Some great information here from loyal reader David Bluth, owner/broker for Investec Realty & Business Solutions:
The overall market is still relatively slower in comparison with the red hot years, albeit it is much better than people realize. The new normal is not that bad in terms of sales volume and pricing power for sellers and negotiating/deal making for buyers. We are running at a much better pace than in 2011 in terms of sales volume. Overall, we are up 22% compared to year-to-date sales throughout Western North Carolina from 2011.
Homes that are priced properly are generally selling relatively quickly.
Homes that are overpriced for their location are sitting on average 199 days in 2012. These homes need to be priced suitably based on current market activity for their neighborhood. The potential to sit even longer exists if the home is over-priced.
Average days on market rose from 171 in 2010 to 184 in 2011. As an example of how things of changed, in 2008 the average days on market was 126. In 2012 the level is now at 199 days.
Average Price and Inventory Levels
a) 2012 average home price in the region is $219,000 compared to $217,000 in 2011. In 2008 the average home price was $259,000
2012 Avg Inventory on Market – 7,526
2011 Avg Inventory on Market – 8,542
2010 Avg Inventory on Market – 9,411
2009 Avg Inventory on Market – 6,334
2008 Avg Inventory on Market – 2,731
You can see that inventory levels are getting better but they are no-where near 2008 levels.
b) If you price your home with the expectation built-in of about 6% less than asking, you are putting your home in a much more competitive situation compared with other homes within the location and price-point.
c) For example recently in North Asheville I listed a home for $419,000. The second day on the market we received 3 offers.
The price point was attractive based on comparisons, which were over-priced and thus are sitting on the market for way to long to justify a strong bidding price. We had 6 showings in 2 days.
Some areas and some price points are simply more in demand than others. My customers and I took into account the 92% average when pricing, therefore we went under contract very quickly.
Specific price ranges are doing better than others. Some important examples of closed homes in Buncombe County include:
a) $160-$200k range
2010 – 221 homes sold
2011- 185 homes sold
b) $220-$260k range
2010 – 149 homes sold
2011 – 108 homes sold
c) $261-$300k range
2010 – 91 homes sold
2011 – 91 homes sold
d) $300-$350k range
2010 – 88 homes sold
2011 – 72 homes sold
As you can see from these statistics the $260k and higher range seems to be doing much better in comparison.
David E. Bluth
Investec Realty & Business Solutions, LLC
Owner/Broker, MBA, ABR
14 North Kensington Road
Asheville, NC 28804