It is, most likely, redundant to make any statement about how the real estate market has taken a downturn, but until our local newspaper, The Asheville Citizen Times, called me today to do some additional research on the sale of new homes sold in 2006, 2007 and 2008 through October, I had not fully absorbed how the new home market had been affected.
In Buncombe County, where Asheville is located, in 2006, the number of newly constructed homes that were sold was 916. That amounted to a dollar amount of $301,211,741 or an average of $328,834 per home. At that time the average selling price for all homes sold in Buncombe County was $274,844. There were a total of 4101 homes sold that year.
In 2007 there were 712 newly constructed homes sold. The dollar amount of those sales was $279,600,309 or an average of $392,697 per home. The average selling price for all homes in the county was $293,272. There were a total of 3427 sold that year.
In 2008, 478 newly constructed homes have sold through the end of October. The dollar amount of those sales is $168,941,917 which averages $353,435 per home while the average selling price for all homes in the county has been $280,363. So far this year there have been a total of 2179 homes sold through the end of October.
Our new home sales market has been reduced by 48% since 2006 and the dollar amount has been reduced by 44%.
When one thinks about the negative economic influence a slowing new construction market has on all of the various occupations, it is mind blowing.
Currently, the bad news is, there are a fair amount of builders, banks and developers that are holding new homes that have little or no market demand for the time being.
For the purpose of defining home sales, all single family homes, condos, townhomes and manufactured homes are included.
"Breaking News!" That is what all of the business and financial news cable shows run across their screens about every 20 minutes or so these days. Everything is Breaking News when it comes to the financial markets. If it is not about banks, it is about auto companies, world market woes or what appears to be the foundation for worry....the housing market.
There is no doubt that for most of us, the housing market is a different animal than it was a year or two ago. Many of us employed in the real estate industry are wondering, just like the auto company workers, bank workers and stock brokers, if we will even have a job, much less a career, if things keep going as they are currently according to the news screened and passed along to the public.
One of the Breaking News stories today, at least as of 9AM Tuesday November 25, 2008, was the S&P/CaseShiller home price report update.
The headlines of the report: The September S&P/CaseShiller 20 city home price index fell 17.4% year-over-year, which was a larger decline than the expected reading of -16.9%.
So the question came to mind.....how is the Asheville, NC market doing compared to these national statistics?
According to the data retrieved from the North Carolina Mountains MLS the average selling price of our homes decreased, but not at the national level of 17.4%. Our average selling price did drop, but only by 5.2%.
The average selling price from Jan. 1, 2007 to Oct. 31, 2007 was $294,305. At the end of Oct. 2008 the year to date average selling price was $279,095.
The interesting phenomenon is that as the nation sees the average asking price of homes drop, the Asheville market has seen an average asking price increase. Last year at this time our average asking price was approximately $440,000. Year to date, the average asking price is now $465,067.
The real problem hidden in all of this is the current active inventory (we are about 350 more units for sale than this time last year) and the days on market (we normally average about 100 days before we sell - on average) are at record highs. The number of units sold is at very low levels historically (we are down 28% year to date compared to last year), and "pending" or "under contract" units statistics have drastically dropped. That means we will have more of an adjustment to go through if we are to sustain a healthy market.
Asheville is a stubborn market, because demand for this area is still strong. We still believe the buyers will come as soon as their markets improve. The question is.....when will those markets improve and at what pace?
OCTOBER - 2008
It has always been difficult to say exactly what a "healthy" real estate market should look like. Prices and inventory seem to set the theme and "location, location, location" is not always the final judgement of health or desirability.
In the Asheville area a "normal" real estate market is estimated to be where the housing inventory of homes for sale should be somewhere around 6 to 7 months supply. Asheville and Buncombe County are holding steady at about 15 months supply, on average.
Nothing new.....The news nationally, almost constantly, is about the home prices going down as inventory goes up.
In Asheville, we are continuing to see a slow reduction in home prices, as the inventory sits at the top of recent high numbers, although the inventory has begun to reduce due to the normally slower time of year.
The real area of concern continues to be about the homes over $400,000. The worrisome market is the homes at or over $1 million. The number of sales per month compared to the existing inventory suggests a rather long term for that inventory to either shrink or see prices drop by large percentages.
Sales of homes under $285,000 seem to be stable with only a small excess in inventory. This would indicate that the "average" buyer has plenty of homes to choose from and most of them are at fair market value.
The question is....where are the buyers? It looks like September and October are going to be two of the worst months this year for unit sales.
Residential Properties = Single Family Homes, Condos, Townhouses & Mobiles on Owned Land
Is your seller client open to creative ways to sell their property?
Do you have bank owned real estate that the bank will consider land as cash towards purchase price?
What about trading real estate?
Have you opened your mind to such transaction possibilities?
I have a 3 Acre Lot in Asheville/Leicester area - Can Trade Up or Down for Land or Home. Value is $149,000. 
Will consider trade of land (up or down but will add no more than $20,000 on up) or home w/land. Can trade lot plus up to $100,000 for home w/land but will not trade up more than $20,000 on land alone.
Areas considered: South central TN around Chattanooga., North GA, Northeast AL, Northwest SC or South WNC.
This 3 acre lot (MLS 424512) sits in the NW corner of Buncombe County and has long range views into a State owned Conservation/game land area of 3600 acres+- in Buncombe and Madison Counties. The other homes in the area are newer on acreage. A new custom home is being built on an adjoining 3 acre lot. This lot has underground utilities/DSL/phone/cable and is ready to build on or it is in great shape to wait until you are ready to build.
CLEAN. QUALITY. Sits off paved County road with its own private drive. Great views to So., SE., and No. and has several possible house sites on a nice laying knoll. Easy year round access. About 20 minutes to UNCA campus and 25 to DT Asheville.
