November home sales in Asheville-area jump dramatically

By Mark Barrett • December 10, 2009 Asheville Citizens Times

ASHEVILLE — Sales of existing homes in Buncombe County jumped by 55 percent in November.

Sales spurred by what had been a Nov. 30 deadline to take advantage of a first-time homebuyers tax credit made up some of the climb.
Still, the increase in sales over November 2008 is “really a startling figure,” said Tom Garden, owner/broker at the Century 21 Lifestyles real estate brokerage in Weaverville.
“My optimism says we've reached the bottom (of the housing market), but the reality is that this is too short a time to tell,” he said.
November was the third month in row in which existing home sales in Buncombe County saw double-digit percentage increases, as reported by N.C. Mountains Multiple Listing Service.
That's welcome news for people who make their living in real estate, or related fields like construction and home furnishings, even if it is not clear whether the positive numbers will continue.
Troubles in the housing market eroded consumer confidence in recent years and helped cause the recession. A turnaround could inject money into related fields and help change consumer thinking.
In early November, the federal government extended the time to claim the $8,000 tax credit through April. Many buyers had already committed to a purchase by then.
“Once you're under contract, you're kind of invested at that point,” said Jon Corbin, president of The Buyer's Agent of Asheville. He attributed “a lot or most of that” increase in November sales to first-time buyers.
First-time buyers have “been the bulk of who we've been seeing come in,” said Scott Best, an Asheville attorney specializing in real estate.
Other counties in the region also saw sales increases, including a 48.3 percent jump in Haywood County.
Other factors behind the increases appeared to be mortgage rates below 5 percent, improvement in the national housing picture and continuing foreclosure and other forced sales.
The median home sales price — the point at which half were higher, half lower — dropped from $239,500 in November 2008 to $208,750 last month.
The figures reflect both declining home values and a change in the mix of the homes that are selling, industry experts said.
Homes in the $200,000s are selling well and those in the $300,000s “are beginning to sell. Above that, it's pretty thin,” Garden said.

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