MARKET REPORT. beverly-hanks.com. The Choice is Black & White BEVERLY-HANKS & ASSOCIATES, REALTORS 2016 QUARTER THREE

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1 MARKET REPORT 2016 QUARTER THREE REAL ESTATE INFORMATION for WESTERN NORTH CAROLINA BEVERLY-HANKS & ASSOCIATES, REALTORS beverly-hanks.com The Choice is Black & White EQUAL HOUSING OPPORTUNITY

MARKET REPORT 2016 QUARTER THREE REAL ESTATE INFORMATION for WESTERN NORTH CAROLINA Home-value gains have played a large part in restoring home euity across Western North Carolina.

The Federal Housing Finance Agency reports the most accurate measure of home price appreciation, the Housing Price Index (HPI).

2 MARKET REPORT 2016 QUARTER THREE REAL ESTATE INFORMATION for WESTERN NORTH CAROLINA Home-value gains have played a large part in restoring home euity across Western North Carolina. Conditions for sellers remain favorable. Interest rates remain well under 4%, and demand remains high. The Federal Housing Finance Agency reports the most accurate measure of home price appreciation, the Housing Price Index (HPI). It measures average price changes in repeat sales or refinancings on the same properties. During the past twelve months, the HPI for the Asheville MSA has increased by 5.89%. Improvements over the previous YTD CLOSED SALES 9% SIGNED CONTRACTS 14% (August 2016) MEDIAN SALES PRICE 6% 17% five years have led to nearly 20% price appreciation. CoreLogic s latest Euity Report revealed that 73.7% of North Carolina homeowners have greater than 20% euity. This expanding euity is creating opportunities for previously stuck homeowners to now purchase a home that better suits their needs and preferences. CoreLogic s CEO, Anand Nallathambi, believes the euity position of many sellers is a great sign for the market in the coming year. Based on the latest projected national CoreLogic Home Price Index, he believes home prices will rise another 5%. Price appreciation remains uneven in the region, but there s no uestion that most homes have had some METROPOLITAN AREA RANK Asheville, NC 86 1 QUARTER 2.24 appreciation. Inside, you ll find detailed information by county and price bracket. If you are unsure of how much euity you have in your home, don t let that be the reason you fail to achieve your dreams this year. Beverly-Hanks agents are euipped to help you use the euity gained through appreciation to realize the next chapter in your life. 1 YEAR 5 YEARS SINCE 1991 Q beverly-hanks.com/market-research-center

3 THE REGION S VITAL SIGNS RD QUARTER LIST/SELL RATIO MEDIAN SALES PRICE DISTRESSED SALES CLOSED ACTIVE 97% $ 226,700 4,451 4% Q3: 95% 2015 Q3: $214, Q3: 5, Q3: 6% 2015 Q3: Q3: N/A TRENDS for WESTERN NORTH CAROLINA 2016 MLS data provides a valuable perspective on what s happened inside the regional housing markets each uarter, but it fails to shed light on who and why folks are purchasing real estate in our region. Each uarter, we share insights we ve gathered from the hundreds of people who buy and sell real estate with Beverly-Hanks. While the data represents a portion of the total transactions, it s proven valuable for gaining a deeper understanding of the trends shaping our local real estate markets. AGE OF BUYER 0-40 Years: Years: Years: TOP 5 PLACES RELOCATED FROM North Carolina: 1,086 Florida: 44 South Carolina: 30 New York: 14 California: 14 Georgia: PURPOSE OF PURCHASE Primary Residence: 908 2nd Home: 130 Investment: 112 Lot/Acreage: 149 Commercial: % ARE FIRST-TIME HOME BUYERS REPEAT VS FIRST-TIME BUYERS *Charts are based on 1,528 responses to the Beverly-Hanks post-transaction uestionnaire. CONTENTS 2-3: EXECUTIVE SUMMARY & 2016 TRENDS 4: MORTGAGE REVIEW 5: GLOSSARY OF TERMS 6-19: COUNTY MARKET REVIEWS 20-21: LOTS & ACREAGE REVIEW 22: NEW HOME COMMUNITIES 23: COMMERCIAL MARKET REVIEW 24: BEVERLY-HANKS MARKET SHARE RD QUARTER 3

MORTGAGE VITAL SIGNS 2016 3RD QUARTER UNEMPLOYMENT RATE AUGUST CONSUMER PRICE INDEX AUGUST CONSUMER CONFIDENCE SEPTEMBER DOW JONES INDEX SEPTEMBER 3RD MORTGAGE DEFAULT INDEX AUGUST 4.9% 240.853 91.

4 MORTGAGE VITAL SIGNS RD QUARTER UNEMPLOYMENT RATE AUGUST CONSUMER PRICE INDEX AUGUST CONSUMER CONFIDENCE SEPTEMBER DOW JONES INDEX SEPTEMBER 3RD MORTGAGE DEFAULT INDEX AUGUST 4.9% , : 5.1% 2015: : : 16, :.84 MORTGAGE OUTLOOK We consider four variables when we consider the mortgage environment. Unpacking the components of each in this report would be impossible. Our loan officers are well versed in each and would welcome the opportunity to discuss their impact with you. Economy The sluggish growth in GDP continues to weigh on the financial markets. However, the recent jobs report is a bright spot. As long as volatility remains and inflation stays in check, mortgage securities will continue to be attractive and maintain our low rates. Rates Since the beginning of the year, rates have fallen like a rock, which is good news for buyers. Rates are down almost a half percentage point. Projections from all the major players show that by this time next year we will remain below 4%. Availability Obtaining a mortgage is easier, but we re nowhere near 2006 levels. Reuired FICO scores and ualifying ratios still leave plenty of room for most borrowers. Reports suggest that the average FICO score is increasing for new applicants. Many experts believe the increase is due to would-be applicants not applying instead of being turned down. Affordability Affordability is down if we compare it to We have to remember that during the previous five years, there were a lot of distressed sales sold at significant discounts. In our market, as much as 20% were distressed compared to today s 4%. So, of course, affordability is worse now, but if we look back to the twenty years before that, we re just fine. Contact Beverly-Hanks Mortgage Services, if you are considering buying or refinancing, and we will go over all of your options. NMLS# MOVING TIP Before you start packing your life into cardboard boxes, set aside a clear plastic tote. In the tote, place all the items you ll need as soon as you arrive at your new address. The clear tote allows you to see inside and it will be easily distinguishable from all the cardboard boxes. Here s our top ten recommendations for your tote: Box cutters Paper towels Plastic eating utensils Paper plates Trash bags Power cords Phone chargers Toilet paper Hand washing soap Set of screwdrivers beverly-hanks.com/market-research-center

