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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

For those of you who prefer the video version check out our YouTube channel

 

 

 

REAL ESTATE MARKET UPDATE ASHEVILLE AREA MAY 2022

It is time for our monthly real estate update.  This information is based on statics from our local MLS.  The information is calculated from the past month so we will always be talking about the previous month’s stats. 

The city of Asheville is located in Buncombe County.  The monthly real estate updates will focus on Buncombe and Henderson County, along with the city of Asheville and Hendersonville.

The Asheville Region includes Buncombe, Burke, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania and Yancey Counties.  The surrounding counties are becoming more popular and price increases are occurring throughout the region. Depending on what is happening in the market, a surrounding county may be highlighted.  

If you've been reading online or listening to the news, you are probably wondering if the housing market is going to crash.  It seems all the experts are saying the market is slowing down.  Is that true for our local market?  The national housing market is shifting.  The higher interest rates and increase inflation are having an effect on who can and will buy a house in the next few months.   Don’t panic or celebrate yet.  The housing supply is still very limited and people still want to buy houses, especially in the greater Asheville area.

 

It amazes me that the median house price has continued to climb every month in Buncombe and Hendersonville counties.

 

 

ASHEVILLE REGION

 

Jan

Feb

Mar

Ap

May

June

NEW LISTINGS

752

888

1,303

1,355

1,591

 

PENDING

950

1003

1,258

1,191

1,253

 

CLOSED

906

749

1,078

1,005

1,116

 

MEDIAN

$340

$355

$375

$375

$401

 

AVG

$418

$432

$449

$449

$489

 

DAYS ON MARKET

36

39

37

29

24

 

MONTHS SUPPLY

1.0

0.9

0.9

1.1

1.4

 

Months of supply = number of houses currently for sale/ by the average number of homes sold per month. 

BUNCOMBE COUNTY

 

Jan

Feb

Mar

Ap

May

June

NEW LISTINGS

271

307

448

484

573

 

PENDING

349

363

422

426

444

 

CLOSED

325

267

390

348

401

 

MEDIAN

$389

$415

$448

$450

$472

 

AVG

$494

$515

$546

$567

$613

 

DAYS ON MARKET

33

36

34

27

23

 

MONTHS SUPPLY

0.9

0.7

0.8

0.9

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASHEVILLE CITY

 

Jan

Feb

Mar

Ap

May

June

NEW LISTINGS

123

134

217

225

266

 

PENDING

149

161

189

208

214

 

CLOSED

156

136

178

170

201

 

MEDIAN

$417

$413

$496

$500

$485

 

AVG

$541

$505

$603

$610

$665

 

DAYS ON MARKET

34

36

35

27

29

 

MONTHS SUPPLY

0.9

0.7

0.8

0.9

1.1

 

 

HENDERSON COUNTY

 

Jan

Feb

Mar

Ap

May

June

NEW LISTINGS

123

164

219

225

250

 

PENDING

140

181

227

195

222

 

CLOSED

165

127

185

183

189

 

MEDIAN

$355

$365

$379

$403

$439

 

AVG

$405

$434

$436

$444

$488

 

DAYS ON MARKET

22

34

28

16

19

 

MONTHS SUPPLY

0. 8

0.7

0,7

0.9

1.0

 

 

CITY OF HENDERSONVILLE

 

Jan

Feb

Mar

Ap

May

June

NEW LISTINGS

75

103

113

140

154

 

PENDING

80

115

126

117

141

 

CLOSED

109

67

115

104

111

 

MEDIAN

$349

$360

$375

$386

$415

 

AVG

$410

$455

$438

$422

$456

 

DAYS ON MARKET

25

32

27

16

16

 

MONTHS SUPPLY

0.8

0.7

0.6

0.9

1,0

 

I decided to go to the outer area of our region for the special focus and what I found was very interesting.  The stats were off the charge with the median home price.  An increase of 111% in one month!  This made me dig deeper to see what was happening.  When I compared year to date it was even odder.  The median home price had declined by 41%!  What on earth was going on?  I did more research to discern what was happening there.  Based on a year review of 3/2 homes, the trend was fewer houses with an acre or less come on the market each month.  This create a vacuum for more affordable houses and left the larger tracks of land and homes on the market longer.  The houses that sold from Ap to May were higher price which affected the median.  However, this trend caused the year to date to be lower. 

SPECIAL FOCUS

MITCHELL CO.

2021

2022

 

April 22

NEW LISTINGS

17

48

 

 

PENDING

21

25

 

 

CLOSED

16

14

 

 

MEDIAN

$356

$209

-41%

111%

AVERAGE

$339

$309

-9%

 

DAYS ON MARKET

57

34

 

 

MONTHS SUPPLY

3.1

3.1

 

 

 

TAKE AWAY

High gas prices and rising interest rates will increase the medium house price inside the city limits.  There are plenty of people moving here who think our prices are good deals.  They  will be less likely to drive more than 20 minutes from center of city. 

The outer region is already seeing a market shift and will continue to do so as houses with less land stop coming on the market. 

Buyer need to buy now.  Prices may level out but they are not going to drop.

Sellers outside of city limits will see a leveling of the price and larger homes may see a slight price drop.

Investors, need to  be careful with their numbers.  The sweet spot is probably in the mid $400s to  find house with mainly cosmetic needs.

 

For more detailed statics view Asheville Market Update May 2022 PDFS

 

 

 

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