George Real Estate Group Radio Broadcast

Modern Homeownership Creates $300,000 More Wealth Than Renting

• George Real Estate Group

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Thinking of waiting for mortgage rates to drop back to 3%? You might be waiting a very long time. In this candid discussion, we explore why those pandemic-era rates were an anomaly, not the norm, and what today's buyers and sellers should actually focus on instead.

The market isn't bad – it's different. We're seeing steady activity in Henderson County with 125 homes selling monthly and a healthier four-month supply of inventory compared to the frenzied seller's market of recent years. Properly priced homes still move quickly, sometimes with multiple offers, while others benefit from strategic price adjustments.

We dive deep into the historical context of mortgage rates, revealing that the 50-year average for 30-year fixed mortgages is actually around 7.75%. Today's rates in the high 6% to low 7% range represent a return to normalcy after emergency economic policies during COVID-19. Rather than waiting for rates that may never return, successful buyers are focusing on finding the right property now and refinancing later when opportunities arise.

The wealth-building potential of homeownership remains powerful regardless of rates – homeowners have $300,000 more net worth than renters on average. We share stories of clients who purchased homes a decade ago for under $200,000 that are now worth over $500,000, often with significant tax advantages upon sale.

For investors and those planning their legacy, we explore sophisticated strategies like 1031 exchanges and Delaware Statutory Trusts that defer capital gains and simplify inheritance planning. These approaches help prevent your real estate investments from becoming a burden to your heirs while maintaining the income benefits you've worked hard to build.

Ready to navigate today's real estate landscape with confidence? Visit georgerealestaterooperadio.com or call us at 828-393-0134 to discuss your specific situation and discover the opportunities waiting for you in this evolving market.

Speaker 1:

Hello friends, thank you so much for being here. This is the George Real Estate Group podcast, which is a production of our live weekly radio shows hosted on multiple radio stations here in Hendersonville, north Carolina. The George Real Estate Group serves Western North Carolina and upstate South Carolina and it is a privilege to share positive news about our local real estate market and community. Thanks so much for subscribing and, of course, if you have any real estate questions or if we can help you in any way, be sure to reach out. Visit us at georgerealestaterooperadiocom for more information. Good morning and welcome to the George Real Estate estate group live radio broadcast here on whkp every thursday morning, sharing with you positive news about the real estate market. Oh, there's the music. The music's still running, but we're so. This is a live radio broadcast here on whkp every thursday morning, sharing with you positive news about your real estate market. We have just some technical difficulties, but it's okay, we're here, we're having. I'm grateful to be here this Thursday morning. Can you believe? June is here and we're going to dive in and talk about what's happening here locally. We're going to dive in and talk about what's happening nationally. We're talking about interest rates, talk about what we're helping our clients do, navigating through the buying and selling. I mean we work with our clients buying and selling their personal home. We help our clients sell their investment properties or buy more investment properties. Or even if you have a large real estate portfolio, maybe you have land that you're not sure what to do with. I mean we've been diving into the 1031 exchange world. It's a tax code benefit that you can take advantage of to not pay capital gains taxes on your real estate investments if you take advantage of the 1031 exchange code and we can talk about all these things If you're tuning in for the first time ever.

Speaker 1:

The George Real Estate Group are located in Flat Rock, right next to the Flat Rock Bakery. Hubba Hubba Barbecue, campfire Grill, the Wrinkled Egg, hubba Lou all those great local and independent restaurants and businesses of the George Real Estate Group. We're local and independent as well. We have the experience over 100 years of combined experience. We have over 20 agents. Myself this is my 20th year with my North Carolina broker's license and we're grateful to serve the community through real estate. We've had the privilege of helping over 1,500 families with their real estate needs and we love serving the community through real estate and again, it could be your personal home, it could be your real estate investment, it could be land, it could be development, it could be commercial, it could be whatever your situation is. And again, it's not just the buying and selling. We have an incredible team in place, from our attorneys to our lenders, to our appraisers and surveyors, and home inspectors and septic and well, and you name it, we have a team. We have an incredible team in place financial advisors, tax advisors. We love helping our neighbors, we love helping serving our community and we serve all of Western North Carolina and the upstate, spartanburg and Greenville counties. Again, if you're curious about what your home is worth, if you're curious about how to plan ahead for your state, if you're curious in regards to real estate, if you're curious what your tax implications are, what are their solutions out there as you're thinking about leaving real estate for your family, again, there's so many different things to consider and we look at the holistic picture. In regards to all that.

