Is history repeating itself?

Rapid price increases will not last forever.

The current growth in home prices is echoing the lead-up to the recession.  Is history repeating itself?

 

The answer is likely not, according to a recently released realtor.com® report.  Building is lacking in many markets—one hallmark 10 years ago was over-construction—and credit standards are more stringent, says Danielle Hale, chief economist of realtor.com.

“As we compare today’s market dynamics to those of a decade ago, it’s important to remember rising prices didn’t cause the housing crash,” Hale says.  It was rising prices stoked by subprime and low documentation mortgages, as well as people looking for short-term gains—versus today’s truer market vitality—that created the environment for the crash.”

In 2016, home prices (the national median home sales price) were 2 percent higher than they were in 2006, the report reveals. Pre-recession prices have returned in 31 of the 50 largest metropolitan areas.

In contrast with 2006, however, are today’s credit conditions. Currently, the median FICO score for a mortgage is 734; the median in 2006 was 700.

Builds and flips are also different from 2006—starkly.  The credit environment, among other factors, is keeping a lid on unfettered flipping and over-construction.  In 2006, one household formation generally equaled 1.4 single-family housing starts; in 2016, that number shrank to 0.7 single-family starts.  Flips accounted for 5 percent of sales in 2016; in 2006, they comprised 8.6 percent.

“Lending standards are critical to the health of the market,” says Hale.  “Unlike today, the boom’s under-regulated lending environment allowed borrowing beyond repayable amounts and atypical mortgage products, which pushed up home prices without the backing of income and equity.”

Additionally, economic indicators point elsewhere.  Employment was healthy then and is now, but inventory is limited more today—at a 20-year low.  Presently, the average months supply is 4.2; in 2007, the average months supply was 6.4.

 

Featured Listings:   Price Reductions

Beautiful one level brick 3 BD/2 BA complete w/incredible views of the Smokies & of a beautiful pond adj. to this property.  More info
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$458,800   ID#: 212271
Resting atop 1.49 beautiful acres you’ll discover an architectural gem of 5000+ sq ft, 4 BD / 3 BA.   Views of Mt. LeConte & Clingman’s dome.  More info

National Real Estate Market

Prices are up, homes selling faster, new listings slightly up

Autumn began in September, but activity in the housing market remained at summer-like levels through October, according to realtor.com’s latest data preview. Prices in October were 10 percent higher than those one year ago, with the national median at $275,000 and the national median age of inventory at 73 days.

“This month we aren’t just experiencing still-summery weather—we’re also seeing a sizzlingly competitive housing market at a time when things are usually cooling off for the fall,” says Danielle Hale, chief economist at realtor.com. “With not enough homes on the market to meet the high demand, homes are selling 8 percent more quickly than a year ago even though prices are as high as they’ve ever been.

“For potential buyers who waited until fall hoping to score a bargain, the pickings are disappointingly slim,” Hale says, “but one potential bright spot for market-fatigued buyers is that new listings are up slightly from one year ago. While new listings declined in the first four months of the year, they have increased on a year-over-year basis in five of the last six months.”

Would you ever buy a haunted home?

A new survey from Realtor.com shows most folks won’t shy away from a spooky space–so long as the price is right.

In September, Realtor.com surveyed more than 1,000 online respondents. The verdict? Thirty-three percent were open to living in a haunted house, 25 percent might be, and 42 percent are not open to the idea.

What factors impacted these results? Let’s explore:

  • 40 percent of respondents indicated that they need a price reduction in order to choose a haunted home over a non-haunted home;
  • 35 percent require a better neighborhood;
  • 32 percent need larger square footage;
  • and 29 percent would do so if more bedrooms are involved.

Who minds a few spooky spirits if there’s a third bedroom?   From the survey, 47 percent of participants indicate they would live in a home where someone died, 27 percent said they might, and 26 percent said they would not.

The survey also showed certain paranormal activities are preferred over others. Forty-eight percent of those surveyed didn’t mind a few cold or hot spots in their home, whereas 45 percent could get down with unexplained noises, and 39 percent are willing to tolerate strange, freaky feelings in certain rooms. Thirty-five percent of folks could deal with shifting shadows, but only twenty percent were alright with levitating objects or the sensation of being touched.

