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2012 Year End Real Estate Report

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2012 Year End Real Estate Report Powered By Docstoc
					                                               2012 YEAR END
   ReporT
              r e a L e s tat e
the




  Table of Contents
  pp 2-3:      Executive Summary

  pp 4-10:     County Specific Market Review

  p 11:        New Home Communities

  p 12:        Commercial Market Review

  pp 13-14:    Land Review




beverly-hanks.com
                                                MarkeT
                                                            WESTERN NORTH CAROLINA




                                           OUR
                                           After five years of deflating prices and a lack                           means a wash in terms of net inventory. And
                                           luster sales pace, housing is firmly on the                               although building has increased, it’s still only
                                           path to recovery. Of course, the climb back for                           49% of the 10-year historical average.
                                           individual markets will be neither smooth nor                             Foreclosures are also declining. According
                                           uniform.                                                                  to Realtytrac, 62% of the nation’s 212 largest
                                           Driven by affordable homes and low mortgage                               markets saw foreclosure activity shrink during
                                           rates, both investors and traditional buyers were                         the 2012Q3. With less and less supply coming
                                           busy in 2012. Sales posted 26% gains year over                            to the market and growing demand due
                                           year. In 2011, most activity occurred at the lower                        to variables such as household formation,
                                           end of the market fueled by investors and first-                          equilibrium is clearly visible on the horizon.
                                           time home buyers, but in 2012 buyers for higher
                                           priced homes returned. In 2011, only 87 homes


                                                                                                                             Luxur y
“Buyers are back,                          sold over $750,000. In 2012, 115 homes sold
                                           in that same price bracket. Fifty-five of those
supply is shrinking                        purchases took place in Buncombe County.
— and real estate’s                        No Mistaking the Upswing
                                                                                                                                MARKET IMPROVING

recovery is well
underway.”
                                           The gains in activity will bring welcomed
                                           relief, but supply will continue to favor buyers.                                       2011                   2012
                                           We expect that supply levels will moderate
                                           considerably over the course of 2013. Many                                                 87                        115
                                                                                                                            36%
                                           would-be sellers of existing homes have waited
Neal Hanks Jr., President                  for prices to stabilize or improve, but most are                                                              Increase in home
                                           also planning purchases after selling which                                                                   sales over $750,000


     Economic Trends
     by Tom Tveidt of SYNEVA Economics
                                                                                                                                             Asheville (MSA) =

     Asheville (MSA) ends the year as the fifth fastest growing
     metro among North Carolina’s fourteen major urban areas.
                                                                                            Jobs                                             Buncombe, Haywood,
                                                                                                                                             Henderson & Madison Counties

     Asheville (MSA) has added 3,900 net new jobs as of                                               2.3%
     November 2012, up 2.3 percent over 2011. Asheville’s rate                                                                Annual employment growth rate
     of employment growth surpasses both the statewide and                                                                    through November 2012.
     national pace, each up 1.5 percent for the year. Significantly,
     November also marks over two years of consistent monthly
     job growth in Asheville (MSA).
     New job growth in the fourth quarter is dominated by                                                                               1.5%                                1.5%
     two major industries in Asheville (MSA);,Healthcare and
     Professional and Business Services. Each sector has
     reached new employment highs, Healthcare topping
     32,000 workers and Professional & Business Services at
     17,400. Both industries grew throughout all of 2012, adding
     jobs in every month.
     The fourth quarter also marked the beginnings of growth
     from two sectors that had been mostly quiet for the first
     three quarters of 2012. The traditionally strong Leisure
     and Hospitality Services sector ended November up five
     percent for the year, adding 1,100 net new jobs. And Retail,
     which was down for the first nine months has switched to                                       Asheville                      North Carolina                      United States
     the positive, up 3.6 percent or 800 more jobs.                                                                                     Source: North Carolina Employment Security Commission




       Information throughout this report is derived from Buncombe, Henderson, Haywood, Madison, Rutherford, Polk, and Transylvania counties real estate
       markets. Information as reported by the NC Mountains Multiple Listing Service, which does not guarantee or is in any way responsible for its accuracy.
 2     Data maintained by the MLS may not reflect all real estate activity in the market.
Shrinking Inventory Levels
                                                                                                                                                                             Market
                                                                                                                                                                              INSIGHTS
Nationwide prices increased year-over-year by 6.3% in October, the biggest increase since


                                                                                                                                                                                    27%
June 2006, according to CoreLogic. Locally, prices will rise slightly in 2013 but only in specific
markets. The most recent data confirms that regionally, median prices rose by roughly one
percent annual rate. While nominal, it is the first gain in median prices in almost five years. As
stabilization spreads evenly across all price ranges, appreciation in the one to three percent range                                                                                decrease in average
should become a reality.                                                                                                                                                            months of inventory
As supply dwindles and         Home                                                                                                                                                 since 2011

demand increases, 2013
will be the year that          Supply                                in Western North Carolina
                                                                                                                                                                               Two counties reported
                                                                                                                                                                               increases in median sales
many markets return to                                                                                                                                                         price.
a healthy balance. Local             $0-$99K !             7!
                                                                8!
                                                                                                                                      2011Q4!             2012Q4!              Strongest fourth quarter sales
professional expertise will     $100k-$199k !                        13!
                                                                9!                                                                                                             since 2007 despite national
be essential for ferreting      $200k-$299k !                        13!
                                                                           18!                                           < 6 mos. prices increase                              economic uncertainty.
out opportunities and           $300k-$399k !                                    22!                                     6-12 mos. prices stabilize
                                                                         14!
effectively     positioning                                                                                              > 12 mos. prices decrease                             Five counties reported
                                $400k-$499k !                                        24!
                                                                           17!                                           “0” insufficient sales data
property for sale. It is our    $500k-$599k !                                                      35!                                                                         considerable drops in average
                                                                               20!
pleasure to provide the                                                                                            49!
                                                                                                                                                                               marketing time.
                                $600k-$699k !                                                30!
guidance you need to                                                                                         44!
                                $700k-$799k !                                                            42!                                                                   5,794 total homes sold in
make educated decisions                                                                                  41!
                                $800k-$899k !                                                      35!                                                                         the region, a 26.4% increase
in the coming year.                                                                                                                    69!
                                $900k-$999k !                                                                43!                                                               since previous year.
                                         >$1M !                                                                                                                     94!
                                                                                                                                           72!
                                                  0!       10!            20!          30!         40!   50!    60!                  70!         80!         90!     100!
                                                                                                   Months of Supply!
                                                                                                                                                                              VITAL SIGNS        2011YE / 2012YE

