2013_q3_market_report by ashevilleweb

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									                                                                           2013 QUARTER 3
 ReporT
            the reaL estate

                                                  western north caroLina




 TABLE OF CONTENTS
 pp 2-3:              Executive & Economic Summary

 pp 4-7:              County Specific Market Review

 p 8:                 New Home Communities

 p 9:                 Commercial Market Review

 p 10:                Land Review

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




beverly-hanks.com
                                                           MarkeT
                                                                      WESTERN NORTH CAROLINA




                                                      OUR
                                                      Not Just The Leaves Are Changing
                                                      After several quarters of substantial                               levels up. In niche markets hampered by
                                                      reductions in the number of homes for                               a lack of choices, this is welcome news for
                                                      sale, we are now witnessing supply levels                           buyers. In other markets like the counties
                                                      beginning to increase. Builders and sellers                         on the outskirts of the Asheville MSA, high
                                                      unable to participate in the recovery until                         inventory drags on value recovery.
                                                      now are returning to the market and pushing



                                                                                                                                               Year                  Quarter
 “As the peak home                                                                                         2013 Quarter 3                      over                   over
 buying season                                                                                                                                 Year                  Quarter
 comes to a close,                                            Home Supply                                         6,520                        -8.9%                  1.3%
 indicators point                                             Median Age of Supply*                             139 days                      -12.0%                  14.0%
 to a shift in the
 housing market’s                                             Median Market Time**                              174 days                        -.6%                  2.4%
 dynamics.”                                                   Median List Price                                 $191,500                        4.0%                  2.0%
                                                            *Of homes currently listed for sale
Neal Hanks Jr., President                                   **Of homes sold



 Economic Trends                                                                            by Tom Tveidt of SYNEVA Economics



 Unemployment Rate Falls Faster Than State or Nation
 The third quarter marks the continuation of three years of unbroken employment growth in Asheville. The Asheville metro is the third
 fastest growing among all 14 metros in the state, and is outpacing the state and nation. The area has added nearly 4,000 more jobs
   11%                                                                          over the year. The Leisure & Hospitality and Retail
                                                                                sectors dominate recent job creation in Asheville;
                                                                                each up 6%, together adding 3,000 new jobs. Both
   10%
                                                                                of these sectors have broken new highs. Health
                                                                                Services continues a path of growth that has held for
                                                                                decades in Asheville. While not as large, Professional
                                                                 North Carolina & Business Services also broke new ground in the
    9%
                                                                                third quarter. The industry is characterized by having
                                                                                many well-paying high-tech positions.
     8%
                                                                                           United States



     7%
                                                                                           Asheville



     6%
          2011                             2012                         2013

 Year-over-year change in monthly total employment.
 Source: NC 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

The sales pace in the region continues to
improve, demonstrating the ongoing desirability
of the region. The fact that a slight increase in
                                                             strongest improvement in median value,
                                                             12% year-over-year. Madison County
                                                             also experienced a surge in median sales
                                                                                                             Market
                                                                                                              INSIGHTS



                                                                                                                    4%
inventory and the rising mortgage interest rates             price, but we believe this is temporary due
are not yet affecting sales pace speaks to the               to a few higher priced sales as opposed
stability of our markets. With improvement in                to overall improving values. Like Haywood,
home values slowed by increasing inventory, we               Polk and Rutherford counties, Madison’s
                                                                                                                    increase in median
believe values will only modestly improve in the             cash and distressed sales are still exerting           home values
areas closest to Asheville and Hendersonville.               downward pressure on values. Conditions
                                                             are perfect for opportunistic buyers who          27.5% decrease in home
                                                             are driving the accelerated sales pace in         supply since peak reached in
          2013                                               these markets.                                    2011Q2.


      3.4%
                                   Four Quarter              We expect that the strong regional                Price ranges up to $300,000
                                   Appreciation, 2013 Q2     sales pace will continue and we remain            are at or near market balance
                                                             optimistic that the markets in the outlying       between buyers and sellers.
                                                             counties will improve as Buncombe and
    Source: Federal Housing Finance Agency
                                                                                                               Percentage difference
                                                             Henderson continue to lead in Q4.                 between list and sales prices
                                                                                                               has been stable for three
The four-county Asheville MSA’s homes
                                                                                                               quarters.
appreciated at an annual of rate 3.4%.
Buncombe County continues to show the
                                                                                                              VITAL SIGNS             2012Q3/ 2013Q3

