Ivester Jackson BlackStream Christie's Luxury Market Report
Q2 2019
Q2 Market Report
contents July 2019
MARKET REPORT Luxury Real Estate Market Trending Postive across all price points with strong Sell Thru expected into Quarter 3.
COMMUNITY UPDATES Downtown | Montford North Asheville South Asheville West Asheville East Asheville | Black Mountain Hendersonville Tryon | Foothills
FORECAST Stabilized interest rates and stock market conditions have strengthened the housing market and we expect to see continued positive conditions through the fall.
PODCAST & VIDEOS From market forecasts, to interviews, to house marketing ideas, join the team at Ivester Jackson | BlackStream I Christie's for the latest in WNC luxury real estate content.
2nd Quarter Luxury Market Report LUXURY
REAL
CONTINUES 2018
ESTATE
TO
QUARTER
MARKET
THRIVE, 2
SURPASSING
SALES
Luxury Real Estate sales in Buncombe County trended positively across the board in the second quarter of 2019. We have seen both sales and showings continue to rebound from initial slowness at the start of the year to surpass last years numbers at nearly every price point. The stock market has regained and exceeded much of the ground it lost in the 4th quarter, and interest rates are down to 3.75%-4.0% versus 5.%+ in December 2018. In comparison to 2018's second quarter numbers, sales in the "initial" luxury market, (homes priced under $1M) increased by 8.5%with a robust 140 homes closed. There are currently 125 pending sales in this sector, which points to a strong sell thru into the third and fourth quarter. The luxury market, (homes priced over $1M) increased by 16% from last year’s already impressive numbers- with 29 homes closed and 12 sales currently pending. Showings trended positively in comparison to 2018 in both markets, with 3% increase in the initial luxury and 24% in the luxury market.
LAST 90 DAYS
ASHEVILLE LUXURY Q2 HOMES SOLD & SHOWINGS
IVESTER JACKSON | BLACKSTREAM | CHRISTIE'S INTERNATIONAL REAL ESTATE
EXPERTS IN LUXURY REAL ESTATE
DOWNTOWN CONDOS | CHICKEN HILL | RIVER ARTS
In the initial luxury segment, there were 10 homes closed this quarter, which is on par with last year’s sell thru. There are 17 pending sales which are comprised predominately of new construction condos in the Downtown area. There were 3 homes sold in the luxury segment, compared with 1 in 2018. With only 9 homes on the market and 3 pending sales, luxury market conditions are positive as we enter the third quarter. Showings trended positively in both segments.
LAST 90 DAYS
DOWNTOWN ASHEVILLE Q2 HOMES SOLD & SHOWINGS
IVESTER JACKSON | BLACKSTREAM | CHRISTIE'S INTERNATIONAL REAL ESTATE
EXPERTS IN LUXURY REAL ESTATE
Listings Downtown
1 SUNSET PARKWAY 254 PEARSON DRIVE 21 BATTERY PARK AVE #306
NORTH BUNCOMBE GROVE PARK | LAKEVIEW PARK WEAVERVILLE | ALAXANDER
North Buncombe County, including the neighborhods of Grove Park, North Asheville, and Weaverville trended upward in both the initial luxury and luxury segments. There was an increase of 25% from last year of homes sold between $500K - $1M, with 40 homes sold. There are currently 36 pending sales which points to strength continuing into the third quarter. The luxury market saw an increase of 33% with 8 homes sold and 5 sales pending. Showings were up by 9% and 26% respectively in both markets.
