Special offer

Boy Bands & Blue Ridge Real Estate -- A Market Analysis

By
Real Estate Agent with Century 21 In the Mountains

N'SyncLove 'em or hate 'em, it was hard to miss the "Boy Band" chapter in pop music that began in the late '90's.  Bands like *NSync and The Backstreet Boys dominated the music charts -- and the daydreams -- of countless 'tweens.'  

One inescapable tune was *NSync's "Bye Bye Bye," so catchy was it that even a fast-approaching middle-age gal like me couldn't help but belt out it's infectious refrain (in the privacy of my own car when I was sure no one was looking, of course.) 

Fast forward nine years, and as I do an analysis of Fannin County real estate for 2008l, I find the tune echoing in my head yet again, only this time with a twist: "Buy Buy Buy!"

The year showed an overall 18% decline in home prices over 2007's sales. Foreclosures are on the rise and home sellers are finally realizing that they need to come to terms with what the market is saying loud and clear: LOWER YOUR ASKING PRICE! These things, coupled with mortgage rates that are still at historic lows, mean that this is an incredible time of opportunity for home buyers.

  

1/1/07 - 12/31/07

1/1/08 - 12/31/08

Variation

Total Units Sold

409

343

-16%

Avg. Days on Market

130

124

-5%

Sold Price

 

 

 

   Average

$313,222

$256,373

-18%

   Median

$270,000

$221,800

-18%

   Total Volume

$128,148,598

$87,935,891

-31%

 

  

December 2007

December 2008

Variation

Total Units Sold

31

30

0

Avg. Days on Market

145

135

-7%

Sold Price

 

 

 

   Average

$313,683

$345,427

10%

   Highest

$290,000

$212,500

-27%

   Total Volume

$9,724,165

$10,362,800

7%

There is no telling how much longer it will take the real estate market to rebound. Fingers crossed, the $819 billion stimulus package that was approved by the House today will also be passed by the Senate -- with some tweaking, of course -- and may be on President Obama's desk as early as February 13.

The Fed, in addition to leaving its key interest rate at essentially zero percent, has signaled that it is willing to act more aggressively in providing relief to a market that  has been knocked to the canvas. It is considering purchasing more mortgage-backed securities and long-term government bonds, which would help drive down interest rates on consumer loans.

What these measures add up to is an economy that may have yet have a fighting chance for a comeback in 2009, and increased market demand for consumer products like cars and houses. And with an increase in demand comes an increase in prices.

So, my advice is to make like a boy band and "Buy Buy Buy," now now now.


 
 


Comments (4)

Debbie Malone
Londeree's Real Estate & Property Management - Lynchburg, VA
From Lynchburg To The Lake (434) 546-0369

Kim, I confess- I throw their cd (& The BBB) in and dust the house to their tunes! Sellers must be realistic and realize property values HAVE declined. I present the data and if the seller still isn't willing to look at the facts I don't pursue the listing anymore. P.S. It's so good to see you!

Jan 29, 2009 12:54 AM
Atlanta's Home Inspector, David Lelak IHI Home Inspections
IHI Home Inspections 404-788-2581 - Canton, GA
Experience the IHI Difference

Kim, great analysis, so many times the sellers really don't want a look at the bigger picture.  Thanks for bringing that to light. 

Jan 29, 2009 01:06 AM
Kim Southern- "Sold" with Southern Hospitality
Century 21 In the Mountains - Ellijay, GA
Greetings from the North Georgia Mountains!

Debbie:  I defy anyone to not like BBB!!! Yes, we are turning listings down, as well, for folks who do not want to 'get real' about pricing. Who has the time to go all out to market a listing that's not going to get a second look because it's overpriced?

Good to see you too!!

 

Jan 29, 2009 02:10 AM
Kim Southern- "Sold" with Southern Hospitality
Century 21 In the Mountains - Ellijay, GA
Greetings from the North Georgia Mountains!

David & Bonnie: Thanks for the kind words! Hope you are well and keeping busy...

Thanks for stopping by!

Jan 29, 2009 03:04 AM