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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.
Real Estate Recap April 2024
When looking at the final numbers for April 2024 in Haywood County, the main story is sales were off almost 12% from April 2023, and inventories have finally moved up a bit to a 2.7 month’s supply, but we are still stuck in a seller’s market.
We only had 99 new listings come on the market in April 2024, compared to 115 new listings in April 2023.
Pending sales in April 2024 fell to 89, compared with 97 in April 2023.
Closed sales in April 2024 fell to 75, compared with 85 in April 2023.
Our median sales price in April 2024 rose to $365,000, compared with $325,000 in April 2023.
The average sales price in April 2024 rose to $413,329, compared with $362,101 in April 2023.
The average list price of new homes coming on the market in April 2024 was $494,044, compared with $466,988 in April 2023.
Our month’s supply of inventory rose from 2.2 in April 2023 to 2.7 months in April 2024.
The increase in inventory is good to see, but a 2.7 month’s supply is still solidly a seller’s market. A balanced market, where the number of buyers and sellers are equal is usually considered to be a 5 to 6 month’s supply of homes.
In a nutshell, sales were off a bit, prices were up a bit, and inventories rose a bit. Not really much change from the trend.
Please let us know if we can help with your real estate needs, or answer any of your real estate questions.
Musings from the Mountains
Summer has arrived in the mountains. Yesterday and today have been 80 to 83 degrees in the afternoon. I realize that summer doesn’t begin until June 21st, but I have always considered the first 80-degree days to be the beginning of the summer season. We are also seeing some of our part-time residents from points south beginning to return for the season. I suppose it must be getting too warm down south.
I certainly don’t have the knowledge or skill to do restaurant reviews, but I did want to mention a new restaurant in downtown Waynesville. The Main Street Diner has opened at 18 North Main Street in Waynesville. We ate there last week and really enjoyed the experience. The food was great as was the service. Their building has been 2 or 3 restaurants in the last few years. Previous to those restaurants it was Whitman’s Bakery for many, many years. Whitmans was a local landmark. The owners have done an extensive and beautiful remodel on the building. The owners also operate Haywood 209 Cafe at 3360 Crabtree Road (Highway 209) and Crepe & Custard restaurant at Lake Junaluska (55 Memory Lane). Their new restaurant is a welcome addition to Waynesville.
In Maggie Valley this coming weekend (May 3-5) we have Thunder in the Smokies, the spring motorcycle rally. This is the oldest and largest rally held in the valley. For more information you can visit www.ThunderInTheSmokies.com.
Lastly, this coming Saturday, May the Forth be with you! (Also Sunday is Cinco De Mayo.) Have a great weekend.
Real Estate Recap March 2024
In March our Haywood County home sales were off 37% compared to March 2023. This is the first month since the pandemic that home sales have fallen off to that degree. In March 2023 we sold 97 homes. This March that number dropped to 61. This cannot be blamed on the weather, as we had an abnormally warm March, with hardly enough snow to mention. Inventories of homes for sale have been historically low. Certainly, the lack of homes to sell contributed to this decrease in sales. However, it does seem that demand has cooled a bit. Also, the cumulative number of days on the market until a home sold increased 25% compared to March 2023, from 64 days last year to 80 days this year.
We had 135 new listings come on the market in March, compared with 132 new listings in March 2023. Our total number of homes for sale in March was 222 compared to 205 in March of 2023. This gave us a 2.6 month’s supply of homes in March compared to a 2.2 month’s supply in March 2023. (A balanced market is a 5 to 6 month’s supply of homes.) So, we are still deeply in a seller’s market here in Haywood County.
The average sales price of homes that sold in March rose to $425,425, a 16.8% increase over March 2023. In a seller’s market, prices tend to rise due to buyer competition for available homes.
Needless to say, this is a complicated market to predict. If you are thinking about buying a home, let us know, we can help you navigate the market. Also, if you are thinking of selling your home, we can come to your home and give you a current market analysis of your home’s worth. Your home may be worth more than you think.
Musings from the Mountains
Welcome to April! I promise- no April Fools Jokes here.
The weather has been absolutely beautiful the past week. Yesterday at the house the thermometer on my back porch read 78 degrees. That is extremely warm here for the end of March. The first week of April trends a bit cooler with the high only around 40 degrees by Thursday. By Sunday the 7th, a warming trend returns with highs in the 60’s for several days.
Cataloochee Ski Area closed last week. The days finally got too warm to maintain snow cover on the slopes. I believe they had a very good season though. The ski area draws skiers and boarders from Knoxville, Chatanooga, Atlanta, Greenville, Asheville, Charlotte, and many other smaller towns in 4 states, not to mention the skiers from sunny Florida. These visitors rent hotel rooms, and short-term rental homes. They buy gas for their vehicles and frequent our local restaurants. Cataloochee Ski Area really adds to our local economy.
It’s no wonder that people want to move here. We have the ski area, the Great Smoky Mountains National Park, the Blue Ridge Parkway, the Pisgah National Forest, the Shining Rock Wilderness Area, the Middle Prong Wilderness Area, and many other natural attractions. Skiing, boarding, hiking, fishing, waterfalls or just watching the Elk. This area has so much to offer.
All those people moving here need homes. Currently our demand for homes exceeds the supply. Unfortunately, this has driven up home prices in the area. I read an article last week written by Barbara Corcoran the real estate guru you see weekly on Shark Tank (ABC network). She wrote about high real estate prices. Her advice was “buy now, not later”. She explained prices were only going higher. If you wait until interest rates come down, the increase in the purchase price will negate any savings from lower interest rates. Also I would add, if interest rates come down after you buy, you can always refinance at the lower rate.
If you’ve been thinking of buying a home here, please call us. We can help you negotiate the market. If you’ve been thinking of selling a home here, now is the time. We will come to your home and do a market analysis, letting you know what your home is worth. You may be pleasantly surprised.
Real Estate Recap February 2024
In looking at the February sales numbers for Haywood County, two items really stand out. First, our new listings increased 31.3% from February 2023. Hopefully, this is the beginning of the end of our shortage of homes for sale in the county. Second, both the median and the average home price fell in February. The median home price fell to $334,500, a 4.4% drop from February 2023. The average home price fell to $379,349, a 13% drop from February 2023. This is the first substantial drop in home prices since before the Covid pandemic. A lot of this decrease is due to the fact that lower priced home sales increased, while higher end home sales decreased a bit. If you read our blogs, you know that we have been continually talking about our shortage of inventory here in the county and how that has caused home prices to increase. Real estate sale prices have always been driven by supply and demand. When the supply is low, yet demand remains high, prices will indeed increase. So overall, I believe these numbers represent a positive trend to a more normal market in the future.
Below are some inventory and sales numbers from February 2024:
New listings rose from 67 last year to 88 in February 2024.
Pending sales rose from 72 last year to 76 in February 2024.
Closed sales rose from 57 last year to 58 in February 2024.
The median sales price dropped from $350,000 last year to $334,50o in February 2024.
The average sales price dropped from $436,178 last year to $379,349 in February 2024. (a 13% decrease)
Number of days on the market until sale dropped from 75 last year to 57 in February 2024.
The average list price of homes rose from $394,615 last year to $453,257 in February 2024.
Our inventory of homes for sale in the county rose from 180 last year to 191 this year. (a 6.1% increase) This brought our month’s supply of homes for sale from 1.9 months last year to 2.2 months this year. (Keep in mind that a balanced market is a 5 to 6 month’s supply. We are still substantially behind in available inventory of homes for sale.)
Please, if you have any questions regarding real estate, give us a call. We are here to help.
