2013 1st Quarter Market Report

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2013 1st Quarter Market Report Powered By Docstoc
					                                                     2013 QUARTER 1
   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

 A complete analysis for Madison, Polk,
 Rutherford and Transylvania Counties is
 available at beverly-hanks.com




beverly-hanks.com
                                                MarkeT
                                                            WESTERN NORTH CAROLINA




                                           OUR
                                           Major Transition Underway
                                           Consider these year-over-year metrics for                                     3. As prices rise, homeowners will eventually
                                           Western North Carolina comparing 2012Q1                                          jump into the market and home builders will
                                           and 2013Q1:                                                                      likely follow suit adding to inventory.
                                           •	    Existing home sales are up 21% percent.
                                           •	    Existing months of inventory for sale are
                                                 down 19% percent.                                                              Home Supply Change Since Peak
                                           •	    Median home prices are up 4.8 percent.                                           -60.0%!           -40.0%!           -20.0%!             0.0%!
                                           In the short term, we expect increasing values                                                                                    $0-$99K!
                                           to increase demand and further constrain                                                                                      $100k-$199k!
 “It may appear                            supply. Here’s why.                                                                                                           $200k-$299k!
 premature to declare                      1. Buyers are competing for a limited number                                                                                  $300k-$399k!
 a housing boom and                           of homes driving up prices.                                                                                                $400k-$499k!
 chronicle an uneven                       2. As prices rise, buyers will become                                                                                         $500k-$599k!
 regional recovery, but                       impatient and sellers will hold out hoping                                                                                 $600k-$699k!
 Vital Signs indicate a                       for the market to get even better. In a recent                                                                             $700k-$799k!
                                              national survey by Redfin, 56% of buyers                                                                                   $800k-$899k!
 major transition. ”
                                              said now is a good time to buy, whereas                                                                                     $900-$999k!
                                              only 13% said now is a good time to sell.                                                                                       >$1M !

Neal Hanks Jr., President

 Economic Trends
 by Tom Tveidt of SYNEVA Economics
                                                                                                                                                    Fastest Growth in
 The Asheville MSA (Buncombe, Haywood, Henderson,
 Madison counties) began the year with exceptionally
                                                                                             Jobs                                                   the State
 strong employment gains. Up 3.9 percent over the year,
 the MSA is the fastest growing metro area in the state
                                                                                             Asheville
 and is outpacing both the state and nation.
                                                                                    Charlotte‐Gastonia
 By adding more than 6,000 jobs through the first two
                                                                                          Wilmington
 months of 2013, our post-recession expansion is up to
 31 consecutive months of growth. The pace of growth                                        Greenville

 has accelerated during the last six months, historically                                 Jacksonville
 averaging an annual growth rate of about one percent;                                   Raleigh‐Cary
 during the last six months rates have steadily risen to
                                                                                  Durham‐Chapel Hill
 near four percent. The surge in new job creation is led
                                                                                            Goldsboro
 by the Leisure and Hospitality sector, up 2,500 new
 positions, nearly 12 percent over 2012. The sector’s                                          Hickory

 strength confirms the region’s historically strong                                       Fayetteville
 attraction to visitors and vacationers. Other industries                              Winston‐Salem
 contributing to job growth include Retail, adding 1,400
                                                                                           Burlington
 jobs, and Health Services, up 1,300. The broad based
 expansion even includes the Manufacturing sector                              Greensboro‐High Point

 which added 250 jobs in the first quarter.                                              Rocky Mount

                                                                                                         ‐1%             0%                 1%                2%                3%                4%

                                                                               North Carolina’s metropolitan areas, annual employment growth rate through February 2013. 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.
New Homes Needed to Relieve Inventory Shortage
“Only new home construction will relieve the anticipated inventory shortage, and housing starts
need to rise at least 50 percent from current levels for that to happen,” said Lawrence Yun, chief
economist for the National Association of Realtors.
Jed Kolko, chief economist of Trulia describes the short-term phenomena created by reasons
“1” and “2” as an “inventory spiral”. Kolko does not believe the spiral will lead to another long-
term bubble. “Rising prices encourage homeowners to sell and builders to build, which adds to
inventory and breaks the spiral,” he says. Following long established regional trends, inventories
rose between 2012Q4 and 2013Q1.
                                                                                                                                          Market
                                                                                                                                           INSIGHTS



                                                                                                                                                 27%
Only hints of a shortage in some
specific niche markets are visible,
but if national trends play out in
                                                              Median Sales Price
                                                               2012Q1/ 2013Q1                                                                    decrease in average
Western North Carolina we may not
be far behind. Housing inventory                                                                                                                 months of inventory
                                                                Area                                                      % of change            since 2012
nationwide declined 23% year-on-
year in February, according to the                              WNCMLS                                                       + 4.8          Largest reduction in inventory
Department of Numbers’ Housing                                  Buncombe                                                      +.9           occurring in middle price
Tracker. Inventory fell year-on-year in                         Haywood                                                      -5.7           brackets.
all 50 of the largest metros.
                                                                Henderson                                                    +7.4           Median sales price increased
We take the responsibility of                                   Madison                                                      +4.3           by almost 5% since 2012Q1.
monitoring these trends seriously.
                                                                Polk                                                         -3.2
Our agents welcome the opportunity                                                                                                          1,336 total homes sold in the
to personalize the information,                                 Rutherford                                                   -10.1          region in Q1, a 21% increase
enabling you to make confident real                             Transylvania                                                 -1.9           year over year.
estate decisions.