                                                                                                               List/Sell               Median
                                                                                                                Ratio                Sales Price
Asheville’s Average Hourly Wage Jumps
                                                                                                                                  $191,500
In a closely related breakthrough, Asheville’s average hourly earnings broke $20 for the first
time. The rate jumped by nearly 6% from a year earlier; the largest percentage increase
                                                                                                                94%
                                                                                                               no change                    from
since 2008. At $20.20 an hour, Asheville’s average hourly earnings is sixth highest among                                                 $183,825
the state’s metros. Asheville’s current unemployment rate, at 6.8%, is the lowest rate among                                              last year
                                                               all fourteen North Carolina
  $20.50                                                       metros and well below the                       Supply                Cash Sales
                                                    $20.20     statewide rate of 9.1% and
                                                               national rate of 7.7%. This
  $20.00
                                                               low rate translates into the                   6,520                      35%
                                                               fewest number of persons                           from                    4% from
  $19.50                                                       unemployed in a third quarter                      7,155                   last year
                                                               since 2008. Additionally,                        last year
                                                               among all of the state’s
  $19.00
                                                               metros, Asheville currently                             Distressed
                                                               holds the lowest rate of new                          Property Sales
  $18.50                                                       unemployment insurance
                                                               claims being filed, less than
 $18.00
                                                               0.4% of the total labor force.                               12%
          2011                          2012          2013
                                                                                                                             5% from
Source: US Bureau of Labor Statistics                                                                                        last year



                                  Visit SYNEVA Economics at syneva.com
                                                                                                            National average 12% of closed sales
                                                                                                                     Source: NAR, September 2013




                                                                                                                                                   3
         BUNCOMBE COUNTY

Market                                   Supply                     months of inventory at
                                                                    current sales pace
INSIGHTS
                                                                           6.2!


        12%
                                                 $0-$99K !              4.4!                                                              2012Q3!        2013Q3!
                                          $100k-$199k !                       9.0!
                                                                          5.8!                                                     < 6 mos. prices increase
                                          $200k-$299k !                          11.6!                                             6-12 mos. prices stabilize
          increase in median                                               6.8!
                                                                                                                                   > 12 mos. prices decrease
          sales price YOY                 $300k-$399k !                         11.2!
                                                                             8.5!                                                  “0” insufficient sales data

More than half of the tracked             $400k-$499k !                             14.6!
                                                                               10.1!
price ranges are at or near                                                            17.7!
                                          $500k-$599k !                        9.8!
market balance.
                                                                                           20.9!
                                          $600k-$699k !                            12.9!
YOY there has been a 50%                                                                                     32.3!
reduction in the home supply              $700k-$799k !                            14.8!
over $1 million dollars.                  $800k-$899k !                                                   28.8!
                                                                                                           29.4!
Pace of inventory absorption              $900k-$999k !                                                   28.6!
                                                                                                            30.8!
appears to be slowing, only a 5%                   >$1M !                                                                                                           81.5!
reduction QOQ.                                                                                                        40.3!
                                                               0!            10!       20!           30!       40!     50!              60!       70!        80!
                                                                                                           Months of Supply!
VITAL SIGNS            2012Q3/ 2013Q3


  List/Sell              Median          Sales                pace vs.         Days              on market

   Ratio               Sales Price                                                                    Homes sold/month!                  Days on market!
                                                                       344!
                                                        325!                                                                                                 318!

     95%             $220,000              277!                                      291!
                                                                                                                                                  230!
    no change                                                                                    209!
                               from                                                                            187!       186!         191!
                             $196,000
                             last year

                                           75!          76!                          92!                                               178!
                                                                       75!                                                163!                    161!
    Supply             Cash Sales                                                                              145!                                          130!
                                                                                                 114!
                                           04!          05!             06!          07!            08!        09!        10!          11!        12!       13Q3!
 2,139                       30%
       from
       2,556                 2% from
                                         Sales                trends                                                    Closings                        by price bracket

     last year               last year             4,122!                                  Annual total sales!
                                              3,898!                                       Total sold Q3!                                     $300k-     $400k-      $500k-
                                                        3,495!                                                                                $399k!     $499k!      $599k!
                                         3,329!
                                                                                                                                              13.0%!      5.1%!       4.1%!
             Distressed                                                                    2,745!
           Property Sales                                              2,506!                   2,545!                        $200k-                                $600k-
                                                                            2,238!    2,297!
                                                                                 2,228!                                       $299k!                                $699k!
                                                                                                                              27.3%!                                 2.2%!
                 10%                       924!
                                                  1,115!1,124!
                                                                 908!
                                                                         665! 669! 553! 691! 775!
                                                                                                             953!                                                       $700k-
                                                                                                                                                                        $799k!
                 7% from                                                                                                      $100k-         $0-$99k!                    1.5%!
                 last year                                                                                                    $199k!          9.4%!
                                                                                                                              34.3%!                               $800k-
                                          04!     05!   06!      07!     08!   09!    10!     11!    12! 13Q3!                                                      $899k!
                                                                                                                                                             $900k-
                                                                                                                                                       >$1M! $999k! 0.6%!
                                                                                                                                                       1.7%! 0.7%!




