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					                                                                 2013 QUARTER 2
 ReporT
         the reaL estate

                                        western north caroLina




 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

 p 13:      Land Review




beverly-hanks.com
                                                         MarkeT
                                                                WESTERN NORTH CAROLINA




                                                 OUR
                                                What A Difference A Year Makes
                                                This time last year, we were just beginning to                            continue through the rest of the year and the
                                                see improvement in median sales prices in                                 first half of next.
                                                Buncombe and Henderson Counties. Twelve                                   However, with the likelihood of higher
                                                months later, we’re eager to report that all                              mortgage interest rates and an increasing
                                                of the markets are improving although the                                 number of sellers entering the market, we
                                                outlying counties (Madison, Rutherford, and                               expect appreciation and the sales pace to
                                                Transylvania) have been slower to rebound.                                moderate soon to pre-boom levels. We believe
                                                We’re expecting the reduction in marketing                                these levels are more representative of historic
                                                time and the improvement in home values to                                norms for the region.
 “A balancing of the
                                                                         709!        721!
 market and modest                                                                                              Homes sold/month!                 Days on market!
                                                                                                612!                                                                605!
 improvement to values                                       587!
 are occurring across                                                                                                                                     482!
                                                                                                            416!
 the WNC region. Like                                                                                                  371!        372!        379!
 the rest of the US, the
 recovery is occurring
 unevenly.”                                                   99!        96!        90!         104!
                                                                                                                                   170!        183!       188!      170!
                                                                                                           126!        156!
Neal Hanks Jr., President                                     04!         05!        06!         07!        08!         09!         10!         11!        12!      13!



 Economic Trends                                                                            by Tom Tveidt of SYNEVA Economics

 Fastest Growing Metro In State
 The Asheville metro is up 5,700 net new jobs through May, a 3.3 percent                                     Two Largest Industries Driving Bulk of New Jobs
 gain from a year earlier. Remarkably, Asheville’s May employment totals
                                                                                                             The Leisure & Hospitality sector reached total
 are only 200 jobs below the pre-recession peak of 2008.
                                                                                                             employment of 25,400 in May, a new all-time high
 Asheville Metro Monthly Change in Employment                                                                for the month. The sector has added 2,100 jobs over
   7,000
                                                                                                             the year, a 9.3 percent gain. Leisure & Hospitality
                                                                                                             has enjoyed 28 consecutive months of employment
                                                                                                             growth in the Asheville metro. Health Services stands
   6,000
                                                                                                             as the other industrial sector adding significant new
                                                                                                             employment. The sector added 1,700 net new jobs,
   5,000                                                                                                     up 5.4 percent over the year. The average pace of
                                                                                                             growth in Asheville’s Health Services sector through
   4,000                                                                                                     the first five months of the year is at its highest level in
                                                                                                             a decade.
   3,000                                                                                                     Asheville’s unemployment rate broke below seven
                                                                                                             percent for the first time in over four years. Averaging
   2,000                                                                                                     6.8 percent, the rate is second lowest among all
                                                                                                             fourteen North Carolina metros, and only a hair above
   1,000                                                                                                     the state’s lowest, Durham-Chapel Hill at 6.6 percent.

       0
           2011                                  2012                               2013

 Year-over-year change in monthly total employment.
 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.
Home Values Improving

                                                                                                                             Market
With the national media feverishly reporting on               Home Appreciation
the real estate markets around the country it’s
important to remember there is no such thing as                Federal Housing
                                                                                                                              INSIGHTS
a national real estate market. Some will try to will           Financing                     2012            2013


                                                                                                                                    24%
it into existence, but at the end of the day, it simply        Agency*
doesn’t exist. This most recent cycle confirmed
                                                               South Atlantic               1.28%           7.02%
our local real estate markets are susceptible to
                                                               North Carolina                .25%           4.48%                   increase in homes
national trends, but they respond in their own
time to their own degree.                                      Asheville MSA                -2.17%           .51%                   sold since 2012 Q2

Home values are experiencing double digit                      Regional Multiple
                                                               Listing Service**
growth in many parts of the country, but here                                                                                  Median sales price increased
in the greater Asheville, Waynesville, and                     Buncombe                      7.8%            1.6%              by 8.8% year over year.
Hendersonville markets, price appreciation is                  Haywood                       -9.5%           12%
occurring more moderately. Remembering the                                                                                     Average days on market down
advent of the downturn, it appears that those                  Henderson                     6.9%            7.9%              by 26 days.
regions hit hardest are experiencing the most                 *Source: Federal Housing Finance Agency through quarter one
                                                              **Source: Year over year comparison through quarter two          Number of homes sold over
robust recovery.                                                                                                               $1 million dollars more than
At home we’re seeing recovery, but on a more                                                                                   doubled.
modest scale. Year over year, Haywood County
is outpacing much of the region with an 11%
improvement in their median sales price. Most
markets have experienced 5-10% improvement.                                                                                   VITAL SIGNS            2012Q2/ 2013Q2