                                                                                                                                           VITAL SIGNS        2012Q1/ 2013Q1

                                                                                                                                            List/Sell          Median
                                                                                                                                             Ratio           Sales Price

  Over Two Years of Unbroken Job Growth                                                                                                      94%           $170,000
  Thirty-One Consecutive Months of Year-Over-Year Expansion

                                                                                                                                             2% from               from
 Averaging 8.1 percent through February, the unemployment rate is the third lowest among                                                                         $162,200
                                                                                                                                             last year
                                                                        all of the state’s                                                                       last year
  4%                                                                    14 metropolitan
                                                                        areas. Currently,
                                                                        we      are     well                                                Supply           Cash Sales
  3%
                                                                        below            the

  2%
                                                                        overall statewide
                                                                        u n e m p l oy m e n t
                                                                                                                                           6,096                 35%
                                                                        rate      of     9.9                                                   from              2% from
                                                                        percent and a                                                          6,240             last year
  1%
                                                                        hair below the                                                       last year
                                                                        national rate of
  0%
                                                                        8.3 percent. The                                                             Distressed
                                                                        u n e m p l oy m e n t                                                     Property Sales
                                                                        rates have held
                                                                        below both the
 ‐1%
                                                                        state and nation
                                                                                                                                                         2%
                                                                        for over a decade.
  ‐2%


                                                                                                                          Visit SYNEVA
  ‐3%
        2010                             2011                               2012                              2013
                                                                                                                          Economics at
                                                                                                                           syneva.com         23% of Total Sales
 Asheville Metro, percent change in employment from year earlier. Source: North Carolina Employment Security Commission
                                                                                                                                         National average 25% of closed sales




                                                                                                                                                                       3
          BUNCOMBE COUNTY

Market                                         Supply                   months of inventory at
                                                                        current sales pace
INSIGHTS
                                                                           5!


         28%
                                                       $0-$99K !          5!                                                                      2012Q1!     2013Q1!
                                                $100k-$199k !                        10!
                                                                                7!                                                      < 6 mos. prices increase
                                                $200k-$299k !                           13!                                             6-12 mos. prices stabilize
         increase in units                                                       9!
                                                                                                                                        > 12 mos. prices decrease
         sold/month                             $300k-$399k !                                16!
                                                                                     10!                                                “0” insufficient sales data

                                                $400k-$499k !                            16!
                                                                                       13!
Four price brackets are at or                   $500k-$599k !                                          23!
                                                                                                 18!
near market balance.
                                                $600k-$699k !                                          23!
                                                                                                         25!
Slowing sales pace, since                                                                                          35!
                                                $700k-$799k !                                          26!
2012Q4, in luxury price tiers are
typical for season.                             $800k-$899k !                                                                     48!
                                                                                                                          42!
                                                $900k-$999k !                                                       36!
Average marketing time                                                                                                                                65!
decreased by almost one month,                          >$1M !                                                                              55!
                                                                                                                                      51!
since 2012.
                                                                   0!          10!           20!          30!       40!     50!              60!       70!        80!
                                                                                                                Months of Supply!
VITAL SIGNS                 2012Q1/ 2013Q1


  List/Sell                   Median           Sales              pace vs.      Days                   on market

   Ratio                    Sales Price                                                                      Homes sold/month!                Days on market!
                                                                         344!
                                                            325!
                         $186,750               277!                                       291!

      94%                          from                                                                209!
                                                                                                                                            191!
                                                                                                                                                       230!       227!
     no change                                                                                                    187!      186!
                                 $185,000
                                 last year

                                                 75!        76!                        92!                                                  178!
                                                                         75!                                                163!                       161!       162!
    Supply                  Cash Sales                                                                            145!
                                                                                                       114!

  2,142                          32%
                                                 04!        05!           06!              07!          08!        09!          10!         11!        12!       13Q1!


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

     last year                   last year              4,122!                               Annual total sales!
                                                   3,898!                                    Total sold Q1!
                                                                                                                                                      $300k-          $500k-
                                               3,329!
                                                             3,495!                                                                                   $399k! $400k- $599k!
               Distressed                                                                                                             $200k-                 $499k!
                                                                                                                                                      11.4%!           2.2%!
             Property Sales                                                                 2,745!                                    $299k!                  4.7%!
                                                                        2,506!         2,297!                                                                       $600k-
                                                                             2,238!                                                   23.0%!
                                                                                  2,228!                                                                            $699k!
                                                                                                                                                                     1.3%!
                                                    1,037!984!                                                                                                      $700k-
               no change                        870!                                                                        $100k-
                                                               744!                                682!                                                             $799k!
                                                                          483! 635! 496! 559! 531!                          $199k!
                                                                                                                                             $0-$99k!                0.9%!
                                                                                                                            39.1%!
                                                                                                                                              15.4%!              $800k-
                                                                                                                                                            $900k-$899k!
       22% of Total Sales                       04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q1!                                                             >$1M! $999k! 0.3%!
National average 25% of closed sales                                                                                                                  1.3%!
                                                                                                                                                             0.3%!
    Source: National Association of REALTORS




4                                              beverly-hanks.com
                                Haywood County Market Review
                                             HAYWOOD COUNTY
Supply                     months of inventory at
                           current sales pace
                                                                                                                                  Market
                                                                                                                                   INSIGHTS
                                   8!


