Local Realtor Report: Buyers’ Market Conditions Continue in High Country, Inventory Lowest in a Year

Published Monday, February 16, 2015 at 10:05 am

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Feb. 16, 2015. Local real estate sales started the new year as they traditionally do – slowly. Meanwhile interest rates continue to fall.

Realtors sold 75 residences worth $15.86 million in January, according to the High Country Multiple Listing Service, which records Realtor-transactions in Ashe, Avery and Watauga counties.

It was the quietest month of sales recorded since January 2013, when just 64 listings were sold. January also broke a streak of six straight months of plus-100 sales, and recorded a year-to-year decline of 8.5 percent compared to sales last year at this time (82 listings sold).

The early months of the year are traditionally soft in sales. Since 2008, Realtors have sold an average of 64.8 homes in January. The biggest change in that span, though, was the price at which those homes have sold.

From January 2008 to January 2013, the median sale price for the month was well over $200,000, peaking at $250,000 in 2010. Last January the median sale price recorded was $168,500, a decline of 23.4 percent from the prior January.

Last month the midpoint of all sale prices was $165,000, down 2 percent from a year ago.

These market conditions appear to remain strong in the High Country, which should encourage more potential buyers to explore the area’s real estate opportunities.

“With our local median sale price continuing to decline and interest rates attractively low, we believe all of our communities and mountains will attract new buyers to the area,” said Pam Vines, president of the High Country Association of Realtors.

Local inventory is at its lowest level in more than a year, with 2,227 residential listings as of Feb. 8.

The READReport, which tracks all real estate transactions in the three-county area, reported 180 sales in January, a slight increase from the 174 sold in January 2014. Total value was $50.09 million, with 41 percent coming from commercial sales.

Along with prices, prospective buyers should be encouraged thanks to interest rates continuing to decline. As of February 5, the nationwide average for a 30-year mortgage dropped from 3.66 percent to 3.59 percent. The rate for the 15-year loan went from 2.98 to 2.92

Rates are now at their lowest levels since May 2013, and well below were they were this time last year. In January 2014 the average 30-year mortgage rate was 4.23 percent and the 15-year rate was 3.33 percent.

“With interest rates at lows not seen since early 2013, the strength in existing sales in upcoming months will largely depend on the willingness of current homeowners to realize their equity gains from the past couple years and trade up,” said Lawrence Yun, chief economist with the National Association of Realtors.

Nationally, home sales declined in 2014, down 3.1 percent compared to 2013. The High Country saw a slight increase, with sales up 4.5 percent. Prices were flat though, with the median sale price down just under one percent.

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