                                                                                                                                                                               List/Sell          Median
                                                                                                                                                                                Ratio           Sales Price
                               Unemployment
Regional unemployment          12%
                                                                                                                                                                                93%            $176,000
rates continue to decline.
                                                                                                                                                                                1% from               from
While still historically       11%                                                                                                                                                                  $175,000
                                                                                                                                                                                last year
high for the area,                                                                                                                                                                                  last year
October’s rate of 6.8
                               10%
percent was the lowest                                                                                                                                                         Supply           Cash Sales
since December of 2008.
                                                                                                                                                       North Carolina
Among the state’s other
                                                                                                                                                                                                    33%
                               9%

metro areas Asheville’s                                                                                                                                                       5,687
(MSA)      unemployment        8%
                                                                                                                                                                                  from             1% from
rate was the lowest of all,                                                                                                                             United States
                                                                                                                                                                                  6,184            last year
and the only one below                                                                                                                                                          last year
                               7%
seven     percent. The                                                                                                                                       Asheville
area’s     unemployment                                                                                                                                                                 Distressed
rate remains well below        6%
                                                                                                                                                                                      Property Sales
                                     J    F   M   A    M    J        J     A     S     O     N     D     J     F   M     A   M   J     J     A    S      O
the state and nation, as                                    2011                                                             2012
it has for more than a
                                                                                              Source: North Carolina Employment Security Commission
decade.
Residential building permit activity stays strong with year-to-date permitting for single-family                                                                                            no change
homes up 41.7 percent over last year. The 1,139 permits issued through November have a total
value of $200 million, which is 15.5 percent over last year at this same time. This is the highest
number of single-family residential permits since 2008.
                                                                                                                                                                                 20% of Total Sales
                                                                           Visit SYNEVA Economics at syneva.com                                                             National average 22% of closed sales




                                                                                                                                                                                                          3
        BUNCOMBE COUNTY

Market                                 Supply                  months of inventory at
                                                               current sales pace
INSIGHTS
                                                                      6!


 2 week
                                              $0-$99K !              6!                                                                     2011Q4!          2012Q4!
                                        $100k-$199k !                   9!
                                                                       7!                                                              < 6 mos. prices increase
                                        $200k-$299k !                            12!                                                   6-12 mos. prices stabilize
    reduction in market time                                               8!
                                                                                                                                       > 12 mos. prices decrease
                                        $300k-$399k !                             13!
                                                                           8!                                                          “0” insufficient sales data
Sales in upper price brackets
                                        $400k-$499k !                                  16!
driving increase in median sales                                                11!
price.                                  $500k-$599k !                                        20!
                                                                                  14!
Accelerating decline in months          $600k-$699k !                                                             34!
                                                                                        17!
of inventory. 16% reduction ‘10-                                                                     26!
                                        $700k-$799k !                                              26!
’11 followed by 25% reduction
‘11-’12.                                $800k-$899k !                                                  27!
                                                                                                             32!
                                        $900k-$999k !                                                                                           62!
Pressure on values continues                                                                                31!
where excessive non-                            >$1M !                                                                                                               80!
                                                                                                                                 50!
differentiated inventory is
present.                                                  0!           10!             20!           30!        40!     50!               60!         70!        80!
                                                                                                            Months of Supply!
VITAL SIGNS         2011YE / 2012YE


  List/Sell           Median           Sales           pace vs.        Days                        on market

   Ratio            Sales Price                                                                       Homes sold/month!                    Days on market!
                                                                      344!
                                                      325!
    94%          $195,000                277!                                           291!
                                                                                                                                                                230!
                         from                                                                              209!
       1%                                                                                                               187!       186!           191!
    from last          $187,500
      year             last year

                                         75!          76!                               92!                                                       178!
                                                                      75!                                                          163!                         161!
    Supply          Cash Sales                                                                                          145!
                                                                                                       114!

  2,018                30%               04!          05!             06!                07!               08!          09!        10!             11!           12!


      from
      2,580            1% from
                                       Sales              trends                                                         Closings                           by price bracket

    last year          last year                                                        Annual total sales!
                                                 4,122!
                                            3,898!                                      Total sold Q4!                                                          $500k-
                                                                                                                                                  $300k- $400k- $599k!
                                                      3,495!                                                                                      $399k! $499k!
                                       3,329!                                                                                                                    2.6%!
            Distressed                                                                                                          $200k-            12.4%! 5.5%!
                                                                                         2,745!                                 $299k!
          Property Sales                                             2,506!         2,297!                                                                      $600k-
                                                                          2,238!                                                23.6%!                          $699k!
                                                                               2,228!
                                                                                                                                                                 1.6%!
                                                                                                                                                                  $700k-
                                                1,037! 984!
            no change                    870!                  744!                        719!
                                                                                                                              $100k-                               $799k!
                                                                       483! 635! 496! 559!                                    $199k!       $0-$99k!                0.8%!
                                                                                                                              38.1%!        13.2%!              $800k-
                                                                                                                                                                 $899k!
                                                                                                                                                          $900k-
     19% of Total Sales                 04!     05!   06!      07!     08!        09!        10!     11!     12!                                    >$1M! $999k! 0.5%!
National average 22% of closed sales                                                                                                                1.2%!
                                                                                                                                                           0.4%!