                                                                                                                                           19
         $0-$99K !               7!                                                           2012Q1!       2013Q1!
  $100k-$199k !                                19!
                                            17!
  $200k-$299k !                                                   40!
                                                                            48!                                                              less days for
  $300k-$399k !                                              34!                                                                             average marketing
                                                               36!
                                                                                     59!                                                     time
  $400k-$499k !                                                       43!
  $500k-$599k !                                                                                                            96!
                                                                     42!                                                           Home supply down by 13%,
  $600k-$699k !           0!                                                                                                       year over year.
                                                                                      60!
                          0!
  $700k-$799k !           0!                                                                                                       Slowed sales pace but typical
                                                                                     < 6 mos. prices increase
  $800k-$899k !                            15!                                                                                     of historical trends tied to fall/
                          0!                                                         6-12 mos. prices stabilize
                                             18!                                     > 12 mos. prices decrease                     winter tourism.
  $900k-$999k !           0!                                                         “0” insufficient sales data
                          0!                                                                                                       Best opportunities for purchase
          >$1M !          0!
                                                                                                                                   since pre-2004.
                     0!          10!        20!       30!     40!    50!    60!               70!     80!          90!
                                                             Months of Supply!

Sales                                Days                                                                                           VITAL SIGNS              2012Q1/ 2013Q1
                    pace vs.                           on market
                                                                                                                                     List/Sell                 Median
                                                                                                                                      Ratio                  Sales Price
           Homes sold/month!                      Days on market!


                                                                            215!
                                                                                       229!         232!      224!                    92%                $133,000
  134!       134!                         135!
                           118!                                179!                                                                       2%                      from
                                                      154!                                                                            from last                 $141,000
              94!                                                                                                                        year                   last year
  76!                          91!        68!                                                       60!
                                                      46!      43!           42!        44!                   47!
                                                                                                                                     Supply                  Cash Sales
  04!         05!              06!         07!        08!      09!           10!        11!         12!      13Q1!
                                                                                                                                      940                        34%
Sales
   1,133!
                 trends                                              Closings                       by price bracket                    from
                                                                                                                                        1,078                    1% from
        1,089!                              Annual total sales!                                                                       last year                  last year
                                            Total sold Q1!                                          $200k-    $300k-
906!                                                                                                $299k!    $399k!
                814!                                                                                10.6%!     6.4%!                           Distressed
                                                      719!
                                                                            $100k-                                  $400k-
                                                                                                                                             Property Sales
                          550!                                              $199k!                                  $499k!
                                     510! 501! 530!                         44.0%!                                   2.1%!
                                                                                                                                                       1%
                                                                                                                         $500k-
        210! 246! 195!                                                                                                   $599k!
 132!                          129! 93! 93! 98! 141! 141!                                                                 1.4%!
                                                                                   $0-$99k!                    $600k-
                                                                                    34.8%!                     $699k!
 04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q1!                                                                      0.7%!                   26% of Total Sales
                                                                                                                                  National average 25% of closed sales
                                                                                                                                      Source: National Association of REALTORS




                                         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
                                                                               6!


          20%
                                                         $0-$99K !             6!                                                              2012Q1!      2013Q1!
                                                                                    12!
                                                  $100k-$199k !                   10!                                                < 6 mos. prices increase
                                                  $200k-$299k !                               25!                                    6-12 mos. prices stabilize
          reduction in                                                                14!
                                                                                                                                     > 12 mos. prices decrease
          inventory levels                        $300k-$399k !                                      33!
                                                                                        19!                                          “0” insufficient sales data

                                                  $400k-$499k !                               25!
                                                                                                    33!
86% increase in homes sold per                                                              20!
                                                  $500k-$599k !                                     31!
month in $300k-$399k bracket.
                                                  $600k-$699k !                               25!
                                                                                                             45!
Largest number of homes sold in                                                                    30!
Q1 since 2007.                                    $700k-$799k !                                             42!
                                                  $800k-$899k !                       14!
Strongest median sales price                                              0!
improvement in region, 7.4%.                      $900k-$999k !           0!
                                                                          0!
                                                                                                                                                    111!
                                                          >$1M !                                                                                             123!
                                                                     0!        10!    20!     30!    40!     50!    60! 70! 80! 90! 100! 110! 120! 130! 140!
                                                                                                                   Months of Supply!
 VITAL SIGNS                 2012Q1/ 2013Q1

   List/Sell                   Median           Sales               pace vs.         Days                  on market
    Ratio                    Sales Price                                                                             Homes sold/month!            Days on market!
                                                             181!
                                                                               163!         157!
      95%                  $166,000               150!
                                                                                                                             185!        192!
                                                                                                                                                    183!
                                                                                                                                                              194!
                                                                                                           125!
                                                                                                                     156!                           113!
        3%                          from                                                                                                                      104!
     from last                    $154,500        90!                                       93!                       87!     85!        82!
       year                                                   83!
                                  last year                                 73!                            101!

