Real Estate Market

Summer 2018 Real Estate Report

We’re now in the full swing of summer and the Asheville and Buncombe County markets continue to be challenged by limited inventory. New listings and number of sales are down, which is pushing prices higher. We don’t foresee the limited inventory being alleviated any time soon as interest rates and prices continue to climb. Properties that are well-priced in sought-after neighborhoods are experiencing multiple offer situations and are under contract within hours in some cases. The key here is pricing. Buyers don’t want to pay top dollar and won’t make offers on overpriced homes. Therefore, it’s critical to find the sweet spot so that a property won’t sit on the market and become stigmatized. Having a good Broker who understands the market has never been more important for buyers and sellers. Real estate is highly local, especially so in Asheville, which is unique in its own ways. For more insight into our markets or for buying and selling inquiries please don’t hesitate to reach out!

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First Quarter Market Report 2018

The first quarter of 2018 is in the books and the Asheville & Buncombe county real estate market continues to appreciate. Compared to the same period in 2017, Asheville closed sales declined over seven percent, but it may be attributed to rough weather in the early part of the quarter since pending sales are up five percent.  For sellers the bright spot is that days on the market are down slightly and median sales price is up over nine percent. Buncombe county saw similar trends, but the median sales price was even stronger – up over 13%.

New listings in both areas were down slightly over the previous period and we see this continuing to be a sore spot for buyers. New home communities are continuing to build, but the pace is not keeping up with demand. Additionally, in existing neighborhoods, home owners with low three percent interest rates are expressing reluctance to relocate now that interest rates have pushed to 4.25% for a 30 year fixed.

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Real Estate Market Report for 2017

What a great year for DixonPacifica Real Estate and the WNC housing market! Our market built upon a strong 2016 and we continued to see improvements in median sales price and price per square foot. We’ve rebounded well above pre-crash levels.

In Asheville, the median sales price rose to $290,000, a 7.4% improvement over 2016. In December the price per square foot for single-family homes pushed to $204, the first time it’s been over $200 all year. In several other categories the Asheville numbers are flat to slightly down due to limited inventory. Closed sales fell 2.3% and days on the market were down 1.8%.

In Buncombe county the median sales price increased to $275,000, a 8.6% improvement over 2016. In December the price per square foot for single-family homes climbed to $182. Like Asheville, the Buncombe numbers in other categories are slightly down. Closed sales fell 2.2% and days on the market were down 4.9%.

Our outlook for 2018 is that the number of sales will continue to slip which will push the price per square foot higher. Inventory availability is a challenge across the nation and we are not immune. There are new construction homes coming to the market across WNC, but we believe demand will outstrip supply, especially in the hot in-town neighborhoods. Over the last few years developers have been building on any in-fill lot available and usable land is becoming expensive. That said, we do see opportunities for buyers. If you are willing to remodel and update it’s possible to find quality homes in the most popular areas. And, lenders are becoming more aggressive on rehab loan products. Real estate is local, if you would like more information about a specific neighborhood we’re more than happy to help.

All of us at DixonPacifica would like to thank our clients, partners and other Brokers for helping us see amazing growth in our number of transactions and sales volume. We appreciate the trust you put into working with our outstanding group of Brokers, and look forward to many great things for all of us in 2018.

 

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Due diligence in North Carolina

One of the most common questions our Brokers receive pertains to due diligence and how it works. We thought it would be helpful to explain the due diligence process and what it means to a buyer and a seller. In 2011, the North Carolina Real Estate Commission introduced a revised Offer to Purchase and Contract in which a new term called “due diligence” was introduced. Due diligence is a process by which a buyer gives the seller a non-refundable fee in order to have time to inspect, appraise and do their “due diligence” in determining if they will close on the home.

Please don’t confuse the due diligence fee with an earnest money deposit, though. Earnest money is a second part of the typical Offer to Purchase. Like the due diligence fee it’s also negotiable, but a big difference is the earnest money is refundable if the buyer terminates the contract during the due diligence period.

In our market, a buyer typically performs a home inspection, pest inspection, radon test, property survey, and obtains a loan during the due diligence period. But, the buyer is not limited to those items. They can do air testing, lead-paint testing, underground storage tank tests, mold testing, etc. It’s the buyers time for any and all inspections. It’s also a time when you can negotiate with the seller for inspection items, bring in contractors for quotes, and meet with the homeowners’ association to ask questions. Should the buyer wish to terminate the contract during the due diligence period they can with written notice. If this occurs the buyer would receive their earnest money back, but would lose their due diligence fee.

Should a buyer complete the transaction, the due diligence fee and earnest money will be credited towards the purchase price. These credits would appear on the Closing Disclosure provided by the buyer’s lender and attorney.