4                                      beverly-hanks.com
                                 Haywood County Market Review
                                              HAYWOOD COUNTY
Supply                      months of inventory at
                            current sales pace
                                                                                                                                              Market
                                                                                                                                               INSIGHTS
        $0-$99K !                      10!
                                  7!                                                                 2011Q4!            2012Q4!


                                                                                                                                                       31%
  $100k-$199k !                                 19!
                                         14!                                              < 6 mos. prices increase
  $200k-$299k !                                                   35!
                                                   20!                                    6-12 mos. prices stabilize
                                                               31!                        > 12 mos. prices decrease
  $300k-$399k !                                                                                                                                        increase in home
                                               18!                                        “0” insufficient sales data
                                                                                                                                                       sales in 2012
  $400k-$499k !                                                              45!
                                                                       38!
  $500k-$599k !                                                                                62!                                             Surge in home sales dominated
                                               19!
                                                                                                     66!                                       by homes under $300,000.
  $600k-$699k !                                                                                                   76!
  $700k-$799k !                                                      36!                                                                       Distressed property sales
                                                                             44!
                                                                                                                                               creating excellent opportunities
  $800k-$899k !                                                                    48!
                                                          28!                                                                                  for second home buyers.
  $900k-$999k !                                                      36!
                                                                                                                          84!                  Number of homes for sale at the
                           0!
          >$1M !           0!                                                                                                                  lowest level since 2007.
                      0!         10!         20!         30!      40!    50!    60!                  70!          80!      90!
                                                                 Months of Supply!

Sales                             Days                                                                                                          VITAL SIGNS        2011YE / 2012YE
                  pace vs.                               on market
                                                                                                                                                 List/Sell          Median
                                                                                                                                                  Ratio           Sales Price
          Homes sold/month!                         Days on market!


                                                                                         215!
                                                                                                           229!          232!
                                                                                                                                                  92%           $155,000
  134!          134!                           135!
                                118!                                         179!                                                                     1%               from
                                                               154!                                                                               from last          $160,000
                 94!                                                                                                                                 year            last year
  76!                            91!           68!                                                                        60!
                                                                46!           43!        42!               44!
                                                                                                                                                 Supply           Cash Sales
  04!           05!              06!           07!              08!           09!        10!               11!            12!
                                                                                                                                                  901                33%
Sales  1,133!
                trends                                                       Closings                       by price bracket                        from
                                                                                                                                                    1,024            2% from
            1,089!                            Annual total sales!                                                                                 last year          last year
                                              Total sold Q4!
906!                                                                                                                              $500k-
                      814!                                                                                                        $599k!                  Distressed
                                                               719!                       $200k-        $400k-                     1.9%!                Property Sales
                                                                                          $299k!        $499k!
                                550!                                          $100k-      18.1%! $300k- 1.9%!
                                       510! 501! 530!                         $199k!
                                                                                                                                   $600k-
                                                                                                 $399k!                            $699k!
                                                                              41.0%!              9.6%!                             0.4%!
                                                                                                                                                              1%
         298!
 254!           247!                                             225!
                       180!                                                                                                          $700k-
                                 107! 146! 120! 133!                                     $0-$99k!                                    $799k!
                                                                                          26.0%!                                      0.4%!
                                                                                                                        $900k-      $800k-
 04!     05!    06!    07!       08!    09!     10!      11!     12!                                                    $999k!      $899k!          24% of Total Sales
                                                                                                                         0.1%!       0.4%!    National average 22% of closed sales




                                        Regional is good. Local is better. For professional insight and thorough analysis of a
                                        specific property or neighborhood, call your Beverly-Hanks associate.
                                                                                                                                                                            5
         HENDERSON COUNTY

Market                                  Supply                      months of inventory at
                                                                    current sales pace
INSIGHTS
                                                                       8!
                                                 $0-$99K !            6!                                                                      2011Q4!       2012Q4!


        84%
        sales under
                                          $100k-$199k !
                                          $200k-$299k !
                                          $300k-$399k !
                                                                        8!
                                                                             13!
                                                                              16!
                                                                            11!
                                                                              14!
                                                                                         26!
                                                                                                                                      < 6 mos. prices increase
                                                                                                                                      6-12 mos. prices stabilize
                                                                                                                                      > 12 mos. prices decrease
                                                                                                                                      “0” insufficient sales data
        $300,000
                                          $400k-$499k !                           22!
                                                                               17!
First annual drop in average              $500k-$599k !                                                                65!
marketing time (days on market)                                                     22!
since 2006.                               $600k-$699k !                                                                  70!
                                                                                           29!
                                          $700k-$799k !                                                        54!
Normalized values and historically                                                                                     66!
low interest rates creating best          $800k-$899k !                                                                      72!
                                                                                     24!
affordability levels ever.                                                                                     54!
                                          $900k-$999k !                                                                                      96!
Smaller percentage of distressed                  >$1M !
sales suggests lower risk to                                                                                                                                           140!
investments.                                                   0!     10!     20!    30!        40!     50!    60! 70! 80! 90! 100! 110! 120! 130! 140!
                                                                                                              Months of Supply!
 VITAL SIGNS          2011YE / 2012YE


   List/Sell            Median          Sales              pace vs.          Days                 on market

    Ratio             Sales Price                                                                                  Homes sold/month!               Days on market!
                                                         181!
                                                                        163!              157!

     93%           $168,250                150!
                                                                                                                                   185!            192!
                                                                                                                                                                183!
                                                                                                            125!
                                                                                                                        156!                                    113!
     no change             from
                         $168,000          90!                                            93!                           87!           85!          82!
                                                         83!
                         last year                                      73!                                 101!