     Supply                  Cash Sales

                                                   04!        05!              06!           07!           08!       09!      10!        11!        12!       13Q1!
  1,300                           34%
        from
        1,305                     3% from
                                  last year
                                                Sales               trends                                                  Closings                  by price bracket
      last year                                     2,173!                                    Annual total sales!
                                                         1,956!                               Total sold Q1!                                                      $400k-
                                                1,796!        1,878!
                                                                                                                                                           $300k- $499k!
              Distressed                                                                                                                                   $399k! 2.6%!
                                                                                                                                     $200k-                 9.0%!     $500k-
            Property Sales                                                                    1,345!                                 $299k!
                                                                          1,216!                                                                                      $599k!
                                                                               1,043!                                                21.0%!                            1.9%!
                                                                                    1,014!
                                                                                          985!
                                                                                                                                                                      $600k-
                                                                                                                            $100k-                                    $699k!
                no change                        338! 365! 411!
                                                                430!
                                                                     306!                                 310!
                                                                                                                            $199k!                                     0.6%!
                                                                                      174! 187! 194! 253!                   45.2%!       $0-$99k!
                                                                                                                                          19.0%!                    $700k-
                                                                                                                                                                    $799k!
                                                                                                                                                    >$1M!            0.3%!
      25% of Total Sales                         04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q1!                                                          0.3%!
National average 25% of closed sales
     Source: National Association of REALTORS




 6                                              beverly-hanks.com
                                                                                            MADISON COUNTY
Supply                       months of inventory at
                             current sales pace

                                  5!
                                                                                                                                        Market
                                                                                                                                         INSIGHTS



                                                                                                                                                 3
         $0-$99K !                      10!                                                            2012Q1!        2013Q1!
                                                               31!
  $100k-$199k !
                                                       25!
                                                18!
  $200k-$299k !                                          27!                                                                                     months less
  $300k-$399k !                                                       38!                                                                        marketing time
                            0!
                                                                                            66!                                                  than one year ago
  $400k-$499k !                                       23!
  $500k-$599k !             0!
                                        9!
  $600k-$699k !             0!                                                              < 6 mos. prices increase                     Percentage of distressed sales
                                              15!                                           6-12 mos. prices stabilize                   appears to be stabilizing.
                            0!
  $700k-$799k !             0!                                                              > 12 mos. prices decrease
                            0!                                                              “0” insufficient sales data                  4% increase in homes available
  $800k-$899k !             0!                                                                                                           for sale.
                            0!
  $900k-$999k !             0!
                            0!                                                                                                           Limited sales data complicates
          >$1M !            0!                                                                                                           accurate assessment of market.
                       0!          10!        20!       30!          40!   50!    60!    70!            80!     90!     100!
                                                                       Months of Supply!

Sales                                   Days                                                                                              VITAL SIGNS              2012Q1/ 2013Q1
                     pace vs.                                on market
                                                                                                                                           List/Sell                 Median
                                                                                                                                            Ratio                  Sales Price
              Homes sold/month!                         Days on market!


  167!
                                                                                              247!                                          94% $170,000
                                                                                                              219!
                135!
                                 110!         117!                                  179!                                178!                5% from                     from
                                                                            168!                                                            last year                 $167,000
                                                             152!
                                                                                                                                                                      last year

   18!          21!              17!           14!            10!                                 9!          11!        10!
                                                                             7!      9!
                                                                                                                                           Supply                  Cash Sales

   04!          05!              06!           07!            08!           09!     10!        11!            12!      13Q1!
                                                                                                                                            262                        42%
Sales                trends                                                       Closings                    by price bracket               from
                                                                                                                                            253 last                   8% from
                                                    Annual total sales!                                                  $400k-              year                      last year
       247!                                                                                                              $499k!
                                                    Total sold Q1!
213!          207!                                                                          $200k-                       10.0%!
                                                                                            $299k!                                                   Distressed
                     170!                                                                   23.3%!                                                 Property Sales
                                                                                                                           $500k-
                                                             130!                                                          $599k!
                             114!             109! 112!                            $100k-
                                                                                                                            3.3%!
                                        88!                                        $199k!
                                                                                   30.0%!                                      $600k-
                                                                                                                                                         12%
          46! 38!                                                                                                              $699k!
  29! 38!         20! 16! 15! 29!
                                  32! 30!                                                      $0-$99k!
                                                                                                26.7%!                          6.7%!


 04! 05! 06! 07! 08! 09! 10!                           11!     12! 13Q1!                                                                     17% of Total Sales
                                                                                                                                        National average 25% of closed sales
                                                                                                                                            Source: National Association of REALTORS




                                              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
                                                                                      8!


