Real Estate Trends of 2009

As we begin a new year, we are pleased to provide you with our annual market report and analysis of Western North Carolina real estate sales during 2009. Prior year statistics provide valuable data and detail on what occurred in the market during the past twelve months. In order to fully understand the impact of “the great recession” on area real estate sales, it is also important to analyze monthly data compared to prior year and multiple years of year end statistics. Trend analysis helps forecast the direction in which we are now headed. For these reasons, this report contains more data than we have published in the past, including 7 years of year end data broken down by property type. Much of the data presented is for the region as a whole. In the event you would like for us to assist you in analyzing a specific market or market segment, please do not hesitate to contact us.

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The good news, as the chart on the next page clearly illustrates, is that it appears that our local market has in fact reached the bottom of a downward slide that lasted almost two and a half years. Unit sales began to surpass those of 2008 in midsummer and unit closings followed suit shortly thereafter. The trend continued through the fall and winter and, as this report goes to press, most folks in our industry are reporting significantly improved levels of buyer interest. Many consumers appear to now recognize that historically low interest rates and an oversupply of inventory in many market segments has created a buyer’s market which we have not witnessed in decades. The improving economy has given many of these consumers the confidence to take advantage of such an opportunity. This positive momentum in both the economy and the housing market gives us reason for enthusiasm in the year ahead. 2010 should be one of continued improvement for Western North Carolina real estate sales.

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While the real estate market is improved it may be a little early yet to proclaim we are “out of the woods” so to speak. Inventory levels remain high even considering increasing demand. It will take a while longer to reach the balanced level of supply and demand necessary to reduce the pressure upon housing prices. But remember, we are now headed in the right direction!

We hope that you find the data contained within this report useful. Whether buying or selling in today’s real estate market, the counsel of seasoned professionals can pay big dividends. Our professional Broker Associates stand ready to assist you and would consider it a privilege to do so.

W. Neal Hanks Jr.

Click here to view our 2009 Annual Market Report