Beverly-Hanks President Neal Hanks, Jr. recently delivered the Western North Carolina Q3 2017 Real Estate Market Report. Watch the video below for his short report, or continue reading for a summation.
Q3 2017 Commercial Activity:
As is often the case with commercial real estate, one or two big deals can really sway numbers when comparing year over year. Industrial (100%) and office properties (60%) were up significantly over Q3 2016, while retail (-50%) and multi-family (-46%) were down significantly. Thirty-seven parcels of land traded in Q3 2017 at a median price of $175,807 an acre. One downtown parcel sold for slightly more than $1.9 million an acre! The average sales price for commercial property (all sectors) this past quarter was $1.3 million, with a median price per square foot of $80.
Total lease transactions were slightly down but vacancies continue to drop and rents continue to rise in all categories. The average rent for available office space in the Asheville MSA is just over $15 a foot and vacancy is down to 2.3%.
LEASE ACTIVITY:
- 15 Industrial Lease Transactions, Down 0.1% from Q3 2016
- 23 Office Lease Transactions, Down 0.8% from Q3 2016
- 39 Retail Lease Transactions, Down 0.8% from Q3 2016
Q3 2017 Residential Activity:
Improvements in employment, rising incomes, and low interest rates are fueling the demand for residential real estate. However, the demand is not translating into a faster sales pace. As a whole, sales are being dogged by a lack of homes to sell—down 25% over the last 24 months. This shortage is driving up home prices for modestly priced homes, causing them to appreciate more quickly than the region’s average.
Though a holistic problem for WNC, the inventory crunch is not spread evenly across our region. The largest demand, as well as the highest increases in prices, are occurring close to city centers. This unbalanced supply and demand is creating some unique opportunities for savvy real estate consumers, interested in buying either a larger home or a larger property in one of the surrounding communities.
Buncombe County’s median sales price continues to lead the region at $276,250, and Rutherford County is the most affordable at $185,000.
Read more about Q3 2017 residential activity.
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