Asheville's Economy (real estate, loans, new house)

[LAMBSN]

What is the current economy like these day in Asheville? I assume the Biltmore and all it's extras on the property (fly fishing, land rover, clay shooting, etc) are still booming, is that true?

I was born and raised in Asheville, however I moved away after getting married and love to keep up on my hometown!

[Cofga]

In Feb the unemployment rate hit 9.7%; I think that pretty much sums it up.

[Asheville Native]

I'm sure the number of high-end cars turning into the Biltmore Estate is basically unchanged, but I suspect the number of cars costing less than 30K new has declined.

And most of these 'hospitality jobs' don't pay that well. Cost of housing in Asheville is higher than most of the state, median income is lower, gas has always cost more here, groceries, tax burden on homeowners is #2 in the state.

While Buncombe county unemployment is still below 10% most of the surround counties are much higher, as high as 16%. That is also a reflection of jobs lost in Asheville, as many from the surrounding counties work in Asheville/Buncombe, or did.

[archtopguitar]

And all of the small business is down 20% and the building spec/ house biz is @ a standstill

[Asheville Native]

Originally Posted by archtopguitar

And all of the small business is down 20% and the building spec/ house biz is @ a standstill

I think housing is even backing up. I have seen a basement and footings that have been dug for a new house filled in, smoothed and grass planted in the last month.

[vandemusser]

Originally Posted by archtopguitar

And all of the small business is down 20% and the building spec/ house biz is @ a standstill

Depends on what market you are talking about. The green residential market under $300,000 is still moving pretty well - when the builders can get them built. The biggest challenge I see with the builders I work with is them getting financing for spec houses. Many are having to claim they are building themselves personal houses to get bank loans at this point, or having to front a LOT of money with the banks in CD's to get the loan.

Ridiculous.

[jstubbspt]

Originally Posted by vandemusser

Depends on what market you are talking about. The green residential market under $300,000 is still moving pretty well - when the builders can get them built. The biggest challenge I see with the builders I work with is them getting financing for spec houses. Many are having to claim they are building themselves personal houses to get bank loans at this point, or having to front a LOT of money with the banks in CD's to get the loan.

Ridiculous.

That is fraud and is going to cause further harm to the local economy. Asheville is overbuilt in both residential and commercial real estate and is setting itself up for some very hard economic times in the near future. Builders are building themselves out of a job for years to come; luckily many are new comers to the area and will flee when the money runs out.

[vandemusser]

Originally Posted by jstubbspt

That is fraud and is going to cause further harm to the local economy. Asheville is overbuilt in both residential and commercial real estate and is setting itself up for some very hard economic times in the near future. Builders are building themselves out of a job for years to come; luckily many are new comers to the area and will flee when the money runs out.

It's not fraud. If they intend on moving in when the house is finished, then they have built a house for themselves. Whether someone wants to buy it from them beforehand is up to them. You certainly aren't going to flood the market with that, and most builders can't even afford to do it.

People are buying what is appealing to them and what they can afford. The reason green-certified homes under $300,000 are selling is that demand is exceeding supply. What's hurting the market is a glut of overpriced, oversized, inefficient homes in high-end developments, not the conscientious builder trying to provide affordable, energy-efficient housing. They're unfortunately getting caught up in a lending nightmare.

[Asheville Native]

Originally Posted by vandemusser

It's not fraud. If they intend on moving in when the house is finished, then they have built a house for themselves. Whether someone wants to buy it from them beforehand is up to them. You certainly aren't going to flood the market with that, and most builders can't even afford to do it.

People are buying what is appealing to them and what they can afford. The reason green-certified homes under $300,000 are selling is that demand is exceeding supply. What's hurting the market is a glut of overpriced, oversized, inefficient homes in high-end developments, not the conscientious builder trying to provide affordable, energy-efficient housing. They're unfortunately getting caught up in a lending nightmare.

What size are these 300K green homes? The green homes I see around here are $650K+ for 1700 - 1800 sq/ft, on tiny steep lots with no usable yard.

[vandemusser]

These are typically in the 1400-1600 square foot range on infill lots in various neighborhoods around Asheville.