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REAL ESTATE MARKET REVIEW 2023

Alright, folks, let's take a rollercoaster ride through the wild world of Asheville's real estate scene for the year 2023. We are reviewing the entire Asheville region (Including Buncombe, Burke, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania, and Yancey Counties)

MEDIAN HOME PRICE

Outlining counties like Jackson and Poke Counties, affect the median home price. Even with higher interest rates the median home price has continued to climb significantly across the region.  Our 2023 median in Asheville was $402,990, while Buncombe Co. flexed its muscles at $467,655. Asheville city, though, stole the show at $485,000 – a whopping +52.3% from 2019!

LISTINGS, PENDING, CLOSINGS

Local sellers, chilling in their homes, thought twice about listing due to higher rates for new ones. Fewer listings meant fewer pending and closings.  The repeating story of Covid days was that house prices continued to climb.

LIST TO CLOSE PRICE

Houses weren't sprinting under contract if overpriced. Buyers, armed with higher interest rates, became picky. Detailed Comprehensive Market Analysis (CMA) became important for both buyers and sellers.

DESTRESSED HOMES

While some parts of the country were stress-eating over distressed home sales, we stayed Zen. Less than 1% of foreclosures or short sales in our region. We're the yoga of real estate.

INVENTORY

Inventory for 2020-2022 felt like searching for a needle in a haystack. Now, we're hitting a whopping 2- or 3-months’ supply in some parts of the region.  Townhouse/condos are the new rock stars, hitting the scene for first-time homeowners. Get ready for the condo revolution in 2024.

Rent 

Let’s compare the HUD Fair Market Rent amount to Asheville city limits market value price.  This chart compares units that have HVAC systems and are in good condition. 

Studios and one-bedrooms do not have a huge price difference. We see a slight difference between two and three bedrooms. The big jump is with the four-bedroom units. Part of this reason may be the increase in luxury rentals in Asheville. 

Mamaw Says (My Mamaw use to predict so many things so I thought I would use that phrase)

Interest rates will stay steady or even go down a little. It is an election year and that always affects interest rates. Inflation is easing but still an issue, so I don’t think we will be seeing anything under 5%. 

If you want to move to the Asheville area, DO IT NOW!  House prices have continually climbed over the years and it will continue to do so. 2024 will start off more stable. Buyers are starting feel more comfortable and sellers are realizing they need to be realistic in pricing.  First quarter will be more balanced and overall, a healthy market.  This is a good time to be a buyer or seller.  

If interest rates drop before the third quarter, then we may see multiple offers again for houses that are in good condition and good location. 

I am not going to predict third and fourth quarter.  Election years tend to lower interest rates and cause buyers to pause.  However, if you are one of those vacation buyers who come in the fall and want to buy in a few years, just go ahead and buy this fall. Prices will only go up.

Investors who are looking to buy long time rentals, may find some good deals the first quarter.  Consider that break even or close to it deals because you might be able to refi later in the year.

Investors who want to flip, need to be very careful.  Once again, we are seeing scheduling issues with vendors.  Some subs are taking months to just give estimates.  Houses in the $400Ks with just cosmetic issues may be offer the best return.

Thank you for taking the time to read this blog.  Please subscribe and or leave comments. 

Be sure to watch the YT version  https://www.youtube.com/watch?v=hSFjLN6ll6g&list=PLBQCN_u2AkiOflAQYGGjJ7libhuBVKwYz

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