Fed Seeking to Ease Recent Increase in Interest Rates

Posted by Gatlin on July 25, 2013

Federal Reserve officials recently expanded upon the latest comments by Fed Chairman Ben Bernanke, whose comments led a recent sudden spike in interest rates, including mortgage rates, which increased to the highest levels seen in nearly two years. The effects of this recent spike have led to potential increased borrowing costs for first-time and returning homebuyers, at a time when the housing market is showing slow, but steady, national growth.

Bernanke’s recent comments indicated that the Fed would reduce the amount of bond purchases that it has made since the 2008 economic downturn, along with keeping the benchmark interest rate down at all-time lows. However, according to William C. Dudley, President of the Federal Reserve Bank in New York, any increase in the Fed’s benchmark interest rate is “very likely to be a long way off,” and that any decision to reduce the pace of asset purchases wouldn’t represent a withdrawal of stimulus.

In fact, showing the reflectiveness of this recent rate spike, the average rate for a 30-year fixed mortgage recently rose to 4.46 percent from 3.93 percent, the biggest one-week increase since 1987, McLean, Virginia-based Freddie Mac said in a statement. The rate was the highest since July 2011 and above 4 percent for the first time since March 2012.

What does all of this mean? For the long-term housing market, especially for first-time and returning homebuyers, the Fed’s recent trend to consider a reduction of bond purchases and assets indicates a shift that may result in higher interest rates, including mortgage rates. While not immediate, the trends, as well as recent comments by the Fed, indicate that interest rates will go up in the long-term – it is just a matter of when and by how much.

There are still many great deals on homes available in the Great Smoky Mountain market, and today is a good time to look for the many properties that are available right now. If you have thought about purchasing a property in the Great Smoky Mountain region, now is the time to start looking. We invite you to browse our available properties in the area.

Here Are A Few of My Featured Listings:

Unique Contemporary Home w/Mtn Views Come & enjoy this one of a kind, unique, contemporary home! This 5000+ sq ft, 4 BD/3 BA home is located just off the Parkway in Sevierville in a beautiful, private neighborhood! Type: Single Family Home Location: Sevierville,TN Price: $325,000 Get more information >

Beautiful & Spacious Home w/Amazing View Over $185,000 in rental income from 5/1/12-4/30/13. Self managed using VBRO.com eliminating big management fees and improving net income. Prepare to be impressed by the top quality construction and high end finish work. Type: Single Family Home Location: Gatlinburg,Tennessee Price: $1,950,000 Get more information >

Beautiful Cedar Log Home w/Mtn View Beautiful, private, and well-maintained 4 BD/2.5 BA cedar log home located with Amazing Mountain and Natural views! Type: Single Family Home Location: Gatlinburg,Tennessee Price: $589,000 Get more information >

The Jason White Team
Century 21 Four Seasons Realty
1441 Wiley Oakley Drive
Gatlinburg, TN 37738
Toll Free: 877-678-2121
Fax: 865-436-7227
Email: jason@jasonwhiteteam.com
Website: www.SmokyMountainLifestyle.com

The National Real Estate Market Continues to Hold Steady Halfway Through 2013

Posted by Gatlin on July 11, 2013

As we now reach the halfway point in 2013, there are some very noteworthy trends that are emerging nationally that continue to show a steady real estate market nationally. As we continue into 2013, here are some of the trends that are now emerging, and will have a noteworthy impact on real estate nationally, as well as locally.

According to the latest news from CoreLogic, the first indicator of note is that U.S. home prices have jumped 12.2% in May 2013 from a year ago, the most in seven years. The increase suggests the general national housing recovery is relatvively steady, and is, in fact, slowly strengthening. In addition, on average, national residential home prices rose 2.6% in May 2013 from April 2013, which is the 15th straight month-over-month increase, as measured. In many states, including Tennessee, home prices are gradually increasing and showing a generally positive increase.