Speaker 1:

Find us online at realestatebygregcom. You can also connect with us. Just call us 828-393-0134, 828-393-0134. You can follow us on social media Facebook and Instagram. We also podcast all of our radio shows. You can find us on your favorite podcast platform, whatever that might be. We podcast all of our radio shows. We've been actually I've been doing this radio program since 2011. You know it's so interesting.

Speaker 1:

The market We've certainly seen the cycles of the market and we will dive into what's happening here locally with the real estate market. Just a quick seven-day snapshot for Henderson County and of course this is just a snapshot of single-family homes we not only work with, of course we work with land and condos and townhomes. We work with commercial and we work with investment properties, but residential single-family homes. In the last seven days in Henderson County there's been 41 new listings. There's been 68 price drops Again, this is just a seven-day snapshot there's been 38 homes go under contract and 48 homes closed. I mean the market is steady, the market's moving, the market's healthy. I mean it's this new norm where we're in. I mean the market is days on market is a little bit longer, it's softening a little bit. We certainly.

Speaker 1:

But, by the way, if your home is priced correctly, we're seeing homes sell immediately. We're still seeing multiple offers and then on the other side of the coin, I mean if it's not priced, if the market is not accepting the price that we're testing it out on. I mean you can make adjustments and that's okay. You can make adjustments and then usually when it hits the, when the price hits the right point, homes are moving, homes are going under contract. I mean we're averaging about 125 single family homes a month selling 125 single-family homes a month selling in Henderson County In the mid-500 available homes available single-family. The market is really the last 24 months has been remaining steady, 24 months really about 125 single-family homes a month selling. Year-to-date there's been a slight increase in the number of homes sold this year versus the same time period last year. The average price has gone down, if you look at just year to date, a little bit, but the median price seems to be holding.

Speaker 1:

But every home's unique and different. Every situation is unique and different. But we'd love to interview for the job Again, whatever it might be. If you're thinking of selling before buying, do you buy before selling? Do you want to talk about your real estate portfolio? Maybe you have a bunch of rental properties and you're not sure. Do I want to leave them for my children? How do I keep owning real estate and continue getting that mailbox money? Maybe you don't want the headache anymore. Maybe you want to set your kids up and yourself up, and there's options, there's solutions, there's tax strategies that we can employ in regards to your real estate. Again, it's the holistic picture.

Speaker 1:

In regards to real estate, whether it's your personal home or investment properties, we have an open house this Sunday from 2 to 4 pm. This Sunday at 1938 Upper Ridgewood Boulevard in Hendersonville, 325. Actually, this home had a price reduction of $10,000. It's at now $325,000. This home was built in 2020. Over 1,700 square feet, three bedrooms, two baths in the Druid Hills subdivision area. It's incredible 1938 Upper Ridgewood Boulevard Beautiful, beautiful home $325,000. Upper Ridgewood Boulevard it's going to be open this Sunday for 325. Great opportunity there.

Speaker 1:

We've had a lot of success with our open houses. We see a ton of activity going on and, again, grateful, grateful for the opportunity to help our clients navigate through the buying and selling process. We have just a number of new listings 919 Canuga Road brand new listing for $395. This completely remodeled home on Canuga Road, brand new, completely renovated and turnkey for $395. That's just another example of some of the inventory we have. Again, the inventory tends to. There's an ebb and flow with the inventory.

Speaker 1:

19 Robert E Lee Drive in Flat Rock for $435,000. Great property there. Single excuse me, it is a single-family home, but it's a brick ranch built in 1963, over 1,700 square feet. Great property for $435,000 there in Flat Rock. Another great property we have is 73 Wisdom Cove Road in Flat Rock for $700,000. Incredible home as well Almost 2,000 square feet, just built in 2020. Another amazing home for $700,000 in Flat Rock.

Speaker 1:

And we have all types of homes. We have a beautiful home on the Country Club, 8th Fairway. This home has over 5,000 square feet, built in 2007. I mean phenomenal home. Completely recently renovated kitchen, high-end appliances, quartz countertops, custom cabinetry, generous island. I'd venture to say that this kitchen probably costs as much as some homes do. This is an amazing home 1903 Country Club Road on the 8th Fairway there in Hendersonville, country Club, $1.5 million for this home. Beautiful, beautiful home and so many features. Again, check that one out as well.

Speaker 1:

Again, just a sampling of the different listings that we have. And, of course, if you're curious about any of them, just a sampling of the different listings that we have. And, of course, if you're curious about any of them, go online realestatebygregcom. Of course, if you're thinking of buying or selling or just want to have a consultation, if you want to think through what your options are. You know most of our businesses word of mouth we are so busy, we're so grateful and we have an incredible team in place. We've been hiring more agents.

