Beverly-Hanks President Neal Hanks, Jr. recently delivered the Q1 2017 Real Estate Market Report. Watch the video below for his short report, or continue reading for a summation.
Q1 2017 Commercial Activity:
Sales for the first quarter of 2017 were down considerably compared to Q1 2016. Retail sales remained competitive, with $10.3 million in closings compared to $13.3 million year over year. Other sectors trailed significantly. Most notably, office sales were down 70%. This is something we will continue to monitor as we move into Q2 2017. While these numbers may initially lead some to believe the market is cooling, there are a number of big deals looming that should put us back on track by mid-summer.
Total lease transactions were slightly down, but our vacancy continues to drop in all categories. We continue to have healthy net positive absorption month after month, and we expect that to continue until a significant amount of new space comes on the market.
Q1 2017 Residential Activity:
Overall, WNC housing markets are moving at a brisk pace. In the first three months of the year, we’ve seen an average YOY sales increase for the seven-county region of 15%, with several counties seeing increases of more than 20%.
Home shortages are beginning to creep from the affordable price ranges (under $300,00) into the $400,000 range. These shortages are pushing sellers’ asking prices up considerably—upwards of 20% in some counties—even as sales paces continue to increase in these same communities. The Federal Finance Housing Agency reported that Asheville MSA’s home prices appreciated 7.32% YOY for Quarter One.
Read more about Q1 2017 residential activity.
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