GLOSSARY Active Days on Market (ADOM) is the average amount of time the current supply of homes has been on the market.

Closings by Price Bracket looks at the distribution of sales across the price brackets during the period.

Closed Days on Market (CDOM) is the average amount of time it takes to market and close on a property. This is useful for monitoring if a market is accelerating or decelerating.

Home Supply represents the total number of properties of a certain type in a specific geography.

Generally zero to six months of inventory indicate increasing sales prices, six to twelve months indicate a stable market, and if the market exceeds twelve months, prices are falling.

5 GLOSSARY Active Days on Market (ADOM) is the average amount of time the current supply of homes has been on the market. When considered alongside Closed Days on Market (CDOM), the metric can help to describe if existing inventory matches buyer preferences and the general direction of the market. Closings by Price Bracket looks at the distribution of sales across the price brackets during the period. It is useful for uickly analyzing which price categories for properties are more commonly sold in a given geography. Closed Days on Market (CDOM) is the average amount of time it takes to market and close on a property. This is useful for monitoring if a market is accelerating or decelerating. Distressed Sales tracks the percentage of sales over the last uarter that are either in foreclosure, short sale, or represent real estate owned by financial institutions. Home Supply represents the total number of properties of a certain type in a specific geography. Unless otherwise noted, this number includes all types of residential properties reported by the Multiple Listing Service. ($) are used to indicate whether a market is favoring buyers or sellers. Generally zero to six months of inventory indicate increasing sales prices, six to twelve months indicate a stable market, and if the market exceeds twelve months, prices are falling. List/Sell Ratio (L/S) compares the final sales price against the most recent list price prior to the property going under contract. The ratio can be used to compare buyers and sellers opinions of value. Median Sales Price is a means of tracking property where one half of closed sales prices are higher and one half lower. This statistic is less at risk of being influenced by properties on either extreme end of the pricing spectrum. Months of Inventory (MOI) is a calculation used by the real estate industry to describe the relationship of sales pace and the number of properties currently on the market if no additional homes were added to the supply. It is calculated by determining the number of homes sold per month and dividing by the total number of properties for sale on the last day of the month. It is susceptible to changes in supply and/or pace. Sales Pace/Days on Market tracks the average days on market for the county by the average number of properties selling per month. When the two metrics are considered together, the trend lines can indicate changes in the market. Trend lines opposite one another indicate a recovering/accelerating market, and lines moving closer indicate a slowing market. Sold Homes is the ultimate snapshot. The number of closed transactions in each price bracket shows how communities are doing. Supply Pie Graph describes the number of individual properties on the market on a specific date in a given geography across each price range. beverly-hanks.com HOME Advanced Searches and detailed community information. MOBILE On the top right corner of your screen, click: NEARBY PROPERTIE S for prices and photos. Information throughout this report is derived from Buncombe, Henderson, Haywood, Madison, Rutherford, Polk, and Transylvania Counties real estate markets. Information is reported by the NC Mountains Multiple Listing Service and the Carolina Multiple Listing Service, which do not guarantee or are in any way responsible for accuracy. Data maintained by the MLS may not reflect all real estate activity in the market, and changes in MLS service providers may also influence the type of data and how data is gathered for a period of time after such a change. During 2015 Q4, the region upgraded its multiple listing service. The new service collects and reports data differently than the old. Despite every effort being made, inconsistencies might distort comparisons with previous years RD QUARTER 5

UNCOMBE COUNTY INSIGHTS A shortage of homes available for sale characterizes the past year, prices are up 6% alone. While supply the county s real estate market.

6 UNCOMBE COUNTY INSIGHTS A shortage of homes available for sale characterizes the past year, prices are up 6% alone. While supply the county s real estate market. Homes priced below is shrinking overall, there continues to be generous $600,000 are in short supply, giving sellers the upper supply in price categories over $600,000. Homes hand. FHFA reports prices are up 20% in the past priced over $1M still have more than 36 months of five years. We expect appreciation to speed up until inventory. the number of buyers and sellers balances. During -19% Number of Homes currently available in the price range: $0-99, $600, , $100, , $700, , $200, , $800, , Year-Over-Year $300, , $400, , $500, , $900, , $1,000, TOTAL: 1,397 SALES PACE SOLD SOLD $0-99,999: 44 $100, ,999: 288 $200, ,999: 398 $300, ,999: 202 $400, ,999: 109 $500, ,999: 60 $600, ,999: $700, ,999: 14 $800, ,999: 19 $900, ,999: 8 $1,000,000+: ,191 Homes Sold per Month Days on Market beverly-hanks.com/market-research-center

