Many consumers comment that some realtors as well as some economists seem confused about the future of housing sales. They point out that sometimes we seem bullish and sometimes we seem bearish. Let’s set the record straight about this.
Whether the Highlands housing market is likely to be up or down in the future is based on how many people decide to buy homes. Their decisions are based on a myriad of personal factors such as health concerns, whether they are close to retirement, whether they need or want a second home, whether they can afford to buy and so on. Their views are also affected by tax credits, home prices, mortgage rates and a host of other factors out of their control. In short there are more than a few variables.
What do we think? Going back over 30 years shows that one consistent barometer is the “5%” rule. That is over 30 years of data shows that roughly 5% of all households tend to buy a new or existing home each year. (Note: in 2005 the percentage had reached 7.2% or 44% ABOVE the sustainable long term rate.) On that basis, and given approximately 120 million households in the U.S. then “normal” housing sales should be around 6 million for this year. And given where we are at the start of May, that seems to be where we will finish.
In short, we are bullish about a solid if not spectacular year for housing sales.
For more information on real estate in Highlands, contact Judy Michaud at Meadows Mountain Realty 828-526-1717 or toll free 866-526-3558. Please feel free to stop by our office across the street from “Sweet Treats” at 450 N. 4th Street in Highlands or at 94-1 Highway 64 West in Cashiers. Or visit us online at www.meadowsmtnrealty.com. Judy can also be reached by email at firstname.lastname@example.org.