Asheville, North Carolina, nestled in the Blue Ridge Mountains, may be a hidden gem among larger cities like Charlotte or Durham. Whether you're a tourist or looking to invest in real estate, the Asheville housing market offers enticing opportunities. With a population of around ninety thousand in Asheville proper and over four hundred thousand in the larger metropolitan area, the market is thriving and dynamic.
Current Asheville Housing Market Update
How is the housing market doing currently?
Let's dive into the latest data provided by the Canopy Realtor® Association in November 2023 to understand the local real estate trends in the Asheville region, which includes Buncombe, Burke, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania, and Yancey counties.
Year-to-Date Housing Metrics (2022-2023)
Let's start by comparing the key metrics from 2022 to 2023 year-to-date data:
- New Listings: There has been a notable increase of 12.7% in new listings, reaching 935 compared to 830 in 2022.
- Pending Sales: The number of pending sales has shown a 9.4% increase, rising from 695 in 2022 to 760 in 2023.
- Closed Sales: However, closed sales have experienced a 9.8% decrease, dropping from 870 to 785 in 2023.
These metrics provide a snapshot of the market activity, showing a mixed trend in new listings, pending sales, and closed sales.
Home Price Trends
The median and average sales prices are crucial indicators of the market's health. Let's examine the changes in prices:
- Median Sales Price: The median sales price has seen a robust 12.5% increase, reaching $422,000 in 2023 compared to $375,000 in 2022.
- Average Sales Price: Similarly, the average sales price has surged by 20.7%, jumping from $455,704 to $550,210 in 2023.
These price increases indicate a positive trend in the market, reflecting strong demand and potential appreciation in property values.
Market Dynamics
Understanding the dynamics of the market is essential for both buyers and sellers. Let's explore key market dynamics:
- Percent of Original List Price Received: Sellers have received 95.2% of the original list price in 2023, a slight increase from 94.8% in 2022.
- List to Close: The time it takes for a property to go from listing to closing has increased slightly by 1.1%, reaching 88 days in 2023.
- Days on Market Until Sale: The average days on the market until sale have increased by 5.6%, reaching 38 days in 2023.
These metrics provide insights into the negotiation dynamics and the time it takes for properties to move from listing to closing.
Inventory and Supply
Inventory levels and months of supply are critical for understanding the balance between supply and demand in the market:
- Inventory of Homes for Sale: The inventory of homes for sale has increased by 7.4%, reaching 2,446 in 2023.
- Months Supply of Inventory: The months supply of inventory has seen a 26.1% increase, reaching 2.9 months in 2023.
These indicators suggest an increase in available properties, potentially providing more options for buyers.
Is Asheville a Buyer's or Seller's Housing Market?
Given the analysis of key metrics, price trends, and market dynamics, it's essential to determine whether the current housing market in Asheville favors buyers or sellers.
Key Takeaways
Here are the key takeaways from the Asheville housing market analysis:
- Price Appreciation: The significant increase in both median and average sales prices indicates a market that has appreciated over the year.
- Inventory Increase: The rise in inventory levels suggests more choices for buyers, potentially tilting the market in their favor.
- Days on Market: The increase in days on market may provide buyers with more time for decision-making.
It appears that the Asheville housing market is currently balanced, offering opportunities for both buyers and sellers. Buyers may find a variety of options, while sellers can benefit from the overall appreciation in property values.
Are Home Prices Dropping in Asheville?
Contrary to expectations, the data reveals a clear upward trend in home prices, with both median and average prices experiencing significant growth. This suggests that, as of November 2023, home prices in Asheville are not dropping but are, in fact, on the rise.
Anticipating future trends in the Asheville housing market is crucial for both prospective buyers and sellers. Let's explore the forecast for Asheville's real estate scene and delve into key metrics to gain a comprehensive understanding of what the future may hold.
According to the latest data from Zillow as of November 30, 2023, the average home value in Asheville stands at $459,606, reflecting a 3.9% increase over the past year. Homes in Asheville typically go pending in approximately 25 days. The current market snapshot includes 568 homes for sale, with 152 new listings as of November 30, 2023.
Key Metrics
Here are some key metrics to consider:
- Median Sale Price (October 31, 2023): The median sale price is $428,083.
- Median List Price (November 30, 2023): The median list price is $519,500.
- Median Sale to List Ratio (October 31, 2023): The ratio is 0.999.
- Percent of Sales Over List Price (October 31, 2023): 36.3% of sales were over the list price.
- Percent of Sales Under List Price (October 31, 2023): 42.4% of sales were under the list price.
These metrics provide a comprehensive view of the current market dynamics, indicating a balanced mix of pricing strategies among sellers.
Asheville MSA Housing Market Forecast (2023-2024)
The Zillow forecast for the Asheville Metropolitan Statistical Area (MSA) reveals insights into the region's expected real estate performance. As of November 30, 2023, the forecast suggests a modest growth rate, with a predicted increase of 0.2% by the end of 2023, followed by a further 0.1% increase by February 29, 2024. Looking ahead to November 30, 2024, the forecast anticipates a more substantial 0.6% growth in the Asheville MSA housing market.
The Asheville Metropolitan Statistical Area (MSA), located in North Carolina, encompasses the surrounding counties and represents a significant housing market. The MSA includes various counties, each contributing to the overall real estate landscape. It plays a pivotal role in regional economic activities and serves as a key indicator of housing trends in the broader Asheville area.
Will the Asheville Housing Market Crash?
Given the current data and forecasts, there is no immediate indication of a housing market crash in Asheville. The consistent growth in average home values, coupled with a moderate forecast for the coming months, suggests stability rather than a downturn. However, real estate markets can be influenced by various factors, and individuals should stay informed and monitor updates from reliable sources to make well-informed decisions.
Source: Zillow
Is it worth buying a house in Asheville, NC? Investing in real estate is touted as a great way to become wealthy. Here are ten evidence-based positive aspects of the Asheville real estate market for those considering investment:
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The Large and Diverse Student Market: Asheville is home to several different universities, attracting a large population of permanent renters. With the opportunity to own multiple investment properties near different schools, investors can diversify their real estate portfolios.
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The Demand for Affordable Homes is High: Smaller homes are in high demand for couples looking for starter homes and retirees who desire a cozy living space.
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The Literal Constraints of Geography: Asheville's unique geography, surrounded by mountains and forests, limits the potential for extensive growth. This limitation ensures the city's charm and attractiveness.
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Walkable Communities: Asheville already has an established, walkable downtown, offering a vibrant community atmosphere without the presence of blighted areas.
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The Diversified Job Market: Asheville boasts a solid job market with a wide range of industries, including regional services, government agencies, medical facilities, and research facilities.
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The Potential for Short-Term Rentals: The area's natural beauty attracts tourists, creating opportunities for short-term vacation rentals in the Asheville real estate market.
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The Landlord-Friendly Environment: North Carolina, in general, provides a landlord-friendly legal environment, which ensures the protection of property owners.
These factors contribute to the overall stability and attractiveness of the Asheville real estate market, making it a promising investment opportunity.
References: Zillow, Carolina Home, Redfin, Realtor.com, NeighborhoodScout, Wikipedia, Expert Vagabond, WalletHub, Avail, USA Today, Citizen Times
Investing in the Asheville housing market has the potential to generate promising returns in the long term. It's essential to stay informed about local trends and market dynamics to make well-informed investment decisions. With its natural beauty, diverse job market, and demand for affordable homes, Asheville offers a compelling real estate investment environment. So, why not consider exploring the opportunities Asheville has to offer?
