra Roopa, HometoGo’s director of product, told The New York Times.
If you are interested in purchasing a home in our area for vacation rental, come see us. We can help!
March 2021 Sales Stats
The home sales market in Western North Carolina is still a very heated market. As the inventory of homes on the market shrinks, sales prices rise. (The old law of Supply and Demand) I have many customers asking about sales statistics, so here is a brief recap of our current market.
In March 2021 we sold 115 homes, which was a 29% increase over March 2020.
The average sales price in March 2021 was $355,654, which was a 29% increase over March 2020.
The median sales price in March 2021 was $315,000, which was almost 30% higher than March 2020.
The number of homes on the market in March 2021 was 174, compared to 402 homes for sale in March 2020. This means that in March 2020 we had a 4.1 months supply of homes on the market. In March 2021 that number had dropped to 1.5 months of inventory. In other words, if sales rates remained the same, and no additional homes came on the market, we would have zero homes to sell in 1.5 months.
Our MLS covers from Charlotte, NC, all the way into Western NC. In the Charlotte region, the current months of supply is only .6 months, or about 18 days of supply.
I have been a Realtor® for 16 years, but have never seen a market this heated. If a home comes on the market that you would like to see, please call us. If you wait till next week, or even wait a few days, that home may be under contract. If you are planning on purchasing a home with a mortgage, talk to your bank or lender right now and get a preapproval letter, or at least a pre-qualification letter from your lender. Many sellers will not even consider an offer without these letters. If you have any additional questions not covered here, please call us. We can help.
Introducing Discounted Brokerage Fees
Due to high rates of home sales, combined with low inventories of homes on the market, your home may be worth more than you think.
We are now offering discounted brokerage fees for a limited time in hopes of listing more homes on the market. We are mailing postcards to many local communities. The body of the postcard is below. If you are considering selling your home, now is a great time! Not only is the market very hot, but you could also save thousands with our limited time program. Please call us for details.
Our Professionals:
Paul Heathman 828-421-3655
Danny Pugh 828-734-1120
Lyndia Massey 828-400-0282
Jess Osborn 828-506-1960
Shirley Cole 828-506-2022
Carey Rich 828-400-3037
Brittany Heathman 865-223-3077
Office Number 828-926-0400
Questions to Ask When Considering Selling
Questions to Ask When Choosing a Lender
In today’s market with home inventories low, and mortgage rates climbing (although still historically low), the questions below could save a buyer a good amount of money when shopping for a home mortgage. Also, with inventories of homes very low, choosing a lender, and having an approval letter up front, will add weight to your offer, especially when competing with other offers.
Loan terms, rates, and products can vary significantly from one company to the next. When shopping around, these are a few things you should ask about.
General questions:
What are the most popular mortgages you offer? Why are they so popular?
Are your rates, terms, fees, and closing costs negotiable?
Do you offer discounts for inspections, home ownership classes, or automatic payment set-up?
Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required?
What escrow requirements do you have?
What kind of bill-pay options do you offer?
Loan-specific questions:
What would be included in my mortgage payment (homeowners insurance, property taxes, etc.)?
Which type of mortgage plan would you recommend for my situation?
Who will service this loan—your bank or another company?
How long will the rate on this loan be in a lock-in period? Will I be able to obtain a lower rate if the market rate drops during this period?
How long will the loan approval process take?
How long will it take to close the loan?
Are there any charges or penalties for prepaying this loan?
How much will I be paying total over the life of this loan?
The above article is courtesy of Realtor® Magazine published by the National Association of Realtors®
Covid 19 Update and Vaccination Progress
As of February 12, Haywood County has had 3619 total cases with 81 deaths. The entire state of NC has had 815,000 total cases with 10,336 deaths.
The vaccination program in the county, operated by the Haywood County Health and Human Services Agency, has done a wonderful job of managing the Covid 19 Vaccination Program. They began with front-line essential workers, and have progressed through the residents over 75 years age group. My neighbor is in the 65 to 75 year age group, and he was called yesterday for his first shot. My wife and I have both received both our shots. The county is using both the Pfizer and the Moderna vaccines. Both your shots must be the from the same maker. The Pfizer vaccines are given 3 weeks apart, and the Moderna Vaccines are given 4 weeks apart. The vaccine program here has used the Haywood County Fairgrounds, in a drive-through format. You don’t even have to get out of your car. You must register for the vaccine at www.haywoodcountync.gov/vaccine or by phone at 828-356-2019. After registration you will receive a call, text or email around 24 hours prior to your scheduled time. You will be given a 30 minute window to appear for your shot. This procedure has kept the waiting lines at a minimum.
