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. December 2011 — Asheville area home values dropped again – no surprise for those of us out there working in the market. According to the Federal Housing Finance Agency, values in the metro region — Buncombe, Haywood, Henderson and Madison counties — dropped by 1.01 percent July through August. Home values were down 5.33 percent over the past year. Their data is compiled from appraisals used for loans that the agency regulates and thus generally excludes the most expensive homes. Consensus is the higher end of the market has been hit much harder. As I sift through our local data, I believe we have experienced a 10% decline overall in the entire market over the past 12 months. However, 3rd quarter sales were up a whopping 24% over 3rd quarter 2010! That will help prices to eventually stabilize, but I believe it will be a slow process. One last bit of good news – our jobless rate has declined to 7.7% in October, down from 8.1% in September. Expectations are for continuing decline in unemployment as new factory, Linamar, replaces the loss of Volvo and several others announce expansions. Start cherry picking now! Yes, I do mean now! Our inventory levels are at an all time high, and prices have fallen. Have we hit bottom? Trying to time the real estate market is almost as difficult as timing the stock market, but I can assure buyers that it is a good time to jump into the market. And what do I mean by cherry picking? In this market, there are a few really good properties for sale that can be bought at unheard of prices. Recently, I helped broker just this type of transaction in downtown Asheville. Unique, high quality, big views and sold at a price so low it raised many eyebrows. Buyer was in the right place at the right time. Yes, there are good buys now and to come, but there aren’t many cherries like this one to pick. Now for some data to support my call to action. Sales volume is up all over the country, as well as here in Buncombe County. For the 1st quarter of 2010, we saw an 8.2% increase in units sold, and a 11.8% decline in sales price, according to statistics published by WNC MLS. But the more important news is pending sales. National Association of Realtors states that nationwide we had a 16.1% increase in year-to-date sales and a 21.1% increase in pending sales. Locally, our largest firm, Beverly-Hanks published that in the 1st quarter, their pending unit sales were up a whopping 33.1% and pending sales volume was up 19.5%. With this small tidbit of market news, I could add much more about the positive effects of brighter economic news, demographics and location, but I will save that for a later post. Just please believe me, now is a good time to buy.
Cliffs at Walnut Cove Market Report – January 2012
Janet Whitworth : January 3, 2012 2:27 pm : Local Market Report
Local Market Report
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