Speaker 1:

We're growing the markets, the market, the interest rates of the interest rates, the inventory, the inventory I mean, and we've and in my 20 years of I've navigated through the different types of real estate markets. I mean, you know, I remember in 2011,. Actually, when I started this radio program, we had over a two year supply of homes for sale. We were only averaging 75 homes a month selling, but it was over 1,000 units that were available in the market and again, I mean, I think at one point it might have been 1,500 homes available. I mean it was staggering the amount of inventory that we had. But again, the market where we're at now we have a four-month supply of homes. It's still 125 single-family homes a month selling. Of course, it's not what it was from a couple years ago and there's a lot of reasons for that, but the market's still healthy, it's still moving. Again, your unique home, your unique situation. Again, it's a privilege and honor to navigate through your goals and to understand what you're looking to do. Please give us a call 828-393-0134, 828-393-0134. Find us online at realestatebygregcom.

Speaker 1:

We continue to see the impacts of the hurricane and there's so many places in our county that are still recovering, and I just want to bring that to light. The hurricane and there's so many places in our county that are still recovering, and and I just want to bring that to light again I know this seems somewhat normal for a lot of us, but again, our thoughts and prayers and and continued support, uh and encouragement for those still rebuilding, still recovering, and we, we see that there's some homes that we've we've uh been working on and and uh in the process of selling that. We're in the areas that were hit so hard and we've been navigating through that and helping our clients and, of course, people that are being rehomed and still trying to figure things out. Again, it's something that you know it's. If you're not, you're seeing it regularly. It's easy to. Again, it was, it seems, so far away, but also it was so recent too, and again, we know our nonprofits are serving our community through that.

Speaker 1:

So what's going on with the interest rates? Interest rates I think people have this idea in understanding where the interest rates are and where. Let's just talk about the history of interest rates. There's a lot of people hitting pause and hoping the interest rates will drop back down to that 3%. But here's the truth. Those rates weren't normal. They were a short-term response to a once-in-a-century event the COVID-19 pandemic. The emergency economic policies really drove those historic lows, not the market fundamentals. And if you're waiting for that 3% again, you might be waiting a while. Experts across the industry agree 3% isn't coming back. Instead, we're seeing mortgage rates hover in the high sixes to low seven range, with forecasts suggesting the possible easing to the mid sixes by the end of the year. On. The senior economist at Zillow said it this way while Zillow expects mortgage rates to end the year near mid-six, bearing any unforeseen stocks, that path might be bumpy.

Speaker 1:

So what should buyers really focus on? Rather than waiting for a rate that may never return, focus on what you can control your budget, your credit score, working with a real estate professional and a trusted lender to explore those options. And again, there's so many tools and programs that can help. I mean there's down payment assistance and there's different negotiation strategies and there's creative financing. You know the opportunity is in the timing. You know there is an increase in inventory and it does mean more homes to choose from and less competition than during the peak frenzy. So if rates drop later this year, what happens? Well, buyers are going to rush back into the market and competition spikes again. You know, acting now could actually give you a head start in a better position before the next wave. You know also, while you're waiting I mean, home prices and rents are actually still rising. I shared with you that the average is down, but the median is actually up, and so home prices and rents are often still climbing. And if rates ease, it doesn't guarantee affordability, that affordability improves, and realtorcom actually said this.

Speaker 1:

Staying out of the market in hopes of a rate drop that never comes can lead to missed opportunities. I you know I was thinking about some clients that have been looking for a number of years for that right home, and it's their personal choice. But in the time that they've waited, the appreciation that they've missed out on. And again, everybody's got to make that personal decision. There's not ever the perfect time and you got to decide. Regardless of the economy, regardless of interest rates, regardless of the market, you got to decide what's right for you. But if you're going to stay out of the market for the interest rates, you're going to miss out. Another thing is, again, the market isn't bad, it's just different. It's not about timing the bottom and it's not about timing the top. It's about making a smart, informed decision based on your life and your goals, and so we can help cut through the noise, put a custom strategy together that works. And again, those rates, those 3% rates, were the exception, not the rule, and so today's rates are closer to historic norms and we're entering a more balanced market. Again, we have a four month supply. It was, you know, closer to a two, a one and two month supply, which is extreme seller's market, but it is softening and we're moving into a more balanced market. If you're waiting for the perfect conditions, you might miss the opportunity. That's right, that's in front of you, you know, right now. It's this the thing.

