Blog
Housing Market Starts 2018 on Positive Note
For this week’s blog I am posting an article from Daily Real Estate News regarding the National Housing Market, for your information:
Contract signings on home sales rose slightly in December, reaching their highest level since last March, the National Association of REALTORS® reported Wednesday. NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, moved 0.5 percent higher to a reading of 110.1 last month, 0.5 percent higher than a year ago.
“Another month of modest increases in contract activity is evidence that the housing market has a small trace of momentum at the start of 2018,” says Lawrence Yun, NAR’s chief economist. “Jobs are plentiful, wages are finally climbing, and the prospect of higher mortgage rates are perhaps encouraging more aspiring buyers to begin their search.”
But Yun cautions that these positive indicators won’t necessarily equate to a stronger sales pace in the long run: “Buyers throughout the country continue to be hamstrung by record-low supply levels that are pushing up prices—especially at the lower end of the market.”
The imbalance in supply and demand in housing throughout the country prompted home prices to appreciate 5.8 percent in 2017, which marks the sixth consecutive year of gains at or above 5 percent, NAR reports. Yun does expect price growth to subside in 2018, with some states possibly experiencing a decline due to the changes in the impact of the mortgage interest deduction and state and local deductions under the new tax law.
“In the short term, the larger paychecks most households will see from the tax cuts may give prospective buyers the ability to save for a larger down payment this year, and the healthy labor economy and job market will continue to boost demand,” Yun says. “However, there’s no doubt the nation’s most expensive markets with high property taxes are going to be adversely impacted by the tax law. Just how severe is still uncertain, but with homeownership now less incentivized in the tax code, sellers in the upper end of the market may have to adjust their price expectations if they want to trade down or move to less expensive areas. This could in turn lead to both a decrease in sales and home values.”
More from “The Art of Downsizing”
|
|
The Art of Downsizing
I received an email from Michelle Munson entitled “The Art of Downsizing”. Michelle does professional organizing services, and estate sales. I thought her email was very appropriate for this time of year, as we are all formulating our New Year’s Resolutions. With Michelle’s permission, I am forwarding her informative email below. You can contact Michelle at 828-772-5951 or on the web at https://downsizewnc.com. Her office is located at 1465 Sand Hill Road, Suite 2005, Candler, NC, 28715.
Start the New Year Right by Letting Go of Old StuffAround this time of year, it’s impossible not to be bombarded with talk of New Year’s resolutions. Going to the gym three days a week, eating healthier and yes, even cleaning out your home are all common goals people set as January rolls around. Whether you’re a believer or not, New Year’s resolutions can be a great way to get motivated and make even small improvements in your life. As the saying goes: a cluttered room or cluttered desk is indicative of a cluttered mind. With this in mind, you can only imagine what that means for a cluttered home! You simply can’t expect any of your other resolutions to stick without first decluttering your home. It can be a long process, but you’re not alone in starting the journey at the beginning of the year. Plan It OutKnock out two birds with one stone by staying organized in the New Year and keeping it clean once you’re done. When decluttering your home, have a plan about which rooms to tackle first. This way, it’s far less daunting of a task and you’ll finish even before you realize it. Writing things down keeps you accountable and less likely to divert from your goals. Making to-do lists and putting helpful reminders up around your home are proven to aid your productivity. Since you’re now deep into the technology age, you can use one of many reminder apps (with alarm and notification if you like) on your handy dandy smartphone to tell you to go to the gym and streamline your DVD collection at the same time! Of course you can also use it to remind you to tackle organizational tasks too! Sweat the Small StuffWhen decluttering your home, it’s best to start small and work your way up. Knocking out your linen closet or that one pesky drawer that seems to have accumulated a whole bunch of nothing can feel better than you’d even imagined. As with anything, baby steps are a great way to ease yourself into a task and decluttering your home is no different. Don’t be afraid to get rid of or throw away perfectly good items you never use if they just cause clutter. The small things are what often make the biggest difference. What can seem insignificant when you’re cleaning and sorting can add up to the largest amount of clutter. It may be more annoying to clear out your junk drawer or expired makeup, but when it’s over and done with, your entire life feels more organized — and you may even find that you can think a little more clearly. Decluttering Your Home Down Memory LaneWe acknowledge that letting go is difficult. Decluttering your home can turn into a truly emotional experience, in both good and bad ways. Instead of feeling like you have to become an emotionless robot with no material attachments, let the decluttering process take you on that emotional journey of unearthing old memories. Let your feelings paint a beautiful portrait of pain and joy — instead of avoiding them or letting them own you. While you want to keep the items with the most sentimental value, treating other pieces with respect and then letting them go to other people who can get joy from them can be a truly enriching experience. No matter what people say, your material items mean a lot to you, and letting them go in your own special way is important. The team at Art of Downsizing would be honored to come help too, especially if decluttering your home is just too rife with memories. We’ll respect your space and your feelings while giving you the tools to move forward. Happy New Year! |
The Historic Maggie Valley Bank Robberies
I am taking a bit of a different track on the blog for mid-December. When I first moved here in the 1970’s, everyone was still talking about the Maggie Valley bank robberies. There was only one bank in Maggie Valley and it was flush with cash around the first of every month in order to cash the checks for all the Ghost Town Amusement Park employees. Coincidentally, this was also the time for District Court to convene in Waynesville, the county seat. We didn’t have too many policemen, sheriff deputies, and highway patrol back then. Since district court was in session, most of the law officers had to be in court for all the citations and arrests they had made that were coming before the court.
