Some of my sources suggest that mountain homes could be at a good time to buy. Recently, The Wall Street Journal printed an interesting article by Jack Hough of smartmoney.com. Mr. Hough puts forth some intriguing ideas on why it could currently be a great time to buy a house. United States home prices have dropped almost 1/3 since 2006 and homeownership rates are falling like they were in the great depression. This may appear alarming, but there is a silver lining. First, lower prices are bringing value to home ownership and there is plenty of home inventory to consider. Number crunchers dance the line between renting vs. buying. The benefit of renting over buying changes with current market conditions. Home price/rent ratios are much like stock price/earnings ratios. Lower price/rent ratios favor owners over renters. Moody’s Analytics reports that price/rent ratios at the peak of the bubble were 18.5. Now the ratio is down to 11.3. For comparison from 1989-2003 the national average was approximately 10. Mortgage rates are a primary factor in overall home costs. Rates across the country are close to all time lows. The rates move from 3.94% to 4.12%. This makes house payments more affordable than in years. The hurdle comes in qualifying for today’s tighter lending standards.
It is important to factor in the location of the housing market you are considering. Some, like Detroit or Miami are bargains, while New York or San Francisco are in demand and command a premium. The author favors a “buy and hold” position and discourages an invest and flip position. He also recommends careful shopping as prices could decline farther. However, high yields are challenging in many of today’s investments, so homes offer a firm, reasonable opportunity.
If you want to explore your options in today’s East Tennessee Smokies, begin on our website. There are ample options available to explore at your own pace in the privacy of your own home. Begin today to explore these exciting opportunities.
Here a few of my new & featured listings:
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Great Four Level Chalet/Nice Ridge View Very large 4 level chalet that sleeps 16. Big open space in all rooms and 4 levels of decks. Nice mountain views and walking distance to owners club and pools. Type: Single Family Home Location: Chalet Village Price: $279,900 Get more information > |
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A-Frame w/Serene Setting/Incredible View Total privacy with this A Frame home with incredible mountain vista and mature native mountain laurel. Located in Gatlinburg and walking distance to community pools, tennis courts, and Ski Resort. Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $159,900 Get more information > |
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Great Price For Beautiful Mountain View Plenty of community amenities, private, yet close to town. Enjoy nature and wildlife at this tastefully furnished log cabin from three covered decks, all with mountain views. Spacious for family gatherings, with two game rooms as well as a living room. Type: Single Family Home Location: Pigeon Forge Price: $325,000 Get more information > |