Fletcher Business: Interest rates, falling inventory heat up home sales across the county
Interest rates and falling inventories are fueling home sales across the county
When the Covid-19 pandemic ended eleven months ago, real estate agents looked to the horizon in fear.
“We were scared to death in March of what would happen in the real estate market this year,” said Steve Dozier, a real estate agent at Beverly-Hanks. “It was a phenomenal year. It’s just amazing how good the market has been. “
All of the industry’s standard actions show that Henderson County’s real estate market is booming. In 2020:
Homes sold monthly rose to 193, an increase of 137 from the 2010 recession.
The days on the market went down from 188 10 years ago to 56.
The list-to-sell ratio – the offer price compared to the price paid – was 98 percent.
The median retail price rose to $ 325,000.
The monthly inventory for any price range up to $ 700,000 was either zero, one, or two months.
“Up to $ 800,000 is currently considered a seller’s market,” said Dozier. “The average market days in 2020 were 69 days, the lowest in years, and the price is the highest ever.”
A lack of inventory drives up the price
David Noyes, agent in charge of the Remax Results Arden office and past president of the Hendersonville Board of Realtors, said the market in the area is hot.
The list sales ratio for all of the Multiple Listing Service (MLS) east of Charlotte to Waynesville is 100 percent, and that’s because some (that’s) maybe 92 percent. It could be houses that weren’t in good shape, overpriced, whatever. And there are other things that close above 100 percent of the asking price. And that’s what’s amazing for me. “
“Shortage of inventory is everyone’s problem right now,” Noyes said. The six month delivery is generally seen as a balanced market between buyer and seller. If the supply falls below six months, the market will tend in favor of the seller.
“We were definitely in a buyer’s market in 2010 and 2011,” said Noyes. “Now in Henderson County we have 1.4 months of inventory” for all home values.
Dozier shared a fresh illustration of the red-hot market.
“I listed a house in Haywood Knolls a week ago last Friday,” he said. “On Friday morning, when it went on the market around 9 a.m. until Sunday noon, I had 23 performances and six offers.” He recently sold a home in Fletcher for $ 25,000 above market price.
Both Dozier and Noyes said about half or more of the new buyers are from overseas.
Some buyers are from the Northeast, “where their property taxes are above our average mortgage,” Noyes said, and others are moving out of California, “where absolutely everything is more expensive so they can afford more homes here.”
Some buy second homes, others are retirees. “We’re seeing some career-focused moves – with Amazon, GE, and Pratt Whitney,” Noyes said. “Hospitals are very recruiting. Lots of professionals come here. “
Dozier also sees migration as the opposite of the gold rush.
“I had three people from California who moved here last month to quit Covid, the protests, the cost of living,” he said. “Our price is going through the roof right now.”
Historically low interest rates help middle-income buyers move from rental apartments to apartments and make buyers more willing to pay.
“There are brokers now who are changing people’s lives by putting them in a house instead of renting them,” Noyes said. “People are entering houses they never thought they could enter. There are many more people who can afford a home now than ever before. “
Housing construction begins
In 2020, Henderson County’s Inspection Department issued 573 building permits for new homes, a 1 percent decrease from 2019. The value of the new houses is evidence of the inflation factor. At $ 168 million, the total value was up 12.7 percent year over year. Overall, the value of new construction of residential and commercial buildings rose by 25 percent compared to 2019, while the value of conversions and additions for commercial and residential real estate rose by 32.5 percent.
Does new residential construction meet demand?
“Absolutely not,” said Noyes. “The next question is: is it affordable? When I am a builder, I have work, I have wood and I have land. If I want to put work on a job building a $ 200,000 house, I can use the same work and work a little longer, and I can build a million dollar house and make a lot more profit … they use 2x4s on $ 200,000 house, you only use a few more in a million dollar house. So what should I build? “
Slow it down? What slowdown?
After a few weeks of darkness last March, brokers adjusted and began selling at a breakneck pace. They provide masks and always have hand sanitizer on hand. Sellers sometimes leave all lights on and closet and pantry doors open so potential buyers don’t have to touch anything. Brokers rarely or never drive buyers from door to door.
“I think most real estate agents know it is common for buyers to meet them at the listing,” Noyes said. “We do the video tour or a 3D tour through the house. We’re turning to technology now while we’ve learned this stuff before. We’re improving our marketing game. “With a 3D tour, shoppers can look around each room, look in the closets and pantries, and even look out the windows.
The hot market doesn’t seem to be cooling down anytime soon.
Given the low interest rates, a steady parade of buyers, and the time it takes to complete the currently approved homes, “I see that market won’t change much over the next year,” Dozier said. “When we hit the recession in 2008, we had 22 to 24 months of inventory. We don’t have any inventory now. “