Beverly-Hanks & Associates REALTORS® Asheville Real Estate | Hendersonville Real Estate | Waynesville Real Estate | Lake Lure Real Estate | Brevard Real Estate

2009 was another year similar to 2008 with the volume of Land sales significantly below the highs of 2006 and 2007. The total units sold over 20 acres in the seven county region which includes Buncombe, Henderson, Haywood, Madison, Rutherford, Polk, and Transylvania counties as reported through the North Carolina Mountains MLS was a mere 37. This translates into half the units closed in 2003 and a fraction of 2007’s 216 units. Many sellers are holding out for better times. The average per acre price (gross sales divided by total acres sold) is below 2006’s $8,959.

The factors driving this include a poor market for home sales over $400,000, a corresponding poor market for residential lot sales over $100,000, and a near absence of bank financing for land sales.

The rapid development of the past has come to a screeching halt. Several large developments are in foreclosure and/or bankruptcy. Frankly, there is no development end for the land right now. The buyers in the market today demand a bargain and are seeking land for specific personal use like a family compound, recreation, and long term investment. My counsel to sellers is to reduce your expectations and price to beat your competition. Seller financing is an option worthy of consideration. The alternative is likely a long wait.

To view Housing and Land Sale Trends from 2003-2009 look at page 10 of our 2009 Annual Marketing Report. Much of the data presented is for the region as a whole. We would consider it a privilege to assist you in analyzing a specific market or market segment, please do not hesitate to contact us. Begin your search of land for sale now.

Land as an investment can be an accessible purchase for almost every potential investor.  The 30+% loss in value of the Dow in 2008 has the astute actively seeking long term stability in other investment vehicles.  It could be recreational timberland, path of progress development acreage, a residential lot for a future retirement home, or farm land for crops.  Being able to touch it, walk it and relax on it makes land a special physical investment.  Land is of finite quantity, no more is being made.  Asheville real estate and surrounding areas in Western North Carolina continues to draw retirees, insuring continued demand for land.

Market pressures on developers right now make it a perfect time to take advantage of their surplus lot inventory.   When this inventory is whittled down, boomers will continue to retire in Western NC and the values of today’s bargains are likely to rise.  The key is buying right and verifying usability.

Path of progress, future development acreage carries more risk and is more difficult to finance.  Seller financing is a welcome option in transactions where the owner has no or low debt.  Many of today’s paths of progress bargains are either bank owned foreclosures or over leveraged short sales.  These generally require cash.  Funding sources for such can be self directed IRA’s, retirement trusts, REIT’s, home equity lines and 1031 exchanges out of other real property investments.  Key here is buying right and confirming the highest and best development plan is both feasible and permit able in the better times to come.  Staying power is required.

Farm and timberland investments can be financed through Mountain Farm Credit.  A farm plan with verifiable farm income data is needed.  Locally we are blessed with successful nursery stock, greenhouse, sod and fruit operations.  Fish, vegetables and hay are also money makers.  Farming requires skill, knowledge, hard work and luck.   Years ago vegetable growers where the highest paying tenants of local bottom land.  Today sod farmers pay top dollar for the bottom land well suited to their needs.  That rent helps set the land value.   Again buying right and doing all the analysis up front is necessary.

Land Brokers at Beverly-Hanks have specialized education and professional synergies that we couple with good detective work and quality research to provide our clients the competitive edge when investing in Asheville land, Hendersonville land, Weaverville land, and other areas in Western North Carolina that qualify.