Home prices are continuing to fall nationwide despite lower prices and interest rates.  An economy improving at a snail’s pace, the continued high level of foreclosures and tighter mortgage requirements are to blame. Plus there is lingering unemployment and lack of job security for many that is a factor as well. Standard & Poor’s Case-Shiller indexes fell 1.3% in November from the previous month.  Nineteen of 20 major cities saw prices decline from October.

In Buncombe County the median sales price of a home fell from $199,000 to $187,500 for the year.  A bit of good news:  inventory levels are dropping.  There were 2,652 houses on the market at the end of 2010 compared to 2,256 as of year-end 2011.  In a 4-county region that includes Buncombe, Haywood, Henderson and Transylvania, existing homes sold was up 3.3 percent in 2011 – 4,065 total existing homes sold.  However, that is only 56.7 percent of the peak number in 2005 when 7,168 existing homes sold.

A mixed bag of news that I believe, as do other experts, indicates the market should settle this year and began a very slow improvement.  Nothing has changed in one regard – it is still a buyer’s market.

Wow, I never expected to see 5 lot closings in Walnut Cove in December with all of the negative press and rumors flying about The Cliffs financial condition.  However it is true and encouraging, especially in light of the fact two of the sales went to existing property owners who are savvy purchasers.  They are buying lots with full knowledge of the uncertainty that exists as to the future of the ownership and club operations.

Let’s compare sales in The Cliffs at Walnut Cove for 2011 to 2010.

2010 Developer lot sales – 8 at average price of $393,000

2011 Developer lot sales – 6 at average price of $654,167

2010 Resale lot sales – 18 at average sale price of $293,528

2011 Resale lot sales – 28 at average sale price of $252,290

7 homes sold in 2010 for a total of $9.2 million in sales

5 homes sold in 2011 for a total of $9.3 million in sales

Once again this year, foreclosure and distress sales made up the bulk of the activity.  Of the 28 resale lots, 20 were distress sales.  The lowest priced lot to sell was $55,000; the highest $550,000; median price was $235,000.

Inventory is down, finally to 84 resale lots on the market, versus the 100 that have perpetually been listed over the last few years.   That is still a ton of inventory, but headed in the right direction.  Of these, 14 are short sales or listed as REO.  There are two foreclosure lots currently under contract, pending closure.

As I keep saying, I am bullish on the future of this beautiful community, especially in light of the sales activity we are seeing in there.  There are too many positive features about being the only gated community with a championship golf course and world class amenities in Asheville, NC.

For a detailed report of all the sales activity, please contact me.