Of those surveyed, 28 percent believed they already have lived in a haunted house, with 14 percent unsure and 58 percent quite sure they’ve never been haunted.

 

Featured Listing:

This lot was issued a 5 bedroom septic permit, which is increasingly rare. Great opportunity to build a 5 bedroom vacation rental cabin.   Located in very desirable Pinnacle Vista subdivision in Pittman Center.

College debt affecting housing market

College debt is having a compounding effect on how millennials perceive and plan for home ownership.

Eighty-three percent of millennials in a recently released report by the National Association of REALTORS® (NAR) say they are delaying their home-buying plans by a median seven years as a result of their student loan debt. Twenty percent of the millennials surveyed in the study are homeowners; 80 percent are not. The typical millennial homeowner is burdened by $41,200 in student debt, and earning $38,800 annually.

Home ownership is not the only casualty of student debt—millennials are also postponing career changes, children, marriage and retirement savings, the study shows.

“The tens of thousands of dollars many millennials needed to borrow to earn a college degree have come at a financial and emotional cost that’s influencing millennials’ housing choices and other major life decisions,” says Lawrence Yun, chief economist at NAR. “Sales to first-time buyers have been underwhelming for several years now, and this survey indicates student debt is a big part of the blame. Even a large majority of older millennials and those with higher incomes say they’re being forced to delay home ownership because they can’t save for a down payment and don’t feel financially secure enough to buy.

“A scenario where only those with minimal or no student debt can afford to buy a home and save for retirement is not an ideal situation and is one that weakens the economy and contributes to widening inequality,” Yun says.

Millennial homeowners are doubly pressured, unable to sell and trade-up due to their student debt. At the entry level, the inability to move keeps valuable inventory off-market, worsening already scarce supply in the tier.
“Millennial homeowners who can’t afford to trade up because of their student debt end up staying put, which slows the turnover in the housing market and exacerbates the low supply levels and affordability pressures for those trying to buy their first home,” says Yun.
Combating the issue comes down to education. Many millennials are in the dark about college costs—in fact, the study shows only 20 percent have a big-picture understanding of the expenses related to education.

“REALTORS® are actively working with consumers and policy leaders to address the growing burden student debt is having on home ownership,” says NAR President Bill Brown. “We support efforts that promote education and simplify the student borrowing process, as well as underwriting measures that make it easier for home buyers carrying student loan debt to qualify for a mortgage.”

The study was conducted in conjunction with American Student Assistance (ASA), a non-profit guarantor.
“Student debt is a reality for the majority of students attending colleges and universities across our country,” says Jean Eddy, president and CEO of ASA. “We cannot allow educational debt to hold back whole generations from the financial milestones that underpin the American Dream, like home ownership. The results of this study reinforce the need for solutions that both reduce education debt levels for future students, and enable current borrowers to make that debt manageable, so they don’t have to put the rest of their financial goals on hold.”

 

Featured Listings, Price Reductions:

 

1224 Sky High Way  Gatlinburg, TN
$249,900   ID#: 210698

2 BD/2BA, 1,300+ sq ft mountain chalet, complete w/incredible views of Mt. LeConte, downtown Gatlinburg, ski resort & the Smokies.  Currently on a well-managed rental program.  More info

 

936 Stans Road   Gatlinburg, TN 37738
$249,900   ID#: 210699

Well-located, 2 BD/2 BA, 1,500+ sq ft mountain chalet,  currently on a well-established rental program. Amazing views of the Smokies & the City of Gatlinburg.  More info

 

Will home prices reverse course?

It seems unlikely, however there may be some good news:

Home prices increased in the latest S&P CoreLogic Case-Shiller Indices, up 5.8 percent year-over-year in June, compared to 5.7 percent in May.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index’s 10-City Composite rose 4.9 percent year-over-year, down from 5.0 percent in May, while its 20-City Composite rose 5.7 percent year-over-year, identical to May. Month-over-month, the 10-City Composite and the 20-City Composite both rose 0.7 percent.