       74%
                                                         $0-$99K !               4!                                                                   2012Q1!         2013Q1!
                                                  $100k-$199k !                                          25!
                                                                                                   20!
                                                                                                                                  50!
        of sales                                  $200k-$299k !                                                      37!
        concentrated under                        $300k-$399k !                                 19!
        $300,000
                                                  $400k-$499k !                                18!
                                                                            0!                                                                     < 6 mos. prices increase
Marketing time reduced by                                                   0!                                                                     6-12 mos. prices stabilize
                                                  $500k-$599k !                              15!
almost one month since                                                                                                                             > 12 mos. prices decrease
2012Q1.                                           $600k-$699k !             0!                                                                     “0” insufficient sales data
                                                                                                                           42!
                                                                            0!
Price ranges below $399,000                       $700k-$799k !             0!
averaged almost a 50%                             $800k-$899k !                         9!
reduction in inventory.                                                     0!
                                                  $900k-$999k !                    6!
                                                                            0!
26% increase in home sales                                                  0!
                                                          >$1M !            0!
year over year.
                                                                       0!         10!        20!         30!         40!   50!    60!    70!           80!      90!     100!
                                                                                                                       Months of Supply!
 VITAL SIGNS                 2012Q1/ 2013Q1

   List/Sell                   Median           Sales                 pace vs.          Days                   on market
    Ratio                    Sales Price                      Homes sold/month!                          Days on market!


     90%                  $145,250                                                                                                                                       323!
                                                                                                                                               277!           284!
                                                   174!                                                                                 268!
        1%                          from                        156!
     from last                    $150,100                                       142!         134!
       year                       last year                                                                                179!
                                                                                                           142!
                                                   24!          27!              32!          26!           13!             14!         12!    12!            12!        14!
     Supply                  Cash Sales

                                                   04!          05!              06!          07!              08!          09!         10!    11!            12!       13Q1!
      302
       from
                                50%             Sales                 trends                                                        Closings                    by price bracket
        298                   no change
     last year
                                                              379!
                                                                                               Annual total sales!
                                                       328!                                    Total sold Q1!                            $500k-                       $600k-
                                                                     309!                                                                 $599k!                      $699k!
                                                283!
              Distressed                                                                                                                   7%!                         2%!
            Property Sales                                                                                                          $300k-                       $0-
                                                                                                                                    $399k!                     $99.9k!
                                                                                                                                     17%!
                                                                            153! 162! 140!                                                                      29%!
                      5%                                                                   138! 141!

                                                                85! 79!
                                                 46! 44!                                                                                                     $100k-
                                                                                 33! 33! 27! 23! 31! 42!                                                     $199k!
                                                                                                                                    $200k-
                                                                                                                                    $299k!                    31%!
      24% of Total Sales                         04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q1!                                           14%!
National average 25% of closed sales
     Source: National Association of REALTORS




 8                                              beverly-hanks.com
                                    Haywood County Market Review
                                             RUTHERFORD COUNTY
Supply                        months of inventory at
                              current sales pace
                                                                                                                                 Market
                                                                                                                                  INSIGHTS
                                              13!


                                                                                                                                         30%
            $0-$99K !                    8!                                                       2012Q1!       2013Q1!
  $100k-$199k !                                                    31!
                                                       21!
  $200k-$299k !                                                                 49!                                                       of total sales are
                                                                         38!
  $300k-$399k !                                                                                                                           distressed

  $400k-$499k !               0!
                              0!
  $500k-$599k !               0!
                              0!                                                                                                  Median sales price for the
  $600k-$699k !               0!                                                                                                  county is one of the lowest in
                              0!                                                                                                  the region.
  $700k-$799k !               0!
                              0!
                              0!                                                                                                  Largest reduction in marketing
  $800k-$899k !                                 15!
                                                                                         < 6 mos. prices increase
                                                                                         6-12 mos. prices stabilize               time across the region,
  $900k-$999k !                                 15!                                                                               (-111 days).
                              0!                                                         > 12 mos. prices decrease
                              0!                                                         “0” insufficient sales
             >$1M !           0!                                                                                                  Cash and investor sales
                         0!          10!         20!         30!      40!    50!    60!           70!     80!      90!
                                                                                                                                  represent more than half of
                                                                     Months of Supply!                                            sales.

