January Sales Off to a Strong Start Across the Asheville Region

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February 29, 2024 — Community Bulletin

News release from Canopy Realtors: January data from Canopy MLS show home sales across the region and MSA moving steadily towards normalization and recovering from the large fluctuations in sales, the region experienced over the last two years.

Sales in January increased 5.5 percent compared to sales in January 2022, with 618 properties sold compared to 586 the previous year. However, month-over-month sales were down 13.8 percent compared to December 2023. December had 99 more homes sold during the month, as buyers rushed to take advantage of rates that slipped into the 6 percent range. Canopy MLS sales represented in this report are for single-family, condo, and townhome sales only.

Steady Increase in Contract Activity

Contract activity across the region increased by 7.4 percent year-over-year as 796 homes went under contract during the month. At the start of the year, 55 more homes were in under contract status than at the start of 2023. Contracts have risen steadily for three consecutive months.

Month-over-month contract activity, which signals buyer demand, rose by 32 percent. January showing reports indicated that buyer interest or foot traffic was strongest in the city of Asheville, where listings received an average of 4.2 showings or potential buyers per listing, followed by Hendersonville, where listings received an average of 3.4 showings per listing. Overall, buyer demand was strongest in Buncombe County, where listings averaged 3.7 showings per listing.

Boost in New Listings and Inventory

New listings, which represent seller confidence, were also steady during January, rising slightly (0.4 percent) year-over-year as sellers brought 728 new listings to the market. New listings compared to December were up significantly, by 27.5 percent, further boosting inventory and supply. New listing activity has been positive and increased steadily since October 2023.

“The region and MSA seem to be in a state of recovery,” said Steve Barnes, a Canopy MLS Board of Director, and VP/Managing Broker with Allen Tate/Beverly-Hanks Realtors®-Waynesville. “We still have some time before the spring selling season starts, but if listing activity continues building, the region and MSA should be better positioned to meet that demand. Rates stabilizing and settling in the 6 percent range could help us return to a healthier and more normal spring market.”

Market Trends and Prices

The region’s inventory in January increased 9.4 percent year-over-year to 1,938 homes for sale compared to only 1,771 during the previous year, while months of supply increased 21.1 percent to 2.3 months of supply compared to 1.9 months at the start of 2023. Prices across the region moved higher, amidst rising demand. Both the median sales price ($395,000) and the average sales price ($502,438) rose 10.2 percent and 12.5 percent year-over-year respectively.

However, buyers in January found some price relief, as both the median sales price and average sales prices softened a bit, decreasing 4.1 percent and 2.7 percent respectively. The average list price for the month increased 11.8 percent year-over-year to $560,57, which brought the original list price to sales price measure down 0.6 percent to 93.2 percent.

Asheville MSA Sales

Sales rose for the first time in two years across the four counties that make up metro Asheville. In January sales rose 5.3 percent as 396 homes sold compared to 376 that sold in January 2023. Sales were down 16.3 percent month-over-month, with December having 77 more units sold than in January.

Contract activity, which is typically seen as a good gauge of future sales, since they tend to close within 45-60 days rose 9.5 percent year-over-year as 532 homes went under contract during the month. Contract activity is up significantly compared to December, rising 32 percent month-over-month.

New listing activity was weaker, declining 2.8 percent year-over-year as sellers brought 458 new listings to the market. New listing activity also rose, however, month-over-month by 31.6 percent. Still, growth in new listings continues to boost inventory and supply, which rose at report time in January.

County Sales Overview

Buncombe County: Home sales in January increased 4.5 percent as 211 homes sold during the month, with pending contract activity up 15.4 percent.

Haywood County: Home sales rose 24.5 percent year-over-year as 66 homes sold in January, but contract activity declined by 19.5 percent.

Henderson County: Home sales increased 4.1 percent year-over-year, with pending contracts up 21.7 percent.

Madison County: Home sales in January dropped 26.1 percent compared to January 2023, with 17 homes selling during the month.

Other counties around the region: Include Burke, Jackson, McDowell, Mitchell, Polk, Rutherford, Transylvania, and Yancey counties, each showing varying trends in sales, contract activity, new listings, inventory, supply, and prices.

Conclusion

The real estate market in the Asheville region is showing signs of recovery and normalization after experiencing fluctuations in the past two years. With steady increases in sales, contract activity, new listings, and inventory, buyers and sellers can expect a more competitive market this spring. Prices have softened slightly, providing some relief to buyers, but the market remains strong with tight inventory and high demand.

As the region moves towards a healthier and more balanced market, both buyers and sellers should be prepared for a market that continues to show stability and resilience in the face of changing economic conditions.