LAST 90 DAYS
NORTH BUNCOMBE Q2 HOMES SOLD & SHOWINGS
IVESTER JACKSON | BLACKSTREAM | CHRISTIE'S INTERNATIONAL REAL ESTATE
EXPERTS IN LUXURY REAL ESTATE
Listings North Buncombe
193 STRATFORD ROAD 534 OLD MARS HILL ROAD 370 MIDLAND DRIVE 366 MIDLAND DRIVE 103 WALNUT RIDGE DRVE 494 CLARKS CHAPEL ROAD 58 POINTS WEST DRIVE 220 MIDLAND DRIVE 20 STONY RIDGE #20
Sold North Buncombe
21 WOODCREST ROAD 347 BLACKBERRY ROAD 28 GREENWOOD FIELDS DRIVE 20 GREENWOOD FIELDS DRIVE
SOUTH BUNCOMBE BILTMORE FOREST | THE RAMBLE | BILTMORE PARK ARDEN | FLETCHER
South Asheville saw a 15% decline in homes sold in the $500K-$1M segment, with 34 homes closed this quarter. There was a slight decrease in showings at this price point, by 2%, but with 33 pending sales the third quarter is promising. The luxury market remained steady with homes over $1M seeing a 7% increase in sales and a 29% increase in showings.
LAST 60 DAYS
SOUTH BUNCOMBE Q2 HOMES SOLD & SHOWINGS
IVESTER JACKSON | BLACKSTREAM | CHRISTIE'S INTERNATIONAL REAL ESTATE
EXPERTS IN LUXURY REAL ESTATE
Listings South Buncombe
31 CEDAR HILL DRIVE 2 CLEFTRIDGE COURT 80 MILLS GAP ROAD 736 WICKHAMS FANCY DRIVE 6 CHESTNUT TERRACE
Sold South Buncombe
525 WOOD THRUSH COURT 28 BENT GRASS COURT 6 STANSBURY DRIVE
WEST BUNCOMBE WEST ASHEVILLE | BILTMORE LAKE | LEICESTERÂ
West Buncombe continues to see an emerging initial luxury segment, with 33 homes sold over $500K, an astonishing 94% increase from 2018 numbers. With 32 sales pending, and only 14 active homes, this is an emerging luxury segment that continues to surge. Sales in the $250-500K range were up 8% from last years numbers, with 152 homes closed this quarter and 96 pending sales. Showings trended positive in both segments as well, with an increase of 25% in the entry level and 35% in the initial luxury range. With less than two months of inventory across the board, these are strong conditions for sellers that we expect to continue through third and fourth quarter.
LAST 60 DAYS
WEST BUNCOMBE Q2 HOMES SOLD & SHOWINGS
IVESTER JACKSON | BLACKSTREAM | CHRISTIE'S INTERNATIONAL REAL ESTATE
EXPERTS IN LUXURY REAL ESTATE
Listings West Buncombe
78 WHISPERING PINES DRIVE 93 LOMBARD STREET 95 STONEGATE TRAIL
Sold West Buncombe
22 UPSTREAM WAY *BUYER REPRESENTATION 80 BLUE RIDGE ACRES
EAST BUNCOMBE EAST | FAIRVIEW | SWANNANOA | BLACK MOUNTAINÂ
Quarter 2 in East Asheville was pretty balanced with a slight decrease in homes sold in the entry level market, down to 100 from 118 last year. However showings were up 16%. In the initial luxury range over $500,000, there was a 3% increase in homes sold this quarter with a 15% decrease in showings.
LAST 60 DAYS
EAST BUNCOMBE Q2 HOMES SOLD & SHOWINGS
IVESTER JACKSON | BLACKSTREAM | CHRISTIE'S INTERNATIONAL REAL ESTATE
EXPERTS IN LUXURY REAL ESTATE
Listings East Buncombe
488 LAMBETH WALK 7 TWIN SPRINGS COURT 59 MORTON CIRCLE 20 CANE CREST CIRCLE 110 STILL WATER LANE 8 OLD BRIDGE CIRCLE
Sold East Buncombe
7 PINE KNOT LOOP *BUYER REPRESENTATION 44 OAK HOLLOW 20 STILLS CREEK LOOP
HENDERSONVILLE FLAT ROCK | HENDERSON COUNTY
Hendersonville saw a slight decrease in homes sold in both the entry level and initial luxury markets. There was a 6% decrease in homes sold between $250-50oK, with 243 homes closed this quarter. However, with 159 pending sales and only 281 homes active on the market, there is only 3.5 months of inventory and a strong sellers market. The initial luxury range over $50oK had a 25% decrease in homes sold, down from 40 to 30. However, there are currently 45 pending sales which points to a strong third quarter. Showings trended positively across both markets as well, with an increase of 5% and 15% respectively.
