Asheville Metro Economy Update
November 2006

Brought to you by the Asheville Metro Business Research Center. A service of the Asheville Area Chamber of Commerce.
www.ashevillechamber.org

Sponsored by:
Beverly-Hanks & Associates
www.beverly-hanks.com

A Special Look at Asheville Housing Trends

As the national housing market cools, extra attention has focused on local indicators that may provide clues on whether Asheville has or will experience a similar downturn. Below are key housing indicators, their latest data, and comparisons to the nation and state:

Sales of Existing Homes

As of September 2006, the average sale price for an existing home in the Asheville area was $282,918. The price is up 9.9 percent over last year. The average price nationwide is $265,000, down 2.2 percent over last year, while the figure for all of North Carolina is $211,988, up 1.1 percent.

At 308, the number of existing homes sold in September is 66 fewer, or 17.6 percent below last year, although the year-to-date total remains positive at 3.5 over last year. Nationwide, the number of existing homes sold is down 16.3 percent in September, and down 8 percent year-to-date. In North Carolina, units sold in September are down 3.5 percent, but still up 5 percent up year-to-date.

Interestingly, the number of days-on-the-market (DOM) for homes in Asheville is the same in September 2006 and 2005, at 72. Through the first nine months of 2006, the average DOM is 73, two days less than the average of 75 days in 2005.

Home Appreciation

Annual appreciation rate for homes in the Asheville metro area is up 12.5 percent as of the second quarter of 2006. The data reflects same-home sales information collected by the Office of Federal Housing Enterprise Oversight (OFHEO). The Asheville appreciation rate tops the nationwide pace of 10 percent and the statewide rate of 9.3 percent. Asheville's appreciation rate ranks 83 among 275 metros across the nation, up 27 places from the first quarter 2006 report, and up 30 places from one year earlier.

Building Permits

Residential building permit activity is a forward-looking indicator, reflecting investor expectations for the near-term housing market. Through September 2006, residential permits issued by the City of Asheville and Buncombe County are up 4 percent for the number of units, and up 27 percent for the total dollar value over last year. Statewide the number of residential units is up 3 percent and the dollar value by 8 percent. Nationwide residential permit activity is down, with 11 percent fewer units, and a dollar value lower by 7 percent. 

Report presented by Asheville Economy Update Editor: Tom Tveidt ttveidt@ashevillechamber.org

dta6novbizreportchamberbb1