When's the right time to buy? NOW!

I know you probably hear this kind of talk from real estate agents all the time, but I'm going to give you solid evidence as to why right now is a great time to buy real estate in the beautiful mountains of Western North Carolina, specifically Henderson County.

A friend of mine who is also a broker in Hendersonville just did what's called a Market Absorption Rate report to determine how much real estate has been selling in Henderson County, and based on that, how many months of inventory we currently have on the market. Before I give you the information, please let me ask you to keep in mind that as a general rule of thumb, 6 months of inventory is considered a balanced market. Anything under is a seller's market and anything over is a buyer's market.

So here's the info for Henderson County, North Carolina:

For properties classified as residential in the last 12 months there were 1,358 closed transactions. Based on that figure we have 9.96 months of inventory currently on the market.

In the last 6 months there were 510 closed transactions. Based on that figure we have 13.26 months of inventory currently on the market.

In the last 3 months there were 202 closed transactions. Based on that figure we have 16.74 months of inventory currently on the market.

"Months of inventory" is figured by taking the number of properties currently on the market and dividing it by the average closed transactions per month based on your specified time period... 3 months, 6 months, and 1 year, in this case.


So as you can see, especially based on the last 3 months, buyers have the extreme upper hand around here. This does differ based on what price range you're looking in, of course (if you're looking at $500K properties your leverage will be better than if you're looking at $200K). But anyway, if you've been thinking about buying in this area, and have the means to do so, please come on out here and see me! Most motivated sellers here will consider all reasonable (and in some cases, unreasonable) offers!!

Rate Reductions Galore!!

I received this email from our in-house mortgage person and I thought I would share:

Historic Fed Move Cuts Both Ways for Borrowers

Hot on the heels of its surprise inter-session rate cut of 75 basis points last week, the Federal Reserve cut key interest rates again, the fifth straight cut since September 2007. In its statement last week, the Fed said it had decided to cut the federal funds rate "in view of a weakening of the economic outlook and increasing downside risks to growth." In other words, economic data suggests the US is on the brink of recession, and the Fed is acting accordingly.

Who benefits from this cut?

If you have a loan that is directly tied to the Prime Rate, you will see an immediate benefit. Home equity lines of credit (HELOCs) and variable rate charge cards are the types of loans that will have an interest rate reduction on their next statement.

What does this mean for long-term rates?

Long-term mortgage rates, the lowest we've experienced in years, could actually increase after today's cut, based on historical performance and recent trends.

So if you're waiting for long-term rates to fall further, don't count on it. Your best chance to lock in the lowest rates since 2005 is now. Getting your application in process now will allow you to capture a great rate before it's too late.

What REALLY moves mortgage rates?

Fixed-rate mortgage rates aren't directly tied to Fed interest rate moves. Instead, they tend to follow in the direction of other long-term government bond yields, such as the 10-year Treasury, which historically moves in accordance with the economic outlook and in advance of Fed actions. The performance of Mortgage Backed Securities, issued by Fannie Mae and Freddie Mac, is what really determines long-term mortgage rates.

How does the economic stimulus package fit into the picture?

The economic stimulus package from Congress and the White House could be a double-edged sword for borrowers. Combined with recent Fed actions, the package could create inflation and bring about higher long-term interest rates.

On the positive side, conforming loan limits are likely to be raised from the current $417,000 to upwards of $625,000. This means great potential savings for purchase and refinance candidates who live in 20 high-cost areas across the country.

What should you do next?

If you're unsure how the rate-cut or the proposed legislation affects your mortgage, don't worry, you're not alone. There's no one-size-fits-all answer. Give us a call right away. We'll review your mortgage and see what, if anything, can or should be done to make the most of your individual financial goals and needs

The Green Machine

So I attended a roundtable style training session yesterday on the "green" movement and how it relates to me as a real estate agent. There was tons of great information presented by representatives of several different organizations that dealt with solar power, rainwater collection, biofuels and more.

One company, Appalachian Energy, was there more to promote their product than anything else, but they impressed me nonetheless. They sell a solar thermal system that supplements the water and air heating in your home. This helps reduce your energy bills by quite a bit, and it's nowhere near as expensive to purchase and install as you might think. The system for a modest-sized home is right around $7,300 but then you get tax credits (in NC - $1,400 state & $2,000 federal) which makes the net cost around $3,900 when you factor that into it. It will also help increase the value of your home as well since lots of home-buyers out there are looking for energy-efficient homes! Anyway, the company's website is www.appalachianenergy.com if you're interested in looking into it further...

-Real Estate... Compliments of Dan

Real Estate, Mountain Style (My Debut!)

First and foremost I would like to thank anyone who actually came across this, my first blog EVER, and took the time to read through it.

Down to business... I am a real estate broker in Hendersonville, NC, a little place about 20 minutes south of one of the coolest towns around:

ASHEVILLE

This is a great area in which to live, and to assist you in finding that perfect residence, I'm your man!

Property values have not taken the hit here that they have in many other parts of the country. And compared to a lot of other areas, the prices are still somewhat reasonable (you can still find a single family home in a decent neighborhood for under $200,000 in some areas!). With this being a buyer's market right now, and the future looking bright, this is a great time to buy real estate in Western North Carolina!

Please take a look at my website located HERE in order to browse listings in the area to get a better idea of what I'm talking about.

Thanks so much!

Real Estate... Compliments of Dan