The battered housing market has steadied and is ready to bounce back off an inevitable pullback from its boom times in the earlier part of the decade, said Ron Peltier, the CEO at Warren Buffett’s Homeservices of America real estate company.

“I think the real truth is the market has been in a phase of correction,” Peltier said on CNBC this morning. “We are seeing some light at the end of the tunnel.”

At the same time, Peltier gave a candid analysis of what led to the housing meltdown in the first place. He said the market sprinted ahead of itself price-wise, while unscrupulous lenders and appraisers compounded the industry’s problems by putting too many people in houses they couldn’t afford. “We knew it was an overheated market,” Peltier said. “There were people for the first time ever having opportunity to buy part of the American dream under credit conditions and credit guidelines that were very, very shaky at best. “And they were buying at the peak of the market with very low teaser rates, not fully understanding the implications of that adjustable-rate mortgage setting some time in the future and the probability that they could not afford that home under the new reset conditions. That’s a travesty, because there are a lot of people that got hurt.”

Peltier put much of the blame squarely on lenders who often doled out mortgages that did not require documentation regarding assets or income. “A lot of people bought ahead of themselves,” he said. “Frankly, I think to some degree the lending industry, the mortgage business, lost its moral compass in terms of providing the proper credit standards and qualifications.”

As for how things shape up going forward, Peltier said market has returned to its pre-boom times, with home sales tracking at about 5 million annually.”I think that’s a normalized market and I think that’s a sustainable level,” he said.  But he divides the market into two parts: the primary market of discretionary sellers, and the distressed market, which includes some of the areas that saw the meteoric rise and now are suffering the consequences of excess. “Housing prices are still within 8 to 10 percent of all-time highs,” Peltier said. “The markets that have fallen off the most are actually the markets that were the most overheated.”

Speculators hurt those markets, with 25 percent of all sales from 2001 to 2006 going to those betting on making quick profits rather than buying homes in which they planned to live for an extended period. As the market normalizes, Peltier believes stability will return and prices and sales numbers will get back to sustainable levels. He worries, though, about pressure on the consumer from soaring fuel costs and tightened credit standards at the institutions that were beaten down by the collapse of the subprime lending market. “Buying a home is a function of how they can finance it,” Peltier said. “If credit standards are extremely tough and expensive, the ability to close a sale is that much more difficult.”

He called on Congress to find a workable solution to the housing crisis, something that has been elusive as the legislators and President Bush spar over who should benefit from pending legislation.

On the broader political landscape, Peltier said the housing industry generally does better when Republicans are in office, though he did not endorse a specific candidate in the presidential race. “There has been more showboating and discussion than actual rubber that meets the road,” he said regarding the legislative impasse. “The fact of the matter is we really need to have some new legislation in place to slow down and stall the foreclosures where people basically bought into a home under mortgage financing programs they didn’t understand.”

Realty World Heritage Realty is proud to announce that we have taken our marketing efforts to another level. Understanding that our unique market is down due to the economy, inflation, and most importantly the fact that our main buyer pool, Floridians are suffering their worst real estate market in decades. During 2004 to 2006 when real estate was booming across the country and especially the mountains of Western North Carolina we would estimate that over 90% of our buyers were from Florida. We are still seeing Florida buyers, but obviously in reduced numbers.

So, as we continue our traditional marketing methods including local print advertising, internet blasts, open houses, direct mail, etc. We have also reached “over the pond”. During the month of May we are running an ad in a British magazine called “A Place in the Sun”. We had the opportunity to meet some folks from the magazine out in Las Vegas last November at the National Association of Realtors Convention and were very impressed with their publication. 

Recognizing that the US dollar is continuing to plummet against overseas currency it is a great time to buy for overseas investors. This is happening in bigger markets in the US especially in Florida. It is our goal to tap into the UK and European market of investors and inform them about Maggie Valley, Waynesville, and all of Western North Carolina.  With our temperate climate, four seasons, and abundance of activities it is just a matter of getting the word out to overseas investors. We believe once they get here they will be “sold” like so many other visitors. 

“A Place in the Sun” calls themselves “The UK’s Best-Selling Overseas Property Magazine” and they have a very good distribution base.  The magazine features properties and destinations to buy real estate all over the world. At this time we are trying to convince the editor that a feature on our area would be very helpful to its readers. If you want to email him and let him know how beautiful an area it is please email Richard Way: richard.way@brooklandsgroup.com . We would love for him to feature our area and your comments may assist in convincing him that a feature is warranted.

Results? Well it may be to early to tell and like any print ad there is no way of telling how many people actually viewed the ad. Or is there? With the power of the internet, our website, and google analytics we can track how many people are coming to our site, how many pages they visit, and how long they stay on the site. Incredibly, we can also track what countries and cities within the countries the users are coming from. Since the add has come out our hits from the UK have increased 45-50% in the first two weeks of the release. This does not tell us how many viewed the ad, but with the increase it does tell us that some readers saw the ad, clicked on our site, and searched for a while. With a shelf life of 6 weeks we are eager to see how many more “hits” we get from the UK and beyond.

As Realty World Heritage explores other marketing avenues and continues to think “outside the box”,we are excited to see if we can attract buyers outside of our traditional areas. The word “globalization” has been a buzz word for the last few years and I believe that we will see more overseas investments outside of the traditional markets and within lesser known areas. The power of information exchange and the internet strikes again. We would love to hear your comments!

“Instead of telling the world What it is supposed to do, Why don’t you immediately do it yourself? In this way, I assure you, Your happiness will be surprisingly multiplied.”

