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REAL ESTATE MARKET UPDATE ASHEVILLE AREA MARCH 2022

Wow! Prices are still going up! So are the interest rates! What does that mean for our local real estate market?  

THE GREATER ASHEVILLE REGION (Includes Buncombe, Burke, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania and Yancey Counties)

New listings to went up to 1303, that's a fairly big climb from 888 in one month.  Some of our outer counties that started adding houses.  This area also increased in pendings and in closings. The big, almost amazing thing, is that in one month our median home price went up $25 000 to $375K!  That's huge and the average went up to $449K!  Days on the market is still 37. The month supply is .09. I found it interesting that looking over these past three months there are monthly supply has still stayed pretty even with less than a month right at a month even though we continue to add more listings.

ASHEVILLE CITY

Asheville city median home price jumped to almost $500K!  Rising to $496K from $413K is a tremendous jump in one month.  Part of this is because of new construction costs more, which effects the median price.  If you think that you can make a cash offer with a low-ball price it's not going to work because there's you're competing against a lot of other cash people so if the house has been on the market for two weeks and there's been a price adjustment then the list price is what it's going to sell for.  Maybe even a little more.

HENDERSONVILLE CITY

It's super interesting to see this continue climb upward on the median home price. The city of Hendersonville medium home price jumped $15K to $375K in one month!  That's incredible!  The monthly supply is continuing to go lower.  With less than a half of a month available.

BUNCOMBE COUNTY

Buncombe county also went up in new listings to 448.   Pendings, increased. Once again, the story is the increase of the median home price in Buncombe County.  In just one month it has gone up to $446K! The average price in Buncombe County is $556K.  If you are moving here from some places and you have cash this may not seem like it's a very high amount. If you're moving here and you're looking for a loan and get a local job that this may seem very expensive for our area. 

HENDERSON COUNTY

Henderson County actually added quite a few new listings and those were mainly in the $375K to $500K category.  Pendings increased as well.  Closings in Henderson County’s increased medium home price to $379K.  The average was $436K.  At $379K this is much better deal than Buncombe County or Asheville city if you're only looking at prices.

SPECIAL FOCUS

For the past two years, I have been comparing month to month for Buncombe and Henderson counties, because the growth rate is extreme.  For the special focus area, I like to compare year to date because these outlining areas have less homes to go on the market and need a longer average.

 Rutherford County new listings increased the past year and currently has 108. Their pendings increased to 100. Their closed homes actually decreased from year to date.  The thing that I find very interesting is their median home price decreased from year to date. It is $226K. Their month supplies are just like most of the of our region right around a month. It would be interesting to break down the closings into different categories to see if there are a lot of houses that  need to be fixed up or are mobile homes.  If you are moving to this area and you don't really care where, just so it is in Western North Carolina mountains then this might be an area to check out.

An interesting statistic, that multi-family land and houses under $200K made price adjustments in the month of March.  Up to 10 percent!  This tells me is that if a house is in very poor condition, it is not selling as fast or as for as it was in the past. People are not willing to pay the very high prices for something that needs a lot of work. If you are an investor looking for apartment complexes there's some negotiation room.

RENTALS

More people are moving to this area and some want to rent before buying.  Buncombe County has an extremely rental shortage for houses.  Depending on location a single-family house can be more than the current:

Fair Market Rent Rate for Buncombe County 2022HUD Housing

                                                            Mainly for Apartment Complexes

Efficiency

One-Bedroom

Two-Bedroom

Three-Bedroom

Four-Bedroom

$1,188  

$1,209

$1,378

$1,879

$2,359

 

Trash and landscaping fees are going higher every month because gas fees are going up. This will cause increases in rent rates.  Smaller, individual landlords aren’t able to absorb this cost as easily as the multi complex corporations.  Yet, these owners, tend to keep the rents more affordable for our workforce housing, teachers, firemen, hospital workers, nurses and those people who are not getting raises. will not be able to afford the increases in price rent. 

TAKE AWAY FOR THE MONTH

I don't think the real estate market is going to burst because there's too many people with cash that want to in our local area that want to buy here and they'll pay cash.

We're at an interesting stage right now with the real estate market, due to the increase interest rates rising inflation.  There are some foreclosures coming on the market but that is not going to be enough to increase the inventory.   The big story as it's been for the past two years is lack of inventory. As long as there's lack of inventory then houses are still going to need to be bought and sold.

The jump from 5% to 6% back and forth with that yo-yo and every time it goes back down it continues to climb up in increments.  These are huge jumps, not like a tenth of a point. That's going to affect our real estate market. People are already being a little slower to buy. I am seeing slight price adjustments along all areas.  However, the signification increase in prices in just 30 days may be part of the price adjustments.