Sales                                    Days                                                                                      VITAL SIGNS              2012Q1/ 2013Q1
                     pace vs.                                on market
                                                                                                                                    List/Sell                 Median
                                                                                                                                     Ratio                  Sales Price
            Homes sold/month!                    Days on market!
                                                                                268!       277!
  169!
                  156!
                                                                                                                                     94%                 $108,900
                               142!            134!                                                     197!                         2% from                     from
                                                                         179!                                                        last year
                                                                                                                  157!                                         $121,175
                                                             142!                                                                                              last year

                  13!              21!         21!           15!         14!    16!         15!         24!       16!
      4!                                                                                                                            Supply                  Cash Sales

      04!         05!              06!         07!           08!         09!    10!         11!         12!      13Q1!
                                                                                                                                     437                        51%
Sales                   trends                                             Closings                     by price bracket              from
                                                                                                                                     417 last                  47% from
                                                                                                                                      year                     last year
  Annual total sales!
  Total sold Q1!                                             286!
          255! 248!
                                                                                      $100k-                                                  Distressed
                                              189!                                    $199k!       $200k-
                                                                                                                                            Property Sales
                              175! 173!               177!                            31.9%!
       153!                                                                                        $299k!
                                                                                                   14.9%!
                                                                                                                   $300k-                           13%
                                                                                                                   $399k!
                                      56!                                              $0-                          4.3%!
46!               46! 50! 35! 36!         36! 47!                                     $99.9k!
                                  33!
            16!                                                                       46.8%!
  3!
                                                                                                                        $800k-
04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q1!                                                                               $899k!        30% of Total Sales
                                                                                                                         2.1%!   National average 25% of closed sales
                                                                                                                                     Source: National Association of REALTORS




                                              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
                                                                                 7!


        4%
                                                       $0-$99K !                  7!                                                     2012Q1!        2013Q1!
                                                                                          15!
                                                $100k-$199k !                           13!                                              < 6 mos. prices increase
                                                                                                24!
                                                $200k-$299k !                                    25!
                                                                                                                                         6-12 mos. prices stabilize
         increase in average                                                                                                             > 12 mos. prices decrease
                                                                                                       30!
         months of home                         $300k-$399k !                                                     42!                    “0” insufficient sales data
         supply for county
                                                $400k-$499k !                                                   40!
Lowest percentage of distressed                 $500k-$599k !
sales in region.                                $600k-$699k !                                                                                   75!
                                                                          0!
Oversupply of home’s in                         $700k-$799k !                                                                                        78!
                                                                          0!
higher price ranges continues                   $800k-$899k !             0!
downward pressure on pricing.                                             0!
                                                $900k-$999k !             0!
                                                                          0!
Buyers continue to negotiate                                                                                                      61!
some of the largest price                               >$1M !
reductions in the region.                                            0!          10!      20!       30!       40!    50!    60!          70!      80!       90!
                                                                                                             Months of Supply!
 VITAL SIGNS               2012Q1/ 2013Q1

   List/Sell                 Median           Sales                pace vs.          Days           on market
    Ratio                  Sales Price
                                                       Homes sold/month!                   Days on market!
                                                                                                                         268!     277!
                                                                                                                                               263!
    90%                 $154,000                159!          156!
                                                                                                                                                           240!
                                                                           142!         134!
       1%                         from
    from last                                                                                                  179!
      year                      $157,000
                                last year                                                           142!
                                                              48!              53!
                                                 39!                                     36!                                                   32!          29!
                                                                                                    24!        20!        24!      26!
   Supply                  Cash Sales

                                                 04!          05!              06!       07!        08!         09!       10!      11!         12!         13Q1!
    712                         47%
      from
       683                     51% from
                                              Sales                trends                                             Closings                   by price bracket
    last year                  last year                    639!
                                                                                          Annual total sales!
                                                     570!                                 Total sold Q1!
                                                                                                                                                        $300k-
            Distressed                        471!                                                                                                      $399k!
                                                                   433!                                                           $200k-
          Property Sales                                                                            381!                          $299k!                 8.1%!
                                                                                                                                  20.9%!
                                                                          283!          288! 308!                                                             $400k-
                                                                                                                        $100k-
                  2%                                                             242!
                                                                                                                        $199k!
                                                                                                                                                              $499k!
                                                                                                                                                               5.8%!
                                                             147!                                                       40.7%!
                                                                                                                                   $0-                            $500k-
                                                       98!           95!
                                               67!                             60!           67! 88! 86!                          $99.9k!                         $599k!
                                                                                     36! 48!                                      22.1%!                           1.2%!
                                                                                                                                                 >$1M!
      17% of Total Sales                                                                                                                         1.2%!
                                               04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q1!
National average 25% of closed sales
   Source: National Association of REALTORS




 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
According to the US Census Bureau, single-                                February; a 23 percent increase. Valuations
                                                                                                                          Market
                                                                                                                            INSIGHTS



                                                                                                                                     2nd
family housing starts in February were at a                               remain strong, totaling $34.3 million, up 19
rate of 618,000; this is 2.7 percent (±0.7%)                              percent, according to Tom Tveidt.
above January’s revised figure of 584,000.
                                                                                                                                     fastest pace of
New home sales for February did not show                                                                                             construction starts
the same strength of earlier existing home                                                                                           since 2008
sales reports, but remained improved. The
US Commerce Department indicated sales                                                                                    VITAL SIGNS           2012Q1/ 2013Q1
declined 4.6 percent to an annualized pace                                                                               New Home Construction
of 411,000. But this followed a strong 13.1
percent jump in January. Sales are up 12.3                                                                               NC Building Permits*
percent over January 2012.                                                                                               7,327 / 7,365
                                                                                                                         Asheville MSA Building Permits*
Double-digit growth in residential building
                                                                                                                         128 / 157
permit activity continued into the first quarter.
After ending 2012 with a 21 percent rise in                                                                              New Construction Closings**
the number of units permitted, the MSA                                                                                   69 / 80
begins 2013 with 157 units permitted through
                                                                                                                          *Source: Bureau of Census
Note: New home sales measure the number of newly constructed homes with a committed sale during the month.
                                                                                                                         **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           2012Q1/ 2013Q1
example of the communities with which we are proud to affiliate.                                                         Biltmore Lake Homes