                                                                                                                               List/Sell              Median
                                                                                                                                Ratio               Sales Price

Unbroken Population Growth                                                                                                      94%              $187,750
Estimates from the U.S. Census Bureau show the Asheville metro grew by one percent in
2012, adding 3,750 net new residents over the year. The number is significant in several ways.                                  1% from                    from
                                                                                                                                last year                $172,500
By showing a continuation of unbroken population growth in the metro, Asheville has added                                                                last year
                                                                           population       in
Asheville Metro Total Population
                                                                           every one of the                                    Supply               Cash Sales
 450,000
                                                                           last 40 years.
                                                                           The current one
                                                                           percent growth                                     6,436                     33%
 400,000
                                                                           rate also matches
                                                                                                                                  from                   1% from
                                                                           the average rate                                       7,289                  last year
                                                         Population Grows 
                                                                           of growth made                                       last year
                                                          by 3,750 in 2012 over these same
 350,000
                                                                           40      years,    a                                          Distressed
                                                                           testament to the                                           Property Sales
                                                                           area’s consistent
 300,000
                                                                           growth.
                                                                                                                                            19%
  250,000                                                                                                                                   2% from
                                                                                                                                            last year
                                                                                                 Visit SYNEVA
                                                                                                 Economics at
  200,000                                                                                         syneva.com
            1970   1975    1980   1985   1990   1995   2000   2005     2010

Source: US Census Bureau
                                                                                                                            National average 18% of closed sales
                                                                                                                                       Source: NAR, May 2013




                                                                                                                                                               3
        BUNCOMBE COUNTY

Market                                   Supply                     months of inventory at
                                                                    current sales pace
INSIGHTS
                                                                             7.1!


       19%
                                                 $0-$99K !            3.5!                                                                2012Q2!       2013Q2!
                                          $100k-$199k !                      9.5!
                                                                         5.7!                                                      < 6 mos. prices increase
                                          $200k-$299k !                         13.0!                                              6-12 mos. prices stabilize
         fewer homes                                                       7.8!
                                                                                                                                   > 12 mos. prices decrease
         available for sale               $300k-$399k !                           14.5!
                                                                             9.7!                                                  “0” insufficient sales data
                                          $400k-$499k !                            15.8!
Six price brackets have 12 or                                                 10.6!
                                          $500k-$599k !                              17.8!
less months of home supply.                                                    12.0!
                                                                                     16.8!
                                          $600k-$699k !                            15.1!
Homes sold year-to-date exceed
                                                                                                                 34.9!
previous year by 27%.                     $700k-$799k !                                   18.4!
                                          $800k-$899k !                                                         34.0!
65% of region’s luxury home                                                                        23.3!
sales occurred in Buncombe                $900k-$999k !                                                          35.0!
                                                                                                                                              62.4!
County.
                                                  >$1M !                                                                                                    76.7!
                                                                                                                                50.4!
                                                               0!            10!           20!          30!       40!     50!           60!      70!        80!
                                                                                                              Months of Supply!
VITAL SIGNS             2012Q2/ 2013Q2


  List/Sell                Median        Sales                pace vs.        Days                 on market

   Ratio                 Sales Price                                                                     Homes sold/month!               Days on market!
                                                                      344!
                                                        325!
                                                                                                                                                            304!
    95%              $203,500              277!                                      291!
                                                                                                                                                 230!
                                                                                                   209!
    1% from
                               from                                                                             187!     186!       191!
                             $200,000
    last year                last year

                                           75!          76!                          92!                                            178!
                                                                      75!                                                163!                    161!       151!
    Supply               Cash Sales                                                                             145!
                                                                                                   114!
                                           04!          05!            06!            07!              08!       09!     10!            11!      12!       13Q2!
  2,105                      32%
      from
      2,612                  5% from
                                         Sales                trends                                                     Closings                      by price bracket

    last year                last year             4,122!                                   Annual total sales!
                                              3,898!                                        Total sold Q2!                                    $300k-     $400k-     $500k-
                                                        3,495!                                                                                $399k!     $499k!     $599k!
                                         3,329!
                                                                                                                                              11.9%!      6.0%!      3.2%!
            Distressed                                                                    2,745!
                                                                      2,506!                                               $200k-
          Property Sales                                                   2,238!    2,297!                                $299k!                                  $600k-
                                                                                2,228!                                                                             $699k!
                                                                                               1,592!
                                                                                                                           24.5%!
                                                                                                                                                                    1.8%!
                17%                                  1,144!
                                           924! 1,038!    1,024!
                                                                        748!              726! 628! 721!
                                                                                                               910!                                              $700k-
                                                                                   520!                                  $100k-                                   $799k!
                 4% from
                 last year                                                                                               $199k!           $0-$99k!                1.2%!
                                                                                                                         36.5%!            12.6%!              $800k-
                                          04!     05!   06!     07!     08!    09!        10!    11!    12! 13Q2!
                                                                                                                                                                $899k!
                                                                                                                                                         $900k-
                                                                                                                                                   >$1M! $999k! 0.8%!
National average 18% of closed sales                                                                                                               1.2%!
                                                                                                                                                          0.3%!
          Source: NAR, May 2013