Sure enough, one or more enterprising bank robbers had figured out the surplus of money in this bank, coupled with a lack of law enforcement close by. They robbed the bank in Maggie Valley and headed up Soco Road in a get-away car toward Soco Gap. As memory serves, one policeman gave pursuit. The bank robbers turned off on Black Camp Gap Road. Surely the policeman had them now, as this was a dead-end road. The car continued up Black Camp Gap Road until the road became gravel, and onward until the road became a dirt track. Finally reaching the end of the road, the robbers abandoned their get-away vehicle and ran on foot through the woods. It just so happened that it is a very short distance from the end of the road to Black Camp Gap, where there is a Masonic Monument, just off Heintooga Ridge Road, which leads to the Blue Ridge Parkway. As you might guess, there was another vehicle waiting at the parking lot of the monument. The robbers left down the Parkway, with no one even having a description of their vehicle. The get-away vehicle they left behind turned out to be a stolen car. So, no evidence of their identity was ever found.
This would be a great story on its own merits. However, as they say on the infomercials, “But Wait! There’s More!”
Move forward in time one full year. The bank in Maggie Valley was flush with cash again, district court was convening, and most law officers were again occupied at the Haywood County Courthouse in Waynesville. Yep! You guessed it. The bank robbers hit again. They left the bank with a policeman in distant pursuit. They again turned onto Black Camp Gap Road, and headed for the Masonic Marker. They ran through the woods to a waiting vehicle, and were gone again, leaving no evidence for the law officers to find.
The above is true to the best of my recollection. I may have a detail or two in error, but I am close.
I was reading a newspaper a few years after these robberies occurred. I was drawn to an article about 2 bank robbers who were being sentenced for bank robberies in Maggie Valley. The bank robbers were from Soddy Daisy, Tennessee. As I recall the article, they were charged by the FBI for conspiracy to commit bank robbery. It seems the Feds had suspected these people of bank robberies, but had no proof. The Feds obtained a wire-tap warrant, and recorded them talking about the Maggie Valley robberies over the phone.
I guess sometimes it’s not what one does but what one says that gets one into trouble.
State of the Market in Haywood County
November and Thanksgiving have come and gone. We are now beginning December and nearing the end of our year. I wanted to reflect a moment on the home and land market over the last few years here in the mountains of Haywood County.
Home sales continue to be somewhat brisk with buyers continuing to search for their dream home before our historically low interest rates begin to rise. Our inventory of homes that was once too high, is beginning to decrease, particularly below the $350,000 price point. As homes available on the market become fewer in the lower price points, prices begin to rise. The average sales price of all homes sold in Haywood County has risen from $197,228 in November 2014, to $241,593 in November 2017. This represents a 22% rise in the average sales price over a 3 year period. Also I like to look at average price per square foot. In November 2014 the average price per square foot of homes sold in the county was $105. In November 2017 the average price per square foot of homes sold in the county was $133. This is a 27% increase over the 3 year period. Keep in mind this includes all homes sold including mobile homes. (Mobile homes usually sell for much less per square foot than stick-built homes.) Some upscale homes are now selling in the $200 per square foot range and more.
Land sales have begun to improve somewhat. In November 2016, only 7 properties were sold in Haywood County. In November 2017, 28 properties were sold in the county. As inventories of homes continue to diminish, some buyers are purchasing lots or land with plans of building their dream home. The uptick in sales of land or acreage should continue as home inventories continue to fall. However, we still have a large inventory of lots and land available, making this a buyers’ market.