Below we outline more details about due diligence and how it works during a real estate transaction.

Q: What is “Due Diligence”?

A: “Due Diligence” is the buyer’s opportunity to engage in a process of further investigation of the property and the transaction as described in the Offer to Purchase form within a period of time agreed to by the seller and buyer.

Q: What might the buyer investigate during “Due Diligence”?

A: The buyer will want to inquire about anything bearing on a decision to either move forward with the contract or to terminate it. Paragraph 4 of Form 2-T outlines many, but not all, common considerations of the “Due Diligence” process such as home, pest, and septic inspections, property survey, appraisal, title search, loan qualification and application, repair negotiation, etc.

Q: How much time is allowed for the “Due Diligence” Process?

A: The amount of time is negotiable but the period begins with the effective date of the contract. Paragraph 1(j) of Form 2-T will state the period’s agreed upon ending date. Buyers should be certain to negotiate enough time to fully complete their inquiries – especially as related to appraisal and loan approval and any repairs discovered during property inspections.

Q: What is the “Due Diligence” Fee?

The fee, if any, is negotiated and paid by the buyer to the seller for the right to conduct “Due Diligence”. The amount of the fee may be influenced by such matters as the market for the property, number of days on the market, personal circumstances of buyer and seller, and the length of the “Due Diligence” period.

Q: Is there a limit to the repair items the buyer can ask the seller to perform?

A: No. The buyer is free to ask for any number of things; however, the seller is not obligated to agree to any of them. Repairs, if any, are completely negotiable.

Q: If the buyer is not satisfied with the seller’s response, or lack thereof, to repair requests, what can the buyer do?

A: The buyer can terminate the contract or agree to move forward without the repairs.

Q: Must the repairs be completed by the seller before the end of the “Due Diligence” period?

A: No, but the seller is required to complete any repairs in a good and workmanlike manner prior to the settlement date. Failure by the seller to complete the repairs could result in a breach of the contract. (See paragraph 8(k) and (l) of Form 2-T).

Q: Must the seller allow the buyer to inspect the property to verify the repairs have been completed even if the “Due Diligence” period has expired?

A: Yes. The buyer has the right to verify the repairs have been completed satisfactorily, during or after the “Due Diligence” period. The buyer also has the right to do a final walk-through. The seller’s failure to permit the buyer to verify repairs or to do a final walk-through is a breach of the contract.

Q: What happens at the end of the “Due Diligence” period?

A: The buyer must make a decision to move forward with the contract or to terminate, so it’s a good idea to discuss progress with the buyer as the end of the period approaches. There is a “Warning” to the buyer in paragraph 4 of Form 2-T advising termination if the seller does not agree to a requested extension of the “Due Diligence” period. The buyer’s loss of the right to terminate for any or no reason then places the earnest money at stake. To avoid any misunderstandings, provide any extension agreed to by the seller to the buyer in writing.

Q: If the buyer decides to terminate the contract under the “Due Diligence” clause, must the seller agree?

A: No. It is the buyer’s sole decision to make, assuming it is made during the “Due Diligence” period and not afterward. The termination is a notification to the seller, and must be in writing, but the buyer does not need the consent of the seller. It is a unilateral decision made by the buyer for any reason or no reason at all.  The buyer typically gets back the earnest money but not the “Due Diligence” fee, unless otherwise negotiated.

If you have any questions pertaining to any part of a real estate transaction please don’t hesitate to get in contact with us – we would love to help you!

 

Information sourced from North Carolina Real Estate Commission.

(828) 232-4030  |  26 College St.  |  dixonpacifica.com

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Market Report for June 2017

Days on the market shrunk significantly from May to June, as is traditional in our market, with the change in average price continuing to show double digit growth over last year. Despite a large number of sales, more inventory has come to the market, as we predicted, giving us a slightly larger supply of homes than last month. The hottest market segment in Buncombe County has dropped $5o,ooo, though the median sales price is up slightly since last month.

So, what’s in store for the rest of the summer? We saw a slow down during the July 4th holiday weekend and predict the market will continue to cool off as the summer gets hotter and school starts back. This should mean slightly lower list to sales price as demand is slightly less, and months supply of homes and days on the market should continue ticking up incrementally, which will indicate a healthier and more steady rate of growth in the Asheville and Buncombe County markets.

Buncombe County Market Report

Market Report June 2017 - Buncombe County

Asheville City Market Report

Market Report June 2017 - Asheville

If you found this data helpful and would like a more detailed look into a specific neighborhood or zip code, contact one of our agents or call the office at (828) 232-4030. We are happy to provide you the information you need to Move Smarter.