     Supply           Cash Sales

                                           04!            05!            06!               07!               08!         09!          10!          11!          12!
   1,162                 32%
       from
       1,285             1% from
                         last year
                                        Sales              trends                                                       Closings                         by price bracket
     last year                               2,173!                                      Annual total sales!
                                                  1,956!                                 Total sold Q4!                                                          $400k-
                                                       1,878!
                                        1,796!                                                                                                                   $499k! $500k-
            Distressed                                                                                                                                            3.5%! $599k!
                                                                                                                                      $200k-                             1.7%!
          Property Sales                                                                                    1,345!                    $299k!
                                                                      1,216!                                                                           $300k-
                                                                           1,043!                                                     20.6%!           $399k!           $600k-
                                                                                1,014!                                                                                  $699k!
                                                                                                 985!                                                   9.6%!
                                                                                                                                                                         0.8%!
                                                  599!                                                                       $100k-
             no change                    462!           443! 403!
                                                                                                              341!           $199k!                                    $700k-
                                                                        243! 271! 242! 243!                                  45.9%!         $0-$99k!                   $799k!
                                                                                                                                             17.1%!                     0.1%!

                                                                                                                                                       >$1M! $900k-     $800k-
      18% of Total Sales                 04!     05!     06!    07!     08!        09!     10!        11!     12!                                      0.2%! $999k!     $899k!
National average 22% of closed sales                                                                                                                          0.1%!      0.3%!




 6                                      beverly-hanks.com
                                   Haywood County Market Review
                                                MADISON COUNTY
Supply                       months of inventory at
                             current sales pace
                                                                                                                                     Market
                                                                                                                                      INSIGHTS
        $0-$99K !                    10!
                                    8!                                                           2011Q4!            2012Q4!


                                                                                                                                            13%
                                                19!
 $100k-$199k !                                  19!                                       < 6 mos. prices increase
                                                            30!
 $200k-$299k !                                              30!                           6-12 mos. prices stabilize
                                                                     38!                  > 12 mos. prices decrease
 $300k-$399k !                                                                                                                                increase in sales
                                                               34!                        “0” insufficient sales data
                                                                                                                                              under $300,000
 $400k-$499k !                                                       39!
                                                                                    60!
 $500k-$599k !                                                                                                                108!    Strongest fourth quarter home
                                                      24!
                            0!                                                                                                        sales in six years.
 $600k-$699k !                                                                                            84!
                            0!                                                                                                        Distressed property sales
 $700k-$799k !              0!
                                                                                                                                      and robust supply are putting
 $800k-$899k !              0!
                                                      24!                                                                             continued pressure on sales.
                            0!
 $900k-$999k !              0!                                                                                                        Market time down by almost a
                            0!
          >$1M !            0!                                                                                                        full month since 2011.
                       0!         10!      20!         30!        40!   50!    60!    70!         80!         90!     100!
                                                                    Months of Supply!

Sales                               Days                                                                                               VITAL SIGNS        2011YE / 2012YE
                   pace vs.                                 on market
                                                                                                                                        List/Sell          Median
           Homes sold/month!                          Days on market!                                                                    Ratio           Sales Price

                                                                                                     247!
  167!
                  135!
                                                                                                                      219!               91% $158,550
                                                                                                                                                              from
                                  110!            117!                                    179!
                                                                            168!                                                         2% from            $164,000
                                                                  152!                                                                   last year          last year

   18!            21!              17!             14!             10!                                  9!            11!
                                                                             7!            9!
                                                                                                                                        Supply           Cash Sales
   04!            05!              06!             07!             08!      09!           10!           11!           12!
                                                                                                                                         248                39%
Sales              trends                                                   Closings                     by price bracket                 from
                                                                                                                                         241 last           3% from
        247!                                     Annual total sales!                                                                      year              last year
                                                 Total sold Q4!
213!            207!                                                                             $200k-
                                                                                                 $299k!       $300k- $400k-                      Distressed
                        170!                                                       $100k-
                                                                                   $199k!        18.2%!        $399k! $499k!                   Property Sales
                                                                   130!            37.9%!                      5.3%! 3.8%!
                                  114!           109! 112!
                                          88!
                                                                                                                       $500k-
                                                                                                                       $599k!                        6%
  71!     72!
                                                                                                                        1.5%!
                  37!       37!            33!               33!      37!                   $0-$99k!                        $800k-
                                    29!               22!                                                                   $899k!
                                                                                             30.3%!
                                                                                                                     $600k- 0.8%!
                                                                                                              >$1M! $699k!
 04!     05!     06!     07!       08!     09!     10!       11! 12YE!                                        1.5%! 0.8%!                 27% of Total Sales
                                                                                                                                     National average 22% of closed sales




                                           Regional is good. Local is better. For professional insight and thorough analysis of a
                                           specific property or neighborhood, call your Beverly-Hanks associate.
                                                                                                                                                                    7
         POLK COUNTY

Market                                  Supply                       months of inventory at
                                                                     current sales pace
INSIGHTS
                                                $0-$99K !                                20!
                                                                             8!                                                                2011Q4!           2012Q4!


       56%
       reduction in average
                                          $100k-$199k !
                                          $200k-$299k !
                                          $300k-$399k !
                                                                                    17!
                                                                                                26!
                                                                                                            38!
                                                                                                             39!
                                                                                                                                 57!
       inventory
                                          $400k-$499k !                                                           41!
                                                                                                   30!                                     < 6 mos. prices increase
Cash buyers benefiting from               $500k-$599k !                                                             45!                    6-12 mos. prices stabilize
depressed values caused by                                                                21!                                              > 12 mos. prices decrease
distressed property sales.                $600k-$699k !                                                     36!                            “0” insufficient sales data
                                                                     0!
                                          $700k-$799k !                                                                                                                    108!
Improvements in supply                                               0!
levels are due to properties              $800k-$899k !                                                                 48!
                                                                                     18!
withdrawing from market-not                                                                                 36!
sales.                                    $900k-$999k !                                     24!
                                                  >$1M !                                                                          60!
Sales activity occurring in all
price ranges.                                                   0!         10!      20!         30!         40!   50!    60!    70!            80!         90!     100!
                                                                                                              Months of Supply!
 VITAL SIGNS          2011YE / 2012YE


   List/Sell            Median          Sales                  pace vs.       Days                    on market

    Ratio             Sales Price                  Homes sold/month!                            Days on market!
                                                                                                                                                   277!            284!
                                                                                                                                        268!
     90%          $152,100                 174!
                                                          156!
                                                                            142!          134!
       3.5%                from                                                                                           179!
     from last           $181,000
       year              last year                                                                          142!