7 BUNCOMBE COUNTY VITAL SIGNS RD QUARTER LIST/SELL RATIO MEDIAN SALES PRICE DISTRESSED SALES CLOSED ACTIVE 97% $ 260,000 1,397 2% Q3: 96% 2015 Q3: $235, Q3: 1, Q3: 5% 2015 Q3: Q3: N/A $0-$99,999 SELLER S MARKET Homes Sold 44 List/Sell Ratio 91% $100,000-$199,999 SELLER S MARKET Homes Sold 288 List/Sell Ratio 98% p $200,000-$299,999 SELLER S MARKET Homes Sold 398 p List/Sell Ratio 98% vw Days on Market (Active) 119 N/A Days on Market (Closed) 64 Months of Inventory 2.2 vw Days on Market (Active) 71 N/A Days on Market (Active) 102 N/A Days on Market (Closed) 49 Days on Market (Closed) 51 Months of Inventory Months of Inventory $300,000-$399,999 SELLER S MARKET Homes Sold 202 p List/Sell Ratio 98% p $400,000-$499,999 Homes Sold 109 p List/Sell Ratio 98% vw $500,000-$599,999 Homes Sold 60 p List/Sell Ratio 96% vw Days on Market (Active) 115 N/A Days on Market (Active) 123 N/A Days on Market (Closed) 69 Days on Market (Closed) 85 Months of Inventory Months of Inventory Days on Market (Active) 154 N/A Days on Market (Closed) 87 Months of Inventory $600,000-$699,999 Homes Sold 31 p List/Sell Ratio 96% $700,000-$799,999 Homes Sold 14 List/Sell Ratio 96% p $800,000-$899,999 Homes Sold 19 p List/Sell Ratio 97% p Days on Market (Active) 156 N/A Days on Market (Active) 175 N/A Days on Market (Closed) 79 Days on Market (Closed) 168 p Months of Inventory 10.1 p1 Months of Inventory 20.1 p5 Days on Market (Active) 162 N/A Days on Market (Closed) 97 Months of Inventory $900,000-$999,999 Homes Sold 8 List/Sell Ratio 93% Days on Market (Active) 200 N/A $1,000,000+ Homes Sold 18 p List/Sell Ratio 92% Days on Market (Active) 202 N/A Days on Market (Closed) 184 Days on Market (Closed) 224 p Months of Inventory Months of Inventory LEGEND: Change from 2015 data INCREASE: p DECREASE: NO CHANGE: vw WEAKENING TREND: p AMOUNT OF CHANGE: p X X INSUFFICIENT SALES DATA: N/A RD QUARTER 7

8 AYWOOD COUNTY INSIGHTS With a 16% reduction in the supply of homes for sale inventory in these upper price ranges. Buyers looking and 14% increase in the number sold in the past 90 to buy mountain homes would do well to consider days, the county is finally experiencing a market Waynesville. Its uaint downtown and proximity to shift. Ample supply remains in all price brackets over some of the area s finest outdoor recreation are sure $200,000. Less than 15 sales have occurred over to draw informed buyers. $500,000, and there remains 17 or more months of -16% Number of Homes currently available in the price range: $0-99, $600, , $100, , $700, , $200, , $800, , Year-Over-Year $300, , $400, , $500, , $900, , $1,000, TOTAL: 836 SALES PACE SOLD SOLD $0-99,999: 38 $100, ,999: 130 $200, ,999: 89 $300, ,999: 19 $400, ,999: 12 $500, ,999: 8 $600, ,999: 4 $700, ,999: 2 $800, ,999: 0 $900, ,999: 0 $1,000,000+: Homes Sold per Month Days on Market beverly-hanks.com/market-research-center

9 HAYWOOD COUNTY VITAL SIGNS RD QUARTER LIST/SELL RATIO MEDIAN SALES PRICE DISTRESSED SALES CLOSED ACTIVE 95% $ 188, % Q3: 94% 2015 Q3: $164, Q3: Q3: 7% 2015 Q3: Q3: N/A $0-$99,999 SELLER S MARKET Homes Sold 38 p List/Sell Ratio 89% $100,000-$199,999 Homes Sold 130 p List/Sell Ratio 96% p $200,000-$299,999 Homes Sold 89 p List/Sell Ratio 96% vw Days on Market (Active) 172 N/A Days on Market (Closed) 158 Months of Inventory 4 vw Days on Market (Active) 176 N/A Days on Market (Active) 222 N/A Days on Market (Closed) 116 Days on Market (Closed) 129 Months of Inventory 6 3 Months of Inventory 12 8 $300,000-$399,999 Homes Sold 19 vw List/Sell Ratio 95% p Days on Market (Active) 184 N/A Days on Market (Closed) 197 Months of Inventory 21 vw $400,000-$499,999 Homes Sold 12 p List/Sell Ratio 96% p Days on Market (Active) 255 N/A Days on Market (Closed) 148 Months of Inventory $500,000-$599,999 Homes Sold 8 p List/Sell Ratio 92% Days on Market (Active) 231 N/A Days on Market (Closed) 239 p Months of Inventory $600,000-$699,999 Homes Sold 4 List/Sell Ratio 95% $700,000-$799,999 Homes Sold 2 List/Sell Ratio 94% $800,000-$899,999 Homes Sold 0 Days on Market (Active) 209 N/A Days on Market (Closed) 146 Months of Inventory Days on Market (Active) 168 N/A Days on Market (Active) 311 N/A Days on Market (Closed) 218 Months of Inventory 84 p21 Months of Inventory $900,000-$999,999 Homes Sold 0 vw Days on Market (Active) 302 N/A Months of Inventory N/A N/A $1,000,000+ Homes Sold 0 vw Days on Market (Active) 309 N/A Months of Inventory 225 p121 LEGEND: Change from 2015 data INCREASE: p DECREASE: NO CHANGE: vw WEAKENING TREND: p AMOUNT OF CHANGE: p X X INSUFFICIENT SALES DATA: N/A RD QUARTER 9

ENDERSON COUNTY INSIGHTS The time necessary to sell a home has dropped by 60 ample supply of homes in the upper tiers are creating days over the past year.

