Home buyer frustration illustration
ASHEVILLE – As the median sales price for homes in Buncombe County keeps hitting record highs, low inventory has become the “defining feature” of Western North Carolina’s housing market, according to a first quarter report.
The first quarter of 2024 saw a median sales price of $443,940 in Buncombe County, and $465,000 in the city of Asheville. The median price in Buncombe was the highest for any first quarter on record for the county. The high sales prices come as demand still far outpaces supply, which has remained well-below six months inventory for homes under $1.5 million, indicating a seller’s market. The luxury market, above $1.5 million, is the only price range with more than six months of inventory.
Interest rates have remained high during the first quarter, at 6.44% for 15-year mortgages. It’s the highest rates have been since the beginning of 2024. The market is feeling remarkably similar to 2023, a year that brought record sales prices to the Western North Carolina region. A recent March report agrees with this assessment.
“Inventory across the region is still tight, and though supply is increasing and moving in the right direction, we’re still not close to being a healthy, balanced market at six months of supply, and favoring neither buyers nor sellers,” wrote a member of the Canopy MLS Board of Directors in the release. The city of Asheville has one of the highest move-in to move-out ratios and a notable number of people using U-Haul’s to move to the area.
Recent city of Asheville discussions regarding home prices have centered around updating the Unified Development Ordinance to allow for more “missing middle housing.” Missing middle housing are home types that have been largely absent from the residential market over the last 70 years.
The missing middle housing ordinances could have a positive effect on the home market, especially as inventory has been so low in recent years. “The new construction that’s coming online is most exclusively in the higher price ranges,” said a real estate professional. Policy changes that focus on allowing empty space on single-family lots to be redeveloped could have an impact on producing more affordable housing.
The following data is from regional reports.
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