Of the 20 cities analyzed for the Index, Dallas, Texas, Portland, Ore., and Seattle, Wash., came out on top, with prices up 7.7 percent year-over-year in Dallas, 8.2 percent in Portland and 13.4 percent in Seattle.

“The trend of increasing home prices is continuing,” says David M. Blitzer, chairman of the Index Committee and managing director at S&P Dow Jones Indices. “Price increases are supported by a tight housing market. Both the number of homes for sale and the number of days a house is on the market have declined for four to five years.

“Currently the months supply of existing homes for sale is low, at 4.2 months,” Blitzer says. “In addition, housing starts remain below their pre-financial crisis peak as new-home sales have not recovered as fast as existing-home sales.

“Rising prices are the principal factor driving affordability down,” says Blitzer. “However, other drivers of affordability are more favorable: the national unemployment rate is down, and the number of jobs created continues to grow at a robust pace, rising to close to 200,000 per month. Wages and salaries are increasing, maintaining a growth rate a bit ahead of inflation. Mortgage rates, up slightly since the end of 2016, are under 4 percent. Given current economic conditions and the tight housing market, an immediate reversal in home price trends appears unlikely.”

Featured Properties:

2924 Nuns Cove Rd. Sevierville  $495,000  ID#: 211855 

Amazing, private, 4 BD/3 BA, 2,200+ sq ft, well-kept chalet, located in the New Center area on 76 acres, minutes to dwntn. Sevierville.  Ideal as a permanent or 2nd home, or overnight rental.   Read more

 
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2220 St. Moritz  Gatlinburg   $219,900    ID#: 211874

1 BD/2 BA, 1,350+ sq ft, This cozy chalet has incredible views of the Smokies, Gatlinburg, and the Ober Ski Resort Tramway, from the large deck of this home, allowing for perfect enjoyment of the area at its finest. Read More

Home prices continue to rise- what is the good news for buyers?

Mortgage Rates Remain Low

According to the National Association of Realtors, the median existing home price climbed to $252,800 in May, the exceeding the peak hit in June 2016 of $247,600.

Home prices have been rising every month for more than five years.

Cities across the U.S. are facing major housing shortages, which means buyers have to compete for homes with bidding wars and offers well above asking price.

“Prices are moving up and properties are moving quickly,” said Danielle Hale, NAR’s managing director of housing research.

Builders aren’t building enough houses to keep up with demand and current homeowners are hesitant to list their properties because they’re worried they won’t be able to buy a new home.

But there has been one saving grace for buyers: mortgage rates, says CNN Money.

Even though the Federal Reserve has begun raising interest rates, mortgages have been hovering below 4% recently. Last week, the average rate of a 30-year fixed mortgage ticked down to 3.90%.

With the Fed raising rates, interest rates are expected to gradually rise over time, but should stay pretty low for the foreseeable future.

 

Our Featured Properties:

1011 Worsham Way, Gatlinburg, TN 37738

$1,825,000    ID#: 211111

Rustic Elegance describes this quality-built, private, spacious, 5BD/5BA, 2-half BA, 5,400+ sq ft mountain chalet with historic features incorporated from family’s VA farm. Amazing views of the Smokies with Mt. LeConte front and center! Ideal as a permanent or 2nd home, or as an overnight rental – tremendous rental potential in a beautiful, wooded location on just over an acre of private land.  Learn More

 

5055 Riversong Way, Sevierville, TN 37876

$1,250,000   ID#: 204617

Spectacular, private, gated estate in the heart of Pittman Center on over 5 acres offering spectacular river, forest and mountain views. Features such as the 2 car detached garage with guesthouse, 2 car porte-cochere, level parking, 6 bedrooms, 5.5 baths, loft, game/theatre room insures there are plenty of spaces for friends and family.  Learn More

Home Prices Continue to Climb

Home prices continue to escalate, charging upward 6.9 percent in the first quarter of 2017, according to the latest quarterly report by the National Association of REALTORS® (NAR). The increase, stoked by the strongest quarterly sales pace in a decade, marks three straight quarters of growth.