10 ENDERSON COUNTY INSIGHTS The time necessary to sell a home has dropped by 60 ample supply of homes in the upper tiers are creating days over the past year. An acute shortage of homes frustration for sellers in the higher price brackets. priced under $300,000 is encouraging competition Well-conceived marketing and correctly pricing these among buyers. The competition will likely drive median upper-end homes will be the key to success. home prices higher despite their current stability over the past 12 months. Limited demand and an -19% Number of Homes currently available in the price range: $0-99, $600, , $100, , $700, , $200, , $800, , Year-Over-Year $300, , $400, , $500, , $900, , $1,000, TOTAL: 769 SALES PACE SOLD SOLD $0-99,999: 32 $100, ,999: 245 $200, ,999: 198 $300, ,999: 88 $400, ,999: 25 $500, ,999: $600, ,999: 7 $700, ,999: 1 $800, ,999: 2 $900, ,999: 0 $1,000,000+: Homes Sold per Month Days on Market beverly-hanks.com/market-research-center

11 HENDERSON COUNTY VITAL SIGNS RD QUARTER LIST/SELL RATIO MEDIAN SALES PRICE DISTRESSED SALES CLOSED ACTIVE 97% $ 210, % Q3: 95% 2015 Q3: $210, Q3: Q3: 5% 2015 Q3: Q3: N/A $0-$99,999 SELLER S MARKET Homes Sold 32 List/Sell Ratio 99% p $100,000-$199,999 SELLER S MARKET Homes Sold 245 p List/Sell Ratio 97% p $200,000-$299,999 SELLER S MARKET Homes Sold 198 p List/Sell Ratio 98% p Days on Market (Active) 134 N/A Days on Market (Active) 81 N/A Days on Market (Active) 88 N/A Days on Market (Closed) 51 Days on Market (Closed) 44 Days on Market (Closed) 58 Months of Inventory 1 1 Months of Inventory 2 1 Months of Inventory 3 2 $300,000-$399,999 SELLER S MARKET Homes Sold 88 p List/Sell Ratio 97% $400,000-$499,999 Homes Sold 25 vw List/Sell Ratio 96% vw $500,000-$599,999 Homes Sold 19 p List/Sell Ratio 96% p Days on Market (Active) 137 N/A Days on Market (Active) 186 N/A Days on Market (Active) 173 N/A Days on Market (Closed) 81 Days on Market (Closed) 119 Days on Market (Closed) 131 Months of Inventory 5 3 Months of Inventory 12 2 Months of Inventory 16 5 $600,000-$699,999 Homes Sold 7 List/Sell Ratio 97% p Days on Market (Active) 228 N/A Days on Market (Closed) 125 Months of Inventory 21 6 $700,000-$799,999 Homes Sold 1 List/Sell Ratio 92% Days on Market (Active) 277 N/A Days on Market (Closed) 335 Months of Inventory 135 p65 $800,000-$899,999 Homes Sold 2 p List/Sell Ratio 89% N/A Days on Market (Active) 279 N/A Days on Market (Closed) 227 N/A Months of Inventory 47 4 $900,000-$999,999 Homes Sold 0 vw Days on Market (Active) 255 N/A Months of Inventory $1,000,000+ Homes Sold 0 Days on Market (Active) 205 N/A Months of Inventory 72 7 LEGEND: Change from 2015 data INCREASE: p DECREASE: NO CHANGE: vw WEAKENING TREND: p AMOUNT OF CHANGE: p X X INSUFFICIENT SALES DATA: N/A RD QUARTER 11

ADISON COUNTY INSIGHTS Homes in the county remain some of the most buyers and sellers. An increase in pace could drive affordable in the region. The county is enjoying market dynamics for sellers.

12 ADISON COUNTY INSIGHTS Homes in the county remain some of the most buyers and sellers. An increase in pace could drive affordable in the region. The county is enjoying market dynamics for sellers. Like most of the other increased sales as rising prices and a limited supply communities outside of Buncombe County, sales are of affordable homes in Asheville push buyers up most common under $400,000. I-26 in search of more affordable options. Price brackets under $300,000 remain balanced between -11% Number of Homes currently available in the price range: $0-99, $600, , $100, , $700, ,999 8 $200, , $800, ,999 1 Year-Over-Year $300, , $400, , $500, , $900, ,999 5 $1,000, TOTAL: 256 SALES PACE SOLD SOLD $0-99,999: 9 $100, ,999: 22 $200, ,999: 19 $300, ,999: 5 $400, ,999: 3 $500, ,999: 2 $600, ,999: 0 $700, ,999: $800, ,999: 0 $900, ,999: 1 $1,000,000+: Homes Sold per Month Days on Market beverly-hanks.com/market-research-center