                                                                                                                           Homes Sold / Month
                                                                                                                           2.6 / 5
                                                                                                                           Median Closed Sales Price
                                                                                                                           $401,227 / $375,000
                                                                                                                           List to Sell Ratio
                                                                                                                           90% / 99%




No development in Western North Carolina has been more successful than Biltmore Lake
when it comes to new housing starts. There were 28 contracts written for new homes in 2012
at Biltmore Lake and currently, 24 homes are under construction. Biltmore Farms’ Cottage
Collection is just what the market is asking for: smaller homes with functional floor plans that
are appointed with the standard finishes desired by today’s buyers.




                                                                                                                                                           11
                      Beverly-Hanks                                         MARKET OVERVIEW
Notable Transactions                  Vacancies Down Across the Board
Baldwin Road Acreage
Sale Price $900,000                  Commercial real estate continues to                      Industrial Vacant Space By Type*

                                     improve at a moderate pace nationally as                           85%!
                                     well as regionally.
                                    Vacant Space By Class Asheville*
                                                                The
                                                           Class A!      Asheville
                                                             9%!
                                                                Office      market                                               15%!
                                    Class C!
                                     34%!                       ended            the
                                                                first quarter of
King Land Development, LLC                                                                          Warehouse!                   Flex!
purchased 18.97 acres for future                                2013 with a
residential development.    NAI                                 vacancy rate of               previous quarter. One building was
Beverly-Hanks represented the                          Class B! 7.8%        (11.8%            delivered to the market in the quarter
Seller and the Buyer.                                   57%!
                                                                nationally). The              totaling 12,367 SF, with no properties under
Tunnel Road Acreage                  vacancy rate was down over the previous                  construction at the end of the quarter.
Sale Price $880,000                  quarter, with net absorption totaling
                                     positive 63,295 Vacant Space By Class US*                Lastly, the local retail market experienced
                                     SF in the first Class C!                                 a slight improvement in market conditions
                                     quarter. Vacant       17%!                               Retail Vacant Space By Building Type*
                                                                               Class A!
                                     sublease space                                                47%!
                                                                                34%!                           43%!
                                     increased in the
                                     quarter, ending
                                     the       quarter
Milan Investments, Inc.                                                                                                  6%!
purchased 1.45 acres for future      at 4,500 SF. Class B!                                                                               4%!
                                                          49%!
commercial development. NAI          There were no
Beverly-Hanks represented the                                                                   Shopping General         Mall!        Power
                                     properties under construction at the end of                 center!  retail!                     center!
Seller and the Buyer.                the quarter.
                                                                                              in the first quarter 2013. The vacancy rate
315 Rutledge Road
Leased-Transaction Value $712,320    Asheville’s Industrial market ended the                  went from 6.0% in the previous quarter
                                     first quarter with a vacancy rate of 7.7%                to 5.6% (6.7% nationally) in the current
                                     (14.6% nationally). The vacancy rate was                 quarter. Quoted rental rates increased
                                     down over the previous quarter, with net                 from fourth quarter 2012 levels, ending at
                                     absorption totaling positive 122,488 SF                  $12.80 per SF per year. There was 7,956
                                     in the first quarter. Rental rates ended the             SF still under construction at the end of the
                                     first quarter at $4.08, an increase over the             quarter.

Carolina Materials Holdings, LLC     *Information taken from CoStar’s First Quarter Reports
leased to Cintas Corporation
16,000 square feet. NAI Beverly-
Hanks represented the Landlord
and the Tenant.
164 Tunnel Road
                                      Our Analysis Of The Asheville (MSA)
Sale Price $710,000
                                                                       •	   Office rental rates ended the first quarter at $16.50/SF, a
                                                                            decrease over the previous quarter.
                                                                       •	   Industrial vacant sublease space remained unchanged in the
                                                                            quarter, ending at 12,138 SF.
                                                                       •	   Retail net absorption was positive 110,960 SF, and vacant
                                                                            sublease space decreased by 600 SF.

Tencent Land, LLC purchased the
former Cancun restaurant site.
NAI Beverly-Hanks represented
the Seller and the Buyer.




