Beverly-Hanks President Neal Hanks, Jr. has delivered the first quarter 2018 Market Report. Watch the video below for his short report, or continue reading for a summation.
Q1 2018 Commercial Activity:
It was a strong first quarter for commercial real estate in Western North Carolina. 96 properties closed for approximately $192 million, compared to 127 properties for $136.4 million in Q1 2017. Multi-family closings jumped to $52 million, due largely to the sale of two big apartment complexes: Woodberry ($22.7M) and Parkway Crossing ($27.3M). The average sales price for all properties came in at roughly $2 million, compared to $1.07 million in Q1 2017. The average sales price for properties in downtown Asheville was approximately $225 per square foot. There are currently three properties for sale downtown, including the historic Flat Iron Building for $16 million ($380 per foot).
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 downtown Asheville is just over $25.50 per foot and retail space is $29.50 per foot.
LEASE ACTIVITY for Q1 2018:
- 26 Industrial Lease Transactions, Up 2 from Q1 2017
- 50 Office Lease Transactions, Up 14 from Q1 2017
- 35 Retail Lease Transactions, Down 20 from Q1 2017
Q1 2018 Residential Activity:
Price appreciation continues to march higher, creating big opportunities for homeowners. Demand is being pushed by low unemployment, increasing desire for home ownership, and people’s enthusiasm to live in Western North Carolina. This demand is creating a very active market, but buyers are being forced to compete for the dwindling supply of homes for sale. Here in WNC, that combination has translated into a 7.69% increase in prices.
Home prices have trended upward for the past five years, leaving many homeowners unaware of the equity they have gained. According to Fannie Mae, only 37% of Americans believe that they have “significant equity” (greater than 20%) in their home, when in actuality 83% do. All together, it is a great time to own real estate in our area.
Buncombe County continues to experience the highest median sales price in the region at $285,000. Rutherford County was the lowest at $170,000.
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.