So, the state of the market in Haywood County is good. Hopefully the market will continue to improve in 2018.
Mortgage Rates & Winterizing your Home
A slight dip in interest rates last week brought more homeowners and home buyers to the mortgage market. More homeowners were quick to refinance before interest rates rise again, and home buyers were able to lock in lower rates during the week.
The Mortgage Bankers Association reported that total mortgage application volume ”which includes for refinancings and home purchases” rose 3.1 percent last week on a seasonally adjusted basis. Mortgage applications, however, still remain 8.5 percent below a year ago.
Last week, refinance volume rose to its highest level in a month, increasing 6 percent during the week. Yet, refinancing is still 24 percent below a year ago, when rates were much lower.
Applications for a home purchase were up just 0.4 percent last week. Purchase volume is 17 percent higher than the same week a year ago. That marks a much larger annual spread than the past several months, CNBC reports.
The 30-year fixed-rate mortgage averaged 4.18 percent last week, according to the MBA.
“Additional developments surrounding the administration’s tax-reform plan pushed rates lower at the beginning of the week, but this was effectively offset by news of stronger economic growth in Europe,” says Joel Kan, an MBA economist.
Source: Weekly Mortgage Applications Rise as Rates Briefly Fall Back, CNBC (Nov. 15, 2017)
Time to Winterize your Home
We have had milder than normal Fall temperatures so far in Western North Carolina. However, if you own a second home here, and are not going to be using that home for an extended period, do not forget to winterize the water lines. For most homes this means having a plumber, or another professional, use an air compressor to blow all the water out of the water lines inside and underneath your home. This is the only sure way to prevent frozen lines and potential damage that could run into the thousands of dollars. Don’t forget to add some RV antifreeze to toilet bowls, and drain dishwasher and icemaker lines, which can also freeze. Even if you are not winterizing your home for an extended away period, don’t forget to disconnect hoses from outdoor hose bibs (spigots). Leaving a hose connected can leave water in the spigot itself which can freeze and burst. This may even cause a water leak inside the wall, resulting in an expensive repair.
5 Things NOT TO DO if you are Listing Your Home
As today is Halloween, I thought it appropriate to share this article from Realtor Magazine about Horrors at Home Showings. I hope the below is educational for anyone contemplating selling their home.
5 Horrors at Home Showings
From the artwork to the odor, your listing may be inadvertently giving buyers the creeps. Realtor.com® recently interviewed real estate professionals about the items that have scared off their buyers the most during showings. Here are the top five spooks.
- Doors with too many locks. If the doors have more than the standard two locks, your buyer may wonder if something happened on the premises to make the seller feel unsafe, says Glenn Phillips, CEO of Lake Homes Realty in Birmingham, Ala. “Given a choice, most people won’t buy in places they think are unsafe,” he says.
- Taxidermy. A single deer head may pass muster in some areas, but taxidermy runs the risk of making some buyers uncomfortable. “One house I helped stage had a stuffed bighorn sheep in the dining room and a stuffed bear in the family room,”says Amy Bly of Great Impressions Home Staging/Interiors in Montville, N.J.
- Questionable art choices. Any artwork displayed should be neutral and carry no risk of offending or confusing potential buyers. Jeff Miller, cofounder of AE Home Group in Baltimore, recalls a seller who was obsessed with feet and displayed framed paintings and sculptures of feet -”and even keychains with feet on them. “I told the seller to get their feet out of the picture,” Miller says.
- Obvious DIY repairs. Amateur repair work that’s left half done can prove to be a big turnoff to buyers. “I once encountered a little house of horrors that actually had caution tape across a very outdated bathroom with a hole in the floor,” Bly told realtor.com®. The home also had “dark rooms with lights that didn’t work, as well as nonfunctioning appliances in the kitchen.”
- Odd smells. Pet odors, mold, or musty smells can also give buyers the creeps. “Almost every home has a unique smell, and the owners rarely realize it,” says Jerry Koller, a sales associate with International Home Realty in Irvine, Calif. “Of course, it’s smart to try remedies such as Febreze or candles. But sometimes, you just need to replace carpet before putting your house on the market.”
