Blog :: 10-2008

New home sales unexpectedly soar 2.7 percent

Meanwhile, median price of a new home drops to four-year low, $218,400

Breaking news

Associated Press

updated 10:36 a.m. ET Oct. 27, 2008

WASHINGTON - Sales of new homes recorded an unexpected increase in September as median home prices dropped to the lowest level in four years, the Commerce Department reported Monday.

Sales of new single-family homes rose by 2.7 percent last month to a seasonally adjusted annual rate of 464,000 homes, Commerce said. Economists had expected sales would drop from the August level.

The median price of a new home sold in September declined by 9.1 percent from a year ago to $218,400, the lowest price level since September 2004, a period when home prices were rising rapidly as the country experienced a five-year housing boom.

The surprising increase in September sales still left them 33.1 percent below the level of a year ago as the country is battered by the worst slump in housing in decades.

The report on a rise in new home sales followed news last week that sales of existing homes rose in September by 5.5 percent, the largest monthly gain in more than five years.

Analysts: No bottom "” yet Analysts are not convinced that the sales increases are signaling a bottom for the housing market. They note that the September gains came before the latest upheavals in financial markets which have raised new worries about the overall state of the economy.

Many analysts believe the country has already entered a recession. They are forecasting significant increases in job losses which will make it even harder to mount a sustained rebound in housing.

New home sales fell by 21.4 percent in the Northeast and were down 5.8 percent in the Midwest. However, sales rose by a sharp 22.7 percent in the West, a region of the country which has seen some of the biggest declines in prices, a development which has spurred sales. Sales were up 0.7 percent in the South.

The rise in sales left a total of 394,000 unsold new homes on the market at the end of September, down a record 25.4 percent from the number of unsold homes on the market at the end of September 2007.

Builders have been sharply cutting back on production, trying to get inventories more in line with sales.

Even with the latest drop in total unsold new homes, the inventory represents a 10.4 months supply at the September sales pace, still a historically high level.

The inventory of unsold existing homes is also remaining near historic highs as that market is being increased by a record wave of home foreclosures.

The 2.7 percent rise in sales for September new home sales followed a big 12.6 percent drop in August, which was revised sharply lower from the government's initial estimate. Sales in July had risen by 3.6 percent.

Wake Up America?Home Prices ARE Falling

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Am I not doing my job? Or is nobody listening? How is it possible, in the midst of the worst credit crisis in history, which is predicated on one of the biggest housing crashes in history, that nearly half of all Americans still don't get that home prices are falling?

A new survey from Zillow.com finds that a full 49 percent of those surveyed think their home has either retained its value or even gained value in the past year. According to Zillow, 74 percent of all U.S. homes have lost value in the last year. Don't believe Zillow? How about the National Association of Realtors: Home prices down 9 percent nationwide in the past year. How about the government's Office of Federal Housing Enterprise Oversight: Home Prices down 5.9 percent since last year. How about any real estate agent in the phone book??

Ok, I get it, all real estate is local, and a lot of folks simply believe that those national numbers don't apply to their neighborhood. Yep, there's some truth to that, there are some neighborhoods in some cities that are still strong. But not half the homes in the country!!!

Who's most deluded? Many of you folks in the Northeast. Apparently about 55 percent of you think your home would sell for the same or more than it would a year ago. Zillow says 71 percent of homes in the Northeast have lost value. Thankfully Westerners are a little more grounded in their property valuations"¦but not all of you! Despite the fact that home prices in California, Nevada and Arizona have fallen upwards of 40 percent regionally, 35 percent of Westerners think they haven't lost a dime in their homes. According to Zillow, 85 percent of all homes in the West have lost value.

  • Home Prices Plunge 16.6% in August
  • New-Home Sales Fall Again in August
  • Banks Reluctant to Redo Ailing Mortgages

    So what's up with the numbers? Clearly Americans get that something bad in the economy is going on. Consumer sentiment is in the toilet and consumer spending is swirling around the same venue. Are we all so wrapped up in the credit crisis and the stock market mayhem that we forgot from whence all this madness was born, i.e. housing??

    Look, I'm all for optimism, and yes, I do think the media can tend to go a bit overboard in reporting a crisis, but all indicators suggest we are in a housing crisis. Anyone has a right to think anything they want about their home, but any real estate agent will tell you, one of the biggest barriers to home sales and a housing recovery is the seller's over-inflated perception of the home price.

    Price a home correctly, even aggressively, in today's market and it will sell, and that's the road to recovery my friends, not listing your home for sale right in the heart of la la land.

    Questions? Comments? document.write(""); document.write("RealtyCheck"+"@"+"cnbc.com"); RealtyCheck@cnbc.com document.write('');

    © 2008 CNBC, Inc. All Rights Reserved

Haywood County Real Estate Sales for September 08 vs September 07

Below is a look at residential sales in Haywood County NC for the month of September 08 vs 07. There a few positives in these numbers. Comparing back to 07 homes sold for a bit more in September 08 which tells us there was a small level of appreciation. You will also see that sellers came off their listing price futher which tells us sellers are willing to negotitate more.

Total Sold

Average List Price

Average Sales Price

List to Sale Ratio

Average Days on Market

9/1/08-9/30/08

52

262,404

241,494

92%

135

9/1/07-9/30/07

71

254,696

240,855

94.6%

134

Maggie Valley Lot For Sale: Price Slashed for Quick Sale!

Lot #10 The Sanctuary
Maggie Valley, NC 28751

(828) 926-5200
Click here for price
A private homesite with great view potential...
PRICE SLASHED TO $39,9000! The drive and housepad are cut in to this view lot located central to Maggie Valley and Waynesville. A private homesite with great view potential including a view of the Maggie Valley Club golf course! Also, enjoy the sounds of the rushing stream below!

