As I sit here writing this post, it’s an absolutely ideal day weather-wise and I’m looking out over a very green view that still looks like we’re in the middle of summer! Well, that’s certain to change in just a few short weeks and it’s good news for color hunters this year.

Foliage experts are reporting favorable conditions for beautiful, spectacular color for this 2008 Fall season.  In fact, it could be the brightest leaf color show in recent history!  According to Dr. Gary Walker, a biology professor at Appalachian State University, we are still in drought conditions in the western part of the state (which is suprisingly good for fall color), although there was enough rainfall this spring to keep the trees healthy.  “Slight drought tends to improve the vibrancy of leaf color in the fall, so we should see spots of very nice color this year,” said Dr. Kathy Gould Mathews, assistant biology professor at Western Carolina University.  “A sharp cooling of temperatures in September and October would really cause the colors to burst, as this stimulates anthocyanin (red pigment) production.” 

With elevations that range from 1,500 feet in the valleys to 6,684 at Mount Mitchell, the highest peak east of the Mississippi River, the Asheville area is a fall leaf kaleidoscope from late September through early November as the foliage color beginning at the highest elevations slowly creeps down the mountainsides.  Color hunters hoping to find the perfect “peak”? time for fall foliage are surprised to learn that Western North Carolina boasts one of the most extended fall foliage seasons in the nation due to varying elevations, microclimates and nearly 100 species of deciduous trees.

To help you locate the perfect autumn vista, weekly fall color reports for the mountains of Western North Carolina are posted by the Asheville Convention & Visitors Bureau at FallintheMountains.com and a toll-free hotline 800-257-1300.  ENJOY!

ps - Photo taken by my good neighbor and retired Superintendant of the Blue Ridge Parkway - Dan Brown!

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CAPITAL GAINS EXCLUSION  =  PROFIT FROM SALE OF HOME  * NUMBER OF DAYS THE HOME WAS PRIMARY vs NUMBER OF DAYS THE HOME WAS OWNED.

 So for example: I have owned my home for 4 years.  However, I have only occupied it as my primary residence for the past 2 years.  If upon selling my home my profit was $100,000 then here is the calculation to determine the percentage of my profit that is taxable: $100,000  *  730/1460  =    $50,000 Thus, $50,000 of my $100,000 in profit would be subject to the capital gains tax.

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I’m asked all the time what a seller can do to help sell their home faster.  Sometimes they listen to me and implement the changes, sometimes they don’t - to their detriment.  With buyers scarcer, sellers must up the ante to convince them that their property offers what many want most — top value for dollar expended. Here are eight fast fixes:

1. Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special—such as big flower pots or an antique bench — to help viewers remember house A from B.

2. Enrich with color. Paint’s cheap, but forget the adage that it must be white or neutral. Just don’t let sellers get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say “welcome,” lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.

3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel. Room service, anyone?

4. Add old-world patina.  Install crown molding at least six to nine inches in depth, proportional to the room’s size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It’s all in the details, after all.

5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.

6. Clean out, organize closets. Get sorting—organize your piles into “don’t need,” “haven’t worn,” and “keep.” Closets must be only half-full so buyers can visualize fitting their stuff in.

7. Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.

8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.

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The week’s headline economic report showed that inflation rose far more than expected in July, yet mortgage rates barely reacted and ended the week essentially unchanged. The July Consumer Price Index (CPI), the most widely watched inflation indicator, rose at the fastest annual rate since 1991. The core rate, which excludes the volatile food and energy components, rose at a 2.5% annual rate. The Fed’s perceived comfort level for core inflation is between 1.5% and 2.0%.Mortgage rates usually move higher after an unexpected increase in inflation. This time they did not. Investors have started to expect that inflation levels will diminish later in the year and point to a couple of factors. First, slower economic growth in major global markets will reduce demand for goods and energy. In addition, a stronger US dollar will lower the cost of imported goods.

 Xinnix 2008

Copyright @ 2008 MBSQuoteline

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I wear an “Ask Me” button every day in addition to my Beverly-Hanks name tag in an effort to give people an avenue to ask me the “big” question, “How’s the market doing here in Asheville”.  In general, we are faring a heck of a lot better than the rest of the nation, still down a bit, but notice that as an average over 6 counties we are down only 6.6%.  Here is a snapshot look at Buncombe County and a few of our surrounding counties for the 2nd Quarter of 2008 - April thru June. 