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

                               8.7!
                                                                                                                               Market
                                                                                                                               INSIGHTS



                                                                                                                                     38%
         $0-$99K !           6.8!                                                           2012Q3!     "2013Q3"!
                                      19.0!
  $100k-$199k !                    15.2!
                                             36.7!
  $200k-$299k !                           31.7!                                                                                       increase in home
                                         29.3!
  $300k-$399k !                         23.5!                                                                                         sales QOQ
                                                     48.3!
  $400k-$499k !                                   41.5!                                                                        Surge in market activity may
  $500k-$599k !                         25.4!                                                                                  predict a strong Fall selling
                                          29.7!
                                                                                                                               season and mitigate high supply.
  $600k-$699k !                                                                   102.0!
                                                         58.5!                                                                 69% of sales are under
  $700k-$799k !                                        54.0!
                                                                                   < 6 mos. prices increase                    $200,000 representing one of
  $800k-$899k !                                      49.5!                                                                     the most affordable markets in
                         0.0!                                                      6-12 mos. prices stabilize
  $900k-$999k !                                                         81.0!      > 12 mos. prices decrease                   the region.
                         0.0!                                                      “0” insufficient sales data
                         0.0!                                                                                                  Seven of the eleven price
          >$1M !         0.0!
                                                                                                                               ranges had a reduction in their
                      0! 10! 20! 30! 40! 50! 60! 70! 80! 90! 100!110!120!130!140!150!160!170!                                  home supply YOY.
                                                 Months of Supply!


Sales                              Days
                                                                                                                               VITAL SIGNS          2012Q3/ 2013Q3
                     pace vs.                        on market
                                                                                                                                List/Sell            Median
                                                                                                                                 Ratio             Sales Price
           Homes sold/month!                   Days on market!

                                                                                                232!
                                                                           215!
                                                                                     229!
                                                                                                            219!
                                                                                                                                 92%            $150,000
  134!         134!                     135!
                          118!                                 179!                                                             no change                  from
                                                    154!                                                                                                 $160,000
               94!                                                                                          82!
  76!                        91!        68!
                                                                                                                                                         last year
                                                                                                 60!
                                                     46!          43!       42!       44!
                                                                                                                                Supply             Cash Sales
  04!          05!           06!        07!          08!          09!       10!       11!        12!      13Q3!
                                                                                                                                1,167                    41%
Sales
   1,133!
                  trends                                            Closings                    by price bracket                   from
                                                                                                                                   1,213                 9% from
        1,089!                            Annual total sales!                                  $200k-                            last year               last year
                                          Total sold Q3!                                       $299k!
906!                                                                                           15.9%!
                  814!                                                                                                                  Distressed
                                                    719!
                                                                          $100k-                       $300k-                         Property Sales
                                                                                                                    $400k-
                         550!                              571!           $199k!                       $399k!
                                   510! 501! 530!                                                                   $499k!
                                                                          41.6%!                        9.0%!        2.0%!
 280!
        337!
               297!                                                                                                $500k-
                                                                                                                                             16%
                      227!                                   245!                                                  $599k!
                             163! 162! 138! 149! 178!                                                                                        7% from
                                                                                   $0-$99k!                         2.0%!                    last year
                                                                                    27.8%!         $700k-             $600k-
                                                                                                   $799k!             $699k!
 04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q3!                                                          0.8%!              0.8%!




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

Market                                   Supply                      months of inventory at
                                                                     current sales pace
INSIGHTS
                                                                        6.7!


        11%
                                                  $0-$99K !            5.1!                                                             2012Q3!      2013Q3!
                                                                           10.8!
                                           $100k-$199k !                6.9!                                                   < 6 mos. prices increase
                                           $200k-$299k !                     14.5!                                             6-12 mos. prices stabilize
         Strongest QOQ                                                   8.7!
                                                                               18.9!                                           > 12 mos. prices decrease
         reduction in home                 $300k-$399k !                     14.7!                                             “0” insufficient sales data
         supply                                                                 20.8!
                                           $400k-$499k !                        21.1!
Market balanced for properties at                                                   27.5!
or below the median sales price.           $500k-$599k !                              30.9!
                                           $600k-$699k !                                   40.0!
List to sell ratio approaching                                                                  48.9!
historical norms.                          $700k-$799k !                                                              76.5!
                                                                                       28.5!
                                           $800k-$899k !                                   36.0!
12% increase in average homes                                                                                     67.5!
sold per month YOY.                        $900k-$999k !                                                                    85.5!
                                                                                                                    72.0!
                                                                                                                                                       126.0!
                                                   >$1M !                                                                 81.0!
                                                                0!     10!    20!    30!   40!     50!    60! 70! 80! 90! 100! 110! 120! 130! 140!
                                                                                                         Months of Supply!
VITAL SIGNS            2012Q3/ 2013Q3

