Blue Ridge Market Report -- January 2010

An analysis of Fannin County home sale data for January showed some positive signs. Although the number of closings was down from December of 2009 (30 in January compared to 40 in December), the median sale price was up substantially ($247,500 in January vs. $200,000 in December).

Sales were also up from January 2009 numbers - there were 20 closings in January of 2009 versus 30 in January of 2010.

The percentage of the market comprised of foreclosures continues its upward climb: 35% of the closings in January of 2009 were foreclosures; 37.5% in December of 2009; 40% in January 2010.

The existing inventory of homes for sale continues to reflect a saturated market -- one that tilts in favor of buyers. If current rates of sales hold steady, we are probably still a few years away from a balanced market.

That is great news for buyers...not so much for sellers.

Fannin County is primarily a second-home market -- a market harder hit than the primary home market. In the boom years in Fannin County (2003 to 2005), second home buyers were often using equity from their primary homes to finance their second homes. Once that source of funding dried up, so did the market.

Lured by unprecedented low prices and plentiful inventory, savvy, credit-worthy second home buyers are returning to the market. This time around, though, they are taking their time to find just the right deal, often looking at 20 or more properties before deciding which looks like the best deal. Offers are being tendered that are often significantly below asking price -- and they are often accepted.

My advice for buyers is to come on up to the mountains -- the buying is fine. For sellers...with the overabundance of inventory and foreclosures on the rise, you MUST be prepared to price your property aggresively. The three most important selling points right now are 1. Price! 2. Price! 3. Price!!! It is all about the deal today.