“Prospective buyers poured into the market to start the year, and while their increased presence led to a boost in sales, new listings failed to keep up and hovered around record lows all quarter,” says Lawrence Yun, chief economist at NAR. “Those able to successfully buy most likely had to outbid others—especially for those in the starter home market—which, in turn, quickened price growth to the fastest quarterly pace in almost two years.”

Single-family home prices went up in 85 percent of the markets assessed in the report, or 152 of 178 metropolitan statistical areas (MSAs). Seventeen percent of, or 30, metro areas saw prices up by double digits. At the national level, the median existing single-family home price was $232,100, and the median existing condominium price was $218,600.

Contact the Jason White Team to see what this means for buyers and sellers in the Smokies.

Featured Property:

1235 Ski Mountain Road, Unit 630  Gatlinburg

$149,000, ID# 209748  Short Sale

Well-built & maintained, 3 BD/2 BA, 1,600+ sq ft condo unit, complete with a 1-car attached garage, located immediately adjacent and within short walking distance to Owner’s Club in Chalet Village (with pools & tennis courts),  and also within easy walking distance to the main entrance of Ober Gatlinburg Ski Resort. Ideal as either a permanent or 2nd home, or as an overnight rental.  Part of a very well established condo complex, which also includes a gently flowing, small mountain creek that flows through the property itself, creating a real sense of mountain living at its finest.

Read More…

Five Trends to Watch in Real Estate Nationally in 2016

Housing Recovery

 

As we head towards 2016 and the coming New Year, there are five real estate trends to watch for on a national level, as we approach the new year, according to a recent article on Realtor.com. The first trend is that coming off this year (2015), which saw the best year in housing nationwide since 2007, the housing market is expected to return to a more normal type of market, with healthy growth in sales and home prices, leading to a more balanced market nationally in both categories. Second, younger generations have now entered the real estate market as of this year, and are projected to continue getting into the market as potential buyers and sellers in 2016, as well, with improving economic conditions nationally. Third, home builders will focusing more on affordable home points, in order to capitalize on the potential growth in new home sales and single-family construction expected in 2016. Fourth, rising mortgage rates, which have been expected for some time, will affect higher cost markets the most initially, but is largely expected to balance itself out on the whole. Finally, it is expected that it will be better to buy, rather than rent, a home in the coming year, as well. Very interesting trends nationally, to be sure, and we will have to wait and see what it could all mean in the New Year for both the local and national housing markets.

 

 

With mortgage rates still at historically low levels nationwide, now is a great time to see what the Great Smoky Mountains can do for you and your home ownership dreams today. Please feel free to browse our many great Featured Properties, and learn more about how The Jason White Team can help you realize your home ownership dreams today!

 

 

Our Featured Properties for Thursday, December 17, 2015: 

 

 

JUST REDUCED!

A4-300x201Private, Cozy, 3 BD/2 BA Cottage-Style Home Located in Chalet Village, & Only Mins. to Dwtn. Gatlinburg. Ideal as a permanent or 2nd home, or as an overnight rental. Very well-built & maintained home, both inside & out. Includes an outside, covered wraparound deck, along w/a Large Living Rm, Master BD w/Adj. Master BA, two BD’s upstairs (one currently used as a Rec Rm), lots of extra storage & closet space, & more. Only mins. to dwtn. Gatlinburg, the Nat’l Park, & the attractions. A great, privately located home w/lots of potential – come see it today! Type: Single-Family Home Location: Gatlinburg, TN Price: $136,900  For more information >

 

 

 

 

RECENTLY REDUCED!

APrivate, 2 BD/2 BA, Contemporary-Style Chalet Located Only Mins. to Dwtn. Gatlinburg. Has made over $21K in rental income in each of the last 2 years alone; has great rental potential. Home includes a Living Rm w/high, vaulted ceilings & a Beautiful Mtn. Stone F/P, along with each BD being a Suite-style BD w/Private BA, an outdoor Gazebo area w/a Hot Tub, a spacious deck area to enjoy the views of the Smokies, & much more. Only mins. to dwtn. Gatlinburg, the Nat’l Park, & the attractions. A great, private home & location – come see it today! Type: Single-Family Home Location: Gatlinburg, TN Price: $189,900  For more information >

 

 

 

 

FEATURED PROPERTY!