13 MADISON COUNTY VITAL SIGNS RD QUARTER LIST/SELL RATIO MEDIAN SALES PRICE DISTRESSED SALES CLOSED ACTIVE 95% $ 199, % Q3: 94% 2015 Q3: $189, Q3: Q3: 10% 2015 Q3: Q3: N/A $0-$99,999 Homes Sold 9 vw List/Sell Ratio 93% vw Days on Market (Active) 148 N/A Days on Market (Closed) 89 Months of Inventory 7 vw $100,000-$199,999 Homes Sold 22 vw List/Sell Ratio 96% p Days on Market (Active) 185 N/A Days on Market (Closed) 133 Months of Inventory 7 3 $200,000-$299,999 Homes Sold 19 p List/Sell Ratio 94% Days on Market (Active) 259 N/A Days on Market (Closed) 119 p Months of Inventory $300,000-$399,999 Homes Sold 5 List/Sell Ratio 96% vw $400,000-$499,999 Homes Sold 3 vw List/Sell Ratio 99% p $500,000-$599,999 Homes Sold 2 p List/Sell Ratio 94% vw Days on Market (Active) 190 N/A Days on Market (Active) 271 N/A Days on Market (Active) 196 N/A Days on Market (Closed) 229 p Days on Market (Closed) 171 p Days on Market (Closed) 217 Months of Inventory Months of Inventory Months of Inventory 36 3 $600,000-$699,999 N/A Homes Sold 0 N/A Days on Market (Active) 243 N/A Months of Inventory N/A N/A $700,000-$799,999 N/A Homes Sold 0 N/A Days on Market (Active) 387 N/A Months of Inventory N/A N/A $800,000-$899,999 N/A Homes Sold 0 N/A Days on Market (Active) 82 N/A Months of Inventory N/A N/A $900,000-$999,999 N/A Homes Sold 1 p List/Sell Ratio 84% N/A Days on Market (Active) 269 N/A Days on Market (Closed) 146 N/A Months of Inventory 45 N/A $1,000,000+ N/A Homes Sold 0 N/A Days on Market (Active) 390 N/A Months of Inventory N/A N/A LEGEND: Change from 2015 data INCREASE: p DECREASE: NO CHANGE: vw WEAKENING TREND: p AMOUNT OF CHANGE: p X X INSUFFICIENT SALES DATA: N/A RD QUARTER 13

POLK COUNTY INSIGHTS Double-digit improvements in the sales pace are of options from which to choose. The $235,000 median propelling the county s market forward.

14 POLK COUNTY INSIGHTS Double-digit improvements in the sales pace are of options from which to choose. The $235,000 median propelling the county s market forward. The marketing sales price closely mirrors the median for the entire time for properties dropped by more than two months region. Unlike other areas, limited sales are occurring since last year. More than half of all sales occurred in the mid and upper tiers. between $100,000 and $300,000. Price brackets over $300,000 have enough inventory to give buyers plenty -2% Number of Homes currently available in the price range: $0-99, $600, , $100, , $700, , $200, , $800, ,999 6 Year-Over-Year $300, , $400, , $500, , $900, ,999 3 $1,000, TOTAL: 252 SALES PACE SOLD SOLD $0-99,999: 9 $100, ,999: 20 $200, ,999: 25 $300, ,999: 7 $400, ,999: 4 $500, ,999: 0 $600, ,999: $700, ,999: 3 $800, ,999: 2 $900, ,999: 0 30 $1,000,000+: Homes Sold per Month Days on Market beverly-hanks.com/market-research-center

15 POLK COUNTY VITAL SIGNS RD QUARTER LIST/SELL RATIO MEDIAN SALES PRICE DISTRESSED SALES CLOSED ACTIVE 95% $ 220, % Q3: 95% 2015 Q3: $195, Q3: Q3: 11% 2015 Q3: Q3: N/A $0-$99,999 Homes Sold 9 vw List/Sell Ratio 96% p Days on Market (Active) 193 N/A Days on Market (Closed) 114 p Months of Inventory 6 p2 3 $100,000-$199,999 Homes Sold 20 p List/Sell Ratio 96% Days on Market (Active) 195 N/A $200,000-$299,999 Homes Sold 25 p List/Sell Ratio 95% p Days on Market (Active) 164 N/A Days on Market (Closed) 87 Days on Market (Closed) 93 Months of Inventory 6 3 Months of Inventory 9 5 $300,000-$399,999 Homes Sold 7 p List/Sell Ratio 93% $400,000-$499,999 Homes Sold 4 List/Sell Ratio 99% p $500,000-$599,999 Homes Sold 0 Days on Market (Active) 219 N/A Days on Market (Active) 214 N/A Days on Market (Closed) 159 Days on Market (Closed) 173 Months of Inventory Months of Inventory 32 p13 Days on Market (Active) 237 N/A Months of Inventory $600,000-$699,999 Homes Sold 1 List/Sell Ratio 96% Days on Market (Active) 488 N/A Days on Market (Closed) 202 p Months of Inventory 45 p18 $700,000-$799,999 Homes Sold 3 p List/Sell Ratio 94% N/A Days on Market (Active) 232 N/A Days on Market (Closed) 183 N/A Months of Inventory 30 N/A $800,000-$899,999 Homes Sold 2 p List/Sell Ratio 89% p Days on Market (Active) 140 N/A Days on Market (Closed) 102 Months of Inventory 27 p16 $900,000-$999,999 N/A Homes Sold 0 vw Days on Market (Active) 309 N/A Months of Inventory N/A N/A $1,000,000+ Homes Sold 1 vw List/Sell Ratio 91% Days on Market (Active) 362 N/A Days on Market (Closed) 65 Months of Inventory 113 p14 LEGEND: Change from 2015 data INCREASE: p DECREASE: NO CHANGE: vw WEAKENING TREND: p AMOUNT OF CHANGE: p X X INSUFFICIENT SALES DATA: N/A RD QUARTER 15

UTHERFORD COUNTY INSIGHTS The county experienced a slower sales pace in third inventory below $200,000, we can expect asking prices uarter than 2015, but year-to-date sales are still up a in the