If you are moving to the area, be prepared for the medium home price. Have all your finances in order and make your best offer the first time. If you want to live here then you don’t have time to hesitate and hope prices will go down because they won’t.

Sellers, need to have the property in the best possible condition and price it according to the current market value.  Gone are the days when you could just “make up a price.”

Investors, can still find deals, they may need to extend out to surrounding outer counties, like Rutherford or Jackson and some parts of Haywood.  Those just starting, need to make sure they are realistic in their numbers.  For all those with long time experience, we need to adjust our numbers and be willing to pay a little more than we would of in the past if we want to buy property.

Full more detailed statics  March 2022 PDFs

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REAL ESTATE MARKET UPDATE ASHEVILLE AREA FEB 2022

THE GREATER ASHEVILLE REGION/FEB 2022

There was an increase in listings for the Asheville region at 888.  Pending also increased to 1,003.  We closed 749 and the median home price for the Asheville region increased in one month to $355K. That's right on target with the medium home price across the nation. The average price also increased to $432K.  Days on market were 39 and we are below one month's supply at .09

BUNCOMBE COUNTY/FEB. 2022

Buncombe county increased in new listings at 307. You're going to see this trend across the board that we increased in new listings in February which is a little unusual for our area. Usually, we don't get a whole lot of new listings increase from January to February. The national trend also showed more listings coming out in February.

Pending increased to 363 and we closed 267. One of the reasons that there are less closings in February is that it's taking a little longer to close than the typical 30 to 45 days. More closings are new construction and they go pending before completion.  The median for Buncombe County increased to $415K and our average went to $5 15K. Those are big jumps for one month!  Days on the market were 36 and again less than a month at 0.7 for our inventory.

ASHEVILLE CITY/FEB 2022

Asheville city increased as well, to 134 new listings and 161 pendings.  Once again seeing the trend of fewer closings than what we did in January at 136.   Our medium price for the Asheville city was $413K. This is interesting because this is the first time that Buncombe County median home price was higher than Asheville City. As home prices increase and inventory gets critically low inside the city limits, more people are searching farther out into the county.  More new construction is occurring in the county and new construction just cost more to build now.  Again, there is less than a month inventory inside Asheville city limits.

HENDERSON COUNTY AND HENDERSONVILLE/FEB  2022

Henderson County increased to 164 new listings and 181 pendings and closed with127.  Hendersonville listings increased to 103 new listing and 115 pendings and closed with 67. The medium home price for Henderson county went up to $365K and $360K for Hendersonville.  Once again new construction cost outside the city limits is the price increase factor.

SPECIAL FOCUS/FEB 2022

I choose Polk county because I recently went  a conference at the world equestrian center in FL. They are really booming with housing down in that area so I thought I'd check out to see what's going on on around the Tryon equestrian center which is  in Polk county. Typically, Polk county does not have as many homes going on the market at any one given time as Buncombe and Henderson county. However the homes that do go on tend to be higher priced. Feb had 28 new listings, 33 pending and 21 closed. The most significant change is the median home price in Feb. was $465K.Thisis an increase of 62% in 1 year!

TAKE AWAY FOR THE MONTH/FEB 2022

  • Mortgage rates increased almost a full point since December,  the highest that it's been since March 2019.
  • The National Association of Home Builders state 69% of households in the United States lack the income to qualify for a mortgage of $412,506 using standard underwriting criteria.

These two factors may slow down the buyer market in some areas of the US.  I don’t think it will slow down in our area for the next year because:

  • Prices continue to climb in our area all of the greater Asheville region we increased 25%  in one year!
  • Condos and town homes increased over the past year going up 15%.
  • The big story though is the fact that our inventory declined across the total region by 47%! Our inventory is at a critcal low. It's not going to increase anytime soon.
  • People from other areas of the county are moving here and think these prices are low.
  • More houses are being purchased with cash.

RECOMMENDATIONS:

BUYERS:

  • Have all pre approval or proof of funds in place so you can send that information with the offer.
  • When you see something you like, put an offer in right then, don’t spend the rest of the day looking at other places.
  • Put your highest and best offer in the first time.
  • A higher due diligence  fee is often the deciding factor in multiply offers.

SELLERS:

  • It is important to set a realistic list price based on a comprehensive market analysis. 
  • This may be your best time to get multiple offers. As interest rates rise, the cash buyers will be expecting to get a “better deal”.
  • Location and condition still affects the price. Buyers want a house that is updated and ready to move in.
  • Be prepared to move in 90 days or less

INVESTORS:

  • If you want to purchase in the greater Asheville area. Now is the time to do it, if you can find a house that isn't a massive rehab and can be remodeled while you or a tenant lives in the house. 

For more detailed statics view PDFS

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