Asheville-area home prices remain high as inventory slightly increases
Home Prices & Inventory Update for Asheville Region
Overview
The housing market in Asheville and its surrounding areas showed signs of a bustling market in February, with an increase in sales, listings, and buyer demand compared to the same period in 2023. Data from regional real estate analysts revealed a shift in the market dynamics, indicating a seller’s market with high home prices and low inventory.
Increased Listing Activity
In February, there was a notable uptick in listing activity in the Asheville metropolitan statistical area, with 565 homes added for sale. This marked a 22% increase from February 2023. The rise in supply is a positive response from sellers to meet the growing demand for housing.
Current Market Conditions
Despite a slight decline in interest rates from their peak in October, Asheville’s real estate market still leans heavily towards sellers. The area currently has approximately 2.1 months of inventory, far below the six months considered ideal for a balanced market. The low inventory and high demand continue to drive prices up, benefitting sellers.
Impact of National Association of Realtors Settlement
The recent settlement by the National Association of Realtors has raised concerns among housing experts about its potential impact on home prices. While it is too early to assess the full effects of the settlement on the Asheville market, some predict that first-time homebuyers may face challenges due to additional costs, such as buyer-agent commissions.
Market Trends and Forecast
Realtors in Asheville anticipate that the trend of high demand and high prices will persist through the spring of 2024, with out-of-town buyers contributing significantly to the market activity. The slight increase in inventory signals a possible stabilization after a period of low supply, but prices are expected to remain elevated.
Spring Market Update
Here’s a snapshot of the median sales prices and inventory for the city of Asheville, Buncombe County, and Henderson County in February 2024 compared to the same period in 2023:
- City of Asheville:
- Median sales price: February 2024 – $447,445 (+4.1%); February 2023 – $430,000
- Inventory of homes: February 2024 – 287 (+13.9%); February 2023 – 252
- Buncombe County:
- Median sales price: February 2024 – $429,895 (-3.3%); February 2023 – $444,745
- Inventory of homes: February 2024 – 587 (+22.3%); February 2023 – 480
- Henderson County:
- Median sales price: February 2024 – $412,500 (+1.1%); February 2023 – $408,000
- Inventory of homes: February 2024 – 316 (+23.9%); February 2023 – 255
Market Projections
Real estate experts in Asheville suggest that the market is likely to maintain its high price and interest rate environment throughout 2024. The current economic conditions, including inflation, may continue to put pressure on prospective homebuyers, especially first-time buyers.
Conclusion
Asheville’s real estate market remains robust, with prices staying elevated and inventory levels slowly increasing. Buyers are advised to be prepared for a competitive market, while sellers continue to benefit from the favorable conditions. The overall outlook for the housing market in Asheville points to a continued trend of high demand and limited supply.