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

                             8.2!
                                                                                                                                       Market
                                                                                                                                        INSIGHTS



                                                                                                                                               12%
         $0-$99K !          7.1!                                                                     2012Q2!     2013Q2!
                                      20.7!
  $100k-$199k !                    15.9!
                                               38.9!
  $200k-$299k !                              34.5!                                                                                               increase in median
  $300k-$399k !                                 40.4!                                                                                            sales price, the
                                            29.6!
                                                               59.1!                                                                             largest in the region
  $400k-$499k !                                 43.5!
  $500k-$599k !                             33.6!                                                                                       Homes sold/month remains
                                                  46.8!
                       0.0!                                                                                                             flat, but 13% reduction in home
  $600k-$699k !                                                                                                             174.0!      supply is balancing the market.
                                                                                           102.0!
  $700k-$799k !                                                             78.0!
                                                                                            < 6 mos. prices increase                    Significant reduction in
  $800k-$899k !                                 36.0!
                       0.0!                                                                 6-12 mos. prices stabilize                  distressed inventory helping
  $900k-$999k !                                                   66.0!                     > 12 mos. prices decrease                   values to stabilize.
                       0.0!                                                                 “0” insufficient sales data
                       0.0!
          >$1M !       0.0!                                                                                                             Marketing time down by two
                                                                                                                                        months since same time last
                     0! 10! 20! 30! 40! 50! 60! 70! 80! 90! 100!110!120!130!140!150!160!170!                                            year.
                                                Months of Supply!

Sales                             Days                                                                                                   VITAL SIGNS            2012Q2/ 2013Q2
                    pace vs.                             on market
                                                                                                                                          List/Sell              Median
                                                                                                                                           Ratio               Sales Price
           Homes sold/month!                     Days on market!

                                                                                                         232!
                                                                                    215!
                                                                                              229!
                                                                                                                                           94%             $162,500
  134!       134!                      135!                                                                         185!
                        118!                                      179!                                                                         2%                    from
                                                    154!                                                                                   from last               $145,000
              94!                                                                                                                             year
  76!                       91!           68!
                                                                                                                                                                   last year
                                                                                                          60!        62!
                                                        46!           43!           42!        44!
                                                                                                                                          Supply               Cash Sales
  04!         05!           06!           07!           08!           09!           10!        11!        12!      13Q2!
                                                                                                                                         1,097                     26%
Sales
   1,133!
                 trends                                                 Closings                         by price bracket                    from
                                                                                                                                             1,262                 1% from
        1,089!                             Annual total sales!                                                                             last year               last year
                                           Total sold Q2!
906!
                814!                                                                         $200k-
                                                        719!                                 $299k!                                                Distressed
                                                                                                                $300k-                           Property Sales
                                                                                              20%!
                        550!                                                                                    $399k!
                                  510! 501! 530!                            $100k-                               10%!      $400k-

        288! 299!                                              326!
                                                                            $199k!
                                                                             43%!
                                                                                                                           $499k!
                                                                                                                            3%!
                                                                                                                                                       21%
 240!                212!
                            151!          150! 150! 175! 185!                                 $0-$99k!
                                                                                                                              $500k-
                                                                                                                                                       4% from
                                   109!                                                        22%!                                                    last year
                                                                                                                 $700k-       $599k!
                                                                                                                 $799k!        2%!
 04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q2!                                                                        0%!

                                                                                                                                       National average 18% of closed sales
                                                                                                                                                  Source: NAR, May 2013




                                      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
                                                                        7.5!


