When we looked at the Smoky Mountain market statistics for January through May of 2012 it was noted that homes are selling faster, sales volume is up but prices are still down by 14% from last year. We believe that this is directly related to the still existing inventory of distressed homes that are lingering on the market. Distressed homes affect not only the market but families, communities and the overall economy. It is positive news that both lenders and government have been working through several new options and getting more aggressive in their  attempts to liquidate inventory and prevent more from coming to the market. The National Association of REALTORS believes that increasing access to affordable loans and committing more resources to loan modifications and short sales is the key to calming the situation.

As we move through the year we expect to see the average sales price move more and more towards stronger numbers. Buyers are actively involved in the market and mortgage rates are at all time lows. The pieces are falling in place for a market recovery and every month we see more positive news both locally and nationally. The National Association of REALTORS reports that although the last four years in home sales have been essentially flat they forecast a solid increase of around 400,000 more homes sold in 2012. Nationally all major home price trackers are showing a trend of rising home prices in many areas. Harvard University’s Joint Center for Housing Studies released it’s Annual State of The Nation’s Housing report for 2012. The report points to increasingly strong market fundamentals and says home sales could see serious improvement this year.

Slower job growth, the above mentioned distressed properties and the slow pace that young people are moving in to their own homes are a few things hanging over the recovery but things are moving in the right direction. With rentals getting pricier and mortgage affordability at an all time high, demand continues to increase. The report from Harvard includes a detailed graph showing how much more affordable mortgage payments have become compared to rental rates. We expect to see many more first time buyers entering the market as the year progresses.

With the flurry of activity in the market now could be a great time to consider putting a home on the market as buyer exposure is continuing to increase. Wondering how much the market may have changed this year? We are happy to prepare a for you to give you an idea of what buyers are currently paying for homes similar to yours.

Thinking of buying a mountain home? With plenty of properties at great prices still to be found in the Smoky Mountain region and mortgage rates so low, now is the time to enter the market. We are happy to assist you with getting pre-approved, finding the right home and assisting with your path to home ownership. Why not take a look at all that is available at our ?

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