If ‘Slow and Steady Wins the Race’, the High Country should do very well. Again, another two weeks of very slow growth for properties under contract. Though, for our market numbers in general, we see another numerical growth in our months of inventory. With inventory number for residential homes rising again to almost three and two-thirds years of inventory, our market will continue to see a small decrease in prices for new construction as well as a small increase in foreclosures.
So, when is this all going to end? Again, predictions are based on current market trends and current information about the market. But, it is safe to say that these next two months we will see increased sales and a decrease in inventory. Over the Winter, the numbers will grow again (because of the winter sales months) and then in the Spring, indications are strong that are market will pick back up and begin a return to “normal”. Because our market is so dependant on factors outside our market, like the Florida real estate market, the metro-North Carolina city’s economy, and taxes of properties in the beach area’s, we must focus on these areas (as well as many others) to determine our future.
Thank you,
PS. If you would like additional information about our market, please feel free to contact me and I would be happy to send this information your way.
Marc White, ABR, GRI, ePro
Marketing Specialist
Broker/REALTOR
Direct 828-406-2134
To see property listed on our website, PLEASE CLICK HERE Thank You for allowing me the opportunity to serve you.
Absorption Rate: Again, I want to emphasize the use of the Absorption Rate versus the “normal” Days on Market approach. The days on market approach (especially for our area) changes so randomly that there are no actual predictors to show whether the market is getting better or worse. The days on market approach at the end of the year (December 31, 2009) will be at a high, while on January 15, 2010 it will be at a very small number. The reason; our days on market is for each specific listing, not each property. If you change your listing price and sign a NEW agreement, in most cases the agent has the opportunity to create a new listing, rather than keeping the listing as “older”; meaning your days on market has now started over. Absorption rate erases most of the errors that are caused by this fluctuation in time and listings. It is not exact and it requires much more work on an agent’s part to provide you with this information, but at the end of the day, the effort is truly worth the expense.
*Another way to think of Absorption Rate is “Inventory”. In the automobile industry, dealerships try to keep a 75-90 day supply on-site. There are many reasons they use these numbers, which we don’t need to get into, but the information helps us to understand the Absorption Rate for our real estate industry.