The other notable indicator shows us that, according the U.S. Commerce Department, there was an increase in home construction, by 6.8%, in terms of overall pace of homes being constructed, in May 2013, as opposed to 14.8% decline in home construction in April 2013. Based on this, while not dramatically increasing, home construction is also holding steady and even gradually increasing, as well as with home prices.

Furthermore, according to Realtor.com, May of 2013 saw median list home prices were 2.10 percent higher than April 2013 home prices. This reflected a general and gradual trend towards higher home prices as a whole, and we see that the home prices are reflecting a steady national trend towards higher home prices, as well as greater consumer demand for homes.

The basic reasons for these trends are many, but generally can be attributed to greater demand, limited numbers of homes for sale, and fewer foreclosures, as well as steady hiring in the job market and relatively low mortgage rates. Based on this data, we foresee a gradual continuation of these national trends, especially with respect to home prices and available housing inventories.

There are still many great deals on homes available as we see home prices gradually rising nationally, especially in the Great Smoky Mountain market. If you have thought about purchasing a property in the Great Smoky Mountain region, now is the time to start looking. We invite you to visit our website to browse the available properties in the area.

Here Are A Few of My Available Listings:

Classic Mtn. Chalet w/Mt. LeConte View This high quality classic contemporary mountain chalet features four master suites each with deck access. Fantastic peninsula lot with beautiful views of Mount LeConte. Type: Single Family Home Location: Gatlinburg,Tennessee Price: $279,900 Get more information >

Custom-Built Home on Douglas Lake Custom built home on a lake front peninsula surround by water on three sides with expansive views. Type: Single Family Home Location: Douglas Lake Price: $899,900 Get more information >

Updated & Luxurious Move in ready, recently painted & in excellent condition. Lovely patios front & rear and lawn in back, extras such as dimmable lights, upgraded light fixtures, beautiful 18 heated tile in master bath & oak flooring make the home feel special. Type: Single Family Home Location: Sevierville,TN Price: $239,900 Get more information >

Moving Into July The Smoky Mountain Market Remains Steady

Posted by Gatlin on July 4, 2013

For much of the year, we have watched as both the National and local Real Estate markets have gained and shown a steady climb to positive numbers. As we look at the statistics for the Smoky Mountain market through June of this year, we will see that the trend continues. Let’s see what the numbers have to say.

In the category of Residences Sold, we see a slight decrease versus last year of 8%. This represents 53 less homes sold in comparison to the same period in 2012. Even with the decrease in this number, as we look at the rest of the statistics, we will see that the market is still fairly stable and we expect this to continue and improve.

In the category of Residential Dollar Volume for the year, we also see a slight decrease. This directly relates to the decrease in number of homes sold, but remains a slight number as prices are still rising.

Good news for sellers in the Average Sold Price Category. In line with statistics so far for the year, prices still show a rise versus 2012. As inventory continues to decrease, we expect prices to continue to gradually increase.

Available homes on the market continue to decline. Through June, we see a decrease of 3%, or 109 less homes on the market. As activity continues to stabilize, this number will continue to dwindle.

As markets continue to stabilize across the Nation, prices will continue their rise and inventory will continue to decrease. Mortgage rates are still at all time lows and there are still plenty of housing options to choose from. Why not start your Smoky Mountain home search now by visiting our website and perusing all the area has to offer?

Here Are a Few Of My Featured Listings:

Great Rental Income! Over $30K rental income in both 2011 & 2012! This Smoky Mountain chalet is just minutes to Ober Gatlinburg Ski Resort. Main level master bedroom features private bath & deck access. Type: Single Family Home Location: Chalet Village Price: $199,900 Get more information >

Spacious Home w/Great Mtn Views Spacious home full of character & detail. A vintage door from the 1890’s welcomes you inside where you will find vaulted ceilings, lots of windows and lots of unique spaces. Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $359,200 Get more information >

Large Home Next to Smokies Once you see this functional work of art that doubles as a spacious home you’ll never want to leave. This home combines unique, one of a kind architecture w/an outrageous view, along with a site that borders the Great Smoky Mountains National Park. Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $899,900 Get more information >

The Real Estate Market Holds It’s Ground Through May

Posted by Gatlin on June 6, 2013

So far in 2013 the news has been positive for both the local and National real estate market. As real estate affects the economy directly by creating jobs, spurring marketplace activity and more it is a breath of fresh air to see the recovery in process. Today we will take a look at the Sevier County, Tennessee statistics through May for single family homes.