                                           24!            27!                32!           26!
                                                                                                            13!           14!           12!          12!           12!
     Supply           Cash Sales

                                           04!            05!                06!           07!              08!           09!           10!          11!           12!

     294                 41%
     no change           7% from        Sales                  trends                                                     Closings                         by price bracket
                         last year                      379!
                                                                                         Annual total sales!
                                                328!                                     Total sold Q4!                                                             $400k-
                                                                309!                                                                                                $499k!
                                        283!                                                                                                          $300k-
            Distressed                                                                                                                     $200k-     $399k!         7.1%!
          Property Sales                                                                                                                   $299k!      2.8%!
                                                                                                                                           15.6%!
                                                                                                                              $100k-                                 $500k-
                                                                           153! 162! 140!                                     $199k!                                 $599k!
                                                                                          138! 141!
                 5%                                                                                                           42.6%!                                  5.0%!
                                                  89!
                                          63!             73!        64!                                                                    $0-
                                                                             37!   40!                39!     39!                                                         $800k-
                                                                                            33!                                            $99.9k!
                                                                                                                                                                           $899k!
                                                                                                                                           23.4%!
                                                                                                                                                                     $900k- 1.4%!
     22% of Total Sales                                                                                                                                    >$1M!     $999k!
                                         04!     05!     06!     07!        08!    09!     10!     11!       12!
                                                                                                                                                           1.4%!     0.7%!
National average 22% of closed sales




 8                                      beverly-hanks.com
                                 Haywood County Market Review
                                          RUTHERFORD COUNTY
Supply                     months of inventory at
                           current sales pace
                                                                                                                                                   Market
                                                                                                                                                    INSIGHTS
        $0-$99K !                       11!
                                  6!                                                                      2011Q4!            2012Q4!


                                                                                                                                                           38%
 $100k-$199k !                                             26!
                                         13!
 $200k-$299k !                                                     34!
                                                      24!
                                                                               41!
 $300k-$399k !                                                                                                                                             increase in home
                                                                              40!
                                                                                                                                                           sales in 2012
 $400k-$499k !                                                                                                               81!
                                        12!
 $500k-$599k !                                                   30!                                                                                Record setting year for home
                                                                        36!                                                                         sales in Rutherford County.
 $600k-$699k !                                                                                                                 84!
 $700k-$799k !                                                                                                                 84!                  85% of home sales occurred
                          0!                                                                                                                        under $300,000.
 $800k-$899k !            0!                                                                     < 6 mos. prices increase
                                                                 30!
                                                                                                 6-12 mos. prices stabilize                         Time on market improved by
 $900k-$999k !            0!
                                                      24!                                        > 12 mos. prices decrease                          more than two months.
                          0!                                                                     “0” insufficient sales data
         >$1M !           0!
                     0!          10!          20!          30!          40!    50!    60!                 70!          80!         90!
                                                                       Months of Supply!

Sales                              Days                                                                                                              VITAL SIGNS        2011YE / 2012YE
                 pace vs.                                  on market
                                                                                                                                                      List/Sell          Median
        Homes sold/month!                     Days on market!                                                                                          Ratio           Sales Price
                                                                                                 268!           277!
  169!
                156!
                                 142!                                                                                                                  91%           $140,000
                                               134!                                                                            197!                                         from
                                                                                     179!                                                            no change
                                                                                                                                                                          $141,900
                                                                 142!                                                                                                     last year

                13!               21!           21!               15!                14!         16!            15!            24!
   4!
                                                                                                                                                      Supply           Cash Sales
  04!           05!               06!           07!               08!                09!         10!            11!            12!
                                                                                                                                                       382                42%
Sales            trends                                                        Closings                          by price bracket                       from
                                                                                                                                                                          4% from
                                                                                                                                                       396 last
 Annual total sales!                                                                                                                                    year              last year
 Total sold Q4!                                                   286!                                            $200k-
          255! 248!                                                                                               $299k!
                                                                                                                                         $400k-
                                                                                                                  16.4%!                 $499k!                Distressed
                                                                                            $100k-                    $300k-              4.2%!              Property Sales
                                               189!                                         $199k!
                                175! 173!                 177!                                                        $399k!
       153!                                                                                 31.1%!                                     $500k-
                                                                                                                       6.3%!
                                                                   108!
                                                                                                                                        $599k!                     1%
                                                                                                                                        2.1%!
         59!   62!        67!                                                                    $0-                                     $600k-
46!                               43!    38!        40!     37!                                                                           $699k!
                                                                                                $99.9k!
 17!                                                                                                                  $900k-              1.0%!
                                                                                                37.4%!
                                                                                                                      $999k!          $800k-
04!     05!    06!     07!       08!    09!     10!        11!     12!                                                 0.7%!          $899k!            25% of Total Sales
                                                                                                                                       0.7%!       National average 22% of closed sales




                                        Regional is good. Local is better. For professional insight and thorough analysis of a
                                        specific property or neighborhood, call your Beverly-Hanks associate.
                                                                                                                                                                                 9
        TRANSYLVANIA COUNTY

Market                                 Supply                     months of inventory at
                                                                  current sales pace
INSIGHTS
                                               $0-$99K !                   9!
                                                                            10!                                                             2011Q4!           2012Q4!