16 UTHERFORD COUNTY INSIGHTS The county experienced a slower sales pace in third inventory below $200,000, we can expect asking prices uarter than 2015, but year-to-date sales are still up a in the lower price points to begin creeping up if supply healthy 17%. The number of homes for sale dropped remains constant and the sales pace characterizing by 15% with almost all of the reduction occurring the first and second uarters returns. $1M and up under $500,000. The county remains the most sales are occurring and are limited to highly desirable affordable in the region. With less than six months of properties along the lake. -15% Number of Homes currently available in the price range: $0-99, $600, , $100, , $700, ,999 8 $200, , $800, ,999 5 Year-Over-Year $300, , $400, , $500, , $900, ,999 6 $1,000, TOTAL: 387 SALES PACE SOLD SOLD $0-99,999: 32 $100, ,999: 47 $200, ,999: 22 $300, ,999: 8 $400, ,999: 4 $500, ,999: 0 $600, ,999: 2 $700, ,999: $800, ,999: 0 $900, ,999: 0 $1,000,000+: Homes Sold per Month Days on Market beverly-hanks.com/market-research-center

17 RUTHERFORD COUNTY VITAL SIGNS RD QUARTER LIST/SELL RATIO MEDIAN SALES PRICE DISTRESSED SALES CLOSED ACTIVE 95% $ 162, % Q3: 91% 2015 Q3: $160, Q3: Q3: 11% 2015 Q3: Q3: N/A $0-$99,999 SELLER S MARKET Homes Sold 32 p List/Sell Ratio 92% $100,000-$199,999 Homes Sold 47 List/Sell Ratio 96% p $200,000-$299,999 Homes Sold 22 List/Sell Ratio 95% p Days on Market (Active) 89 N/A Days on Market (Active) 190 N/A Days on Market (Active) 223 N/A Days on Market (Closed) 83.0 Days on Market (Closed) 101 Days on Market (Closed) 181 Months of Inventory 3 3 Months of Inventory 6 5 Months of Inventory 13 5 $300,000-$399,999 Homes Sold 8 List/Sell Ratio 97% p $400,000-$499,999 Homes Sold 4 List/Sell Ratio 97% p $500,000-$599,999 Homes Sold 0 Days on Market (Active) 228 N/A Days on Market (Closed) 81 Months of Inventory 28 p5 Days on Market (Active) 310 N/A Days on Market (Active) 257 N/A Days on Market (Closed) 173 Months of Inventory 23 p2 Months of Inventory 72 p36 $600,000-$699,999 Homes Sold 2 p List/Sell Ratio 94% p Days on Market (Active) 328 N/A Days on Market (Closed) 275 p Months of Inventory 95 p23 $700,000-$799,999 Homes Sold 0 Days on Market (Active) 304 N/A Months of Inventory $800,000-$899,999 Homes Sold 0 vw Days on Market (Active) 216 N/A Months of Inventory 45 p27 $900,000-$999,999 N/A Homes Sold 0 vw Days on Market (Active) 203 N/A Months of Inventory N/A N/A $1,000,000+ Homes Sold 2 p List/Sell Ratio 95% p Days on Market (Active) 213 N/A Days on Market (Closed) 313 p Months of Inventory 60 p1 LEGEND: Change from 2015 data INCREASE: p DECREASE: NO CHANGE: vw WEAKENING TREND: p AMOUNT OF CHANGE: p X X INSUFFICIENT SALES DATA: N/A RD QUARTER 17

RANSYLVANIA COUNTY INSIGHTS A 20% reduction in supply and a 27% increase in the brackets over $300,000 favor buyers, providing them number of sales are reshaping the county s market.

18 RANSYLVANIA COUNTY INSIGHTS A 20% reduction in supply and a 27% increase in the brackets over $300,000 favor buyers, providing them number of sales are reshaping the county s market. with the opportunity to sway negotiations. Average A 13% increase in the median selling price is proof marketing time remains over five months, suggesting that the distribution of sales amongst price brackets that sellers will need to stay patient and price well if is moving higher. Only Buncombe County reported they want to sell. a higher percentage of sales over $500,000. All price -20% Number of Homes currently available in the price range: $0-99, $600, , $100, , $700, , $200, , $800, , Year-Over-Year $300, , $400, , $500, , $900, , $1,000, TOTAL: 545 SALES PACE SOLD SOLD $0-99,999: 9 $100, ,999: 60 $200, ,999: $300, ,999: 34 $400, ,999: 11 $500, ,999: 5 $600, ,999: 2 $700, ,999: 2 $800, ,999: 1 $900, ,999: 3 $1,000,000+: Homes Sold per Month Days on Market beverly-hanks.com/market-research-center