20150908154205507062000000-oUniquely-Designed, Cozy, 3 BD/2 BA Chalet Located in Chalet Village. Ideal as a permanent or 2nd home, or as an overnight rental. This uniquely-built home includes a Living Rm, Open Kitchen, an upstairs Loft w/Master BD & BA, a lower level Family Rm, &  more, along w/being set in a scenic wooded setting. Only mins. to dwtn. Gatlinburg, Pigeon Forge, & the attractions; a great location & value – come see it today! Type: Single-Family Home Location: Gatlinburg, TN Price: $149,900  For more information >

 

 

 

 

 

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The Jason White Team
Century 21 Four Seasons Realty, Inc.
1441 Wiley Oakley Drive
Gatlinburg, TN 37738
Toll Free: (877) 678-2121
Fax: (865) 436-7227
E-mail Address: jason@jasonwhiteteam.com
Website: http://gatlinburgrealestateforsale.com

Solid Real Estate Growth Predicted Through The Year 2017 Nationwide

Recovery

 

As we look ahead to the coming years of 2016 and 2017 in the national real estate market, a recent forecast by the Urban Land Institute states that the real estate industry will remain sustainable and solid through the year 2017. There are many signs pointing to this kind of solid, sustained growth, including a projected net job growth of 2.9 million people per year over the next 2 years, as well as having the interest rates for 10-year Treasury notes average at or around 3%, despite any increases, and will remain lower than the long-term average of 4.1%, and other related factors, all pointing to a sustained growth through 2017 for the real estate market, barring any unforeseen downturns, crises, or other events that could change such a forecast. Very encouraging news, for sure, and could bode well heading into the new year for national real estate on the whole.

 

 

With forecasts like this that show a continued growth in real estate nationally, along with still historically low interest rates, now is a great time to see what the Great Smoky Mountain real estate market can do for you today. Please feel free to browse our many great Featured Properties, and learn more about how The Jason White Team can help you realize your home ownership dreams today!

 

 

Our Featured Properties for Thursday, November 19, 2015:

 

 

FEATURED PROPERTY!

APrivate, 3 BD/4 BA Log Cabin, Located at the Very Top of Gatlinburg w/Incredible Views. Has made $28K annually in rental income in each of the last 2 yrs, & on track to do so again this yr – has great rental potential. This home sits right along the Nat’l Park boundary, w/one-of-a-kind views of the Smokies. Home incl. a lower level Priv. Master Suite w/Priv. BA w/W/P, along w/a spacious Main Lvl, w/a  new Kitchen, Living Rm w/Massive Mtn. Stone F/P, 2 BD’s, & 2 BA’s, & Loft area. Only mins. to dwtn. Gatlinburg & the attractions. A true piece of paradise in the Smokies – come see it today! Type: Single-Family Home Location: Gatlinburg, TN Price: $399,900  For more information >

 

 

 

 

FEATURED PROPERTY!

property_03-4-Copy-Copy-300x169Incredible, Opulent, Beautiful, 3 BD/3 BA Home Located in New CenterIdeal as a permanent or 2nd home; located in a private, gated community, in the shadow of English Mountain. This immaculate home features a Large Open Great Rm w/an Open Hearth F/P, Full Kitchen, Large Master BD w/2 walk-in closets & Large Master BA w/Whirlpool, & much more. Very beautiful home, & only mins. to English Mountain, set in a nice country setting. Come see it today! Type: Single-Family Home Location: Sevierville, TN Price: $499,900  For more information >

 

 

 

 

FEATURED PROPERTY!