       48%
        of transactions
                                         $100k-$199k !
                                         $200k-$299k !
                                         $300k-$399k !
                                                                                   16!
                                                                                 13!
                                                                                            25!
                                                                                          21!
                                                                                                            36!
                                                                                                                  41!
                                                                                                                                            < 6 mos. prices increase
                                                                                                                                            6-12 mos. prices stabilize
                                                                                                                                            > 12 mos. prices decrease
                                                                                                                                            “0” insufficient sales data
        are cash sales
                                         $400k-$499k !                                                                              59!
Stable supply and an increase                                                                         31!
in sales pace is quickly driving         $500k-$599k !                                                                                61!
                                                                                                                                                  72!
months of inventory down.
                                         $600k-$699k !                                                                                      67!
Lowest percentage of distressed          $700k-$799k !
sales in seven county region is                                                                                                      60!
                                         $800k-$899k !                                                                                                                    96!
aiding with value recovery.                                                                                                                                     84!
                                         $900k-$999k !                                                              44!
Enjoying a strong recovery in
the upper price ranges driven by                 >$1M !                                                                                                       81!
                                                                                                                                              70!
second home buyers returning
to the Brevard market.                                       0!          10!       20!          30!      40!    50!    60!                  70!         80!         90!
                                                                                                        Months of Supply!
 VITAL SIGNS         2011YE / 2012YE


   List/Sell           Median          Sales             pace vs.          Days                 on market

    Ratio            Sales Price               Homes sold/month!                       Days on market!
                                                                                                                                   268!           277!
                                                                                                                                                                263!
    90%           $174,250               159!           156!
                                                                         142!           134!
                            from
       2%
                          $175,000                                                                                      179!
    from last
      year                last year                                                                   142!
                                                        48!              53!
                                          39!                                            36!                                                                    32!
                                                                                                       24!              20!         24!           26!
   Supply            Cash Sales

                                          04!           05!               06!            07!           08!              09!         10!           11!           12!
      682                 48%
      from
       688                44% from     Sales             trends                                                     Closings                            by price bracket
    last year             last year                   639!
                                                                                       Annual total sales!
                                              570!                                     Total sold Q4!                                                $400k- $500k-
                                                                                                                                              $300k- $499k! $599k!
                                       471!                                                                                                   $399k! 6.3%! 1.6%!
           Distressed                                                                                                              $200k-
                                                             433!                                                                              7.6%!
         Property Sales                                                                                                            $299k!                  $600k-
                                                                                                       381!
                                                                                                                                   21.8%!                  $699k!
                                                                        283!            288! 308!                                                           1.3%!
                4%                                                              242!                                                                          $700k-
                                                                                                                                                              $799k!
                                                165! 148!                                                                     $100k-
                                        129!
                                                                                                         96!
                                                                                                                              $199k!     $0-            $800k- 1.0%!
                                                                  85!     77!     79!     83!    79!                          39.1%! $99.9k!            $899k!
                                                                                                                                       17.1%!
                                                                                                                                                 >$1M! 0.8%!
                                                                                                                                                 2.6%! $900k-
      17% of Total Sales                04!     05!    06!     07!       08!     09!     10!    11!     12!                                              $999k!
National average 22% of closed sales                                                                                                                     0.8%!




 10                                    beverly-hanks.com
                                    Community Marketing Group (CMG) is Beverly-Hanks’ full-service marketing division
                                    providing proven sales, marketing, and strategic consulting services to builders and
 Rebound is under       construction                                             New Home Communities
                                    developers. Our services are tailored to each project’s specific needs. We offer everything
                                    from design charettes and market feasibility studies to turn-key sales and marketing teams.



Current Market Conditions In New Home Construction
The US Commerce Department says
sales of new single-family homes rose 4.4
                                                  balanced between buyers and sellers. Bill
                                                  McBride, author of the blog Calculated
                                                                                                            Market
                                                                                                              INSIGHTS



                                                                                                                  15%
percent from October to November and              Risk, said he expects new-home sales to
were up 15.3 percent from a year ago,             double within the next several years as
the fastest pace in 2 1/2 years. New home         distressed sales continue to decline.
building is expected to add to economic                                                                            increase in US new home
                                                           776!                                                    sales from a year ago

                                              Thousands!
growth this year for the first time since
2005. The pace of new home sales is                                                                         VITAL SIGNS           2011YE / 2012YE
roughly a quarter of the all-time high in
                                                                                                           New Home Construction
July 2005 when the housing expansion                              485!
was still skyrocketing.                                                  374!                     377!     NC Building Permits*
                                                                                322!    305!
New-home inventory tied its lowest point                                                                   30,048 / 44,300
of the year with an estimated 149,000 new                                                                  Asheville MSA Building Permits*
                                                                                                           870 / 1,139
homes for sale in November, representing
a 4.7-month supply. When total supply                                                                      New Construction Closings**
                                                                                                           340 / 323
for a given market equals six months,                      2007! 2008! 2009! 2010! 2011! 2012!
professionals believe the market is                                             Source: US Census Bureau    *Source: Bureau of Census
                                                                                                           **Source: WNCRMLS


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               VITAL SIGNS          2011YE / 2012YE
example of the communities with which we are proud to affiliate.                                           Southcliff Homesites

                                                                                                             Homesites Sold / Month
                                                                                                             .5 / 1.7
                                                                                                             Median Closed Sales Price
                                                                                                             $90,000 / $125,000
                                                                                                             List to Sell Ratio
                                                                                                             98.5% / 99%
One local community that had a
tremendous year was Southcliff. In 2012,
home site sales were up 100%. Southcliff
sold 14 home sites compared to seven in
2011. Building activity is also on the rise
in this beautiful mountain neighborhood
only minutes from downtown Asheville.
Ten homes were started and/or completed
in 2012. With all of the trails, parks,
and community events in Southcliff, we
expect these numbers to continue to rise
in 2013.




