By David Rogers. February 17, 2012. BLOWING ROCK -- After an early winter and holiday slowdown, January home sales in the High Country looked to re-establish the momentum gained in the real estate market during 2011, with 68 sold listings in January, compared to just 46 in December.

Data supplied to Blowing Rock News by the High Country Association of Realtors (HCAR) suggests that the real estate market may have stabilized in the region.  HCAR data covers Watauga, Avery and Ashe counties, where the average price of a home sold last year was $261,512, a three percent (3%) increase from the average recorded in 2010 ($253,967) and a slight improvement over 2009's $260,604.

"After three years of decline, the increase in the median price of home sales should be encouraging to local property owners," said Laurie Phillips, Executive Director of the 600-member High Country Association of Realtors.

According to the figures supplied by Phillips, the 2011 average selling price is still well below the $307,256 notched in 2006, before the subprime lending implosion. Maybe not fully recovered, but the real estate industry will take any good news to be found after three years of decline.

"Not only was the average price up (in 2011)," Phillips told Blowing Rock News on Friday, "but the number of homes sold increased 8%, from 938 to 1,1014.  There were eight consecutive months in 2011 of increased home sales, from the 34 listings sold in February 2011, to the year-high of 91 sold in September 2011."

Still another reflection of a national trend suggesting that consumers and investors alike are reducing the leverage on their personal balance sheets, the percentage number of High Country homes purchased for cash increased to 41% in 2011, compared to 34% in 2006.

Other real trends recently noted by Blowing Rock News research focused on the industry:

• Nationally, the market for mutlifamily residences (apartment buildings) is tightening, driven by four primary factors:
  • People who had their homes foreclosed are being forced to rent.
  • A rebound in the economy is picking up steam.
  • Builders and developers of multifamily residences are frequently finding it difficult to obtain financing. According to a February 16 report on the National Association of Realtors website, the National Association of Home Builders is forecasting the construction of 208,000 multifamily residences in 2012, which is below the estimated 350,000 multifamily units needed to maintain the market balance estimated by Sharon Dworkin Bell, an NAHB senior vice president.
  • According to Ron Witten, president of Witten Advisors, in the National Association of Realtors report, the young adult population entering the job market today is one of the largest in U.S. history, which is creating even greater demand for multifamily housing.
• One High Country real estate brokerage estimates that deals on new houses are getting done for about 70% of the listing price. This reflects a somewhat stronger demand than six months ago but sellers are still having to make significantly more concessions than in 2006 when listing prices were sometimes accepted by buyers.

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