AVERAGE HOME SELLING PRICE

COUNTY                           2008                                2007                               %change

Buncombe                                272,714                                  288,880                          -5.6%

Haywood                                  223,745                                  238,758                           -6.3%

Henderson                              230,654                                  253,519                             -9%

Madison                                   236,164                                   236,943                            -0.3%

Polk                                           301,214                                    309,932                           -2.8%

Transylvania                           281,940                                   337,839                          -16.5%

____________________________________________________________

AVERAGE                       253,724                            271,588                                   -6.6%

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 The big news this week was Tuesday’s Fed meeting. As expected, the Fed held the Fed Funds rate at 2.0%, but investors were concerned with the tone of the accompanying statement. The Fed’s challenge is to balance the risk of slower economic growth with the threat of higher inflation. Overall, the statement indicated that the Fed is more concerned with stabilizing the financial system than with fighting inflation. This, combined with Monday’s higher than expected reading on core PCE inflation, led to a small increase in mortgage rates during the week.The European Central Bank (ECB) also held a policy meeting this week, and they, too, made no change in interest rates. ECB President Trichet’s comments were similar to Bernanke’s, with warnings about the risks of both slower economic growth and higher inflation in Europe. The economic performance of other countries is important for US mortgage markets, since foreign investors purchase a large quantity of US bonds. For example, foreign investors accounted for 43% of the 30-yr issue and 34% of the 10-yr issue in this week’s Treasury auctions.

  Have a great week!

Courtesy of Xinnix and MBS Quoteline

Copyright @ 2008 MBSQuoteline

Cameron M Lewis

Beverly-Hanks Mortgage Services

Residential & Commercial Financing

828-258-1945 Office

877-293-5946 Toll Free

clewis@beverly-hanks.com

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 Fed Stands Still - Time to Make Your Move

The Federal Reserve held the line on Tuesday-leaving the Fed Funds Rate at 2.00% for the third straight meeting. The decision, however, was anything but cut-and-dry.

Earlier in the week, the Personal Consumption Expenditure data indicated that inflation climbed 0.8% overall in June, which is the highest inflation jump in 27 years. In addition, the report indicated that inflation now sits at 2.3%-above the Fed’s desired range of 1-2%.

Although the Fed ultimately left interest rates unchanged, inflation obviously remains a concern and the recent rise may lead to an interest rate hike by the Fed in the near future.

What Does This Mean to You?
Many experts believe the housing market is nearing the bottom and may even be set to bounce back up. For now, home prices remain low, personal incomes are high, and interest rates are still very attractive.

If you’ve been weighing your options and waiting to see how things shake out, this is the ideal time to act-especially when you consider the new Housing and Economic Recovery Act benefits for home buyers:

Tax credits. First-time home buyers who purchase their primary residence between April 9, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, as long as they haven’t owned a home in the last three years. The credit is actually a generous interest-free loan, so we’ll have to talk about some income parameters and payback terms. But if you’re a new home buyer - or know someone who is renting or in the market to buy - this is a huge benefit that we should discuss.

Lower rates for larger loans. In the past, mortgages of $417,000 or more have been considered “jumbo” loans that were more expensive to finance. Thanks to recent provisions, however, those jumbo loans were able to qualify for better financing rates in some parts of the country. Although those provisions were set to expire, they are being extended-with a minor change to the maximum amount eligible. This is great news that may save you a ton of cash, so call me to find out how this impacts our area, and if it could help you.

Down Payment Assistance…going, going, not gone yet. Another provision of the legislation eliminates some down payment assistance programs later this year…but they are still available right now, and depending on your circumstances, we may be able to take advantage of them to double your benefit as a home buyer.

Bottom line…now may be the ideal time to put together a purchase strategy based on your unique situation.

 Call today to discuss your situation and set up a time to talk.
Cameron Lewis
Mortgage Consultant
Beverly-Hanks Mortgage Services
Phone: (828)258-1945
Fax:(828)254-7202
clewis@beverly-hanks.com

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The Beverly-Hanks 2nd Quarter Market Report was recently published and I wanted to share some of this information which I think is necessary in making informed decisions regarding buying, selling and investing in this area.  I’m going to break down this valuable information in four parts over the next couple weeks:  1.) Housing Supply vs Demand, 2.) Average Home Selling Price.  3.) Number of Homes Sold and 4.) Lot/Land Sales and active inventory.

It’s my opinion that there has never been a better time to buy real estate in Western North Carolina and specifically here in Buncombe County.  Our region consistently ranks as one of the most desirable places to live in the Nation.  Each and every year thousands of families choose to move here for the quality of life we all enjoy.  These trends will continue and as the national real estate market improves I believe that our marketplace is poised for healthy and sustainable growth.