19 TRANSYLVANIA COUNTY VITAL SIGNS RD QUARTER LIST/SELL RATIO MEDIAN SALES PRICE DISTRESSED SALES CLOSED ACTIVE 95% $ 235, % Q3: 94% 2015 Q3: $208, Q3: Q3: 7% 2015 Q3: Q3: N/A $0-$99,999 SELLER S MARKET Homes Sold 9 List/Sell Ratio 88% $100,000-$199,999 SELLER S MARKET Homes Sold 60 p List/Sell Ratio 94% vw $200,000-$299,999 Homes Sold 58 p List/Sell Ratio 94% Days on Market (Active) 213 N/A Days on Market (Active) 244 N/A Days on Market (Active) 235 N/A Days on Market (Closed) 94 Days on Market (Closed) 155 Days on Market (Closed) 140 Months of Inventory 3 4 Months of Inventory 5 4 Months of Inventory 9 5 $300,000-$399,999 Homes Sold 34 p List/Sell Ratio 95% p $400,000-$499,999 Homes Sold 11 vw List/Sell Ratio 96% p $500,000-$599,999 Homes Sold 5 p List/Sell Ratio 96% p Days on Market (Active) 236 N/A Days on Market (Active) 243 N/A Days on Market (Closed) 206 Days on Market (Closed) 163 Months of Inventory 13 7 Months of Inventory 18 7 Days on Market (Active) 284 N/A Days on Market (Closed) 101 Months of Inventory 31 8 $600,000-$699,999 Homes Sold 2 List/Sell Ratio 90% Days on Market (Active) 317 N/A Days on Market (Closed) 403 Months of Inventory 60 p31 $700,000-$799,999 Homes Sold 2 p List/Sell Ratio 93% N/A Days on Market (Active) 333 N/A Days on Market (Closed) 70 N/A Months of Inventory $800,000-$899,999 Homes Sold 1 List/Sell Ratio 92% p Days on Market (Active) 380 N/A Days on Market (Closed) 1 Months of Inventory 33 8 $900,000-$999,999 Homes Sold 3 p List/Sell Ratio 100% p Days on Market (Active) 362 N/A Days on Market (Closed) 278 Months of Inventory 52 2 $1,000,000+ Homes Sold 4 p List/Sell Ratio 94% Days on Market (Active) 365 N/A Days on Market (Closed) 589 p Months of Inventory LEGEND: Change from 2015 data INCREASE: p DECREASE: NO CHANGE: vw WEAKENING TREND: p AMOUNT OF CHANGE: p X X INSUFFICIENT SALES DATA: N/A RD QUARTER 19

20 LOTS VITAL SIGNS 0-3 acre lots in subdivisions RD QUARTER LIST/SELL RATIO AVERAGE LOT SALES PRICE PARCELS TOTAL ACRES SOLD DISTRESSED SALES 89% $ 78,115 3, % 2015 Q3: 90% 2015 Q3: $77, Q3: 4, Q3: Q3: 5% INSIGHTS The slow improvement of lot sales continues. The number of parcels sold was up, and the number of parcels available for sale was down. The combination will help to bring the market closer to a balance between buyers and sellers. The further reduction in the number of distressed lots sold will also help to stabilize prices further. The average lot sales price increased by a nominal 2% since last year. ACTIVE (7/1/2016) vs CLOSED (YTD) LISTINGS CLOSED 317 ACTIVE 3,865 $0-49,999: 1, $50,000-99,999: 1, $100, ,999: $150, ,999: $200, ,999: 83 6 $250, ,999: 88 6 $300, ,999: 33 5 $350, ,999: 39 3 $400, ,999: 14 0 $450, ,999: 16 1 $500,000+: ACTIVE CLOSED SALES TRENDS BUNCOMBE $110,000 LIST PRICE vs SALES PRICE/LOT HAYWOOD HENDERSON $95,000 MADISON POLK $80,000 RUTHERFORD $65,000 TRANSYLVANIA st Quarter $50, Per Parcel: Sales Price List Price beverly-hanks.com/market-research-center

21 ACREAGE VITAL SIGNS 15+ acres not in subdivisions RD QUARTER LIST/SELL RATIO AVERAGE ACRE SALES PRICE PARCELS TOTAL ACRES SOLD DISTRESSED SALES 80% $ 4, ,067 3% 2015 Q3: 75% 2015 Q3: $5, Q3: Q3: 1, Q3: 3% ACTIVE vs CLOSED LISTINGS CLOSED 37 ACTIVE 570 $0-49,999: 1 0 $50,000-99,999: 37 4 $100, ,999: 37 5 $150, ,999: 66 9 $200, ,999: 33 2 $250, ,999: 41 3 $300, ,999: 27 3 $350, ,999: 30 1 $400, ,999: 20 2 $450, ,999: 39 1 $500,000+: ACTIVE CLOSED INSIGHTS Values continue to be depressed due to ongoing oversupply and little development market. The data appears to show a sharp drop in the number of parcels available for sale. There has been a decrease, and most of the change is the result of a different approach to identifying parcels for sale. The total acres sold increased substantially. Two sales, one for 528 acres in Rutherford County and another 709 acres in Maggie Valley, accounted for more than 40% of the total acres sold in 2016 Q3. SALES TRENDS BUNCOMBE $18,000 LIST PRICE vs SALES PRICE/ACRE HAYWOOD HENDERSON $13,500 MADISON POLK $9,000 RUTHERFORD $4,500 TRANSYLVANIA nd Quarter $ Per Parcel: Sales Price List Price RD QUARTER 21

EW HOME COMMUNITIES COMMUNITY MARKETING GROUP (CMG) is the Beverly-Hanks full-service marketing division providing proven sales, marketing, and strategic consulting services to builders and

New home sales declined to almost a twelve-month low after soaring to nine-year highs the month before. The Commerce Department reported new seasonally adjusted home sales fell 7.6% and remain up 20.

Demand for new homes is robust, and the supply is not adeuately keeping up, which has been a primary theme in the housing sector for uite a while now, Amherst Pierpont Securities chief economist

The National Home Builders Association reported builder confidence hitting an 11-month high in September, with builders bullish about current sales now and prospective buyer traffic.