        13%
                                                   $0-$99K !           6.2!                                                          2012Q2!     2013Q2!
                                                                          11.2!
                                            $100k-$199k !               7.6!                                                 < 6 mos. prices increase
                                            $200k-$299k !                      20.6!                                         6-12 mos. prices stabilize
         reduction in home                                               10.4!
                                                                                                                             > 12 mos. prices decrease
         supply levels                      $300k-$399k !                          25.8!
                                                                             15.5!                                           “0” insufficient sales data
                                            $400k-$499k !                             31.7!
7.6% increase in median price,                                                   24.3!
                                                                                       33.0!
one of the largest increases in the         $500k-$599k !                                35.5!
region.                                                                                   36.9!
                                            $600k-$699k !                                      45.6!
Sales over $900k have already               $700k-$799k !                                                          75.0!
                                                                                     27.0!
matched 2012 year end sales.                                                14.0!
                                            $800k-$899k !           0.0!
Strongest Q2 sales in six years.            $900k-$999k !                                                                                                  132.0!
                                                                                                 42.0!
                                                                                                                                                  123.0!
                                                    >$1M !                                                          76.5!
                                                               0!     10!   20!     30!   40!     50!     60! 70! 80! 90! 100! 110! 120! 130! 140!
                                                                                                         Months of Supply!
 VITAL SIGNS             2012Q2/ 2013Q2

   List/Sell                Median        Sales            pace vs.         Days                on market
    Ratio                 Sales Price                                                                    Days on market!        Homes sold per month!
                                                        181!                                                       185!       192!
                                                                                                                                    183!      165!
                                                                     163!         157!                    156!
     94%               $185,000             150!


        1%                      from
                                             90!                                  93!           101!                                                145!
     from last                $172,000                  83!                                     125!
       year                   last year                               73!
                                                                                                                                         113!
                                                                                                           87!     85!        82!
     Supply               Cash Sales

                                             04!        05!           06!         07!           08!        09!     10!         11!        12!      13Q2!
  1,337                       31%
       from
       1,531                  3% from
                              last year
                                          Sales               trends                                             Closings                   by price bracket
     last year                                2,173!                                Annual total sales!
                                                   1,956!                           Total sold Q2!                                                          $400k-
                                                        1,878!                                                                                  $300k-      $499k!
                                          1,796!                                                                                                $399k!
                                                                                                                                                             3.0%!
            Distressed                                                                                                      $200k-              10.1%!           $500k-
          Property Sales                                                        1,345!                                      $299k!
                                                            1,216!                                                                                               $599k!
                                                                 1,043!                                                     27.4%!                                1.6%!
                                                                      1,014!
                                                                            985!                                                                                 $600k-
                 19%                       497! 540! 556! 521!
                                                                                      745!
                                                                                                                                                                 $699k!
                                                               361! 293! 340!           435!                       $100k-                                         0.7%!
                  1% from                                                     265! 343!                            $199k!
                  last year                                                                                                                                  $700k-
                                                                                                                   43.0%!            $0-$99k!                $799k!
                                                                                                                                      12.4%!                  0.7%!
                                           04! 05! 06! 07! 08! 09! 10!                    11!    12! 13Q2!
                                                                                                                                                      >$1M!
National average 18% of closed sales                                                                                                                  0.7%!
           Source: NAR, May 2013




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

                                   6.0!
                                                                                                                                        Market
                                                                                                                                         INSIGHTS



                                                                                                                                                 49%
         $0-$99K !                   8.6!                                                                  2012Q2!    2013Q2!
                                                                     34.8!
  $100k-$199k !
                                               15.9!
                                                                    32.6!
  $200k-$299k !                                                             40.4!                                                                  increase in sales
  $300k-$399k !                                                                              57.0!                                                 pace since 2012Q2
                                                                                                                78.0!
  $400k-$499k !                                                                                                     84.0!
                                                                                    48.0!                                                Marketing time down by more
  $500k-$599k !             0.0!                                                                                                         than two months.
                                                                      36.0!
  $600k-$699k !                                                                                60.0!
                                                                                                < 6 mos. prices increase
                                                               30.0!                                                                     57% of sales are occurring
                            0.0!                                                                6-12 mos. prices stabilize
  $700k-$799k !                                  18.0!                                          > 12 mos. prices decrease                under $200,000.
  $800k-$899k !             0.0!                                                                “0” insufficient sales data
                            0.0!                                                                                                         Home supply levels down by
                            0.0!                                                                                                         54% in the most popular closed
  $900k-$999k !             0.0!
                            0.0!                                                                                                         sales price bracket.
          >$1M !            0.0!
                       0!          10!         20!       30!          40!   50!    60!                70!      80!     90!       100!
                                                                      Months of Supply!

Sales                                Days                                                                                                 VITAL SIGNS            2012Q2/ 2013Q2
                     pace vs.                                on market
                                                                                                                                           List/Sell              Median
              Homes sold/month!                        Days on market!
                                                                                                                                            Ratio               Sales Price


  167!
                                                                                                     247!                                   94% $150,000
                135!
                             110!              117!                                   179!                     175!                                                   from
                                                                            168!                                        160!                2% from                 $149,500
                                                             152!                                                                           last year               last year

   18!          21!           17!              14!           10!                        9!            9!        10!        12!
                                                                             7!
                                                                                                                                           Supply               Cash Sales

   04!          05!           06!              07!           08!            09!        10!           11!        12!    13Q2!
                                                                                                                                            283                     29%
Sales                trends                                                       Closings                      by price bracket             from
                                                                                                                                            292 last                4% from
                                                                                                                                             year                   last year
       247!                                      Annual total sales!                                              $200k-
                                                 Total sold Q2!                                                   $299k!
213!          207!                                                                                                11.4%!
                                                                                                                                                    Distressed
                     170!                                                               $100k-                                                    Property Sales
                                                                                        $199k!                        $300k-
                                                             130!
                             114!           109! 112!                                   57.1%!                        $399k!

