If you’re even thinking about buying a home right now, you know that the market moving fast. Sales are up—higher than ever!—and supply is tight. Like, “waistband after leaving Biscuit Head” tight. Sure, there’s a little bit of wiggle room, but not nearly as much as you want to be comfortable moving.
Unfortunately, this lack of homes for sale is driving our local real estate markets. If you remember from Economics 101, when supply is down and demand is up, so is price. And that’s exactly what we’re seeing:
“Right now in Western North Carolina, there’s an extreme shortage of homes for sale under $300,000. This shortage is driving up home prices for modestly priced homes, causing them to appreciate more quickly than the region’s average.” —QMR Q2 2017
A perfect example of this is what’s happening in the Asheville and Hendersonville areas. The supply of homes priced under $400,000 has dropped by almost 50% over the past five years (under $300,000 is even worse!). At the same time, demand has remained steady, especially at lower price points. As a result, prices are up 25%.
Basically, supply in places like Asheville and Hendersonville is simply insufficient to satisfy demand.
If you’re thinking about buying a home right now, there are still ways to make a smart purchase—one with plenty of wiggle room—that will benefit you now and in the long run. Consider these two proven methods for buying smart in a competitive real estate market.
OPTION 1: Sell High and Buy Low by Trading Supply for Location
If you currently live in Asheville and Hendersonville, there are buyers who want your home! It’s a seller’s market right now in all but the highest price points, and as a seller working with a knowledgeable agent, you current have the opportunity to get top dollar for your home. The trick is knowing where to buy next.
Scout out communities where the supply is more flexible. Counties like Haywood and Yancey offer more choices, less competition, and more real estate for your money. Even at lower price points, supply is less of a problem—right now. If you’ve been wanting a better mountain view, a bigger backyard for the kids and pets, or just an extra bedroom without breaking the bank, now is the best time to consider expanding your search to neighboring counties.
OPTION 2: Sell High and Buy Low by Moving up in Price
It may feel counterintuitive, but it could be to your benefit to look at higher-priced homes. If you can afford it, there is still ample supply in higher price points throughout many neighborhoods. This is especially beneficial if your current home can be priced around or under the $400,000 mark where competition is strongest. And with a savvy real estate agent by your side, you can get a great price on your new higher-end home because buyers still have some sway.
So, if you think that nice gated community or downtown loft is out of your reach, it may be time to reconsider. Higher-priced homes offer the lifestyle and amenities you need now, as well as the equity you’ll be able to use in the future. Using the equity you gain from selling, combined with record low interest rates, chances are strong that this is the best move-up market you’ll see for years.
Start Your Smart Home Search Today
Like your favorite brunch specials, these are just two options for tackling today’s competitive real estate market, but there may be more that work for you. Discuss your home purchase goals with your Beverly-Hanks agent. He or she will be able to help you weigh the short- and long-term benefits of your ultimate decision.
All real estate is local. In order to make confident real estate decisions, we believe it is important for you to have timely and neighborhood-specific information. If you would like more information about purchasing a home, our experts at Beverly-Hanks are here to help. Contact us today to speak with a Beverly-Hanks real estate agent about buying homes and land in Western North Carolina.
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