2906Luxurious, Majestic, 6 BD/5 BA/2 Half Bath Home Located Just Mins. to Pigeon Forge. Made $63K in rental income for 2014 alone, & incl. a recent rental assessment potential for up to $120K. This majestic home includes 4 Master Suite-style BD’s, complete w/Private BA’s, Whirlpools, & Private Walk-in Closets, a spacious Loft, a Massive Living Rm, a Large Lower Level Rec Rm, a Theater Rm, & more. Also includes great views of the Smokies, & is only mins. to the Parkway in Pigeon Forge. A great, majestic home – come see it today! Type: Single-Family Home Location: Pigeon Forge, TN Price: $599,900  For more information >

 

 

 

 

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The Jason White Team
Century 21 Four Seasons Realty, Inc.
1441 Wiley Oakley Drive
Gatlinburg, TN 37738
Toll Free: (877) 678-2121
Fax: (865) 436-7227
E-mail Address: jason@jasonwhiteteam.com
Website: http://gatlinburgrealestateforsale.com 

US Housing Starts Nationwide Recently Increased by 6.5% in September 2015

Puzzle Of Real Estate

 

Some very encouraging new data regarding housing starts throughout the United States was released by the U.S. Commerce Department this week. For this past month of September 2015, U.S. housing starts actually increased by 6.5%, up to a seasonally adjusted annual pace of 1.21 million units, which was actually higher than anticipated (1.15 million units) and is the sixth-straight month in which housing starts remained over 1 million units, pointing to a potential sustainable housing recovery nationwide. Housing also has a broad impact on the economy, with rising home prices increasing overall household incomes and also supporting greater consumer spending as a whole. In the South alone, housing starts increased by 0.6%, which rose overall housing starts in the region to its highest level since October 2007. With great apparent confidence in term of housing starts throughout the U.S., this could be a further sign of a recovering housing market nationwide, and will be certainly worth watching to see if this overall upward trend will continue, along with its impacts for the housing sector as a whole.

 

 

With encouraging trends like those of increased housing starts throughout the country, now is a great time to see what the Great Smoky Mountains can do for you and your home ownership needs. Please feel free to browse our many great Featured Properties, and learn more about how The Jason White Team can help you realize your home ownership dreams today!

 

 

Our Featured Properties for Thursday, October 22, 2015: 

 

 

JUST REDUCED!

ACozy, Well-Located, Rustic-Style, 3 BD/2 BA Chalet Located Only Mins. to Dwtn. Gatlinburg. Ideal as a permanent or 2nd home, or as an overnight rental. Has a gently flowing mtn. stream below this home, along w/being in a beautiful, wooded setting, while also close to the action of Gatlinburg. Home includes a Large Great Rm, each BD w/its own Private Closet space, a Loft area w/Small Den, & more. Only mins. to dwtn. Gatlinburg, the Nat’l Park, & the attractions; a great home & value – come see it today! Type: Single-Family Home Location: Gatlinburg, TN Price: $154,900  For more information >

 

 

 

 

FEATURED PROPERTY!

20150908154205507062000000-oUniquely-Designed, Cozy, 3 BD/2 BA Chalet Located in Chalet Village. Ideal as a permanent or 2nd home, or as an overnight rental. This uniquely-built home includes a Living Rm, Open Kitchen, an upstairs Loft w/Master BD & BA, a lower level Family Rm, &  more, along w/being set in a scenic wooded setting. Only mins. to dwtn. Gatlinburg, Pigeon Forge, & the attractions; a great location & value – come see it today! Type: Single-Family Home Location: Gatlinburg, TN Price: $149,900  For more information >

 

 

 

 

 

FEATURED PROPERTY!

A4-300x201Private, Cozy, 3 BD/2 BA Cottage-Style Home Located in Chalet Village, & Only Mins. to Dwtn. Gatlinburg. Ideal as a permanent or 2nd home, or as an overnight rental. Very well-built & maintained home, both inside & out. Includes an outside, covered wraparound deck, along w/a Large Living Rm, Master BD w/Adj. Master BA, two BD’s upstairs (one currently used as a Rec Rm), lots of extra storage & closet space, & more. Only mins. to dwtn. Gatlinburg, the Nat’l Park, & the attractions. A great, privately located home w/lots of potential – come see it today! Type: Single-Family Home Location: Gatlinburg, TN Price: $139,900  For more information >

 

 

 

 

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The Jason White Team
Century 21 Four Seasons Realty, Inc.
1441 Wiley Oakley Drive
Gatlinburg, TN 37738
Toll Free: (877) 678-2121
Fax: (865) 436-7227
E-mail Address: jason@jasonwhiteteam.com
Website: http://gatlinburgrealestateforsale.com