Number of homes sold is slightly down with a decrease of 55 homes versus the same period last year.

With the decrease in number of homes sold, total dollar volume was affected as well with a small decrease, inventory constrictions may be contributing to these numbers.

Great news for sellers! The average sold price continues to show gains over last year showing an 8% increase. As inventory continues to shrink prices will continue to get a boost.

The number of available homes is down 4% from last year. This will continue to help prices however now may be a good time to think about getting a free price analysis to determine if it is the right time to sell.

Although inventory is down there is still a wide variety of properties to choose from. As prices continue their steady rise now is the time to get started on making your dream of owning a Smoky Mountain home a reality. We invite you to visit our website and begin the search.

Here Are A Few Of My Featured Listings:

Perfect Country Cabin Over $21,000 gross rental income in 2011 & 2012! Perfect country cabin for a romantic get-away. Great rental history and tidy condition make this an easy choice. Type: Single Family Home Location: Pigeon Forge Price: $129,900 Get more information >

Custom Built Dream Home This is a well built custom one owner home on a 3/4 acre level corner lot with mountain views of the Great Smoky Mountains National Park. Type: Single Family Home Location: Cosby Price: $239,900 Get more information >

Rustic Log Cabin W/Amazing Views! Authentic & rustic log cabin with breathtaking mountain views. Located in desirable Chalet Village, this cabin is just minutes from Ober Gatlinburg Ski Resort and downtown Gatlinburg. Type: Single Family Home Location: Chalet Village Price: $139,900 Get more

Vacant Land – A Good Buy?

Posted by Gatlin on May 30, 2013

As we are watching market activity surge, prices starting a slow rise and inventory decline many of you may be asking is now the time to consider a vacant land purchase. Today we would like to take a moment to look into the benefits and things to consider before making a land purchase.

There are numerous things to check into when you begin to look at an undeveloped tract of land and the first is what are your long term goals for the parcel? Are you looking at a long term investment, to build right away or to get a good deal now and build a home later? Knowing ahead of time what your end plans are will help to guide your decision making.

If you intend to purchase it as a long term investment always think about location. If the market is primarily vacation rental property and that will be the end user, where are the hot spots for vacation rentals? Certainly in this area Chalet Village, Pittman Center, Wears Valley and locations near Dollywood would be excellent choices. If you are looking for somewhere to build a second home you will want to decide what location features are to you when you are enjoying time away. Mountain view? Close to attractions? Privacy? Or for a permanent residence, what about accessibility to shopping? School district? Traffic?

Once you have determined an end use and location you will want to consider potential costs of purchasing such as a survey. Also, what amenities are present and what will have to be added? Is the property serviced by city water and sewer? If not, is there an existing well and septic or will one need to be installed?

Putting together a team to help will make your transaction go more smoothly and give you a clear picture when making a land purchase. We recommend exploring your financing options first so that when you have identified a piece of property you are prepared to make an offer. We are able to assist you with locating contractors, builders and others to be available throughout the process.

There are numerous options available in the Great Smoky Mountain area if you are considering a land purchase. Land and lot prices are still low but as existing home inventory continues to decrease and prices increase land values will start to rise. Now may be a good time to start looking at some of the great available deals on undeveloped property.

Here Are A Few Of My Featured Vacant Land Listings:

Near Ski Resort & Downtown
A great opportunity to own a lot in desirable Chalet Village and has a winter view of the mountains.
Type: Land
Location: Chalet Village
Price: $29,900
Get more information >

Two For The Price Of One
Two lots for the price of one and right in the city within walking distance to downtown Gatlinburg dining, shopping and attractions.
Type: Land
Location: Gatlinburg ,Tennessee
Price: $35,000
Get more information >

Beautiful Ridge Top Property! Great Deal
Beautiful ridge top property with level building site. Clear a few trees to have a wonderful mountain view. Driveway to the top of the ridge. VERY MOTIVATED SELLERS!
Type: Land
Location: Gatlinburg, Tennessee
Price: $29,000
Get more information >

What Role Does The Real Estate Market Play In The Economy?

