Also, don’t forget to update your bookmarks!

One of the best lots in the community is listed by Wachovia for $599,000, Lot #179 on Rock Vista Way.  Even though it is listed for considerably more than any foreclosure has sold for to date, it is a premium property with a fantastic build site and sweeping views.  They have already turned down two “low-ball” offers and appear to be holding firm to this price.  This lot originally sold for $1,340,000.

As I reported last, there are approximately 20 to 25 foreclosures and short sales in this gated golf community 12 miles from Asheville, NC.  However, in addition to these are 18 homesites listed for an average of $131,400 less than the owner originally paid.  The highest discount is $311,000; four owners are selling for $200,000 less than they paid and 5 for $100,000 less.  Yes, most of these buyers bought at the height of the market, but they are willing to take a loss and move on as they fear it will take years to recover what they paid.  When you read my inventory report in an earlier post, it would appear their fears are well-founded. 

Good news is we are finally seeing some sales activity!  One homesite has sold in the past couple of weeks, a bank-owned property for $225,000 on Bella Vista Court.  There are 3 pending contracts; one foreclosed property listed at $199,000 on Bear Flower Trail and two other properties listed for $349,000 and $489,000.

Just as many, or more lots are being offered by investors for less than they paid for them.  Whitworth Properties currently has one property listed for $300,000 less than the buyer paid and will have a very similar listing next week.  These folks need to cash out, even if it means taking a huge hit. 

As of today, our local Multiple Listing Service (MLS) has 73 listings.  They range in price from $199,000 to $1,695,000; the median list price is $550,000. 

Bank-owned and short sale inventory pricing starts at $199,000, there are two at this incredible price(Lot 75) , with the highest priced bank-owned lot on the golf course at $1,000,000 (15th Fairway).  Don’t fall for that one, there are at least two other great homesites on the golf course for less! 

In recent times, the Cliffs resale department has had anywhere from 60 – 90 resale listings in their inventory.  Developer inventory seems endless…..there has to be several hundred properties remaining of the 1600+ acres.

If you don’t want to build, what is available?  Thirty-eight single-family homes and townhomes are listed in MLS with prices ranging from $827,640 (where did they get that #?) to $4.2 million.  The Cliffs website lists 24 homes for sale from $995,000 to $4.5 million.  If you want a more detailed breakdown of townhomes versus single-family homes, please e-mail or call me at 828-768-1808.

Are any of these short sales or bank-owned?  Yes, there are two bank-owned Meadow townhomes starting at $827,640 (?) and a 6500 sq ft single-family residence listed at $2,550,000.  Walnut Cove has at least one other single family home in foreclosure proceedings.

Buyer’s market, don’t you think?

“An expert, more generally, is a person with extensive knowledge based on research, experience, or occupation.  Experts are called in for advice on their respective subject.  Believed to have special knowledge beyond that of an average person.”

WOW!  I believe I am not just qualified, I’m an expert.  For five years, I worked onsite selling exclusively for Jim Anthony and The Cliffs Communities.  During that time, I helped 74 families buy property in a Cliffs Community and wrote contracts in Walnut Cove in excess of $44million.  Since starting my own business, I have been on either the selling or listing side of 4 lot sales since the beginning of 2010 (more than all the onsite staff combined!).  Amost weekly I get a call asking for help, advice, or simply my research, as I am continually monitoring activity.  Just last week, I turned down an offer of payment for my knowledge and expertise; referrals are my best reward.

Now, please allow me to share facts & my opinions about the current market environment in a community I feel is vital to the Asheville area.  First and most important, Jim Anthony, developer of The Cliffs, has received $60million+ in much needed capital to complete all amenities in all communities.  As this came from property owners, it is a testament to their belief in the future of The Cliffs.  This infusion of money and vote of confidence will, in my opinion, cause sales volume to increase in all communities.  Good news because the only sellers in recent months have been banks; in order for a developer to survive, he has to be closing the majority of transactions and that has not been happening.

In Walnut Cove this year, almost all of the sales are being brokered by firms outside the gates, and most of this is bank-owned.  Of the 10 homesites sold this year, all but 3 were listed by outside brokers and all but 2 were sold by the same.  Banks owned 5 of these and had listed them at very attractive prices.  Lots that sold for $1million have been sold by Wachovia and NBSC for $300,000!  (To see a few more hidden gems, check out my YouTube site)  Average sales price of all lots has been $418,530.  As there are only 10, the one golf course lot sold at $1,000,000 really skews things.  Toss the outlier and the average price this year has been $352,000.  Can you tell I love statistics?

Three single-family homes have sold in Walnut Cove this year, all listed and sold by outside brokers with an avg sale price of $1,740,000.  One of these transactions was a short sale.

In all of 2009, a total of only 4 single-family homes sold in Walnut Cove, all listed and sold by “outside” agents - avg sales price $1,189,000.  Of these, one was bank-owned, one still under construction and a short sale, and one simply a short sale. 

In the 1st 4 months of this year, the Cliffs onsite sales team has sold & closed 2 Cove Park Lots for a total of $746,000.  A local broker sold one of the last remaining developer-owned golf course lots, giving Mr. Anthony a much needed $1,000,000.  During this same period last year, they sold 5 homesites for a total volume of $2,490,000.  For the entire year of 2009, they sold a total of 4 homes, all developer-owned townhomes.

What does all this information mean?  To me, there is a seismic shift in how buyers are approaching the marketplace.  They want to know everything that is on the market, they’ve done their research prior to visiting and they know deals are out there. 