          62!
                                     88!
                                                                     65!
                                                                                                                      11.4%!
                                                                                                                                                        23%
  49! 57!     43!                               41!                                                    $0-$99k!       $700k-
                                                       26! 24! 35!
                                                                                                                                                        8% from
                               29!                                                                                    $799k!
                                         14!                                                            17.1%!                                          last year
                                                                                                                       2.9%!
 04! 05! 06! 07! 08! 09! 10!                           11!    12! 13Q2!

                                                                                                                                        National average 18% of closed sales
                                                                                                                                                   Source: NAR, May 2013




                                            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
                                                                        5.2!


      50%
                                                   $0-$99K !              7.0!                                                      2012Q2!       2013Q2!
                                            $100k-$199k !                        22.2!
                                                                             12.3!
                                                                                              44.4!
                                            $200k-$299k !                                 33.9!
       increase in sales
       pace since 2012Q2                    $300k-$399k !                                                                                                      168.0!
                                                                                  21.7!
                                            $400k-$499k !                         22.0!
Second quarter home sales up                                                        24.0!                                        < 6 mos. prices increase
59%.                                        $500k-$599k !                                38.0!                                   6-12 mos. prices stabilize
                                                                                     28.8!                                       > 12 mos. prices decrease
Distressed home sales continue              $600k-$699k !             0.0!                                                       “0” insufficient sales data
                                                                                                      54.0!
to match national and regional                                        0.0!
                                            $700k-$799k !             0.0!
averages.
                                            $800k-$899k !                          24.0!
                                                                      0.0!
87% reduction in home supply                                                     18.0!
                                            $900k-$999k !             0.0!
for homes priced between
$300k-$399k.                                                          0.0!
                                                    >$1M !                                               60.0!
                                                                 0! 10! 20! 30! 40! 50! 60! 70! 80! 90! 100! 110! 120!130!140!150!160!170!
                                                                                           Months of Supply!
 VITAL SIGNS             2012Q2/ 2013Q2

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


      91%             $182,500                                                                                                                        337!
                                                                                                                                 277!      284!
     no change                               174!                                                                        268!
                                from                      156!
                              $150,100                                  142!        134!
                              last year                                                                        179!
                                                                                                  142!
                                             24!          27!            32!         26!                                                               18!
                                                                                                   13!         14!        12!    12!       12!
     Supply               Cash Sales

                                             04!          05!            06!         07!          08!          09!        10!    11!       12!       13Q2!
      315                     35%
       from
        319                   3% from
                              last year
                                          Sales         379!
                                                                trends                                                Closings                by price bracket
     last year                                                                           Annual total sales!
                                                 328!                                    Total sold Q2!                                   >$1M!   $0-
                                                               309!                                                                       1.9%! $99.9k!
                                          283!                                                                        $500k-
            Distressed                                                                                                $599k!                     11%!
          Property Sales                                                                                               4%!
                                                                                                                      $300k-
                                                                      153! 162! 140!
                                                                                     138! 141!                        $399k!
                 18%                        80!
                                                  104!
                                                         121!
                                                                 90!                                     96!           11%!
                                                                                                                                            $100k-
                 4% from                                                 45! 39! 46! 39! 34! 54!
                                                                                                                                            $199k!
                 last year
                                                                                                                                             46%!
                                                                                                                        $200k-
                                           04! 05! 06! 07! 08! 09! 10!                      11!    12! 13Q2!            $299k!
                                                                                                                         15%!
National average 18% of closed sales
           Source: NAR, May 2013




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

                                     10.5!
                                                                                                                                           Market
                                                                                                                                            INSIGHTS