Posted by Gatlin on May 9, 2013

We have witnessed a continued stream of good news flowing in for the housing market so far this year and there is no doubt that a recovery is underway. Trulia’s Housing Barometer shows each month how quickly the market is heading back to “normal.” Trulia is showing that the market is currently 56% of the way back compared to only 33% one year ago. This number comes from averaging 3 key indicators:

*Construction starts were up 47% year over year, the highest level since June of 2008 – 55% back to normal.

*Existing home sales slowed a bit but were still up 10% year over year – 66% back to normal.

*The foreclosure and delinquency rate fell to it it’s lowest level since October of 2008 – 48% back to normal.

Though it is great to hear real estate is doing well it is often mentioned that this means an overall boost to the economy. Let’s take a look at a few of the reasons why.

Many career fields and even the Government depend on real estate success. Of course lenders and builders benefit when the market is doing well but a closer look shows that the impact goes much deeper than that. Lawrence Yun, NAR Chief Economist, says that the market recovery is responsible for about 1/3 of the economy’s growth and a large number of jobs. When we think about homes being purchased many times this means a need for landscaping, remodeling, lawn equipment and numerous other items. This pours spending right back in to the economy. The effects go through several levels, as home purchases and home construction increase the demand for materials and supplies is also increased, boosting retail jobs, manufacturing jobs and labor jobs.

Another way home purchases help is in the tax sector. Most communities depend on tax dollars to provide road maintenance, parks, emergency personnel and other services. With more property tax dollars coming in cities are able to spend more on improvements. With these improvements it is easier to attract job providers or in some cases, recreational visitors to the area. This completes a loop of money being circulated in the economy.

These are just a few of the ways that real estate affects the economy and there are many more. As the market continues to level now is the time to consider a purchase. When you are ready we will be here to help you navigate the process from beginning to end.

Here Are A Few Of My Featured Listings:

Picture Perfect Log Cabin Almost $25,000 in rental income for 2012! Well built log cabin with privacy and only 5 miles to Pigeon Forge. Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $219,900 Get more information >

Tucked Away In The Woods This two bedroom chalet with a pretty wooded view is set back in the trees to offer the kind of privacy you seldom find in today’s crowded world. Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $139,900 Get more information >

Stress Free Home In The Mountains Looking for a stress free home away from home in the Smoky Mountains? You have found it here with this inviting condo atop Ski Mountain. Type: Condo Location: Chalet Village Price: $85,000 Get more information >

The Smoky Mountain Real Estate Market Holds Steady

Posted by Gatlin on May 2, 2013

An article on CNN Money this morning reports that mortgage rates for a 30 year fixed loan still hover near the record low set in November of 2012 at 3.35%. The 15 year rate fell to an all time low at 2.57%. These continued low rates are helping to push the real estate market into recovery. So far in 2013 we have seen mostly positive news both nationally and locally. As we look at the market statistics for the Smoky Mountain Region we see that the market is holding steady and still showing positive growth from last year.

In the first category of Residences Sold, we see a slight decline of 38 homes versus the same period last year.

In Residential Volume Sold we see a 2% increase. Though the number of homes sold has slightly declined this number continues to stay positive as home prices are still showing an increase.

Total Dollar Volume Of Homes Sold The Average Sold Price of Smoky Mountain Homes shows an increase of 12% versus last year. We believe this number will continue to improve as the market keeps growing.

In the final category of Available Homes we continue to see inventory decrease. April finished out with 181 or 6% less homes on the market than the same period last year. As this number continues to show a decrease it will contribute to helping prices rise.