  List/Sell              Median          Sales              pace vs.         Days                on market
   Ratio               Sales Price                                                                                   185!         192!
                                                         181!                                                                                183!
                                                                       163!                                                                             166!
                                                                                    157!                   156!
     95%             $180,000              150!
                                                                                                 125!                                                        154!
                                                                                                                                             113!
        2%                     from                                                              101!
                                            90!                                     93!                    87!
     from last               $179,250                    83!                                                          85!         82!
       year                  last year                                 73!


     Supply            Cash Sales                                                                        Homes sold/month!                Days on market!

                                            04!          05!           06!          07!          08!       09!        10!         11!        12!       13Q3!
  1,281                      33%
       from
       1,477                 2% from
                             last year
                                         Sales                 trends                                             Closings                     by price bracket
     last year                               2,173!                                   Annual total sales!
                                                  1,956!                              Total sold Q3!                                                          $400k-
                                                       1,878!                                                                                       $300k-    $499k!
                                         1,796!                                                                                                     $399k!
                                                                                                                                                               3.0%!
            Distressed                                                                            1,516!                      $200k-                10.1%!         $500k-
          Property Sales                                                                     1,345!                           $299k!
                                                                     1,216!                                                                                        $599k!
                                                                          1,043!                                              27.4%!                                1.6%!
                                                                               1,014!
                                                                                     985!                                                                          $600k-
                 13%                      499!
                                                  669!
                                                         546! 524!                                                                                                 $699k!
                                                                                                  411! 461!          $100k-                                         0.7%!
                 1% from                                               306! 305! 245! 283!
                                                                                                                     $199k!                                    $700k-
                 last year
                                                                                                                     43.0%!              $0-$99k!              $799k!
                                                                                                                                          12.4%!                0.7%!
                                          04! 05! 06! 07! 08! 09! 10!                      11!    12! 13Q3!
                                                                                                                                                         >$1M!
                                                                                                                                                         0.7%!




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

                                    7.6!
                                                                                                                                        Market
                                                                                                                                        INSIGHTS



                                                                                                                                               48%
         $0-$99K !                    9.9!                                                                2012Q3!     2013Q3!
                                                           26.7!
  $100k-$199k !
                                              17.4!
                                                                     37.0!
  $200k-$299k !                                            26.6!                                                                                 of sales in Q3
  $300k-$399k !                                                                 45.0!                                                            were cash
                                                                                                                      84.6!
  $400k-$499k !                                                                                                                 93.0!   Opportunistic buyers are paying
                                                                                                    65.3!
                                                                                                                                        cash and negotiating some of
  $500k-$599k !                                                                                                            90.0!
                                             15.8!                                                                                      the largest price reductions in
  $600k-$699k !                                                                                                            90.0!        the region.
                                                                                         54.0!
                            0.0!
  $700k-$799k !                      9.0!                                                                                               16% increase in home sales
                                                                                45.0!            < 6 mos. prices increase               QOQ is just barely enough to
  $800k-$899k !             0.0!                                                                 6-12 mos. prices stabilize             prevent further increases in
                            0.0!                                                                 > 12 mos. prices decrease
  $900k-$999k !             0.0!                                                                                                        home supply.
                                                                                                 “0” insufficient sales data
                            0.0!
          >$1M !            0.0!                                                                                                        Sales more evenly distributed
                       0!          10!       20!       30!          40!   50!    60!                 70!      80!      90!       100!   but still heavily weighted to
                                                                    Months of Supply!                                                   under $300,000.

