Your Smoky Mountain Investment Cabin: You Make Your Money in Real Estate When You Buy It!
www.willquinn.com
In the last month, I have been getting significantly more inquiries than I have for the last year. There seems to be a pent-up demand for Smoky Mountain Cabins and people are wondering when is the right time to buy? Historically, when there has been a downturn in the real estate market, Sevier County, Tennessee has been one of the last areas affected and one of the first to recover. The increase in my activity indicates to me that we are seeing the first indications of an impending recovery. Another indicator of the underlying strength of this market is the fact that rental incomes for quality cabins in 2008 are holding their own relative to 2007 incomes. Even with higher gas prices, better cabins are booking strongly. So, what’s happening to prices in light of this? Through the 2nd quarter of 2006 we maintained a brisk sales market. Then it seemed to drop like a stone. Consequently, over the last two years, overall prices have lowered, but not unrealistically. It’s a fact of human nature that the longer a strong sales period goes, the more sellers push the envelope to see just how much they can get for their cabins. So, while there has been a realistic adjustment in prices, they haven’t crashed and appear to have bottomed. Another interesting wrinkle in the market is that some sellers of top-ofthe-line cabins are not offering wholesale price drops but are offering buyer incentives that are more beneficial to the buyer than lowering the price.
So, the market is now ripe for savvy buyers and it appears unlikely that it will get much better. How long will this go? My hunch is that as long as 51% or more of the people come out of the November elections more optimistic than they are now, the Smoky Mountain cabin market will begin its next cyclical upturn.
Will Quinn Website: www.willquinn.com Email: will@willquinn.com Phone: (865) 654-8006
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