There are still plenty of properties to choose from and though prices are rising they are still lower than when the market was at it’s prime. Now is the time to begin searching if you have ever thought of buying a get away or investment in the Smoky Mountains. We invite you to visit our new home search website and begin the process of finding the one that’s perfect for you.

Here Are A Few Of My Featured Listings:

Rustic Charm – Modern Comfort Over $20,000 in rental income in both 2011 & 2012. This log cabin nicely displays a nice balance of rustic charm blended with modern comfort. It features true log construction with high ceilings and an open floor plan. Type: Single Family Home Location: Chalet Village Price: $139,900 Get more information >

Top Of The Line – Borders National Park Tucked away on a HUGE wooded lot bordering the Great Smoky Mountains National Park this oasis of privacy offers top of the line stainless steel appliances, breakfast bar, hardwood floors and much more. Type: Single Family Home Location: Chalet Village Price: $369,900 Get more information >

As Foreclosures Ease, The Market Benefits

Posted by Gatlin on April 25, 2013

Recovery We have watched as inventory decreases and prices rise both locally and nationally. This is due in part to a steady decline in foreclosures entering the market. In March the number of foreclosure filings fell 21% from a year earlier and repossessions were at the lowest number we have experienced in five and a half years. Let’s take a closer look at all of the factors in play that are helping ease the numbers.

Stronger guidelines for processing short sales have been put into play for some loans helping the process move along more quickly. As buyers see that short sales are not taking as long they are more interested in these listings resulting in more of them being sold instead of moving into foreclosure.

Banks are also approving more loan modifications and refinances to help owner’s stay in their home instead of considering foreclosure proceedings as the first option. According to a new report for March by Lender Processing Services, the number of owners who are behind on payments or in danger of foreclosure dropped below the 5 million mark for the first time since 2008. LPS reports that by the end of March the number of homes in foreclosure dropped to 3.4%, down from 4.2% just a year ago.

We are also seeing a huge increase in banks using deeds-in-lieu of foreclosure. A deed-in-lieu of foreclosure allows the bank to take possession of a home while foregoing the foreclosure process. Often times a deed-in-lieu comes with an offer of “cash for keys” an incentive for owners to vacate the home without letting it fall into foreclosure. Nationwide, in 2012, deeds-in-lieu were up 40% from 2011 according to RealtyTrac.

There are still many great deals on homes available as we see prices rising slowly. For the week we saw average mortgage rates drop .02% to 3.65% keeping home affordability at record lows. If you have thought about purchasing a property in the Great Smoky Mountain region now is the time to start looking. We invite you to visit our website to browse all of the available properties in the area.

Here Are A Few Of My Featured Listings:

180 Degree City & Mountain Views Produced over $14k in rental income in 2012. Very private ridgetop retreat w/wraparound covered deck that has amazing 180 degree views of the mountains & city lights. Type: Single Family Home Location: Chalet Village Price: $189,900 Get more information >

Great Income, Perfect Location Over $40,000 in rental income for 2012! Big open floor plan with 5 bedrooms & bath suites. Four of the suites have whirlpools & 3 feature fireplaces. Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $299,900 Get more information >

Charming River Front Cottage Almost $15,000 in rental income for 2012. Sitting right along the Little Pigeon River, this charming cottage is just minutes to the Pigeon Forge Parkway. Type: Single Family Home Location: Pigeon Forge Price: $177,900 Get more information >

Vacation And Investment Home Sales Are On The Rise

Posted by Gatlin on April 11, 2013

The National Association of REALTORS has conducted their 2013 Investment and Vacation Home Buyers Survey concerning existing and new home transactions for 2012. The report contains very detailed information about investment and second home buying patterns and today we would like to take a look at some of the numbers and how they relate to the tourist driven market in the Great Smoky Mountains.

The news is good overall, with the report showing an increase of 10.1% in 2012 vs. 2011 for vacation home sales. Investment home sales dipped 2.1% to 1.21 million but remains well above the numbers from the downturn when sales were well below one million. Vacation home sales made up 11% of all real estate transactions last year, the second highest percentage since 2005. As we see news of a market recovery and reports that things are shifting to a seller’s market it is positive for our area to see that this does not apply only to permanent residences but also to owners of vacation rental property.