Sales                                Days                                                                                               VITAL SIGNS          2012Q3/ 2013Q3
                      pace vs.                             on market
                                                                                                                                         List/Sell            Median
              Homes sold/month!                      Days on market!
                                                                                                                                          Ratio             Sales Price


  167!
                                                                                                   247!                                  91%            $185,000
                                                                                                                         220!
                135!
                             110!            117!                                       179!                  175!                                              from
                                                                          168!                                                            1% from             $168,000
                                                           152!                                                                           last year
                                                                                                                                                              last year

   18!          21!           17!            14!            10!                          9!         9!         10!        15!
                                                                           7!
                                                                                                                                         Supply             Cash Sales

   04!          05!           06!            07!            08!           09!           10!         11!        12!      13Q3!
                                                                                                                                          300                     48%
Sales                trends                                                     Closings                       by price bracket            from
                                                                                                                                          298 last                5% from
                                                                                                                                           year                   last year
       247!                                    Annual total sales!
                                               Total sold Q3!                                                           $300k-
213!          207!                                                                               $200k-                 $399k!
                                                                                                 $299k!                  2.3%!                    Distressed
                     170!                                                                                                      $400k-           Property Sales
                                                                                                 32.6%!
                                                                                                                               $499k!
                                                                                                                        $500k- 2.3%!
                             114!           109! 112!              108!                                                 $599k!

  64!
         80!
                62!
                                     88!
                                                                                         $100k-                          7.0%!                        26%
                       52!                                                               $199k!
                               36!                   37! 43!                                                                                          12% from
                                         25! 31! 24!                                     37.2%!                                                       last year
                                                                                                                         $700k-
                                                                                                                $0-$99k! $799k!
 04! 05! 06! 07! 08! 09! 10!                         11!     12! 13Q3!                                           14.0%!   4.7%!




                                           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
                                                                       5.8!


      34.4%
                                                  $0-$99K !              8.3!                                                          2012Q3!       2013Q3!
                                           $100k-$199k !                            22.1!
                                                                            10.7!
                                                                                               43.9!
                                           $200k-$299k !                               29.2!
       reduction in home
       supply YOY                          $300k-$399k !                                                                            110.3!
                                                                                 22.5!
                                           $400k-$499k !                           25.9!
67% increase in sales pace YOY                                                        27.0!                                         < 6 mos. prices increase
is reducing inventory.                     $500k-$599k !                        19.5!                                               6-12 mos. prices stabilize
                                                                                        36.0!                                       > 12 mos. prices decrease
                                           $600k-$699k !             0.0!                                                           “0” insufficient sales data
No sales over $600,000 in 2013                                                                                    81.0!
and only one in 2012.                                                0.0!
                                           $700k-$799k !             0.0!
Day on market is reflecting the            $800k-$899k !                       18.0!
                                                                     0.0!
sale of properties which have                                                               36.0!
                                           $900k-$999k !             0.0!
had extended marketing times
                                                                     0.0!
and not current conditions.                        >$1M !                                                                   99.0!
                                                                0! 10! 20! 30! 40! 50! 60! 70! 80! 90! 100! 110! 120!130!140!150!160!170!
                                                                                          Months of Supply!
VITAL SIGNS             2012Q3/ 2013Q3

  List/Sell               Median         Sales                pace vs.        Days                  on market
   Ratio                Sales Price                    Homes sold/month!                     Days on market!
                                                                                                                                                         363!
     91%             $170,000
                                                                                                                                277!          284!
                                            174!                                                                     268!
     1% from                   from                      156!
                             $182,400                                  142!          134!
     last year
                             last year                                                                     179!
                                                                                                   142!
                                            24!          27!            32!           26!                                                                 20!
                                                                                                    13!     14!      12!            12!       12!
     Supply             Cash Sales

                                            04!          05!            06!           07!           08!     09!      10!            11!       12!       13Q3!
     319                     39%
       from
        316                  3% from
                             last year
                                         Sales         379!
                                                               trends                                             Closings                       by price bracket
     last year                                                                         Annual total sales!
                                                328!                                   Total sold Q3!      $300k- $400k-                                $500k- $0-
                                                              309!
                                         283!                                                              $399k! $499k!                                $599k! $99.9k!
           Distressed                                                                                       8.2%! 3.3%!                                  1.6%! 11.5%!
         Property Sales
                                                                                                                  $200k-
                                                                     153! 162! 140!           157!
                                                                                    138! 141!                     $299k!
                 11%                       94! 91! 100!                                                           18.0%!
                                                                76!
                                                                                            61!                                               $100k-
                 13% from                                               38! 50! 34! 37! 38!                                                   $199k!
                 last year
                                                                                                                                              57.4%!
                                          04! 05! 06! 07! 08! 09! 10!                        11!    12! 13Q3!




