In 2007, the year ended with gloomy predictions by some experts and hopeful talk of a temporary slowdown by others. So how do you know which opinion to trust? Do you start planning for the worst or do you just trust that everything will be “okay”? The key is to stay calm, be prepared, and pay attention to the facts. Every real estate transaction is unique, just as every region has different trends in the real estate market. In Asheville, NC and surrounding cities throughout western North Carolina, the real estate market has remained intact and continues to be profitable, but as the rest of the country struggles, it is essential that buyers and sellers remain realistic and cautious. Feet on the ground.
National Indicators: Housing Market Trends Outside of Western North Carolina
Successful real estate transactions are completed when informed decisions are made. It is important for buyers and sellers to evaluate both the national and local real estate markets. If you’re planning to buy real estate in western North Carolina or sell mountain homes and land near Asheville, be sure to find a knowledgeable real estate agent who has experience working in multiple markets. In 2008 there are some national trends that warrant immediate consideration and will affect real estate in Western North Carolina.
Across the country, home sales in 2008 will continue to slow and prices will decline. Although most experts agree the housing market won’t drop dramatically overall, some metro areas will experience double-digit losses. According to an article by Les Christie published on CNNMoney.com on December 21, 2007, approximately 20% of the metropolitan areas covered in the most recent MoodysEconomy.com survey will experience double-digit losses in early 2008. Christie suggests: ” Most of the hardest hit markets are in high-flying areas, like California and Florida.” The article’s predictions include drops of between 29 and 32% in places like Stockton and Modesto, California and Fort Walton Beach and Naples, Florida. The forecast for falls in New Jersey includes 18 and 25% in Ocean City and Atlantic City.
Despite a drop in home sales and prices appearing across the country, Steve Zurier reports in his January 8, 2008 article, NAR Forecasts Stable Home Sales in 2008 on BuilderOnline.com, “The National Association of REALTORS (NAR) forecasts a stable housing market for the next few months with a gradual increase in new and existing home sales later this year and well into 2009.” Zurier quotes NAR Chief Economist Lawrence Yun as saying, “While there are more financially capable people now than there were in 2005, many are trying to market their purchase.” Yun concludes: “As a result, the exact timing and strength of a recovery in home sales is a bit uncertain. A significant recovery in existing home sales could occur as early as this spring, or it could be further delayed until late of 2008. .”
Ever Cloud has a silver lining, especially when it comes to real estate in Asheville, NC
In early 2008, MSN Real Estate, http://realestate.msn.com/, reported online that Business Week listed Asheville, NC as one of the top ten performing real estate markets for the third quarter of 2007 compared to with the third quarter of 2006. Coming in at number nine, Asheville joined other cities like Billings, Montana and Salt Lake City, Utah. Asheville was the only East Coast city to make the list. Adding to this great news, on January 10, 2008, the Associated Press reported that “the Fed is ready to cut interest rates again.” Writer Jeannine Aversa reported from Washington: “Federal Reserve Chairman Ben Bernanke pledged Thursday to slash interest rates as needed to avoid housing and credit problems… The Fed chief left It was clear that the central bank was prepared to act aggressively.” These actions will lead to a stabilization of interest rates in 2008 throughout the country. As home sales and property prices begin to rise, the market in Asheville should adjust and growth will continue at a faster rate.
Don’t be afraid to follow your dream of owning Asheville real estate!
Knowledge and preparation can make a difference when making financial and economic decisions. Taking the time to really understand the real estate market will increase your buying and selling options, as well as give you peace of mind. For more information on mountain living and real estate in Western North Carolina, visit [http://www.JaneSellsAsheville.com]