                                                                                                                                            11
                     Beverly-Hanks                                  MARKET OVERVIEW
Notable Transactions                  Featured Listings
1 Haywood Street
Sale Price $2,850,000




                                     20 Misty Valley Parkway   56 Patton Avenue         149 Old Shoals Road      Clayton Road 145 Acres
Oceanside Resorts, Inc., a Florida    For sale at $3,900,000   For lease at $20/SF      For sale at $1,450,000   For sale at $115,000/AC
investment group, purchased the
130,000 SF Wells Fargo Building.
NAI Beverly-Hanks represented
the seller.                          During the fourth quarter of 2012, the local       in the fourth quarter. NAI Beverly-Hanks’
                                     commercial real estate market extended             brokerage business has demonstrated
49 Zillicoa Street                   the positive momentum gained during the            a tremendous 64% increase from 2011
Leased                               first nine months of the year. All commercial      to 2012 in year over year transaction
                                     real estate asset classes continued to             volume through the fourth quarter. This is
                                     show improvement in transaction count,             an encouraging indicator that our market
                                     with moderate improvement in pricing/              continues to steadily improve from recent
                                     valuation. Our local multi-family and office       recessionary lows, and we believe this trend
                                     markets had a particularly robust first            will continue well into 2013 independent of
                                     three quarters, and that trend continued           global/national or political influences.
Located in Highland Park this

                                     Market
9,000+ SF office space is listed
on the National Historic Register.
NAI Beverly-Hanks represented
the landlord and the tenant.          INSIGHTS
47 Biltmore Avenue
Leased                               Asheville (MSA) Sold Properties, All Property Types
                                                                   Quarter            Quarter            Quarter          Quarter
                                                                    One                Two                Three            Four
                                      # of Transactions             45                    59               44         57
                                      Total Dollar Vol.         $36,553,788          $78,874,207      $71,390,400 $90,303,840
                                      Total Sq. Ft.               204,503              690,608          705,064    1,275,196
3,223 SF restaurant located           Avg. $/Sq. Ft.              $121.36              $100.66           $84.95     $67.79
at street level of Aloft Hotel in
Downtown Asheville. NAI Beverly-     Source: CoStar
Hanks represented the tenant.
575 Sweeten Creek Road                Our Analysis On The Asheville (MSA)
Sale Price $1,395,000
                                                                      •	   27% increase in the number of transactions over
                                                                           the course of 2012.
                                                                      •	   $277,122,235 of total sales volume over the course
                                                                           of the four quarters.
                                                                      •	   Average Cap Rate across property categories 12
                                                                           month period of 8.10%.

44,000 + SF warehouse, retail/
distribution center located in
Sweeten Creek Industrial Park.
NAI Beverly-Hanks represented
the seller.




 12                              naibhcommercial.com
                                             WESTERN NC LAND MARKET
                                                                                                                       SMALL TRACTS


                                                                                                                         0-3 acres with deed restrictions



  Lots         sold   •    Average                      sales price                 Sales trends                             by county

                                                                                      650!                                               Buncombe!
        Total parcel sales!                      List price per parcel!               600!
                                                                                                                                         Haywood!
                                                                                      550!
        Sales price per parcel!                                                                                                          Henderson!
                                                                                      500!
                                                                                                                                         Madison!
                                                                                      450!
  $120,000!              2,567!                                                                                                          Polk!
                                                                                      400!




                                                                              Lots Sold!
                    2,185!                                                                                                               Rutherford!
  $100,000!                                                                           350!
                                                                                      300!                                               Transylvania!
   $80,000! 1,496!               1,691!
                                                                                      250!
   $60,000!                                                                           200!
   $40,000!                               675!                                        150!
                                                  454! 490! 481! 570!                 100!
   $20,000!                                                                            50!
        $0!                                                                             0!
              04!    05!   06!    07!     08!     09!   10!   11!   12!                      2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012!


   Closings                   by price bracket                                             Active           lots   •   Closed             lots

                           $100k- $150k-            $200k-
                           $149k! $199k!            $249k!    $250k-                Active parcels 2012YE!               Total closed parcels 2012!
                            6.3%! 4.6%!              2.1%!    $299k!
                                                                          1,841! 1,841!
           $50k-$99k!                                          1.1%!
             17.2%!
                                                        $300k-                                1,292!
                                                        $349k!
                                                         1.2%!                                      464!
                                                             $350k-                          374! 98!    237! 80!
                                                 $400k-      $399k!                                               63!                   58!
       $0-$49k!                                  $450k!                                               36! 26! 12! 6! 21! 37!5! 10! 15!1! 3!
                                                                                                                       7!        2!
        65.6%!                                                0.9%!
                                                  0.4%!

                                     >$500k!         $450k-
                                      0.5%!          $500k!
                                                      0.2%!



Market
INSIGHTS                                                                                     VITAL SIGNS                               2011YE / 2012YE

                                    Downward pressure on prices caused                                              Average
                                    by oversupply continues to create                          Supply                                     List/Sell
                                                                                                                   Sales Price

  19%
                                    opportunities for buyers.                                                                              Ratio

                                    Inventory, while improved, is still too
                                    robust to justify new development, so                     4,118                $61,651                  84%
    increase in lot                                                                               from
                                    prices are based on other uses.                                                      from                 3%
    sales since 2011                                                                              4,721                 $63,911            from last
                                                                                                last year              last year             year
                                    Seller and buyer expectations
                                    are getting closer as completed
                                    transactions create timely comparables.