                                                                                                                                                   20%
           $0-$99K !                8.8!                                                                    2012Q2!     2013Q2!
                                          22.1!
  $100k-$199k !                         17.5!
  $200k-$299k !                                                            67.0!
                                                     34.5!                                                                                          increase in year to
                                                         43.2!
  $300k-$399k !                                                     57.8!                                                                           date sales compared
                                                                                                                                  156.0!            to 2012Q2
  $400k-$499k !                                               49.5!
  $500k-$599k !                                                                                                        132.0!               Home supply and values
                             0.0!
                                                                                                                                            present excellent opportunities
  $600k-$699k !                                 30.0!
                                                                                              90.0!                                         for buyers in this second home
  $700k-$799k !              0.0!                                                                                                           market.
                                                                   54.0!
  $800k-$899k !                                      36.0!                                       < 6 mos. prices increase                   Second quarter home sales
                                                        42.0!                                    6-12 mos. prices stabilize
                                6.0!                                                                                                        were highest since 2004.
  $900k-$999k !              0.0!                                                                > 12 mos. prices decrease
                             0.0!                                                                “0” insufficient sales                     Large percentage of distressed
            >$1M !                                                              72.0!
                                                                                                                                            and cash sales continue to exert
                        0!    10! 20! 30! 40! 50! 60! 70! 80! 90! 100! 110! 120! 130! 140! 150! 160!                                        downward pressure on values.
                                                   Months of Supply!

Sales                                 Days                                                                                                   VITAL SIGNS            2012Q2/ 2013Q2
                       pace vs.                             on market
                                                                                                                                              List/Sell              Median
                                                                                                                                               Ratio               Sales Price
           Homes sold/month!                   Days on market!
                                                                                    268!              277!
  169!
                 156!                                                                                                      229!
                                                                                                                                               92%             $134,000
                              142!           134!                                                               197!
                                                                         179!                                                                  1% from                   from
                                                                                                                                               last year               $145,000
                                                           142!                                                                                                        last year

                               21!            21!                                                               24!        28!
                 13!                                        15!          14!            16!           15!
      4!                                                                                                                                      Supply               Cash Sales

  04!            05!           06!            07!           08!          09!            10!           11!       12!       13Q2!
                                                                                                                                               516                     46%
Sales                  trends                                               Closings                            by price bracket                from
                                                                                                                                               498 last                11% from
  Annual total sales!                                                                                                                           year                   last year
  Total sold Q2!                                           286!
          255! 248!                                                                                                    $300k-     $400k-
                                                                                                                       $399k!     $499k!               Distressed
                                                                                                      $200k-
                                                                                                                        7.2%!      4.8%!             Property Sales
                                             189!                                                     $299k!
                             175! 173!              177!                            $100k-                                        $600k-
                                                                                                      20.5%!
       153!                                                                         $199k!                                        $699k!
                                                                  130!              27.7%!
                                                                    83!
                                                                                                                                   1.2%!                   30%
                 78!                                         69!
                        61!                    61!                                                                         $700k-                          7% from
46!                            46! 44!                39!                                        $0-                       $799k!
           27!                                                                                  $99.9k!
                                                                                                                                                           last year
  7!                                                                                                                        1.2%!
                                                                                                36.1%!
                                                                                                                         >$1M!
04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q2!
                                                                                                                         1.2%!
                                                                                                                                           National average 18% of closed sales
                                                                                                                                                      Source: NAR, May 2013




                                         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
                                                                        7.9!


        84
                                                  $0-$99K !            5.0!                                                          2012Q2!       2013Q2!
                                                                            14.5!
                                           $100k-$199k !                 11.7!                                                        < 6 mos. prices increase
                                                                                27.1!
                                           $200k-$299k !                        26.3!
                                                                                                                                      6-12 mos. prices stabilize
        day reduction                                                                                                                 > 12 mos. prices decrease
                                                                                         45.2!
        in the average                     $300k-$399k !                                   49.6!                                      “0” insufficient sales data
        marketing time                                                                 39.0!
                                           $400k-$499k !                                   50.4!
Most of the market’s activity                                                                         67.5!
is confined to sales under                 $500k-$599k !                                                            92.0!
$100,000.                                  $600k-$699k !                             34.5!
                                                                     0.0!
                                           $700k-$799k !                                                                                                     186.0!
Few changes in market                                                                                                           132.0!
fundamentals except for                    $800k-$899k !             0.0!
percentage of cash sales.                                            0.0!
                                           $900k-$999k !                                                     90.0!
                                                                                                       72.0!
Reduction in distressed property                                                                           82.8!
                                                   >$1M !
sales should help to stabilize
values in the near future.                                      0! 10! 20! 30! 40! 50! 60! 70! 80! 90! 100!110!120!130!140!150!160!170!180!190!200!
                                                                                                       Months of Supply!
 VITAL SIGNS            2012Q2/ 2013Q2

   List/Sell               Median        Sales                pace vs.       Days              on market
    Ratio                Sales Price
                                                  Homes sold/month!                  Days on market!
                                                                                                                        268!   277!
                                                                                                                                           263!
    94%              $175,000              159!          156!
                            no change                                 142!         134!                                                                201!
       4%
    from last                                                                                                179!
      year                                                                                     142!
                                                         48!           53!
                                            39!                                     36!                                                     32!        38!
                                                                                               24!            20!       24!    26!
   Supply                Cash Sales