Sri Chinmoy

For all of you coffee lovers Waynesville has another coffee shop for you to frequent; Starbucks! The popular chain opened inside the Ingles grocery store in Waynesville. Not being a coffee drinker I am not willing to pay $5 for a cup of their finest, but I have always respected their company. It seems sometimes growth can occur to quickly. Take a look at the interesting article below:

Starbucks taking a beating in a branding newsletter
 

Dear Starbucks,

When youre at your best, we love you — for your cool experience and smart young staff, anchored by deliciously tailor-made coffee creations. One of our partners sees you at least twice a day and has a Starbucks swipecard stamped with his name and five-component drink. Your baristas at his regular store know him so well, they just write his name, not the drinks details, on his coffee cup. You get a prominent mention in his bio, for heavens sake.

But he thinks youve really been screwing up.

Your stock price has halved in 52 weeks. Youre closing stores — terribly humbling for a company that has 16,000 units and wants 40,000 to cover the planet.

The media has really dug deep on this issue and thinks youre swooning because the stores dont smell enough like coffee. Nonsense. Bad service, poor product and dirty stores: these are the issues ruining your experience, your profitability, your Brand.

You have too many staff with inadequate training, and substandard hires who lack a positive attitude. They dont listen and they call the drinks wrong. That personalized card with the entire drink spelled out in black and white? It has proven useless in preventing the mis-made coffees that ruin the product, slow down traffic and drive away customers.

The temperature of the same drink can be lukewarm on one visit and tongue-burning the next. Your sandwiches are stale half the time. Your staff doesnt know your prices: they over- and under-charge at random, annoying customers and killing your margins, respectively.

Too many stores are filthy. Even worse than the bathrooms are seating areas piling up with spent coffee cups and crumbs that can go un-tidied for hours, even with baristas standing around doing nothing.

What does the Brand Coach coach?

Setting a goal for 40,000 stores has shifted your focus from a consistent, high-quality coffee experience to a massive construction project. Your original Brand vision has been lost, turned into a revenue target to pacify the analysts.

The Haywood County Sales and Use tax passed by a margin of 57% to 43% with 100% of precincts reporting. The funds from the 1/4 cent sales tax increase will be directed to Haywood Community College for much needed capital improvements. The passage of the measure demonstrates the citizens of Haywood County North Carolina commitment to higher education and our very own community college.

In todays election results the ballot measure to allow liquor by the drink in the town of Waynesville passed by a margin of 56% to 44% with 100% of the precincts reporting. The measure has created much debate on both sides with alot of business owners in favor and concerned citizens opposed to the measure. It has long been thought that the passage of such a measure would open the doors to national chain restaurants in the Waynesville area.

Well after you review the below you will see for yourself: Land sales in Haywood County are taking a beating at this time. The positive spin again is great inventory and greater discounts on land in the area.

Prices continue to decline in Haywood County which again is good news for buyers wanting to buy in the mountains. Below are some comparative statistics for January 1, 2007 through April 30, 2007 and the same period this year. These statistics are for residential sales including condos and townhomes.

1/1/07-4/30/07

Realty World Heritage Realty has assisted thousands of clients with the purchase or sale of homes in Haywood County over the last 35 years. We are proud to be able to offer assistance in housing to this special client who has chosen to move in above our entry way.

One of the beauties of living in Western North Carolina is the many outdoor activities that are available. My wife and I have been hiking the area since we moved here over 6 years ago, but the last few years we have not made it out at much. Our excuse? Kids! Having two young children has made going on the long hikes much more difficult. Yes, we have the backpacks, but that does not mean the kids want to stay in them.

Yesterday we decided to try it again. My son in the backpack and my daughter out for her first real hike. Not bad for age 3 (she will be 4 in the fall).  We were not sure how this was going to go and I almost forgot we had our three dogs as well. I am not sure how I could forget the dogs seeing how our puppy (husky that weighs about 50 pounds) threw up all over my daughters car-seat and floor. I did not know dogs that big got carsick!

We started out at the parking lot of Water Rock Knob (after cleaning the jeep of course), son in the back pack, three dogs, and our daughter on foot. At first she was resistant and wanted dad to carry her, but I did not give in. She got into a rhythm and a hiker was born! I have to explain that Water Rock Knob is a short hike (about .5 mile to the top), but it is very steep. After the initial grade on pavement the trail becomes all rock that you have transverse to get to the top. Most of our grown friends could not make it because it is tough!

After we made it to the first overlook we asked our daughter if she needed a break and she said NO and kept on going. The fun part was here! She was a trooper climbing, crawling and jumping over rocks. Our son saw how much fun it was and he wanted down although I was able to convince him he had a pretty good deal in the back pack. Rock afer rock, step after step we all went. Before you know it we made it to the top! A three year old just completed her first climb of Water Rock Knob!

At this point we all took a break including our son who got his share of the snacks and water. The dogs had some water and after a brief rest we were heading back down the mountain. There was one difference; our son did not want back in the backpack. So we were off and now the 1 year old (will be 2 next month) was climbing over logs, rocks, and jumping with dad close by down the boulders. Both kids hiked all the way down the mountain with no breaks! To say mom and dad were amazed was an understatement! When we got to the bottom the kids almost appeared like they would do it again.

We were reminded yesterday how lucky we are to live in this beautiful area and how lucky our kids are to grow up and experience the mountains of Western North Carolina on a daily basis. Check back for our next adventure. I have a feeling there will be plenty more!