Beverly-Hanks’ president, Neal Hanks, was on site at the Within REACH Resale Shop in Waynesville to deliver the 2016 Quarter Two Market Report. Watch the video below to see his short report, or continue reading for more information.
2016 Quarter Two Residential Activity:
Overall, our housing markets remain active. Sales pace is at an all-time high, home supply continues to shrink, and price appreciation continues to increase at historical rates. Year to date, the number of homes sold this quarter increased by 9%, establishing a new high-water mark for the most homes ever sold in a single quarter.
The supply of homes for sale dropped by 17% since 2015 and is now at half of 2011 levels. The small number of homes for sale, in most markets, continues to drive market activity in many communities. Both Buncombe and Henderson Counties are going to see the most change.
Because of the strong market, the Federal Finance Housing Agency reported that Asheville MSA’s home prices appreciated 6.78% over the last 12 months. As home prices trend up and the supply of homes remains low, homes located in outlying communities are likely to provide more value and opportunities for home buyers.
Read more about Q2 2016 residential activity.
2016 Quarter Two Commercial Activity:
It’s time to tighten that belt buckle. During the first half of 2016, the commercial real estate market encountered a headwind compared to last year. Britain’s vote to leave the European Union (inspiring other countries to contemplate a similar move), coupled with our impending election are creating a lot of economic uncertainty, even in WNC.
Leasing activity remains high and will continue to be healthy for the balance of the year. Occupancy and rent rates are up, while the number of lease transactions remains constant. Average base rent on office properties is $15.65 per square foot, and the average triple net rate for retail and industrial space is $14.01 per foot and $4.40 per foot, respectively.
On the sales side, Q2 2016 saw the fewest number of transactions in a quarter since Q2 2014. Despite fewer sales, the median price per foot rose in all categories except for retail ($94.50 per foot). The median sales price for office property jumped 20% to $159 per foot while the average price per foot for industrial properties rose to $56.
All real estate is local. In order to make confident real estate decisions, we believe it important for you to have timely and neighborhood-specific information. For more information about your real estate market, ask your Beverly-Hanks associate or click here.