                                            04!          05!           06!          07!        08!            09!       10!    11!          12!       13Q2!
    783                      49%
      from
       775                   4% from
                                         Sales         639!
                                                              trends                                                Closings                  by price bracket
    last year                last year                                               Annual total sales!
                                                570!                                 Total sold Q2!
                                                                                                                                                               $400k-
                                         471!                                                                                                     $300k-       $499k!
           Distressed                                         433!                                                             $200k-             $399k!        4.4%!
         Property Sales                                                                        381!                            $299k!              7.1%!
                                                                                                                               20.4%!
                                                                     283!          288! 308!                                                                  $500k-
                                                                            242!                                     $100k-                                   $599k!
                16%                                                                                   199!           $199k!                                    1.8%!
                                          131! 153! 154! 127!                                                        41.6%!                             $700k-
                                                                                        100! 113!                               $0-
                3% from
                                                                        68! 54! 87! 72!                                                                  $799k!
                last year                                                                                                      $99.9k!
                                                                                                                               22.1%!                     0.9%!
                                                                                                                                                             $900k-
                                          04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q2!                                                                 >$1M!    $999k!
National average 18% of closed sales                                                                                                                0.9%!     0.9%!
          Source: NAR, May 2013




 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.



Sales Increase For Three Straight Months
                                                                                   mortgage topped 4 percent for the first
                                                                                                                                Market
                                                                                                                                  INSIGHTS
                                                                                   time in a year. Economists point out that


                                                                                                                                               3
                                                                                   rates remain extremely low by historical
                                                                                   standards and they don’t think sales of
                                                                                   new homes will slow unless the economy
                                                                                   does.                                                straight months of
                                                                                                                                        increased sales
                                                                                   The supply of new homes on the market
                                                                                   edged up to 4.1 months at the current
                                                                                   sales pace from 4 months in April. Home VITAL SIGNS           2012Q2/ 2013Q2

                                                                                   builders have increased construction to New Home Construction
                                                                                   keep up with rising sales, but they are still
                                                                                   playing catchup.                              NC Building Permits*
                                                                                                                               19,724 / 20,595
Sales of new homes rose in May to the highest                                                                            Asheville MSA Building Permits*
rate since 2008 according to the US Census
                                                                                   The sales of new homes are less than 468 / 533
Bureau. May sales were up 29.0 percent over
                                                                                   half the rate compared to the boom New Construction Closings**
a year ago. Sales rose despite increases
                                                                                   years before the 2007-2009 recession. 142 / 172
in mortgage rates. The rate on a 30-year
                                                                                                                                *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
example of the communities with which we are proud to affiliate.
                                                                                                                                VITAL SIGNS
                                                                                                                               The Fitzgerald Condominiums

                                                                                                                                 Homes Sold YTD
                                                                                                                                 2 (2 more pending)
                                                                                                                                 Average Closed Sales Price
                                                                                                                                 $1,262,500




The Fitzgerald at Grove Park is a collection of 24 well-appointed two and three bedroom
condominiums steps away from the Grove Park Inn and minutes from downtown Asheville.
Owners have access to an array of membership benefits through a Grove Park Inn Community
Membership – including access to the Inn’s award winning spa, the Donald Ross-designed golf
course, the 50,000 square foot Sports Complex and Fitness Center, Horizons award-winning
restaurant and so much more. With four sales in the last sixty days, only three, 3-bedroom and
three, 2-bedroom dwellings remain.




                                                                                                                                                             11
                        Beverly-Hanks                                   MARKET OVERVIEW
Notable Transactions                    New Projects Beginning
183 Haywood Street
Sale Price $2,100,000                  2013Q2 has seen gradual but continual                           underway – a shift from the focus on
                                       progress in the market.       Sales and                         redevelopment of the past couple of years.
                                       transaction volume continues to be strong.                      Examples are already underway on Tunnel
                                       Distressed sales, while still prevalent,                        Road, Hendersonville Road and Merrimon
                                       have fallen from previous years’ peaks.                         Avenue. Office space construction projects
                                       On a macro-level, commercial lending                            have also begun on Highway 25 in Fletcher,
                                       restrictions have continued to gradually                        Long Shoals Road and Overlook Road
                                       loosen. With the more relaxed lending                           across from Biltmore Park.
The former Three Brothers
Restaurant building sold for hotel     environment, new retail projects are


                                       Market
development. NAI Beverly-Hanks
represented the Seller.
                                                                                                                        Analysis Of The Asheville (MSA)
Thunderlands 44.74 Acres               INSIGHTS                                                                                VITAL SIGNS      2012Q2/ 2013Q2
Sale Price $4,002,127

                                        Sales Activity
                                        •	   Volume for all commercial real estate types for the second quarter in the Asheville
                                             Market totaled $46,053,250.

                                                                                              2013Q2 sales volume!

