Beverly-Hanks President Neal Hanks, Jr. has delivered the 2017 End-of-Year Market Report. Watch the video below for his short report, or continue reading for a summation.
2017 End-of-Year Commercial Activity:
2017 was an incredible year for NAI Beverly-Hanks! The division sold and leased transactions totaling more than $100 million dollars—an all-time high!
The WNC market was strong as well, with total sales transactions topping $577 million. While this number is down from 2016, it is not due to lack of interest from investors. There is plenty of capital available, and at attractive rates. Our supply is so tight, though, that many investors are sitting on the sidelines waiting for this upward cycle to end (or at least slow down). We suspect they may be waiting to see a reduction in the gap between buyers’ and sellers’ price expectations.
While 2017 sales were down, the average price per building square foot was up to $116 by the end of the year. That is the highest price since the first quarter of 2011. We see this upward trend continuing in 2018 as the economy continues to strengthen, inventory continues to tighten, and prices continue to rise.
LEASE ACTIVITY for 2017:
- 101 Industrial Lease Transactions, Up 19 from 2016
- 144 Office Lease Transactions, Up 8 from 2016
- 163 Retail Lease Transactions, Even with 2016
2017 Residential Activity:
Consumer confidence is the highest it’s been since December 2000. What does that mean for the housing market?—More buyers. This includes not just first-time home buyers, but more people saying, “Maybe it’s time for us to move up to the house we’ve dreamed about.” Here in Western North Carolina, that optimism has translated into a 2% increase in sales compared to 2016.
Why isn’t the market even hotter than that? There are simply not enough homes to sell and meet that demand. We have 63% fewer homes on the market now than we did when the supply levels peaked in 2011. The continued demand for WNC real estate and a shortage of homes for sell is putting upward pressure on home prices. Across our region, home prices are up 8%, making it a great time to own real estate in our area.
Buncombe County continues to experience the highest median sales price in the region at $275,000. Rutherford County was the lowest at $175,000.
All real estate is local. In order to make confident real estate decisions, we believe it is important for you to have timely and neighborhood-specific information. For more information about your real estate market, ask your NAI Beverly-Hanks associate or click here.