Speaker 1:

Here's the history of let's talk about the history of interest rates. You know, mortgage interest rates have gone through major cycles over the last 50 years. In the early 1980s, peaks rates peaked above 18% due to the Federal Reserve fighting inflation, and then again, as I just discussed the 2020 to 2021 rates dropped below 3% during the pandemic. It was the lowest in history. As rates go up, monthly in, payments increase, so that does impact what you can buy. Your buying power goes down as rates go up. A 1% rate increase can reduce a buyer's purchasing power by 10% or more, and lower rates fuel buyer demand, driving up prices, while higher rates typically cool the market. This is interesting. Historically, home prices have continued to rise, even in high rate environments, just more slowly. You know the rates and home prices don't always move together. You know this is so interesting. From 1970 to today, despite the fluctuating rates, home values have increased significantly over the long term.

Speaker 1:

You know it was the 2020-2022 pandemic boom. It was when the Fed slashed the interest rates in response to COVID-19. That led to the mass refinancing, record-setting buyer demand. It was one of the hottest seller's markets in history, with the bidding wars, the inventory shortages, home price appreciations in some areas exceeded 20%. But again, to fight inflation, the Fed raised the interest rates rapidly, starting in 2022, and mortgage rates doubled from under 3% to over 7%, which did shock the market and slow down transactions.

Speaker 1:

You know a lot of homeowners with low fixed rates feel and become rate locked, which led to our historic inventory. The interesting thing about the low, historic, even though the rates are higher because of the low inventory. That's what's caused the supply and demand. That's what caused prices to keep going up. You know rates are elevated now due to still to curb inflation, but historically the Fed adjusts based on economic conditions. So experts do predict rates will normalize over time and possibly stabilizing around that 5% to 6%, which is close to the historic average. You know, over the last 50 years the average 30-year fixed rate has been around 7.75%. So while the 6% to 7% may feel high, they're actually in line with historical norms compared to the extreme lows of recent years. So, as a buyer and as a seller, you know buyers today focus on buying the right home, knowing they can refinance later. Sellers with equity are still in strong positions, especially if inventory remains low.

Speaker 1:

You know, and again, the real opportunities for those that are prepared, informed and flexible. And we, you know over 50% of homeowners in the US have over 50% of equity. Over 30% of homeowners have their home full, paid off and clear, and the net worth difference between a renter and a homeowner is over $300,000. The net worth of a homeowner versus a renter is over $300,000 of net worth. Again, homeownership can. Again, it's the path to create wealth for your family. I mean, we recently were talking to a seller that bought in 2011. He paid under $200,000 for this home 2011,. He paid under $200,000 for this home. He made, he did make improvements, he did invest into it and now this home is going to be uh, on the market for over $500,000.

Speaker 1:

These are common situations that we see again, people that have been in the market, the housing market and long-term again, when you and so, as a personal home, your first $250,000 of of profit is tax-free as a personal home If you've lived in the home two out of a five-year period as a married couple, it's, it's $500,000. And then you might not realize this, but if you're, if you have children on the deed and they've lived in the home as well, they can participate in the $250,000 per person up to a million dollars total in capital gains a capital gains break for a personal home if you've lived in the home two out of a five-year period, which is incredible. Also, this is a situation that it does happen where, if your spouse has passed um and this is just a real, you know, it's a notes and, by the way they recommend do not make any major life decisions within the first year of a of a spouse, a spouse passing, um, and so the it's so interesting, you know, to me the this is an impact that you can take. It. You know it is something that maybe a lot of people don't realize, but if your spouse has passed in the last and you are thinking about selling your home again, we don't recommend doing anything that first year after the passing. But if you sell the home within two years after your spouse passing, you can take advantage of the $250,000 tax break that your spouse would have received. And so there's again, if you're thinking ahead to your future, whether it's moving into a retirement community or maybe moving into with a family member, or downsizing, I mean there's tax implications.

Speaker 1:

And, like I said, we have tax advisors, we have attorneys, we have estate planners, we have appraisers. I mean we have an entire team in place to help you navigate through the buying and selling process and not just the selling, not just the buying, but the bigger whole picture and what are the implications of what that looks like for you and your family and thinking through that. It's a privilege and honor to serve our community through real estate and, again, it's navigating through all of it, not just the specifics. We have an incredible team in place, from our closing coordination to our listing management to our leadership staff. I mean we have an incredible team in place.

Speaker 1:

We're growing, we're hiring more agents and there's actually been more transition in the real estate industry this year. They said more agents are changing and because of the upheaval in the industry I mean there's a lot of changes in the industry A lot of people are, you know, just scratching their heads. They don't know how to adjust or pivot with the changes and yet, no, it doesn't change is the, the advocating, the facilitating, helping our clients navigate through life, and it could be a really positive reason why you're buying or selling. It could be a very challenging reason. You know there's, you know there's. Life happens. Therefore, real estate happens. The interest rates are the interest rates, the inventories, the interest rates, the inventories, the inventory. Life happens. And so you know, give us a call 828-393-0134, 828-393-0134.

