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.
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