 12                               naibhcommercial.com
                                            WESTERN NC LAND MARKET
                                                                                                                  RESIDENTIAL LOTS


                                                                                                                              0-3 acres with deed restrictions
                                                                                                                              2012Q1/ 2013Q1


  Lots            sold   •   Average                  sales price                       Sales trends                              by county
                                                                                                                                                                 q1	
  sale
                                                                             Q1	
  unit	
  sales
                                                                                      200!
             Total parcel sales!           Sales price per parcel!                                                                      Buncombe County!
                                                                                      180!
             List price per parcel!                                                                                                     Haywood County!
                                                                                      160!
               646!                                              $120,000!                                                              Henderson County!
                                                                                      140!
                     475!                                                                                                               Madison County!
                                                                 $100,000!            120!
                                                                                                                                        Rutherford County!
          396!                                                   $80,000!             100!
   252!                                                                                80!
                                                                 $60,000!
                             203!                                                      60!
                                                        164! $40,000!
                                                                                       40!
                                    92! 102! 93! 113!
                                                                 $20,000!              20!
                                                                 $0!                    0!
   2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013!                               2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013!



   Closings                     by price bracket                                          Active                 lots   •   Closed             lots
                                              $100k-
                                              $149k!     $150k-        Q1	
  closings	
  by	
  price	
  bracket
                                                                                                    Active 2013Q1!               Closed 2013Q1!
                         $50k-$99k!            10%!
                           20%!                          $199k!                          1,949!
                                                          5%!
                                                                                               1,329!
                                                          $200k-
                                                          $249k!                                       455!
                                                           4%!                                          236!
                                                                                                             85! 64!
                                                                                              97! 32! 16! 8! 7!          46! 7!
                                                         $350k-                                                      24!   2! 2! 16! 70!
                                                         $399k!
                 $0-$49k!                                  1%!
                  59%!                              $400k-
                                                    $449k!
                                                     1%!




Market
INSIGHTS                                                                                           VITAL SIGNS                              2012Q1/ 2013Q1


                                                                                                                         Average               List/Sell
                                      Sales are largely based in Buncombe                           Supply              Sales Price

  45%
                                                                                                                                                Ratio
                                      County as buyers select properties
                                      closer to services and amenities.
                                                                                                   4,281                $64,651                  87%
   increase in lot sales              Increase in sales is almost entirely
                                                                                                       from                   from                 4%
   since 2012                         under $150,000.                                                  4,329                 $60,935            from last
                                                                                                     last year              last year             year
                                      Buyer and seller expectations continue
                                      to approach historical norms.




                                    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




     Price             per acre sold                                                     Active                    parcels by county


            10-20 ac. parcels $/ac. sold!         20+ ac. parcels $/ac. sold!                    10+ acre active parcels!                20+ acre active parcels!
                                                                                                                                     91!
     $18,000!
     $16,000!
                                                                                                     74!
     $14,000!                                                                                                   57!
     $12,000!                                                                                  41!                        36!                                          41!
                                                                                                                                                           34!
     $10,000!
                                                                                                                        21!       25!          26!                  21!
      $8,000!                                                                                                18!                                        14!
                                                                                                                                             10!
      $6,000!
      $4,000!
      $2,000!



                                                                                                !


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                                                                                                                                                           a
                                                                                                                                                        Tr
     Closings                      by county                                                  Market            time •             List           price/sales price
                                                 Buncombe!                                    10+ acres without restrictions
                                         Buncombe!                2!    1!
                                                 Haywood!                                             Average days
                                                                                                     Buncombe! on market!               Average list to sales price comparison!
       6!   1!                                                                                       Haywood!
                                         Haywood!
                          11!                    Henderson!
                                                        2!                          4!
                                                                                              450!                                                                        100%!
                                         Henderson!                                           400! Henderson!                                                             90%!
3!
                                                 Madison!                                     350! Madison!                                                               80%!
                                         Madison!                                             300! Polk!                                                                  70%!
                                                          1!
                                                 Polk!                                        250! Rutherford!
                                                                                                                                                                          60%!
4!                          3!           Polk!                                                                                                                            50%!
                            4!                   Rutherford!      3!           2!             200!
                                                                                                     Transylvania!                                                        40%!
                                         Rutherford!                                          150!                                                                        30%!
       5!
                4!
      10-20 acres without                        Transylvania!                                100!                                                                        20%!
                                         Transylvania!         20+ acres without
      restrictions                                                                             50!                                                                        10%!
                                                               restrictions
                                                                                                0!                                                                        0%!




 Market
                                                                                                      2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013!




     INSIGHTS                                     10+ acres without restrictions                           VITAL SIGNS                                   2012Q1/ 2013Q1

                                                                                                                                Average Sales                 List/Sell
                                                                                                            Supply               Price/Acre

          40%
                                             Large parcels over 10 acres
                                                                                                                                                               Ratio
                                             continue to outsell smaller tracts.

                                             Sales price per acre for moderately
                                                                                                             509                 $4,588                        84%
          reduction in sales                                                                                  from                     from                      7% from
          price/acre for tracts
                                             sized tracts continues to decline.
                                                                                                            last year                 $5,247                     last year
          10-20 acres                                                                                                                last year
                                             Market time for choice parcels is
                                             beginning to decline.




     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 !
                                                                 $0 !
     listings SOLD           closed buyer                               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:
                                           beverly-hanks.com/clientconnect
One of the great things about
choosing to live in Western                                                  Like us on:
North Carolina is that there is
so much to enjoy.                                                            facebook.com




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