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Market Report for May 2017

The hottest market segment continues to hold steady at $400-499k. This is due, in large part, to the significant (though less drastic than April) change in average price. Many potential sellers aren’t listing their $300-399k homes despite the increase in value because the homes in the $400-499k range have increased at the same percentage. As you can see, this short supply is also pushing down the months of inventory and days on the market quite significantly over last month and last year. We are regularly seeing homes go under contract on the first day with multiple offers over asking price. We expect similar buying conditions but a larger supply of homes next month as schools let out and summer moving season begins.

Buncombe County Market Report

Market Report May 2017

Asheville Market Report

Asheville Market Report May 2017

For more information about our local markets, feel free to reach out to our agents by email or call our office at (828) 232-3040. We aim to ensure you have all the information you need to Move SmarterTM and make the best buying and selling decisions.

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Market Report for April 2017

Buncombe County Market Report

Market Report April 2017

Asheville Market Report

Market Report April 20172

If you’d like additional information about this data or want a more in-depth look at a specific neighborhood, contact one of our agents or call us at (828) 232-3040. We’re always happy to equip you with the knowledge you need to make the best real estate decisions.

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Market Report for February 2017

The February numbers are in and much of what they have to say confirms our 2017 predictions. Median sales price is up significantly over last year and can be explained by the continued trend of low inventory.

Asheville Market Report

Asheville Real Estate Market Report February 2017

 

Buncombe County Market Report

Buncombe County Real Estate Market Report February 2017

To see what the numbers look like in your neighborhood, our agents are happy to provide a more in-depth analysis.

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Market Report for January 2017

January saw predictably steady market growth with a slight increase in average list to sales price as well as a slight decrease in months of inventory. However, there was a significant uptick this month in change in average price. This reflects the greater volume of homes sold in a higher price bracket than in previous months more so than individual home prices drastically increasing. We believe the trend of greater sales in higher price brackets will continue this year as more people move into the Asheville-Buncombe market from other markets.

Asheville City Market Report

Market January Asheville2

Buncombe County Market Report

Market January Buncombe

Our agents would be glad to give you more information about our market as a whole or your individual neighborhood or area of interest. Send an email or give as a call at (828) 232-4030 and we’re happy to give you more insight into current trends.

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Market Report: 2016 Year in Review

Compared to last year, home prices in the NC Mountains MLS service area increased 9.1%. Buncombe County experienced a 10.2% increase and Asheville 13.7%. Buncombe County’s median price is currently $253,400 and Asheville’s is $270,000.

Median Price 2016
Buncombe County Median Price

The average person stays in their home for five years. If you purchased a $250,000 home in the Asheville area in 2011, the Federal Housing Finance Agency’s housing price calculator says your home would be worth $308,724 at the end of 2016, which is a gain of 23.5%.

Closed Sales Graph
Buncombe County Closed Sales

Closed sales increased 6% over the previous year. Buncombe County and Asheville accounted for a high percentage of sales increase in 2015, so while sales still increased they were lower as a percentage to other neighboring counties. Buncombe County experienced a 2.3% increase in sales during 2016.

Days on the Market Graph
Buncombe County Days on the Market

A good sign for our market is that sales may have been higher if not for the lack of inventory. We have plenty of buyers looking for homes, but they are struggling to find the right property. The availability of active listings was down year-over-year in 2016 by 1.6%. One thing we are watching carefully is if low home supply is a drag on the number of sales in 2017. Buncombe County and the city of Asheville have the lowest supply of inventory in the entire MLS. Currently Buncombe has 3.2 months supply and Asheville 2.6 compared to the WNC MLS average of 5.4 months. Four to five months is typically considered healthy.  The good news for sellers in this scenario is supply vs. demand will continue to push prices higher.

One word that’s almost vanished entirely from our real estate vocabulary is “distressed.” For the last few years distressed homes, foreclosures and short sales, were an everyday reality in our market. In 2016 the percentage of distressed sales fell 24.2% and made up only 1.4% of total sales.

Market Predictions Header

Looking towards the remainder of 2017, we believe several things will impact our community’s real estate. With the stock market hitting new highs, many investors could look for portfolio diversity in real estate. Since our market is a hot vacation destination, those dollars could find their way here. Experts believe Baby Boomers may take profits from the stock market and buy real estate they can rent and enjoy personally in their retirement. Boomers are expected to make up one-third of all buyers this year.

Another positive is our region’s economic strength. With Buncombe County’s unemployment rate the lowest in North Carolina and our tourism numbers consistently rising, our region’s economy should remain strong for the foreseeable future. Our economic fundamentals are strong so housing prices should remain stable even if geo-political situations arise or interest rate increases put pressure on the market.

All data sourced from North Carolina Mountains MLS (January 2017)

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