Cows and horses in the area since it is a country setting. Some mobiles in area, but not a negative. Restricted to 1700 sq. ft. min. No Mobiles. Off frame modular, Deltec, log home or stick built only.
Will consider some owner financing or trade for land of equal value, trade up or down or home with land. Can add cash on my end up to $100,000, but not just on land alone. Send me any info on what you might have.
Anyone that may consider trade should look at this property first to decide if they would be willing to trade into it or accept it as a trade.
VIEWS From this property!
OWNER/BROKER
Asheville, Buncombe County, NC Real Estate Market Statistics -
Active and Sold - October 2008 and 2007 Comparisons
Our Active Residential Listings have increased 7% from this same time last year.
The Average Asking Price has increased 4.2% and Median Asking Price has increased almost 2%.
The real problem we still face is the SOLD numbers are down. This month the SOLD prices are up slightly because several very expensive homes finally closed, which raised the average selling price up. As you can see by the chart below, we have been down significantly on our SOLD numbers and that has been the case all of the last 12 months, yet our inventory has increased.
The number Sold in October 2008 is down 20% from last October 2007 and the Average Sold Price is actually up 4%.
Also the number of Days on Market is at the highest levels in over 5 years for both Active and Sold listings.
Residential Properties = Single Family Homes, Condos, Townhouses & Mobiles on Owned Land
AR Members: Post your listings and market reports at the Group: http://activerain.com/groups/CityStateListingsReports
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Innovation in Real Estate Since 1984. 1st Exclusive Buyer's Agent in WNC. 1st Discount Listing Service Provider in WNC. REALSEARCH provides Buncombe County Real Estate Statistics, Trends & Refer
Today, I am a Research and Referral conduit for Sellers and Buyers. I rarely take new listings or work with new buyer clients. I work primarily as a referral agent. At this time, I work only with past clients and the referrals they send to me. After over 20 years in the business in Asheville, I am able to go in that business decision.
The benefit, to Sellers and Buyers looking for agents to work with in our market, is I have learned how to determine which agents are truly successful in their field of expertise, in all those years of my experinece in this market As a result, where I can be of the most assistance to a Buyer or Seller is to guide the Buyer or Seller in the "right" direction in their choice of the agent they may decide to work with. I refer you to the most qualified agents among the masses of the "old -timer" established, the newbies, the good ones and the ones that may best be suited for the particular needs of you, the client. I also help you avoid considering the agents that may not deliver the services you are expecting. All this is done through my research of the history of the agents best suited for the job based on their past production and legacy. There is NEVER a charge to the Buyer or Seller for the referral. The receiving agent pays my fee from their commission, when a sale is completed. For Sellers, the referral I make is based on the price range of the property, the location, the time frame desired to sell, and to an extent, the personalities of the parties. There are agents who think they are "multi-talented", but today, agents are no longer all things to all people. There are agents that specialize in, or just plain do better with homes under $250,000. There are agents that specialize in homes from $200,000 to $500,000, those that only do well if the home is over $450,000, those that don't do much outside the city limits, those that prefer only new homes, etc. I sort through all of that to pinpoint the one best suited for the job based on the facts, not hyperbole. For Buyers, the referral is based on the longevity of the agent and the background necessary to truly appreciate the special relationship a buyer and the agent should have. I avoid any agent that believes in dual agency as the "best" solution to helping buyers and sellers. Buyers and Sellers are adversaries and the agent needs to understand that the buyer should be given every fact to put that buyer in the best negotiating position possible based on the facts and knowledge of the market. A great buyer's agent should be a great researcher, not a bulletin board reader. The referral and research that I do is not based on a "buddy" system! It is based on the pure facts resulting from an MLS search of the sales in the area of interest of the client. It is my job to see who is doing what in the marketplace using my research skills. If you need to know which of the 1,900 Asheville agents might be the best agent for you, give me a call or email. It costs you nothing unless YOU pick the wrong agent without having a little help. Now, with that said, sometimes even the "best" will not give you exactly what you had hoped for, but we will try to find the "best" suited to your needs. www.asheville.com for the latest in "Things to do in Asheville."
REALSEARCH 
Market condition statistics, especially current trends, can be very useful to some buyers and sellers. Since market conditions affect how we market and, the expectations we have, I do a great deal of statistical research (not just 3 listing CMAs) to help my clients, the local newspaper, the Chamber of Commerce, other brokers, and clients of other agents, etc. with the research they find necessary. As a Realtor, I find many fellow Realtors, because it can be time consuming and tasking, do not pay a great deal of attention to in-depth statistics and trends.
That is where REALSEARCH comes in.
This research service, for both real estate professionals and the general public, compiles the data that is a roadmap into the market conditions in Western North Carolina (specializing in, but not limited to Buncombe County/Asheville), for at least one year back, on a monthly basis (some research is done daily) for Buncombe County single family residential real estate market, which includes single family homes, condos, townhomes, and mobile homes on owned land.
This is NOT a "Crystal Ball" approach and is not a forecasting program, but rather a gathering of the statistics gained from the Western North Carolina Regional Multiple Listing Service (WNCRMLS). It is designed to show trends. It provides data about the number of Active listings (daily), as well as the number of Listed, Pending, Sold and Expired (monthly). The "Average List Price" and the "Median List Price" and "Days on Market"(DOM) are displayed. The "Year to Date" number of "Sold" compared to a year ago and the percentage difference is recorded.
The Asheville/Buncombe County reports are provided in Windows format on Excel (data and charts) and Word. $50 for first report, which includes the last quarter "Year in Review" and then $25 per report (provided monthly, for any month desired) thereafter. Customized research is also possible on an hourly basis.
You tell me what data you need, and I will do the research for you.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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