During the 2005-2007 national real estate price/value correction:
â€¢ Median household income grew by 5%
â€¢ 4M jobs were created
â€¢ 2M Legal Immigrations (4M IRS I-10 status)
â€¢ U.S. Population grew by 5M people
â€¢ House prices fell, so affordability is up
â€¢ 3M Family formations
â€¢ Retiring boomers abated sales or purchases
Why an up-turn in late 2008/ early 2009 is likely & by 2010 solid:
â€¢ Pent up demand from the correction will eventually work off the inventory
â€¢ Population growth by another 5-7 Million people to 315 Million by 2010
â€¢ 1 Million + Legal immigrants/year
â€¢ X Generation 30 Million and Y Generation 70 Million equals 100 Million growing into home buying age; youngest 20+, oldest early 30’s. It’s estimated that only 5% own a home now
By 2010, we will likely be in a balanced market. This is the desired optimum balance. Enough inventory to meet demand; but not at the point where there are not enough choices for buyers.
Builders will start to replenish new homes needed supplies as there will be a demand for 129M housing units vs. 127M now built.
Why is now a good time for buyers to buy?
â€¢ 30-year fixed-rate mortgages at 5.6% on average, they are down from 6.3% a year ago — lower rates mean buyers can afford more
â€¢ As a forward-looking factor, mortgage interest rates continue to hover just above the 40-year lows — there is mortgage money available at some of the lowest rates in history
â€¢ Excellent homes-for-sale selection, both new and resale
â€¢ Great value – homes priced to sell
â€¢ More affordable housing and lower monthly payments
â€¢ Owning a home offers excellent tax benefits
â€¢ Homes are still a great investment for the long term
â€¢ Build incentives and promotions are available
The smart money is snapping up Sevier County Smoky Mountain real estate currently at some excellent prices. We have purchased three homes ourselves recently and are looking for more. If you are interested in buying (or selling) real estate in Gatlinburg, Pigeon Forge, Sevierville, Seymour, Kodak, or Cosby Tennessee, please contact The Schoenfield Team at 800-818-8133 or by email at Jeff@GatlinburgHomes.com.