| 4-1-11 Market Report First QTR 2011 |
Asheville NC Real Esatate Sales and Inventory Levels for Residential Properties: The largest number of sales in any one price range continues to be $250,000-$300,000. With modest gains in the county’s sales pace many “would-be sellers” are placing their homes on the market causing spring “blooms” in specific price ranges. These blossoming inventory levels in specific price ranges are creating fierce competition among sellers. With substantially fewer homes on the market in the $150,000-$250,000 range these homes are more likely to sell in the coming year. Homes priced above $500,000 have experienced so few sales that it becomes impossible to calculate absorption levels. The one price range over...450,000 that has enjoyed declining inventory levels is $600,000-$700,000. Overall the volume of inventory for Asheville NC real estate has decreased from 2010 quarter levels of 37 months to a slightly improved 33 months. Inventory levels such as these guarantee increased days on the market and continued downward pressure on prices. Land Inventory Rates: Lot sales above $100,000 have become increasingly uncommon and are likely to remain few and far between for the foreseeable future. In the entire region, there wasn’t a single sale over $400,000 during the first three months of 2011. 83% of land sales have been below $100,000. Even within the $0 to $100,000 category there are almost 11 years...of inventory if no additional parcels are placed on the market and sales continue at their current pace. What is not readily apparent is the distressed inventory currently being held by financial institutions. Between 2004 to 2007, financial institutions provided development financing to developers intended for quick profitable sales. As long as current conditions prevail, those speculative sales will never materialize. As institutions liquidate their collateralized holdings, hundreds and maybe thousands of parcels will eventually be placed on the market. The combination of current inventory and this impending “shadow” inventory will place additional downward pressure on pricing for vacant land There’s limited financing.... for Asheville real estate and wary buyers will further irritate the situation leading to an extremely limited pool of buyers. To attract buyers in the Asheville NC real estate market, sellers will have to consider offering alternative financing and pricing parcels to attract cash investors interested in holding vacant land for the long term. But land prices currently are at record lows and at absolute bargain prices. Most Asheville real estate Developers have turned into speculative or custom builders by purchasing a lot or two and building a well priced home with very little profit margin. Once the market turns they will be out in full force again, but when will that be nobody knows, it will be slow process. See our Asheville Real Estate Market...Report at the top of the page, a great 12 plus page pdf report on Buncombe County and all of Western North Carolina real estate called e-Market Report. It keeps you up-to-date quarter by quarter and year end to year end. Copyright 2011 www.ashevillerealestate.com
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| Posted by: Tim Bosonetto on 2011-06-26 21:06:24 |
| 6 Comments |
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