“It may appear premature to declare a housing boom and chronicle an uneven regional recovery, but Vital Signs indicate a major transition. ” Neal Hanks Jr., President. Consider these year-over-year metrics for Western North Carolina comparing 2012Q1 and 2013Q1: • Existing home sales are up 21% percent. • Existing months of inventory for sale are down 19% percent. • Median home prices are up 4.8 percent. In the short term, we expect increasing values to increase demand and further constrain supply. Here’s why. 1. Buyers are competing for a limited number of homes driving up prices. 2. As prices rise, buyers will become impatient and sellers will hold out hoping for the market to get even better....

56% of buyers said now is a good time to buy, whereas only 13% said now is a good time to sell. 3. As prices rise, homeowners will eventually jump into the market and home builders will likely follow suit adding to inventory. The Asheville MSA (Buncombe, Haywood, Henderson, Madison counties) began the year with exceptionally strong employment gains. Up 3.9 percent over the year, the MSA is the fastest growing metro area in the state and is outpacing both the state and nation.By adding more than 6,000 jobs through the first two months of 2013, our post-recession expansion is up to 31 consecutive months of growth. The pace of growth has accelerated during the last six months, historically averaging...

an annual growth rate of about one percent; during the last six months rates have steadily risen to near four percent. The surge in new job creation is led by the Leisure and Hospitality sector, up 2,500 new positions, nearly 12 percent over 2012. The sector’s strength confirms the region’s historically strong attraction to visitors and vacationers. Other industries contributing to job growth include Retail, adding 1,400 jobs, and Health Services, up 1,300. The broad based expansion even includes the Manufacturing sector which added 250 jobs in the first quarter. New Homes Needed to Relieve Inventory Shortage “Only new home construction will relieve the anticipated inventory shortage, and housing starts...

need to rise at least 50 percent from current levels for that to happen,” said Lawrence Yun, chief economist for the National Association of Realtors.Jed Kolko, chief economist of Trulia describes the short-term phenomena created by reasons “1” and “2” as an “inventory spiral”. Kolko does not believe the spiral will lead to another longterm bubble. “Rising prices encourage homeowners to sell and builders to build, which adds to inventory and breaks the spiral,” he says. Following long established regional trends, inventories rose between 2012Q4 and 2013Q1. According to the US Census Bureau, singlefamily housing starts in February were at a rate of 618,000; this is 2.7 percent (±0.7%) ...

above January’s revised figure of 584,000. New home sales for February did not show the same strength of earlier existing home sales reports, but remained improved. The US Commerce Department indicated sales declined 4.6 percent to an annualized pace of 411,000. But this followed a strong 13.1 percent jump in January. Sales are up 12.3 percent over January 2012. Double-digit growth in residential building permit activity continued into the first quarter. After ending 2012 with a 21 percent rise in the number of units permitted, the MSA begins 2013 with 157 units permitted through February; a 23 percent increase. Valuations remain strong, totaling $34.3 million, up 19 percent, according to...

Tom Tveidt. Commercial real estate continues to improve at a moderate pace nationally as well as regionally. The Asheville Office market ended the first quarter of 2013 with a vacancy rate of 7.8% (11.8% nationally). The vacancy rate was down over the previous quarter, with net absorption totaling positive 63,295 SF in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 4,500 SF. There were no properties under construction at the end of the quarter. Asheville’s Industrial market ended the first quarter with a vacancy rate of 7.7% (14.6% nationally). The vacancy rate was down over the previous quarter, with net absorption totaling positive 122,488 SF in...

the first quarter. Rental rates ended the first quarter at $4.08, an increase over the previous quarter. One building was delivered to the market in the quarter totaling 12,367 SF, with no properties under construction at the end of the quarter. Lastly, the local retail market experienced a slight improvement in market conditions in the first quarter 2013. The vacancy rate went from 6.0% in the previous quarter to 5.6% (6.7% nationally) in the current quarter. Quoted rental rates increased from fourth quarter 2012 levels, ending at $12.80 per SF per year. There was 7,956 SF still under construction at the end of the quarter. Information taken from CoStar’s First Quarter Reports Our Analysis Of The...

Asheville (MSA) Office rental rates ended the first quarter at $16.50/SF, a decrease over the previous quarter. Industrial vacant sublease space remained unchanged in the quarter, ending at 12,138 SF.• Retail net absorption was positive 110,960 SF, and vacant sublease space decreased by 600 SF. Featured new home community Over the years, we have worked with numerous owners, developers, and builders in some of the most beautiful and desirable communities in the region. Each quarter we feature an outstanding example of the communities with which we are proud to affiliate. No development in Western North Carolina has been more successful than Biltmore Lake when it comes to new housing...

There were 28 contracts written for new homes in 2012 at Biltmore Lake and currently, 24 homes are under construction. Biltmore Farms’ Cottage Collection is just what the market is asking for: smaller homes with functional floor plans that are appointed. Asheville real estate is booming once again. Beverly-Hanks marketing department, www.ashevillerealestate.com