If you read the recent Greybeard blog on the increase in local construction permits, you may have wondered where all these new residential permits are being put to use. If the July MLS statistics on land sales are any indication, we may have found the answer.
Land sales in Asheville increased from 181 units sold year to date last year to 309 units for the same period in 2013. That represents a 71% increase for year to date from 2013. Black Mountain had a 20% increase year to date in land sales, from 15 units to 18 units. In terms of dollars sold, both Asheville and Black Mountain had increases that paralleled the number of units sold. Asheville showed a 69% increase while Black Mountain had a 23% increase.
One reason for this increase may be the tightening of supply of homes in the Asheville area market. As was discussed in a recent Greybeard blog on real estate trends, the number of homes on the market in the Asheville area is decreasing as well. It may be that home buyers are becoming home builders to build the home of their dreams when they can't find it on the Asheville sales market.
Even with the large increases in land sales, the market has not returned to its peak of 2006. In that year there were 565 units sold year to date in Asheville and 54 land units sold in Black Mountain. It will be interesting to track land sales over the next few months to see if the current trend holds. For more information, check out Greybeard's current market reports which updates frequently and will let you track Asheville market trends.