High Country Real Estate Results through November

Record Results Are Growing on Modest Price Gains

With 11 months of results, the NC High Country Real Estate market is 25.5% above last year's record territory. This is with only modest gains in median sales price of 2.4%, as prices are slowly recovering from bottom pricing levels. The large number of transactions is the driver.

Inventory is tightening slightly. However, given the unique nature of our market, we continue to have a good inventory of homes for winter buyers.

Past Three Months Are Booming

What is more remarkable is the impressive results of the last three months, September through November, up 39.1% over the same period last year! (See chart below) Sales continued to be strong throughout November when we typically see some slowdown. If this pace continues through December, it will indicate a change in our historical seasonality.

More than 50% of those gains were seen in the Blowing Rock market, up 61.4% in transactions and 118.0% in sales volume over the past 3 months versus the year ago. This growth was driven by a surge in Luxury Sales.

Median sales price was up by 10% in the past three months versus a year ago, as buyers came in at slightly higher price points during our peak sales months.

Market Drivers of Past Three Months

INCREASED AFFORDABILITY: Real Estate in the High Country was traditionally significantly higher than the rest of the Southeast. After the 'correction' from the recession, our prices have not risen significantly. We do not have industry-driving relocations in and out, so we tend to have a longer sales cycle and higher levels of inventory, keeping prices a little lower. As a result, homes are more affordable as prices and interest rates stay low.

SECOND HOME MARKET: Our areas with the highest percentage of second homes saw the greatest growth over the past three months. This market has grown as the economy has improved and can also serve as a sound investment during the uncertainty around an election year.

VACATION RENTAL SECOND HOMES: Buyers who want a second home they can also rent out to vacationers have had a particularly strong market this year. It is predicted that vacation rentals will exceed hotel rentals by the year 2020, and this market is very popular for rental properties.

LUXURY MARKET: After a rather slow start to the year, Luxury Home Sales in the High Country have caught up and passed last year's numbers over the past three months. This has most notably impacted Blowing Rock results. Some of our $1M+ homes were previously at much higher prices. So there are values to be had by luxury buyers

DESIRABILITY OF THE HIGH COUNTRY: Our area is becoming increasingly well known as a second home market, retirement, and vacation destination. Additionally, we have strong school systems and a great quality of life for families able to relocate here. We are seeing more buyers coming in from states such as Texas and the Midwest in addition to the Southeastern US. Buyers who were previously looking at larger markets are attracted to our smaller towns and communities.