When we looked at the statistics for the Smoky Mountain region last week we noted an increase in average prices of 12% for Sevier County, Tennessee. This is reflected in the NAR report as well as they show that the median price for vacation and investment homes is up, reflecting a larger amount of more expensive vacation and investment properties being purchased in 2012. We expect to see the trend continue in 2013.

Thirty five percent of investment buyers purchased more than one property with 55% of them stating that rental income was a large factor in their buying decision. Our region leads the market with 45% of vacation homes that were purchased last year being in the South. This is great news for owners in the Smoky Mountain area as inventory decreases and a large percentage of buyers are looking for great rental investments in the area. If you have a second home or vacation rental that you are thinking of selling why not request a free price analysis? You may be surprised by what the market has to offer.

Looking for a great investment or second home? Try out our new search site and gain access to all of the available listings in the area. When the time is right, we are here to help guide you through the process of purchasing your Smoky Mountain dream.

Here Are A Few Of My Featured Listings:

Amazing Mount LeConte Views Over $28,000 in rental income for 2012! Nicely decorated cabin with fantastic views of Mt LeConte. Enjoy the views from the spacious decking this cabin has to offer. Type: Single Family Home Location: Chalet Village Price: $219,900 Get more information >

Gone With The Wind Almost $27,000 income for 2012!! If you have dreamed of having a luxury chalet on top of the mountain with sweeping views of the valley, city and mountains then you have to look at this one. Type: Single Family Home Location: Chalet Village Price: $299,900 Get more information >

Beautiful Setting On The River Consistently produces almost $40,000 gross annual income!! Once you see it you’ll never want to leave. Directly on the pristine Middle Prong of the Pigeon River, found to be the cleanest river in the state by the Tennessee Resource Defense Council. Type: Single Family Home Location: Pittman Center Price: $399,900 Get more information >

The Smoky Mountain Real Estate Market Continues To Climb

Posted by Gatlin on April 4, 2013

buyersroad A look at the Smoky Mountain real estate statistics shows a market that continues to improve. Today the National Association of REALTORS stated that 83% of agents are reporting constant or rising prices and we see the same trend in the Sevier County area. There are still concerns that event though mortgage rates remain low lending restrictions are too tight and holding back a speedier market recovery. Let’s see what the numbers have to say.

In the category of Total Residences Sold we do see a decline from the same period in 2012 with 58 less homes being sold.

Even though the number of homes sold decreased we see a much smaller decline in the Total Dollar Volume of homes sold through March.

Prices continue a steady climb with a 12% increase over last year. This relates directly to the smaller decrease in total volume vs. number of homes sold. Home buyers who are in the market are ready, willing and able to purchase at this time.

Inventory is also decreasing with a decline of 8% from last year. This will continue to push the prices higher and help with the balancing of the market.

As the market improves now is the time to start your search for a Smoky Mountain home. Have you had a chance to try out our new home search website? If you had an account on the old site you will have received an email with new log in instructions. Never searched on our site before? Give it a try and let us know what you think. We hope you love all of the new features!

Here Are A Few Of My Featured Listings:

Beautiful Get Away Cabin Produced right at $16,000 in rental income for 2011. Tidy and cute one bedroom honeymoon cabin all on one level. Type: Single Family Home Location: Pigeon Forge Price: $99,900 Get more information >

Rustic Charm On 6 Acres!! Charming vintage log cabin updated with modern conveniences but with old time charm sitting on 6 beautiful wooded acres. Type: Single Family Home Location: Pittman Center Price: $174,900 Get more information >

Possible Owner Financing Owner Financing available with 20% down, 6% interest, 30 year amortization, 5 yr. balloon, no fees. Just 1 mi. from Ober Gatlinburg is where you will find this super affordable condo. In a resort like community you will enjoy all of the best amenities. Type: Condo Location: Gatlinburg ,Tennessee Price: $75,000 Get more information >

Category: Local Market Statistics