Source: “8 Frightening Things in Sellers’ Homes That Can Scare Buyers Silly,” realtor.com® (Oct. 17, 2017)Version:1.0
What a Difference a Drone Makes
Here in the North Carolina Mountains, most of our homes don’t have level, flat yards. This can make taking a photo of a home for the MLS and for all the various internet sites, like Realtor.com, extremely difficult. I have inserted two pictures above of the same home. The first picture was taken from the drive. As you step back from the home, in order to get the whole house in the frame, the picture becomes more and more distorted, because you are looking up at the home. The second photo was taken by a drone. This shot shows the home at a much better perspective than does the photo taken from the ground. If you were the owner of this home, and wanted potential buyers to view your home in its best light, which photo would you prefer? Photos tell a visual story. The second photo tells a much better story.
At Mountain Dreams Realty, we do professional photography on every home we list. That includes doing drone photography when the drone camera is the best tool for the job. We also do professional virtual tours on most of the homes we list for sale. Not only does this allow more photos than MLS, which limits the number of photos to 24, but it also allows a prospective buyer to view your home full screen on their computer or tablet. MLS photos are small, and details can be difficult to see. Viewing a photo full screen lets a potential buyer see those small details that would be missed in an MLS photo. We also add a video about the area to the end of our virtual tours. Many buyers come here from out of state, and are not familiar with our area. The area video we add shows a little of the infrastructure, recreational opportunities, and natural beauty of the area.
We are a small, boutique real estate agency with only 6 agents. This allows us to go above and beyond the clients’ expectations. We are not hampered by a national office that tells us what we can and cannot do. Whether listing with us or buying a property, YOU set the expectations.
Fall Color is Coming Fast!
The leaves have begun changing color and dropping off the trees here in the mountains. I was asked to map a route that I thought would provide some extraordinary leave viewing for Fall colors. So, here goes:
From Downtown Waynesville, head south on highway 276. After going over Waynesville Mountain, you will come into a valley with a community called Bethel. Look for highway 215 to the right. This road will be a pleasant drive through the valley, then by Lake Logan and on up through a fairly tight gorge following a fork of the Pigeon River. At one point you will cross a small stone bridge over a beautiful cascading stream. Be sure to stop and take a picture of the cascade, or as some would call it the waterfall. Continue up 215 to the Blue Ridge Parkway. Take the Parkway north toward Asheville. You will pass the parking area for Devil’s Courthouse on the right. If you are up for a short uphill hike, stop and walk up to the top along the well-marked trail to the rock cliff called Devil’s Courthouse. You will find some exceptional views at the top. Also, listen for the sharp calls of the Peregrine Falcons, often seen sailing on the air currents below the cliff. Just past the parking area for Devil’s Courthouse you will drive through Courthouse Tunnel. Past the tunnel you will see some high cliffs to your left, and beautiful views toward Pilot Mountain and Brevard to your right. At milepost 420, there is a paved forest service road to the left. Stop at one of the parking places on the right and take in the views of Graveyard Fields below. (There are several stories about the origin of this name. One is that after a huge forest fire in the 1920’s, many gray Chestnut stumps occupied the little valley and surrounding hills, looking like tombstones.) There are several waterfalls in the fields from the Yellowstone Prong of the Pigeon River. Many hiking trails begin from this forest service road. One trail at the end of the road goes up to Big Sam Mountain. Big Sam is one of the higher peaks in the area with great views from the top. Once back on the parkway you will see the parking area for Graveyard Fields on your left. Usually this is a very congested area with hikers. Just past Graveyard Fields keep looking to the left for the next mile or two for unusually brilliant colors in this area. Continue down the parkway to Wagon Road Gap. Here you can exit the parkway and take highway 276 back toward Waynesville.
This loop is one of my favorite rides for Fall color in Western North Carolina. Come see it for yourself!
Irma Only Brought Rain to Haywood County NC
Our hearts go out to all the residents of the Houston, Texas area, and those in Florida, Georgia, and South Carolina who were affected by the recent hurricanes. I cannot imagine how one would feel who lost everything in a flood or hurricane. I do hope that everyone affected by these storms had flood insurance and will eventually get back to normal. Many of you took refuge in our area during the storm, and some are still here. Again, we do feel your pain.
We had almost no wind at our house, and about 3.5 inches of rain. It has been a bit dry lately, so the rain is much appreciated.
I look forward to seeing some of you next month for our Fall color season. I think our colors are going to be superior this year. (unfortunately, no guarantees on the color) If you come up for the color season, stop by the office and say “Hello”!