22 EW HOME COMMUNITIES COMMUNITY MARKETING GROUP (CMG) is the Beverly-Hanks full-service marketing division providing proven sales, marketing, and strategic consulting services to builders and developers. Our services are tailored to each project s specific needs. We offer everything from design charrettes and market feasibility studies to turn-key sales and marketing teams. New home sales declined to almost a twelve-month low after soaring to nine-year highs the month before. The Commerce Department reported new seasonally adjusted home sales fell 7.6% and remain up 20.6% YOY. Demand for new homes is robust, and the supply is not adeuately keeping up, which has been a primary theme in the housing sector for uite a while now, Amherst Pierpont Securities chief economist Stephen Stanley said to clients. It s believed that demand for housing is being driven by a tightening labor market, which is lifting wages. The National Home Builders Association reported builder confidence hitting an 11-month high in September, with builders bullish about current sales now and prospective buyer traffic. Housing Starts and Completions ONE-UNIT STRUCTURES, ROLLING 12 MONTHS NORTH CAROLINA BUILDING PERMITS ASHEVILLE BUILDING PERMITS NEW HOME CONSTRUCTION CLOSING Source: calculatedriskblog.com 38,353 1, : 35, : 1, : 121 beverly-hanks.com/our-services Featured Community: Champion Hills Nestled in the heart of the Blue Ridge Mountains, just 10 minutes from Hendersonville and only 30 minutes from Asheville, Champion Hills has been delivering a simply exceptional lifestyle for their owners for more than twenty-five years. Here you ll find a debt-free golf community and member-owned club that s secluded but not isolated, has a mild four-season climate, and features a club that is casual yet elegant. Discover what makes Champion Hills simply exceptional championhills.com

23 INDUSTRIAL 7 TRANSACTIONS FOR COMMERCIAL SALES ACTIVITY RD QUARTER OFFICE 7 TRANSACTIONS FOR RETAIL 18 TRANSACTIONS FOR MULTI-FAMILY 4 TRANSACTIONS FOR LAND 14 TRANSACTIONS FOR $ 2.7 MILLION $ 3.0 MILLION $ 21.5 MILLION $ 92.2 MILLION $ 9.9 MILLION 2015 Q3: $1.8 MILLION 2015 Q3: $15.7 MILLION 2015 Q3: $47.5 MILLION 2015 Q3: $36.7 MILLION 2015 Q3: $18.6 MILLION STEADY COMMERCIAL GROWTH Last uarter we mentioned there could be a little softening in the commercial market here in Western North Carolina, but we had a nice rebound this past uarter. CRE sales for third uarter 2016 were $132,637,000 as compared to $137,152,600 for the same time period last year. However, 57 CRE properties closed in 2016 Q3 vs. 109 properties in 2015 Q3; that s a drop of 48%. There were two significant apartment transactions that accounted for almost $90 million of the $132.6 million. While the number of transactions are off significantly, it isn t due to a lack of interest from buyers/investors. Western North Carolina is an extremely attractive market for commercial investors; we just don t have the inventory (uantity or uality) to meet the demand. Our hope and expectation is that we see continued redevelopment of older properties to improve our inventory shortage. NAI Global The single largest, most powerful global network of owneroperated commercial real estate brokerage firms, NAI Global member firms, leaders in their local markets, are actively managed to work in unison and provide you with exceptional solutions to your commercial real estate needs. Once again in 2015, NAI Beverly-Hanks was the region s market leader for commercial real estate brokerage sales, closing more than double the number of transactions of our nearest competitor. Beverly-Hanks LEASE ACTIVITY 10 INDUSTRIAL LEASE TRANSACTIONS VACANCY RATE OF 2.4% Decrease of 1.3% from 2015 Q3 33 OFFICE LEASE TRANSACTIONS VACANCY RATE OF 3.1% Decrease of 1.5% from 2015 Q3 47 RETAIL LEASE TRANSACTIONS VACANCY RATE OF 3.3% Decrease of.6% from 2015 Q3 NOTABLE TRANSACTIONS Ansley at Roberts Lake $48,100, Hendersonville Road $1,040, Champion Drive $1,750,000 ($89.29/sf) FEATURED LISTING 39 LOOP ROAD IN ARDEN $7.86/SF 296 units, 299,227 sf Class A apartment building. Hathaway Development Partners sold to The Shoptaw Group of Atlanta, GA acres. NAI Beverly-Hanks represented the buyer. Bee Safe intends to develop this site into another self-storage location. 19,600-suare-foot property in Canton. The buyer, Triad Freightliner, intends to turn the site into a truck diagnostic center. 10,686-suare-foot office/shop facility for lease off Airport Rd. Large 2.3-acre lot offers ample outside storage or laydown yard RD QUARTER 23 EQUAL HOUSING OPPORTUNITY

2016 QUARTER THREE REAL ESTATE INFORMATION for WESTERN NORTH CAROLINA Beverly-Hanks NMLS# 42020 2015 MARKET SHARE Western North Carolina Realty Firms 22.4% 3.8% 2.5% 2.

24 2016 QUARTER THREE REAL ESTATE INFORMATION for WESTERN NORTH CAROLINA Beverly-Hanks NMLS# MARKET SHARE Western North Carolina Realty Firms 22.4% 3.8% 2.5% 2.3% KELLER WILLIAMS HENDERSONVILLE COLDWELL BANKER KING PINNACLE REALTY OF NORTH CAROLINA 2.7% CAROLINA MOUNTAIN SALES Sales Volume $ % KELLER WILLIAMS ASHEVILLE BILLION 2.3% 2.1% PREFERRED PROPERTIES TOWN AND MOUNTAIN REALTY Source: CarolinaMLS beverly-hanks.com EQUAL HOUSING OPPORTUNITY

ARKET REPORT. beverly-hanks.com. The Choice is Black & White BEVERLY-HANKS & ASSOCIATES, REALTORS 2016 QUARTER ONE

ARKET REPORT. beverly-hanks.com. The Choice is Black & White BEVERLY-HANKS & ASSOCIATES, REALTORS 2016 QUARTER ONE ARKET 2016 QUARTER ONE REAL ESTATE INFORMATION for WESTERN NORTH CAROLINA REPORT beverly-hanks.com EQUAL HOUSING OPPORTUNITY BEVERLY-HANKS & ASSOCIATES, REALTORS The Choice is Black & White ARKET 2016