Realtors’ 2009 numbers reveal local real estate market
continues to bounce back after tough 2008

JAN. 19, 2010, BOONE, NC – A comparison of residential real estate sales in the High
Country indicate the market is definitely stabilizing, according to the High Country
Association of REALTORS®. While there was an overall decline in residential sales from
2008 to 2009, it was a decrease of about 9 percent.

“When you compare the year-end number for 2008 and 2007, you see that was when the
big drop occurred,” said Hope Harvey, president of the Association. “Sales were robust in
2007, but stalled in 2008 with the financial collapse and the uncertainty of elections.
That’s when we saw local residential sales decline by about 28 percent,” she explained.
“Seeing sales numbers begin to climb indicates we are starting to see some recovery and
better days are ahead.”

According to Harvey, the average number of days residential properties are on the market
has increased over the three-year period as it became more difficult for people to buy
homes for economic reasons and as more properties were put on the market. 

“In this area, we saw a lot of people with second, third, or even fourth homes, put one or
more properties up for sale,” said Harvey. “People would see which home sold and then
live or rent the one that didn’t sell,” she explained “As a result, there are still a lot of
residential properties listed, and it will take time for that inventory to be sold.”

That leaves a large number of houses for homebuyers to choose from, and the
Association points out that the Homebuyer’s Tax Credit now goes beyond just first-time
buyers. On Nov. 6, President Obama signed The Worker, Homeownership and Business
Assistance Act of 2009, which includes an $8,000 tax credit for qualified first-time
buyers and a $6,500 tax credit for qualified existing homeowners.

The tax credits now apply to sales occurring on or after Jan. 1, 2009 and on or before
April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a
home purchase completed by June 30, 2010 will qualify.

For sales occurring after Nov. 6, 2009, the Act establishes income limits of $125,000 for
single taxpayers and $225,000 for married couples filing joint returns. For both tax credit
programs, the purchase price of the home must be less than $800,000.

The $6,500 tax credit is available to existing homeowners who have lived in their current
residences for at least five years, and is also available until April 30. More information
may be found online at www.federalhousingtaxcredit.com.

More information about the High County Association of Realtors may be found at
www.highcountryrealtors.org. The association is composed of members in Watauga and
Avery counties and the surrounding area who maintain a marketplace where buyers and
sellers can safely transfer property under the guidance of a professional held to standards
of excellence.

Residential Sold in Avery, Watauga & Surrounding Counties for Jan. – Dec.
Year              Number Sold           Median Sold Price       Avg. Days on Market      Total New Listings
2007                    1,338                           $241,500                            179                                  3,313
2008                       957                           $239,000                             196                                  3,876
2009                       879                           $215,000                              212                                 3,581

Source: High Country Association of REALTORS® MLS Listings

Active Residential Listings as of 12/31/2009
PRICE RANGE                     Avery      Watauga      Surrounding Counties      Total
Under $200,000                     224         224                                88                        536
$200,000 - $250,000               54         131                                40                        225
$250,000 - $300,000               56         134                                44                        234
$300,000 - $400,000               73         228                                51                        352
$400,000 - $1,000,000           96          413                                48                        557
$1,000,000 & Up                      26           94                                  8                        128
TOTAL                                     529        1,224                             279                     2,032

Source: High Country Association of REALTORS® MLS Listings