Sales activity is certainly behind the robust pace enjoyed in recent years but remains at acceptable levels.  Inventory has indeed risen creating a Buyer’s market.  While the scales may be tipped in favor of the real estate buyer at the present time, Sellers who are willing to price their properties competitively and embrace creative sales strategies are achieving successful results in today’s market. 

Buncombe County

Price Range       YTD Units Sold     Active Units 6/30/08     Absorption Rate*

$0-74,999                         34                                     14                                          2.46

$75,000-$149,999           247                                273                                          6.63

$150,000-$199,999         278                                482                                        10.41

$200,000-$249,999         247                                467                                        11.33

$250,000-$299,999          165                                459                                       16.69

$300,000-$349,000          97                                  274                                       16.91

$350,000-$399,999           71                                  276                                         23

$400,000-$449,999           57                                  169                                        17.79

$450,000-$499,999           24                                   198                                       49.5

$500,000-$549,999           28                                   120                                       25.53

$550,000-$599,999            23                                    116                                       30.53

$600,000-$699,999            16                                    125                                       46.3

$700,000-$799,000            20                                    91                                         27.58

$800,000-$899,000             6                                     77                                         77

$900,000-$999,999             9                                      57                                         38

$1Million-$1.9Million            17                                     223                                      79.64

$2Million-$2.9Million            2                                       43                                        143.33

$3Million-$4.9Million            0                                       30                                       unkown 

$5Million Plus                         0                                       14                                      unknown

Totals                                  1,341                              3,481                                      15.57  

*Absorption Rate - The “projected” months it will take to absorb all of the listings in a particular price range. 

NOTE: Information as reported by the WNC Regional Multiple Listing Service.  The WNC Regional Multiple Listing Service does not guarantee or is in any way responsible for its acccuracy.   These figures are based upon actual closed transactions as reported through the above mentioned service.

 How does Buncombe County compare to the rest of the Western North Carolina Region on absorption rate?  Totals on the combined WNC Region for absorption rate are 19.75, Buncombe County comes out ahead at 15.57, meaning homes sell on an average 4.5 months quicker in Buncombe County.

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The Asheville Antiques Show

The Asheville Antiques Fair is a non-profit organization with all of the proceeds going to support worthy organizations and foundations primarily in Buncombe County. It is their mission to support the restoration, conservation and preservation of selected projects in Buncombe County.

The profits have aided the restoration and the furnishing of the Smith McDowell House Museum, one of the earliest homes in the county. Other grants were made to Pack Place, which houses the Asheville Art Museum, the Colburn Gem and Mineral Museum, the Health Adventure and the adjacent YMI Cultural Center.

Among the variety of special events this weekend will be the Heirloom Road Show. Bring your favorite treasures to the Heirloom Road Show. Three appraisers will be available to give you an evaluation of your most treasured heirlooms. The charge for evaluations will be $16 for one item, $18.00 for two items and $20.00 for three items. In addition, you must purchase a general admission Fair ticket, $10.00 per person for a Run of Show ticket, good for all three days

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 Happy Monday to everyone!  Once a week my favorite mortgage man here at Beverly-Hanks, Cameron Lewis, puts out an excellent, to-the-point review of where the mortgage markets are going, or what’s happening in the financial markets that affects mortgages.  I’m happy to share these with you on a weekly basis and you will find them most likely on Mondays or Wednesdays.  If you have specific questions for Cameron, I will be including all of his contact information at the end of this article.

 Mortgage Week In Review  A comprehensive Housing Bill was agreed upon by the House, the Senate, and the President this week, and it was successful in increasing confidence in the guarantees provided by Fannie Mae and Freddie Mac. As a result, mortgage rates ended the week modestly lower. Formal passage of the Housing Bill is considered a sure thing. One primary feature is that it authorizes the Treasury to provide credit to and buy shares in Fannie and Freddie, if needed. According to industry trade publications, Fannie and Freddie, along with the FHA, accounted for 90% of US home mortgages originated in the second quarter of 2008, up from just 49% one year earlier. Keeping the two firms healthy is vital for the US housing market.

The first reading of second quarter 2008 Gross Domestic Product (GDP) will be released on Thursday. GDP is the broadest measure of economic activity. The two national manufacturing indexes, the ISM and the Chicago PMI, will come out on Thursday and Friday. Consumer Confidence and Construction Spending will round out the schedule.

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