Speaker 1:

Also, and we'll still dive in, there's a few more things I want to share with you about what's happening in the local market. But I want to remind you, every Friday morning at 845, we have the Hometown Heroes series and tomorrow morning we have West Henderson High School's lady volleyball coach, tiffany Lawrence. She actually was awarded the North Carolina High School Athletic Association's Doris Howard Female Coach of the Year. We're grateful to have Tiffany in here tomorrow morning as our Hometown Hero. We've had a number of nominations. We're always grateful for the nominations that come in. We're here every Friday morning sponsoring the Hometown Hero Series and you can call in to WHKP nominate someone you know that's made a difference in your life or in the community's life, whether it's a volunteer, whether it's a teacher or someone in your church, or it could be our firefighters or law enforcement Again, someone that you would like to an unsung hero. Please call in to WHKP. Nominate them. We'd love to have a chance to honor them and have a conversation with them, and you can go back to our podcast and listen to different hometown hero stories on our podcast. We podcast all of our radio shows. You can find that on your favorite podcast platform. We're just so grateful.

Speaker 1:

Talking about the community, I wanted to remind everyone that Flat Rock has their Ice Cream Social this Saturday. It's the annual Flat Rock Ice Cream Social Free ice cream. There's going to be music, you can sing, along with Other opportunities to support local charities. The merchants of Flat Rock are providing refreshments for purchase and all that money, and all the money raised, all of it goes to our local children in our schools. There's going to be the canine unit of the Henderson County Sheriff's Office is going to be there. I don't know if they're going to be there this year, but the, the goats from Carl Sandburgs, have traditionally been there. Um, also the they're going to host a party mammo on the go bus. And again you can, um, there's a website for that mammo on the gocom. And again, just just say this yearly occasion where we think all the wonderful volunteers that keep the Village of Flat Rock running. So again, no pets allowed. Bring your own chairs, carpool with friends and neighbors, but again, that's going to be this Saturday from 12 to 4. The Georgia Real Estate is going to be out there volunteering and love for you to stop by and say hello. And again, it's a great time to visit with neighbors in the community. Celebrate Flat Rocks. You know, ice cream social.

Speaker 1:

Again, the market keeps moving. The economy is the economy. The interest rates are the interest rates. We're meeting with people, multiple people, every single day, looking to buy and sell and navigate through. What do you do? What are your options? What's my home's worth? How do I get ready? You know, do we need stages? Do we need stages? Do we need an estate liquidation Whether you're selling your personal home, whether you're selling an estate home, whether you're selling an investment property you want to talk through, sell if it's right for you.

Speaker 1:

And again, the market's the market. And again I shared with you earlier, again, the last seven days in Henderson County 41 new listings, 68 price drops, 38 homes have gone under contract and 48 homes closed. You know the market's still moving. The sky is not falling. We're helping actually more people than we helped last year. We keep growing and if you thought about a career in real estate maybe you currently have your real estate license looking for a different culture, different support, more support and again just a different approach, give the George Real Estate Group a call. And, of course, if you're thinking of buying or selling, or investing, or even you know, as you're thinking ahead with your estate planning in regards to real estate, we can help navigate through all that, give us a call 828-393-0134. Find us online realestatebygregcom. Tune in tomorrow morning at 845. We'll be here for the Hometown Hero series, so much to be thankful for. Have a great day and we'll see you tomorrow morning.

Speaker 1:

Burden for your kids. Many children simply don't want to co-manage an inherited house or deal with the tenants. Fortunately, you can prevent that with the right plan. The George Real Estate Group specializes in tax-efficient strategies like 1031 exchanges and Delaware Statutory Trust to simplify inheritance and income planning. A 1031 exchange can defer your capital gain taxes now and help your kids avoid a big tax bill later. And a DST lets you continue earning rental income without landlord headache. Plus, it can be split among your children, making inheritance easier. Planning ahead is one of the kindest gifts you can give your family. Let us help you secure your legacy. Call the George Real Estate Group at 828-393-0134 today. You've worked hard to build your legacy. Now let us help you protect it for your loved ones.

Speaker 2:

Thank you for listening to the George Real Estate Group podcast. Tune in next time for more industry news updates and real estate tips. You can reach Greg, the George Real Estate Group, at 828-393-0134 or at realestatebygregcom.