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

                                 10.3!
                                                                                                                            Market
                                                                                                                            INSIGHTS



                                                                                                                                  41%
        $0-$99K !               8.5!                                                          2012Q3!      2013Q3!
                                     17.9!
 $100k-$199k !                       19.6!
 $200k-$299k !                                       43.3!
                                             32.3!                                                                                 of sales are
                                                                  65.5!
 $300k-$399k !                                                 58.5!                                                               occurring under
                                             31.5!                                                                                 $100,000
 $400k-$499k !                                         47.6!
 $500k-$599k !                                                                      99.0!
                         0.0!                                                                                               Sales pace is ahead of market
 $600k-$699k !                                            54.0!                                                             peak during 2006-2007.
                                                      45.0!
 $700k-$799k !           0.0!                                                                                               Financing accounts for only 42%
                                                                                90.0!         < 6 mos. prices increase
                                    18.0!                                                     6-12 mos. prices stabilize    of transactions.
 $800k-$899k !
                                         27.0!                                                > 12 mos. prices decrease
 $900k-$999k !                      18.0!                                                     “0” insufficient sales        20% reduction in median sales
                         0.0!
                         0.0!                                                                                               price is creating incredible
         >$1M !                                36.0!                                                                        opportunities for investors.
                    0!    10! 20! 30! 40! 50! 60! 70! 80! 90! 100! 110! 120! 130! 140! 150! 160!
                                                             Months of Supply!

Sales                             Days                                                                                      VITAL SIGNS          2012Q3/ 2013Q3
                pace vs.                             on market
                                                                                                                             List/Sell            Median
                                                                                                                              Ratio             Sales Price
        Homes sold/month!                Days on market!
                                                                          268!          277!
  169!
             156!                                                                                             233!            89%           $135,000
                          142!         134!                                                         197!
                                                                   179!                                                       2% from                   from
                                                                                                                              last year               $168,500
                                                     142!                                                                                             last year

                           21!         21!           15!                  16!           15!         24!        26!
  4!         13!                                                   14!
                                                                                                                             Supply             Cash Sales

  04!        05!           06!         07!           08!           09!    10!           11!         12!      13Q3!
                                                                                                                              522                     58%
Sales              trends                                            Closings                       by price bracket           from
                                                                                                                              493 last                14% from
 Annual total sales!                                                                                                           year                   last year
 Total sold Q3!                                      286!                                            $200k-
         255! 248!                                                                                   $299k!
                                                                                                     12.8%!$300k-                     Distressed
                                                            208!           $100k-                           $399k! $400k-
                                                                                                                                    Property Sales
                         175! 173!
                                      189!
                                             177!                          $199k!                           5.1%! $499k!
   153!                                                                                                             3.8%!
                                                                           32.1%!


                                                       73! 78!
                                                                                                                  $600k-
                                                                                                                  $699k!                  18%
            69! 70!
46!  51!                   51! 55! 55! 45!                                        $0-                              1.3%!                  4% from
 19!                                                                             $99.9k!                           $800k-                 last year
                                                                                 41.0%!                            $899k!
                                                                                                             >$1M! 1.3%!
04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q3!
                                                                                                             2.6%!




                                     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
                                                                        11.5!


     15%
                                                 $0-$99K !             6.8!                                                              2012Q3!          2013Q3!
                                                                           15.9!
                                          $100k-$199k !                 12.3!                                                     < 6 mos. prices increase
                                                                             23.2!
                                          $200k-$299k !                     22.0!                                                 6-12 mos. prices stabilize
     more homes sold
                                                                                       42.0!                                      > 12 mos. prices decrease
     per month YOY                        $300k-$399k !                               40.8!                                       “0” insufficient sales data

                                          $400k-$499k !                             34.5!
                                                                                           53.3!
Strongest sales paces since                                                                          68.4!
                                          $500k-$599k !                                                      84.6!
2006.
                                          $600k-$699k !                                        57.6!
                                                                                                                   93.0!
Available home supply is
                                          $700k-$799k !                                                                                   139.5!
holding steady.                                                                                  63.0!
                                          $800k-$899k !             0.0!
Upper price brackets have                                           0.0!
higher sales activity than                $900k-$999k !                                                                                       144.0!
                                                                                                                           108.0!
other outlying counties.                                                                             69.8!
                                                  >$1M !                                                                      115.2!
                                                               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            2012Q3/ 2013Q3

  List/Sell              Median         Sales                pace vs.        Days             on market
   Ratio               Sales Price
                                                 Homes sold/month!                   Days on market!                                                            314!
                                                                                                                           268!        277!
                                                                                                                                                   263!
   93%              $205,000
      2%                                                                                                    179!
                             from          159!         156!
   from last               $203,000                                   142!         134!       142!
     year                  last year

                                           39!          48!            53!                                                                                      38!
                                                                                   36!         24!                         24!         26!         32!
                                                                                                             20!
  Supply               Cash Sales