LAST 60 DAYS
HENDERSONVILLE Q2 HOMES SOLD & SHOWINGS
IVESTER JACKSON | BLACKSTREAM | CHRISTIE'S INTERNATIONAL REAL ESTATE
EXPERTS IN LUXURY REAL ESTATE
Listings Hendersonville
144 CARRIAGE SUMITT WAY
Sold Hendersonville
694 BEREA ROAD 776 PRICE ROAD *BUYER REPRESENTATION
TRYON AREA FOOTHILLS | POLK | RUTHERFORD | CLEVELAND
Tryon saw a slight dip in homes sold in both the entry level and initial luxury ranges this quarter. Homes between $250-500K saw a 4% decrease with 70 sales closed but there are currently 67 pending sales. There were 17 homes closed over $500K and 16 pending sales. Lower sales in the beginning of the quarter could be due to the slower start to the Equestrian Season, but with the TIEC ramping up for Summer and Fall shows, we expect showings and closed sales to increase.
LAST 60 DAYS
TRYON AREAQ1 HOMES SOLD & SHOWINGS
IVESTER JACKSON | BLACKSTREAM | CHRISTIE'S INTERNATIONAL REAL ESTATE
EXPERTS IN LUXURY REAL ESTATE
Listings Tryon Area
265 PHILLIP HENDERSONVILLE ROAD, RUTHERFORDTON 352 WINDFLOWER LANE, MILL SPRING 61 AMBROSE DRIVE, TRYON 465 NORTH PARK LANE, MILL SPRING 393 SPRINGHILL DRIVE, RUTHERFORDTON 243 TRAIL RIDGE DRIVE, RUTHERFORDTON 117 CANTERBURY DRIVE, MILL SPRING 163 APPIAN WAY, SHELBY 234 THAMON ROAD, SHELBY
Sold Tryon Area
506 WILSON CORNWELL ROAD, SHELBY 1336 COLLEGE AVENUE, BOILING SPRINGS 1336 E MARION STREET, SHELBY 1493 CLEGHORN MILL ROAD, RUTHERFORDTON
Market Forecast for Asheville Following stock market volatility and a slow start to 2019, Quarter 2 Luxury Home Sales have rebounded to surpass 2018’s numbers. In addition to a solid quarter of sales nearly across the board, over the last 6 weeks pending sales are tracking at a 17.5% increase from last year which points to continued positive market conditions in the third and fourth quarter. Showing activity over the last 90 days has tracked at an average of 15% over last year's numbers, also indicating a strong fall market season. Much of the trepidation we saw at the beginning of the year has slowed, due in part to a stabilized stock market and lower interest rates. In December, rates were upwards of 5.0% but have declined to 3.5-4.0% and are expected to hold there for the remainder of the year. In an ironic twist, Friday’s robust job’s report has impacted the stock market a bit negatively and a projected interest rate decrease may be on hold until September. The report shared that 220,000+ jobs
were created in June, showing an overall strong economy which is always good for the housing market. The newly passed tax restructuring plan from 2018 has capped the deductible property tax expense at $10,000 annually. This has led people in expensive states like New Jersey, Connecticut, New York, and California, to consider relocating to states like North Carolina, which can have up to 66% lower rates. Although this is pushing people out the door towards us, it is taking more time to sell their homes which is leading to a housing slow down in these highly taxed areas. Looking at the interest rates, economic conditions, and market trends, we predict that sell thru rates will exceed 2018 numbers through October, particularly if the US cuts a new trade deal with China, which could begin to impact building and supply chain costs.
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