Real Estate Analysis of 2016 for the NC High Country

Mountain Properties Continue to Grow in Popularity

2016 was a record setting year in the NC High Country, outpacing even 2015's record growth. This growth was almost all from transaction volume, as home prices were relatively flat. The High Country is able to sustain such growth because of our large inventory of resale homes.

INVENTORY AND PRICING: Inventory is starting to tighten, and yet we still have almost a year of inventory. This serves to keep our pricing very competitive. On certain types of homes and homes with views the inventory and days on market is significantly lower. If this current sales pace continues, we will start to see further tightening of inventory and moderate sustainable price increases.

As I mentioned in previous market reports, the NC High Country market does not follow national norms because we do not have large industry or employers creating necessary relocations. Most home purchases AND home sales are discretionary, and many are second homes. As a result, our purchase cycle is significantly longer, with potential buyers visiting to look at homes multiple times over a longer period. On the inventory side, we have a long pipeline of homes for sale.

LUXURY MARKET: After a fairly slow start to 2016, luxury sales showed strong gains in the second half of the year, surpassing 2015. There were 65 sales of homes listed at $750,000 or higher, a 30% increase over 2015. Currently there are 185 homes listed at $750,000 (almost 3 years' supply), offering good selections for luxury buyers.

SECOND HOMES: This segment continues to fuel our market, particularly homes that can also be used as vacation rentals to help with costs. After Hurricane Matthew hit the Carolina coast, we saw a number of second home buyers move their direction toward the mountains.

The Chart below shows how our market areas compare to each other. If you are interested in a deeper understanding of any area, please do not hesitate to contact me at [email protected]