                                           04!          05!            06!         07!         08!           09!           10!         11!         12!       13Q3!
   792                     43%
     from
      802                  1% from
                                        Sales         639!
                                                             trends                                                Closings                        by price bracket
   last year               last year                                                Annual total sales!
                                               570!                                 Total sold Q3!                                                     $300k-     $400k-
                                                                                                                                                       $399k!     $499k!
                                        471!                                                                                                           11.3%!      2.6%!
         Distressed                                          433!                                                            $200k-
       Property Sales                                                                         381!                           $299k!                       $500k-
                                                                                                                                                                 $600k-
                                                                                                     314!                    29.6%!                       $599k!
                                                                    283!          288! 308!                                                                      $699k!
                                                                           242!                                                                            1.7%!
               8%                                      190!
                                                                                                                                                                  2.6%!
                                         144! 154!            126!                                                         $100k-                               $700k-
                                                                                           115!
               3% from                                                 78! 73! 70! 90! 98!                                 $199k!                               $799k!
               last year                                                                                                                                         1.7%!
                                                                                                                           32.2%!
                                                                                                                                                $0-
                                         04! 05! 06! 07! 08! 09! 10! 11! 12! 13Q3!                                                             $99.9k! >$1M!
                                                                                                                                               15.7%! 2.6%!




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.



Housing Starts Increased 0.9%
First Trust Data Watch, August 2013.                                                                     Market
                                                                                                           INSIGHTS
The increase was disappointing, but the


                                                                                                                     7%
recovery remains robust. The rise was due
to single-family units which were up 7%.
Multi-family starts declined 11.1%. While
slip may suggests a flat trend for single-                                                                         increase in starts of
                                                                                                                   single family
family, this is somewhat misleading. A mild
Winter boosted starts in a typically slow
period, while rains in the Spring held starts                                                            VITAL SIGNS          2012Q3/ 2013Q3
back. Pulling back reveals an upward trend                                                              New Home Construction
during the past two years. Single-family
starts are up 16.9% YOY. Those looking                                                                   NC Building Permits*
for a slowdown will jump on the month-                                                                   NA Due to Government Shutdown
to-month volatility, but we believe this is a                                                            Asheville MSA Building Permits*
mistake. Based on population growth and                                                                  NA Due to Government Shutdown
“scrappage,” housing starts will rise to about         Source: First Trust Data Watch, August 2013.
                                                                                                         New Construction Closings**
1.5 million units per year by 2015. This level                                                           89 / 99
of construction maintains a stable level of
new inventory.                                                                                           *Source: Bureau of Census
                                                                                                        **Source: WNCRMLS


Featured New Home Community
Over the years, we have worked with numerous owners, developers, and builders in some of the most beautiful and desirable
communities in the region. Each quarter we feature an outstanding example of the communities with which we are proud to affiliate.




Nestled in the heart of the Blue Ridge Mountains, just 10 minutes from Hendersonville and only 30 minutes from Asheville,
Champion Hills delivers a simply exceptional lifestyle for its owners. Here you’ll find a debt-free golf community and member-owned
club that’s secluded but not isolated. With one of the area’s only owner-supported marketing programs for its real estate and the
absence of debt, the community has remained simply exceptional for 25 years. And with a recently expanded menu of membership
options, belonging has become even more attractive. Happy 25th Anniversary!




                                                                                                                                           11
                      Beverly-Hanks                                                 MARKET OVERVIEW
Notable Transactions                   Grocery Wars
1378 Hendersonville Rd
Leased                                Asheville has seen a sharp uptick in grocery                         Another Kmart center in South Asheville is
                                      store development in recent months.                                  slated to be torn down for a rumored Publix
                                      Harris Teeter, Trader Joe’s, Whole Foods,                            center. Biltmore Farms-owned Parkway
                                      Fresh Market, Katuah Market, and Publix                              Center will become home to a Fresh Market
                                      are all at various stages of entering the                            in Spring of 2014.
                                      market. Now open on Merrimon Avenue                                  And finally, a small “natural-foods” concept
                                      side-by-side are Harris Teeter and Trader                            called Katuah Market, owned by former
15,971 SF, 10-year lease with         Joe’s. Adjacent to downtown, they seek                               Greenlife owner, is under construction
local retailer; located adjacent to   to capture the underserved CBD. Edens                                in Biltmore Village. All this activity is
new Fresh Market grocery. Slated      Development has torn down the Kmart                                  sure to boost construction spending and
for March 2014 opening.               center on Tunnel Road and will construct                             employment in the longer term.
                                      a Whole Foods center with adjacent retail.


