I wrote this article for the Hickory Daily Record and was very excited when I opened the paper this morning and saw it.
Guest Commentary
By Michael Kelly Jr.
Published: October 2, 2008
In a recent article in the Hickory Daily Record, a local agent and writer pointed out that all indications and statistics point to the fact that the Hickory area housing market is currently in a buyer's market.
While this may be true, it does not mean that it is necessarily a bad time to buy a home. I want to point out some benefits to the consumer of a buyer's market.
1. Thanks to the recent housing stimulus bill, first-time buyers can receive up to a $7,500 tax credit on purchasing a home. While this credit will need to be paid back over time via taxes, I think this is a wonderful incentive. How great would it be to actually buy your first home and then have up to $7,500 to improve your house?
If budgeted smartly, you could do some very nice upgrades to your home or simply save that money for a rainy day while creating equity in your home as you pay off your mortgage.
2. Since there is quite a bit of inventory on the market, investors might think about buying rental properties. If you purchase them correctly, rental properties can supply a lifetime of income.
There are several ways to calculate the potential profitability of a rental property. If you are new to this process consult a realtor who can help you figure out which properties can be a good investment.
3. Find what you really want. When there is less on the market, you have less to choose from. If there is more on the market, you have more to choose from. How many people would have loved to buy something on the lake in 2005 but had to settle for a lake view because of the lack of inventory in 2005? As of Sept. 28, there are 48 homes listed for sale that are considered to be on Lake Hickory, ranging in price between $237,405 and $3.4 million. As of Sept. 28, there are also 112 single-family homes listed in our MLS as foreclosures. That may sound like a lot, but when you compare it to the 1,819 total single-family homes on the market, it accounts for 6 percent of what is on the market.
One bright thing to note is that although there is more inventory, homes are surprisingly still selling for 96.5 percent of asking price on average.
4. Real estate professionals have more time to help you find what you need. Since things are not selling as quickly, most local real estate professionals have the time to spend with prospective clients to truly assess their needs, and with the growth of the internet consumers have access to a wealth of information helping them make their decision on what to buy. Make sure your realtor is current with the latest technology and can help point you where to go so that you have the information you need to make the best decision.
5. Growth prospects looking better. As reported by the Record in June, there are several companies that have announced plans to create jobs here in the coming years.
• Convergys announced plans to locate a 450-employee call center in the former Joan Fabrics office in Hickory.
• Graystone Ophthalmology and Northwest Oncology opened new medical offices in McDonald Crossing business park off Tate Boulevard.
• Sutter Street, a division of Williams Sonoma, announced in April plans to create 820 jobs in Hickory.
• Target completed grading and shell work at its 1.6 million-square-foot facility in Newton off U.S. 321 and N.C. 10.
Combine that and the fact most of our area is close to Interstate 40, and the U.S. 321 corridor allowing easy access to many other North Carolina cities, signs are pointing to the fact that our best days are ahead of us in the Hickory area. Why not buy now and reap the benefits of our future growth while prices are affordable?
If you are considering any of the above strategies, consult with a local realtor to help you assess your options and figure out your best home-buying strategy.
Michael Kelly Jr. is a Hickory realtor with Century 21 American Homes. Contact him at mkellyjr72@gmail.com or go to www.mikekellyjr.com.
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