For those of you who prefer the video version go to our YouTube site Mary Love March 2020 Market Update Special Report. If you would like to download the Market Report PDFS visit PDFs FOR MARCH 2020 MARKET REPORT
Usually in the spring I give an annual review and prediction of our local real estate market to our real estate investment group. This year due to the Cornoavirus that meeting as well as many others has been cancelled. Who knows, blogging, videos, and Google docs may become the new normal for getting this message out to our local folks.
We will review the greater Asheville Region, Buncombe and Henderson countries, as well as Asheville and Hendersonville city. We will also take a look at the current rental market and the past week activity.
The greater Asheville Region includes: Buncombe, Burke, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania and Yancey Counties. The more remote counties do effect these numbers because the averages in places such as Swain County that has a 14 month supply is averaged into the big picture. Since land is limited and housing cost is forcing people to look further out from Buncombe and Henderson county it is always good to see what is happening in the surrounding counties.
For the Asheville Region supply is still limited with the monthly inventory averaging 3.5. The combined average sale price was in the low $300,000. So WNC is still a popular place and affordable housing is challenging due to the lower wages in the area and the lack of inventory.
It is good to compare Buncombe Co (BC) with the city of Asheville. We will work with percent change with year to date (YTD) as that helps recognize trending patterns:
New Listings: BC YTD - 6.3% Asheville - 5.7% = housing shortage in all price areas
Pending BC: YTD 28.3% Asheville 33%
Closed BC: YTD 22.8% Asheville 15.8%
Median Sale Price: BC YTD $309,000 Asheville $328,000
Average Sale Price: BC YTD $379,543 Asheville $409,555
Month Inventory: BC 2.6
Take away is Buncombe Co not just the city of Asheville continues to see price increases. Basic 3/2 homes that are in good shape are starting in the mid $300Ks.
It is good to compare Henderson Co (HC) with the city of Hendersonville. We will work with percent change with year to date (YTD) as that helps recognize trending patterns:
New Listings: HC YTD - 7.1% Hendersonville -10.6%
Pending hC: YTD 15.8% Hendersonville 17.5%
Closed HC: YTD 20.8% Hendersonville 19.3%
Median Sale Price: HC YTD $274,000 Hendersonville $263,000
Average Sale Price: HC YTD $$298,929 Hendersonville $ 289,145
Month Inventory: HC 2.6
Take is away is Henderville is experiencing the most growth. Housing outside of the city limits is still affordable and may be good investments for rentals as well as first time home owners.
Haywood and Transylvania county continues to show growth.
While looking at the entire market with more detail, it is apparent that the list price is still over priced based on the number of price adjustments and final closed prices. Sellers need to become more aware of this in order to move the house faster. The longer a house sets on the market the lower the closed price may be.
Monthly rent prices have increased throughout all of the greater Asheville region.
Now, with all this information what do that mean for the next few months in real estate? Who knows? This is not a typical down cycle in real estate nor is the stock market. A pandemic is a global crisis and it may take a while to see the results. So for the short term, here are my predictions and recommendations.
If you are a general buyer needing to find a home to live in, then keep looking. If you find anything you like then buy it now. The inventory is low and may become more difficult to find anything in your particular price range. The interest rates are low so buy now. While prices may drop in a few months the inventory is still very limited so it is not worth the wait if you need a home to live in.
If you are an investor and want to hold for rentals, grab those mulit family units and take advantage of the low interest rates. Otherwise wait for those vacation rentals to come on the market because they will. Flippers hold your cash because it will be king again.
All sellers, price your property correctly now and get it sold asap.
Be sure to tune into to our YouTube and FaceBook sites for weekly updates.
Take care of yourself and others. Be gentle and kind to everyone. We are all in this together.