For additional information on this property visit: www.RealtyWorldHeritage.com
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Comments

  1. Jill V Peal on

    Could you forward a lot map of the Sanctuary. Is this community have paved roads? How far from entrance is this lot and how far back on the 2.16 acre is the pad? Thanks

    Waynesville North Carolina Real Estate

    Waynesville North Carolina currently has 354 homes on the market. Prices range from $62,000 to $3,950,000. In the past year 218 homes have sold in the Waynesville NC area or an average of 18 homes per month. The current absorbtion rate for Waynesville is 19.6 months which means of no other listings came on the market it would take over 19 months to sell the current inventory.

    Maggie Valley Homes For Sale

    Nationwide housing inventories continue to climb and we are not different in Maggie Valley. As of today in Maggie Valley (including Ivy Hill Township) there are 312 listings with a price range of $62,000 to $2,980,000.

    In the last year in Maggie Valley 120 homes have sold or on average 10 homes a month. Our current absorbtion rate is 31.2 months which means we have just in Maggie Valley over 2.5 years worth of inventory.

    Are you a buyer? Get off the fence and find the deals. There are plenty out there. Come to our home buying seminar and we will have plenty of specials and deals.

    Are you a seller? Get your price down! You are losing money everyday the home stays on the market. If you think you will hold out for a better market it could be years. We do not have a crystal ball, but all economic indicators are not positive. Get it sold now or risk losing even more.

    Pending Home Sales Rise As Buyers Grab Bargains

    Pending sales of existing U.S. homes unexpectedly jumped in August to the highest level in over a year, data from a real estate trade group showed on Wednesday.

    AP

    The National Association of Realtors Pending Home Sales Index, based on contracts signed in June, rose 7.4 percent in August to 93.4 from an updwardly revised index of 87.0 in July.

    The August reading was 8.8 percent higher than a year earlier, and the highest level since 101.4 in June 2007.

    Economists polled by Reuters ahead of the report were expecting pending home sales to drop by 1.8 percent.

    The association's senior economist Lawrence Yun said home buyers responded to improved affordability, with home prices low and mortgage rates down after the government takeover of Fannie Mae and Freddie Mac.

    Meanwhile, applications for U.S. residential mortgages climbed last week from the lowest level in a month as home loan rates declined.

    Lending conditions remained tight with global financial markets in chaos, crimping mortgage activity, analysts said.

    The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity rose 2.2 percent in the week ending Oct. 3 to 465.5 after falling 23 percent the prior week to the lowest level since the end of August.

    Mortgage rates declined last week.

    As investors rushed to the safety of U.S. Treasury securities, yields fell on the debt, which is used as a peg for home loan rates.

    Fixed 30-year mortgage rates averaged 5.99 percent, down from 6.07 percent the prior week.

    The MBA's seasonally adjusted index of applications for loan refinancings rose 0.9 percent last week to 1,345.8 after tumbling 34.7 percent a week earlier.

    The gauge of loan requests for home purchases climbed 3.2 percent to 314.5 after dropping by 10.9 percent.

    Major U.S. stock indexes tumbled even after a $700 billion U.S. government rescue program was enacted on Friday and the Federal Reserve this week unveiled new steps to improve financial system liquidity.

    The programs are intended to boost confidence and the willingness of financial institutions to lend.

    Unemployment is at a five-year high and expected to keep rising, meantime, which could dampen demand for home purchases, analysts said.

    Copyright 2008 Reuters. Click for restrictions.

    Great Buys, Foreclosures and other Motivated Sellers?

    Realty World Heritage Realty is trying to do our part to bring buyers and sellers together in these difficult times. The below press release gives the details of our home buying seminar which will take place next week in Maggie Valley. Many of our sellers have agreed to lower the prices on their property for these events. If you are in the market for a home or land we will have some great deals during this event.

    Current Market conditions create a unique "Buying Opportunity" for property across Haywood County. This may be a "once in a lifetime opportunity" to save tens of thousands of dollars on property that you want to own.

    To take advantage of this current "Buying Opportunity" a Seminar and Tour of Homes is being organized to bring Buyers and Sellers together. The Seminars and Tours are open to the public and are free.

    Sellers will be reducing the prices on quality property and homes through out Haywood County for this special event. Prices will be reduced by up to 10% or more. Creative financing options will also be available on some properties.

    Loans for home purchase are readily available in our market and interest rates and terms are very attractive. The recent Housing Legislation provides for first-time home buyers incentives with a $7,500 tax credit.

    Despite the difficult headlines regarding home loans; our area has available credit.

    There will be lenders on site during the seminar to help buyers take advantage of these loans. Affordable housing in Haywood County is now available.

    Higher inventory gives buyers a wide range of properties that may fit the budget and their needs. Rarely in recent history have all of these factors come together to create such a favorable housing market for buyers. Buyers will be shown houses as part of the "˜Tour of Homes & Great Buys'.

    The convenience factor of viewing homes that have reduced prices, excellent financing terms, and a wide variety of inventory will not be surpassed. The real estate market has been showing signs of improvement and these favorable conditions may not be available again.

    If you have been watching and waiting - then this may be the time to move into the market. Attend the Seminar on Thursday October 16th at 6:30 (Child care will be provided). Saturday October 18th at 10:30 will be the last seminar date. Location: Maggie Valley Creekside Lodge, U.S. Hwy. 19, Maggie Valley, NC.

    The Tour of Homes will follow the Seminar, or by appointment.

    Realty World - Heritage Realty and Action Mortgage are sponsors of this free program. To reserve a seat you may contact them at 828-926-5200. If you are a seller and would like to participate in this event, contact the office. Seminar and Tour info available at www.RealtyWorldHeritage.com