Mortgage rates hover in the 4.5% - 5% range for a 30 year fixed, inventory is abundant, and prices are lower than they have been in years.
Changes continue in the mortgage world, but contrary to all the hype, it IS still possible to get a loan! Rates will likely climb from here, so now is the time to buy from a mortgage point of view.
The Asheville area market has been more stable than many markets around the country during the "housing crisis" since fall 2006. Our sales have slowed, and the insane escalation of prices that we were seeing pre-2006 has ceased (thank goodness). Many properties are seeing a drop back to their 2004 value. More "in demand" homes have retained more value but have not appreciated since 2007.
Properties are staying on the market longer (from an average of about 60 days to about 120 days). There are more concessions from sellers (though not always in the form of price concessions -- properties still sell within 90 - 96% of list price) A significant change is that there are more properties on the market for a buyer to choose among!
Sales are strongest in the under $300,000 range. However, sales in the 300-400 range are picking up slowly. I think it will be a slow uptick for each of the higher price-ranges, but movement is happening. The best priced "shiny penny" homes sell in any price range.
We all believe that we have hit the bottom of the housing slump and are on the way, SLOWLY, back out of the black hole! At the same time, continued foreclosures will keep inventory high and prices surpressed through 2011.
Still, experts predict some challenges to a quick recovery in the housing market overall. One factor is that most people are hesitant to put their homes on the market now if they don't have to. They decide to "wait for the market to recover." Unfortunately, that mentality could further delay the housing recovery. For example, say that market starts to show signs of improvement. Seeing that improvement, all those pent-up sellers put their homes on the market. Then, once again, we are faced with a surplus of inventory flooding the market and prices drop again.
Add to that scenario the fact that banks are holding a large inventory of foreclosed properties now that will be put on the market as gradually as possible in the next couple of years. Bank-owned properties generally are sold below market value, so that provides competition for all the "regular" sellers and brings prices down and competition up. There are potentially more foreclosures coming in 2011 than occurred in 2010. Thus, more inventory and competitive pricing on the market.
So, the bottom line is, in my opinion, that the market we have is the market we will have at least for a couple more years. Prices in Asheville should remain about the same as they are now unless inventory increases (or surprises us and decreases) significantly.
It is a great time to buy.
It is not the worst time to sell. Call me to discuss why! (BTW- I sold my own home in the worst of this market).
The good news is that forecasters still anticipate an abundance of buyers moving to our area in the next twenty years, so logic predicts a very strong on-going real estate market in the Asheville area.
Please give me a call or send me an email if you would like to discuss further the "state of the market."
Margaret
828-216-2300
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