The Asheville real estate market should continue to grow, if I can trust the lessons I learned in Econ 101 of supply and demand. With the tightening of funds for contractors building homes on speculation, fewer new homes are coming onto the market. Without that option, buyers are turning to existing single family homes. All of that means a tightening supply of available homes.
In Buncombe County and Black Mountain, the supply of homes available for sale is down 15 percent compared to the same time last year. Market watchers will know that our supply drops this time of year so it is crucial to note that this figure is compared with last year's number for the same period.
With the inverse relationship involved with supply and demand, it can be argued that with the supply decreasing, we should see rising sales and perhaps prices. The question that remains, however, is the impact of the recent foreclosure agreement with the banking industry. While that agreement was pending, many banks ceased or slowed foreclosures. Some market analysts predict that foreclosures will increase again which could affect that market adversely.
It's interesting to note that nationally, one in four home sales the last quarter of 2011 were for distressed homes. Asheville spring always seems to bring signs of hope. The decrease in Asheville area homes for sale seems to indicate that the Asheville real estate market may be headed for brighter times. For more information about Western North Carolina real estate including Asheville homes for sale, please contact Greybeard Realty.