                                 Regional is good. Local is better. For professional insight and thorough analysis of a
                                 specific property or neighborhood, call your Beverly-Hanks associate.
                                                                                                                                                            13
                                                                        WESTERN NC LAND MARKET
                                                                                                                                                               LARGE TRACTS




         Parcels                                  sold    •    Average                        price/acre                Active
                                                                                                                    Active	
  Parcels	
  10-­‐50	
  acres	
  without	
  restrictions
                                                                                                                                              parcels by price and county
                                                                                                                        10-50 acres without restrictions
               $18!                                                        10-20 acre parcels sold!
                                                  162!                                                                  60!                                                Transylvania!
  Thousands!




                                                                           20+ acre parcels sold!
               $16!                145!                                    10-20 acre $/acre!
                                                                                                                        55!                                                Rutherford!
                                                                                                                        50!                                                Polk!
               $14!                                                        20+ acre $/acre!                             45!
                                                                                                                        40!                                                Madison!
               $12!                                                                                                     35!                                                Henderson!
                                             98!          103!                                                          30!                                                Haywood!
               $10!               88!                                                                                   25!Buncombe!                                       Buncombe!
                                                         78!                                                            20!
                            75!                                                           6!                            15!Haywood!
                $8!
                                                                                                              11!       10!
                $6! 47!                                                                         48!                      5!Henderson!
                                                                                  3!      39!
                                                                   32!            34!         37!                        0!
                $4!                                              26! 27! 27!            25!                                Madison!
                                                                            16!4!
                $2!                                                                                                         Polk!
                                                                                                               4!
                $0!                                                                      5!                                 Rutherford!
                        04!        05!            06!     07!     08!      09!   10!     11!        4!
                                                                                                   12!                      Transylvania!
                                                                        10-20 acre parcels without restrictions!

               Closings                                  by county                                                           List      price •       Acre    by County
                                                                                                                              50+ acres without restrictions

                                                                Buncombe!
                                                                Buncombe!                                                    $14,000!
                                                                                                                            Buncombe!
                        6!                                                                    6!     6!
                6!
                                                                Haywood!                                                     $12,000!
                                                                                                                            Haywood!
                                             11!                Haywood!
                                         11!
                                                                Henderson!         5!                                        $10,000!
                                                                                                                            Henderson!
                3!                                              Henderson!
  3!
                                                                                  2!
                                                                                                                10!            $8,000!
                                                                Madison!                                                    Madison!
                4!                                              Madison!                                                       $6,000!
                                                                Polk!                                                       Polk!
  4!                                          4!                Polk!
                                                                                                                               $4,000!
                                                                Rutherford!             11!                                 Rutherford!
                       5!          4!        4!
                                                                                                         8!                    $2,000!
                                                                Transylvania!
                                                                Rutherford!                                                 Transylvania!
                                                                                                                                   $0!
                5!
10-20 acre parcels 4! without
        10-20 acres                              20+
                   without restrictions!Transylvania! acre parcels without restrictions!
                                                           20+ acres without
               restrictions                                                         restrictions



    Market
         INSIGHTS
                 5!
                            6!      6!
                                                                Buncombe!
                                                                Haywood! acres without restrictions
                                                                     10+                                                              VITAL SIGNS                                2011YE / 2012YE
                                                                Henderson!
                                                  10!               Sales pace is accelerating for                                                       Average Sales
                2!                                              Madison! priced below market value,
                                                                   parcels                                                             Supply                                          List/Sell
                                                                                                                                                          Price/Acre

                  29%
                                                                   25% increase since 2011.                                                                                             Ratio
                                                                Polk!
                      11!                                       Rutherford!
                                        8!                         Seller and buyer expectations are
                                                                Transylvania! to be further apart, 6pts.
                                                                   continuing                                                            508                $5,246                     77%
         reduction in average
                                                                    further since 2010.                                                   from                   from                     1%
20+ acre parcels without restrictions!
         sales price/acre in 2012                                                                                                       last year                                      from last
                                                                                                                                                                $7,337
                                                                                                                                                                                         year
                                                                    Sales continue to be concentrated                                                          last year
                                                                    near Asheville, Hendersonville, and
                                                                    Waynesville.




          14                                                            beverly-hanks.com
   Our online marketing is just the beginning...
    “It’s no accident — it’s a conscious effort to do a few things different and everything better.” — Neal Hanks, President




   beverly-hanks.com

                                                                                                                 1 2
                                                                                                              20
                                                                                                         in
                                                                                                            1.1              million visitors
                                                                                                                     spent

                                                                                                            10+                 minutes

                                                                               @ beverly-hanks.com
Most real estate websites simply present basic information                                                           that’s

                                                                               183,700
found in the MLS like price and square footage.

We learned that consumers wanted
more. In 2012 we                                                                                                             hours
debuted the most
robust local real estate
website to date.




                                                                                2012 Year End Total Sales Volume
                                                               $800 !
                                                   Millions!




                                                                                                        SOURCE: NC Mountains Multiple Listing Service
                                                               $700 !
                                                                                                                          Homes Marketed & Sold

   and these numbers
                                                               $600 !
                                                                            $295 !
                                                               $500 !

   are the end result.                                         $400 !

                                                               $300 !       $165 !
                                                                                                                                       Homes Sold


                                                                                           $93 !                                   Home Marketed
    We Sell More Homes     We Assist More Buyers



   1,415 1,193
                                                               $200 !
                                                                                           $129 !
                                                               $100 !       $237 !
                                                                                           $107 !
                             closed buyer                        $0 !
     listings SOLD                                                      Beverly-Hanks Keller Williams   RE/MAX       Keller Williams Prudential       Preferred
     for our sellers         transactions                                & Associates! Professionals!   Mountain          H'ville!  Lifestyle Realty! Properties!
         in 2012                in 2012                                                                  Realty!




                          Regional is good. Local is better. For professional insight and thorough analysis of a
                          specific property or neighborhood, call your Beverly-Hanks associate.
                                                                                                                                                           15
client
                                           Each month we share exclusive offers from local
                                           merchants and community organizations in order to


connect                                    celebrate the very best our region has to offer.

                                           To receive our current offer go to:
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