                                                              $25,000,000!
Sold for multi-family                                                                                                          $20,550,000!
development. NAI Beverly-Hanks                                $20,000,000!
                                                                                                                $16,229,650!
represented the Seller.
                                                              $15,000,000!


                                                              $10,000,000!     $7,675,500!
6 Boston Way
                                                               $5,000,000!
Sale Price $860,000                                                                             $1,598,100!

                                                                        $0!
                                                                                Industrial!       OfÞce!           Retail!      Multi-family!

                                                             *Information taken from CoStar’s Second Quarter Reports

                                        Lease Activity
                                        •	   23 office leases completed. Office vacancy rate dropped to 7.5% from 7.7%.
                                        •	   10 industrial lease transactions signed. Industrial vacancy rate remained flat at 7.5%.
Retail building in Biltmore Village.    •	   29 retail leases completed. Retail vacancy actually ticked up from 5.6% to 5.7%.
NAI Beverly-Hanks represented
the Seller.                                                                                    2013Q2 leased SF!

                                                              70,000!
                                                                               61,254!
                                                              60,000!                                                          56,087!
308 Merrimon Avenue
                                                              50,000!
Sale Price $390,000
                                                              40,000!                                 35,786!

                                                              30,000!

                                                              20,000!

                                                              10,000!

                                                                   0!
                                                                              Industrial!              OfÞce!                  Retail!

                                                             *Information taken from CoStar’s Second Quarter Reports
5,077 SF office building. NAI
Beverly-Hanks represented the           Year-to-date, NAI Beverly-Hanks continues to be the leading commercial brokerage
Seller and the Buyer.                   firm in the Asheville area, having completed 60% more lease transactions and 120%
                                        more sales transactions than our nearest competitor.




 12                               naibhcommercial.com
                                                   WESTERN NC LAND MARKET
                                                                                                                   RESIDENTIAL LOTS


                                                                                                                                     0-3 acres with deed restrictions
                                                                                                                                     2012Q2/ 2013Q2


  Lots            sold       •   Average                     sales price              Sales trends                                         by county

                     Total parcel sales!          List price per parcel!
                                                                                    350!
                     Sales price per parcel!
  $120,000!                 1,326!                                                  300!
                                    982!                                                                                                                         Buncombe!
  $100,000!                                                                         250!
                                                                                                                                                                 Haywood!
                      896!
   $80,000!                                                                         200!                                                                         Henderson!
              649!                                                                                                                                               Madison!
   $60,000!                                                                         150!
                                           397!                                                                                                                  Polk!
   $40,000!                                                                349!     100!
                                                                 253!                                                                                            Rutherford!
                                                  190! 222! 238!
   $20,000!                                                                                                                                                      Transylvania!
                                                                                      50!
        $0!
              2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013!              0!
                                                                                            2004!2005!2006!2007!2008!2009!2010! 2011!2012!2013!




   Closings                         by price bracket                                    Active                    lots    •    Closed                       lots
                                            $100K-$149K!
                                               8.6%!     $150K-$199K!
                                                                                                           Active 2013Q2!       Closed 2013YTD!
                                                            4.6%!
                                                             $200K-$249K!
                         $50K-$99K!                                                    2,071!
                                                                 2.7%!
                           27.9%!
                                                                     $300K-
                                                                                               1,413!
                                                         $250K-$299K! $349K!
                                                            1.8%!      0.9%!

                                                                                                        451!
                                                       $350K-$399K!                         202!               259! 87!       59!            44!                  71!
                                                                                                   77!    35!    15!     9!          26!            13!4! 15!
                  $0-$49K!                                0.6%!                                                                 3!      1!     2!           1!
                   51.9%!
                                                          $400K-$449K!
                                                              0.3%!
                                            >$500K!        $450K-$500K!
                                             0.6%!             0.2%!




Market
INSIGHTS                                                                                        VITAL SIGNS                                             2012Q2/ 2013Q2


                                           Lot sales in Buncombe County have                                                   Average                      List/Sell
                                           doubled since the same period last                      Supply                     Sales Price

  38%
                                                                                                                                                             Ratio
                                           year.

                                           Reported supply levels are remaining                    4,509                  $64,559                               86%
   increase in lot sales                   stable, but significant shadow inventory                  from                         from                             3%
   based largely in                        exists outside MLS database.                              4,513                       $62,590                        from last
   Buncombe and                                                                                    last year                    last year                         year
   Henderson counties                      Average sales price per lot appears to
                                           have stabilized from four year lows.



                                      Regional is good. Local is better. For professional insight and thorough analysis of a
                                      specific property or neighborhood, call your Beverly-Hanks associate.
                                                                                                                                                                                 13
     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.
14
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                                           merchants and community organizations in order to


connect                                    celebrate the very best our region has to offer.

                                           To receive our current offer go to:
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