The national media continues to portray that the real estate market isn’t doing well. When reading/hearing/seeing that portrayed, please do keep in mind that real estate is very much a local phenomena. Before I worked in the real estate market, I didn’t realize that and was swayed by what the media portrayed. Now, I wonder how much of their portrayal is negative in order to gain public interest and how much is their lack of understanding of the local nature of real estate.
Our local real estate market is both down and up. What do I mean? Look at this chart that compares sales for the last 6 months of 2006 to the last 6 months of 2007:
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Primarily Second Homes *
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Primarily Local Homes **
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07/01/06 – 12/31/06
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205 homes sold
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Aver sales price: $402K
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168 homes sold
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Aver sales price: $262K
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Median sales price: $329K
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Median sales price: $228 K
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Total Sales: $82 mil
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Total sales: $44 mil
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07/01/07 – 12/31/07
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217 homes sold
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Aver sales price: $486K
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149 homes sold
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Aver sales price: $297
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Median sales price: $365K
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Median sales price: $237
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Total sales: $105 mil
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Total sales $44 mil
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* Primarily Second Homes: Blowing Rock, Valle Crucis, Seven Devils, Sugar Mountain, Banner Elk
** Primarily Local Homes: Boone, Green Valley, Parkway, Mable, Cove Creek, Bethel
My summary: the 2nd home market continues very strong. Number of homes sold is up, average and median sales prices are up, total volume of sales is up.
The local market: the number of homes sold is down. Nevertheless, both the average and median sales prices are up and the total volume hasn’t decreased.
Can this continue, given the ‘down’ market elsewhere? I wish I had a crystal ball. Here are some things to think about: the population continues to grow and most people want to purchase a home. Mortgage rates are fantastic right now.
My advice to sellers, particularly of local homes, is to be very wise about pricing a home at this time. Don’t expect the high rate of appreciation we saw from 1998 through 2006. Adjust your expectations to the current market. Homes that are priced right continue to sell in a reasonable number of days.
Let me know if you’d like me to prepare a comparative market analysis of your property. Call me at 828.264.1434 or email me at Helen@CoeRealty.com