Asheville Mountain Real Estate Blog

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Location: Mars Hill, NC, United States

A small, highly personalized real estate firm specializing in mountain homes and land in greater Asheville.

Monday, June 22, 2009

Greater Asheville Real Estate Market at Mid Year

Well, almost mid year.

A couple of weeks back The Asheville Citizen Times ran a story under the headline, Home Prices Decline Slight in Buncombe. Buncombe is Asheville's home county. (ED Note: Citizen Times articles eventually disappear from their locations).

A couple of pertinent quotes will summarize:
The number of existing homes sold in the county so far this year was down 34.4 percent from the same period of 2008 and was less than half the number sold for the first four months of 2006...
Home values, however, have held up relatively well. Not all experts and statistics agree, but several sources say the decline in values has been less than 10 percent on an annual basis and possibly in the low single digits.
At the same time, inventory expressed as "months of supply" has ballooned to 27.3. This is around 4.5 times the number we would like to see.

CNN Money recently took a look at the most under and overvalued markets, where Asheville makes the number 10 spot on the most overvalued list.

In Madison and Yancey Counties which we also watch closely, the situation is similar:
Madison & Yancey Counties
*Home Sales: Down 32% from 2008, and down 63.6% from 2006, months of supply is 56.3.
*Land Sales: Down 66% from 2008, and down 91.6% from 2006, months of supply is 229.4.

Added Factors & Summary
A number of times we have noted the special mechanisms of greater Asheville's real estate market. Simply that buyers in our region come from somewhere else with Georgia and Florida providing the lion's share. They are the feeders for our local market.

Being states that are at the center of the foreclosure and credit crisis, our buyers are unable to sell their homes back home. Our traditional buyers are on the sidelines.

When prices refuse to fall in such a situation, local buyers disappear as well. The result is excessive inventories, and declining sales volume with the bottom a good ways off just yet.

Thanks for stopping by,
Black Bear Realty Website
828 689 2055
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Filed Under: Asheville Real Estate Statistics

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