May Housing Market News
Wednesday, June 27th, 2007What a market! In every market someone will make money. Now what is going on? SUPPLY and DEMAND! As we all know, interest rates are very reasonable, historically speaking. Our market shows signs of weakening, yet the overwhelming factor is people want to live in Western North Carolina (WNC). Pristine climate and a dynamic population of varied views are just some of the traits of WNC that attract home buyers. How long will all of this take to sort out? I really don’t know exactly, but we believe the turnaround could take up to a couple of years. Having said that, we may see a turnaround based on demand and a fear of interest rates climbing. We are also seeing specialty property, good lake front or excellent view homes, in demand.
As reported by the National Association of Realtors (NAR) on June 25, 2007, existing home sales dropped last month in comparison to last May’s home sales numbers. Psychological factors (self-fulfilling prophecy maybe?) and the tightening of the credit market are a big drag on the housing marketplace. Realtors all around WNC will continue to pay close attention to further reports and releases by the NAR.
Source: Existing-Home Sales Ease Slightly in May by NAR