                                      Market
1248 Sand Hill Road
22.7 acres for $1.98 Million


                                       INSIGHTS                                                                               VITAL SIGNS   2012Q3/ 2013Q3



                                                                             2013Q3 sales volume!
                                                     $120.0!
                                                                                                                    $105.4!
                                         Millions!




Potential new 5th/6th grade                          $100.0!
school for Buncombe County.
NAI Beverly-Hanks represented                         $80.0!                                                                         Hospitaliy reflects
the buyer.
                                                      $60.0!
                                                                                                                                    $103 million resale of
                                                                                                                                       Grove Park Inn
68 Monticello Road
                                                      $40.0!
Sale Price $315,000
                                                                                           $15.7!
                                                      $20.0!                    $9.4!
                                                                 $3.7!                                  $1.4!
                                                       $0.0!
                                                               Industrial!      OfÞce!     Retail!   Multi-family! Hospitality!
                                       CoStar, 2013.




10,000 square feet of warehouse
space.     NAI    Beverly-Hanks
represented both sides in this                                                2013Q3 leased SF!
transaction.                            100,000!                 94,118!
                                         90,000!
725 Haywood Road                         80,000!
Sale Price $300,000                      70,000!
                                         60,000!
                                                                                                                58,130!                Industrial lease
                                         50,000!
                                                                                                                                    transactions up 54%
                                         40,000!
                                                                                         37,789!                                          from Q2
                                         30,000!
                                         20,000!
                                         10,000!
                                                      0!
McCarson building in West                                      Industrial!               OfÞce!                 Retail!
Asheville for retail/residential       CoStar, 2013.
development. NAI Beverly-Hanks
represented the Buyer.




 12                                naibhcommercial.com
                                                        WESTERN NC LAND MARKET
                                                                                                                     RESIDENTIAL LOTS


                                                                                                                                      0-3 acres with deed restrictions
                                                                                                                                      2012Q3/ 2013Q3


  Lots            sold    •     Average                           sales price           Sales trends                                        by county

                  Total parcel sales!                  List price per parcel!
                                                                                       500!
                  Sales price per parcel!
                                                                                       450!
  $120,000!
                                                                                       400!
                              1,995!                                                                                                                              Buncombe!
  $100,000!                                                                            350!
                                                                                                                                                                  Haywood!
                     1,502!            1,364!                                          300!
   $80,000!                                                                                                                                                       Henderson!
                                                                                       250!
   $60,000! 1,065!                                                                                                                                                Madison!
                                                                                       200!
                                                                                                                                                                  Polk!
   $40,000!                                     559!                            543!   150!
                                                                                                                                                                  Rutherford!
                                                       333! 350! 358! 405!             100!
   $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 2013Q3!      Closed 2013YTD!
                                                                4.6%!
                                                                 $200K-$249K!
                        $50K-$99K!
                          28.0%!
                                                                     2.7%!               2,385!
                                                                          $300K-
                                                                                                 1,725!
                                                              $250K-$299K! $349K!
                                                                 1.7%!      0.9%!

                                                                                                          611!
                                                                                              295!               400! 136! 140!                                   193!
                                                            $350K-$399K!                             139!   46!                       54!     81!    38!4! 37!
                  $0-$49K!                                                                                         27!     14!                                        3!
                                                               0.6%!                                                             6!      4!     2!           3!
                   51.9%!
                                                               $400K-$449K!
                                                                   0.3%!
                                                >$500K!         $450K-$500K!
                                                 0.7%!              0.2%!




Market
INSIGHTS                                                                                          VITAL SIGNS                                            2012Q3/ 2013Q3


                                        Lot sales have been concentrated in the                                               Average                        List/Sell
                                        lower ranges. Only 20% occurred over the                     Supply                  Sales Price

  34%
                                                                                                                                                              Ratio
                                        $100,000 mark.

                                        Upper lot price ranges have begun to                         4,661                  $80,786                              87%
   increase in lot sales                improve during Q3, but substantial inventory                    from                       from                             4%
                                        will exist for the foreseeable future.                          4,471                     $62,782                        from last
                                                                                                      last year                  last year                         year
                                        Percentage difference between list and sales
                                        prices has been stable for three quarters



                                        Regional is good. Local is better. For professional insight and thorough analysis of a
                                        specific property or neighborhood, call your Beverly-Hanks associate.
                                                                                                                                                                                  13
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TAKES PLACE ONLINE




 But when it does, explore with the benefit of our 37 years of local expertise. Or
 use our mobile tools and start your real estate search from your phone.


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                                                                                               15
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