If you are a part-time resident and you own property in Haywood County you may register to be vaccinated here. Just make sure you can commit to being here for BOTH shots. (3 weeks between shots for Pfizer, and 4 weeks for Moderna)
Again, I would like to thank our Haywood County NC Health and Human Services Agency for the excellent job they have done administering this program.
I have also been informed that as of today, Friday February 12th, Walgreens will also be taking reservations for the vaccinations at their drug stores. The number for the Walgreens in Waynesville, is 828-452-4211. I have not called Walgreens to verify this.
Stay safe out there.
Sales Trends in Haywood County Real Estate
As 2020 was a banner year for real estate sales, I thought I would share some stats with you today.
In the year 2020 we closed a total of 1334 homes and condos in the county. This compares with a total of 1159 homes and condos in 2019, for an increase of 15 percent year to year.
In December of 2020, we closed a total of 121 homes and condos in the county. This compares with a total of 91 homes and condos sold in December of 2019, for an increase of 33 percent.
Our January 2021 sales county-wide of homes and condos was 74, compared with 74 in January 2020. Sales were flat in January due to lower inventories of available homes. In December of 2019 we had a 4.6 months supply of available homes for sale. In December of 2020 we only had a 1.8 months supply of available homes for sale. This represents a 60.9 percent decrease in supply. In most real estate markets, a balanced supply is 4 to 6 months of sales. Less than 4 to 6 months is considered a seller’s market. More than a 6 months supply is considered a buyer’s market. Real estate, after all, is a supply and demand market. When supplies are slim, prices must go up. The average price of a home in Haywood County increased by 17.6 percent in 2020, when compared to 2019. ($256,450 to $301,606)
A couple of other factors drove home sales in our area. First, the pandemic brought buyers from more populous areas to the less populous mountains. Many buyers are now working from home, and decided they wanted to work from home in a more desirable setting than the city. The other factor driving home sales was low mortgage interest rates. Interest rates for homes are still at historic lows. Many home buyers have taken advantage of these low rates before rates rise again.
If you have an interest in purchasing a home in our area any time soon, let us know. If we know what you are looking for, we can set up a website for you that will automatically add homes that match your search criteria. That way, you will see homes of interest to you the day they go on the market.
(All stats provided by Canopy Realtor® Association and Showing Time)
Questions a Buyer should ask when Buying a Home
When buying a home it’s easy to get wrapped up in the excitement of purchasing the home, not to mention taking care of all the details of moving to a new home; it becomes easy to overlook some basic questions that should be asked.
What is included with the home? Are the appliances (refrigerator, washer, dryer, etc.) included? Normally in NC fixtures (any items attached to the wall) are included. Also the range and dishwasher are normally included on NC contracts, unless otherwise specified.
Were there any additions to the home? An addition to a home should have had a building permit and been inspected by a local building inspector. The same should be considered for a basement that has been remodeled or finished.
Have there been any insurance claims on the home? Has the home ever had flood or fire damage? Is the home in a floodway, or a 100/500 year flood zone? Flood insurance can substantially add to a mortgage payment, or to your yearly expenses.
Ask the age of the major appliances, the heating and air conditioning system, and the roof covering. These items can represent a major expense if they fail after the buyer takes possession of the home. In NC the Residential Property Disclosure that is completed by the seller will answer some of these questions.
Does the home have any safety hazards such as lead-based paint (on homes built prior to 1978), mold issues, or high radon gas levels? A good home inspection by a licensed home inspector can apprise you of any hazard issues, as well as answer many of the questions above. Home inspections cost from $350 to $600 or more, depending on the size of the home. Most home inspectors can also do radon gas tests, which run an additional $125 or so. Radon is colorless, odorless gas that is given off by radioactive particles often found in granite. Radon gas can cause lung cancer.
Your real estate agent should be able to help with most of these questions, and with finding a local home inspector for you. If your home inspector finds issues, your real estate agent will ask the seller to fix the problem issues, or negotiate the sales price to allow for repairs.
If you are looking for a home, let us know. We are happy to help.
Stay Safe!