A handful of local “outside” brokers are experts on the Walnut Cove community and real estate and have won the confidence of bankers looking for a broker with undivided interest in helping them unload their inventory.  They get these listings, market them heavily and buyers coming to visit the Cliffs find these deals.  Until the inventory is cleansed of these gems, developer inventory will have a hard time competing, even with large incentives.

There is a huge glut of inventory that includes foreclosures, short sales, and investors just simply tired of carrying the payments.  My next blog will address the inventory, as this one is already way too long.  Thank you if you made it this far.  And please, give me some feedback if this has been helpful.

Good news for buyers:  prices are still declining, and many feel they may fall a little more (see previous post about market timing). 

This includes the high-end 2nd home and retirement home, the market in which I have spent my entire 7 years in real estate.  At current absorption rates for homes listed between $750,000 and $1million, we have 125 months of inventory as reported by our WNC area MLS.  I did a quick spot check of sales at that price range for the past 6 months versus the same period last year and found our sales volume is up 25%. 

What does all that mean? 

Too soon to tell for sure, but now our selling season is upon us, we will find out!  Beginning now, snowbirds start looking to escape the Florida heat and hurricanes.  Plus, we are seeing many baby boomers from the Northeast deciding not to go to Florida at all, opting for the pleasant year round climate offered by our Carolina mountains.  I predict this market has already begun a rebound and this year will be better than 2011 for buyers looking to make a deal.

And what do I mean by cherry picking?  In this market, there are a few really good properties for sale that can be bought at unheard of prices.  Recently, I helped broker just this type of transaction in downtown Asheville.  Unique, high quality, big views and sold at a price so low it raised many eyebrows.  Buyer was in the right place at the right time.  Yes, there are good buys now and to come, but there aren’t many cherries like this one to pick.

Now for some data to support my call to action.  Sales volume is up all over the country, as well as here in Buncombe County.  For the 1st quarter of 2010, we saw an 8.2% increase in units sold, and a 11.8% decline in sales price, according to statistics published by WNC MLS. 

But the more important news is pending sales.  National Association of Realtors states that nationwide we had a 16.1% increase in year-to-date sales and a 21.1% increase in pending sales.

Locally, our largest firm, Beverly-Hanks published that in the 1st quarter, their pending unit sales were up a whopping 33.1% and pending sales volume was up 19.5%.

With this small tidbit of market news, I could add much more about the positive effects of brighter economic news, demographics and location, but I will save that for a later post.  Just please believe me, now is a good time to buy.

But that’s not what this post is about.  Friday night, while watching the Chicago news, I hear a story about President Obama and his beautiful First Lady enjoying a weekend vacation in Asheville at The Grove Park Inn.  On Saturday, the Wall St Journal has an article telling the world about The Cliffs Communities property owners giving the developer $63 million, allowing him to complete the Tiger Woods-designed course just outside town.  And in the Sunday Chicago Tribune is an article about the Obama’s visit.

I predict all this means a surge in people interested in visiting and living in Asheville. We were already a trendy place, but this will take us to new heights, just as the Clinton’s visits to Jackson Hole, WY increased that small town’s popularity.  As evidence, I have already heard from a friend in New York City that an acquaintance is planning a trip to Asheville as a result of the Obamas’ visit.

Though I know the presidential entourage inconvenienced many people this weekend, I am confident both in the short term and long term, Asheville will benefit positively from their visit.  As a proud native of Asheville, NC, I’m excited about our future!  Who knows, maybe the Obamas will retire here some day?

Many of these investors are good friends of mine, and I trust their judgment and admire their committment to the community.  Really, they love The Cliffs lifestyle and want to protect their investment for the next generation.

Now, the Tiger Woods course can be completed at Cliffs at High Carolina, just 10 or so miles from downtown Asheville.  This will greatly enhance their ability to sell these expensive homesites.  Gary Player’s design for Cliffs at Mountain Park will finally be finished, completing the 8 courses promised to owners. 

To read this front page article from the Asheville Citizen-Times, click on this link:  http://www.citizen-times.com/apps/pbcs.dll/article?AID=2010304170024

A recent article in the Wall St Journal prompts me to report on foreclosure statistics in Buncombe County, NC, which includes our beautiful city of Asheville. 

According to the article, one-fifth of all homes on the market in the US are in foreclosure.  On our local multiple listing service, I found a grand total of 95 homes, townhouses and condos listed as foreclosed.  This is out of 2898 listings!   Just barely 3%, and much less than the 20% reported nationwide by WSJ. 

Our market in Asheville is much healthier than the national average.  Just like you cannot apply a single weather forecast to the nation, neither can you apply a “blanket” real estate market appraisal.   Asheville and Western North Carolina has great weather, high-quality health care, easy access, beautiful scenery, arts, culture, recreation….. the list goes on & on and is why we are still a destination for baby boomers and second home buyers. 

Now, it is not all rosy out there if you are a seller.  And certainly, many real estate professionals are looking at other careers due to the downturn.  However, I forecast Asheville’s market will return faster than the national average.  Just hang on!

Same thing for the Dallas connection on American that is scheduled to begin April 7th.  Our cool summers attract many from both Dallas and Houston.  We have had successful direct connections on Continental to Houston for a number of years.

Additionally, you can fly direct from Chicago, Detroit, Houston, LaGuardia, Newark and Orlando.  Our “little” mountain airport gets busier every year, yet it is still so easy and friendly to use.