Western North Carolina Real Estate Market Update: Q4 of 2021
In real estate, 2021 ended in a similar way that it began. Soaring demand for our mountain region has led to competitive, multiple offer situations and decreasing days on market. Rising prices have been met with a willingness from buyers to pay those prices (and beyond) to secure a mountain home or property. While these are regional trends, they are not unlike the trends that are being seen nationally as well.
What's Included in the Market Update?
In the first section of this market update, we will look at Q4 and the final days of 2021 in the Asheville region of Western North Carolina, specifically market trends in Buncombe, McDowell, and Burke Counties. We will also report the trends that were uncovered in 2021, as a whole, and speculate what this could mean for 2022.
Buncombe County - Q4 Results
In Buncombe County, the average sales price was up 19.1%, to $527,393 in the fourth quarter. Percent of the original price received was up slightly, by 1.9%, at 98.6%. There were 1358 total closed sales, down 5.8% from last year. The days from list to close was was 82 days, a decrease of 18.2%. In Buncombe County and the surrounding counties, new listings were down nearly 9% for December, but up nearly 9% through 2021 in the region.
McDowell County - Q4 Results
McDowell County's average sales price in Q4 was 299,784, up 2.5% from last year The percent of the original price received was also up 1.3% -- reaching 95.3%. Closed sales were flat at 130 compared to the previous year. The days from list to close went down 3.5% to 93 days.
Burke County - Q4 Results
Further east in the Lake James and the Morganton area, the average sales price in the final quarter hovered around $273,000, which was up 17.4% from last year. However, the percent of the original price received was down slightly, by 1.2%, to 95.8%. There were 255 closed sales in Burke County, an increase of 11.8%. The days from list to close were at 73 days, down 6.7%.
2021 - Year in Review & Looking Ahead
Our market has had a great need for inventory and this has been the case for years. The tight inventory and high demand have led to increases in price as buyers flood the Western North Carolina market. However, contrary to some impressions that inventory decreased in 2021, new listings actually grew by 8.7% in the Asheville Region (Buncombe County and the surrounding counties), compared to 2020. The inventory of homes for sale in the region is down 42.6% as of December 2021, but this is likely a reflection of the extreme demand that our market has seen with more buyers securing homes on the market and quicker shifts from active listings to under contract to closed sales. Total closed sales in 2021 were 14,248, which is an 11.8% increase over 2020. The original price received across a number of counties in the Asheville region ended at 97.8%. By the end of December 2021, there were 1420 homes remaining on the market, compared to 2472 in December 2020.
What is in Store for 2022?
While nothing is certain, we are certainly beginning the year at low inventory levels. Demand is still high, and the transition to spring and summer often brings an influx of new property listings. Will the supply meet the level of demand for our mountain region? So far, recent past years have told the opposite story of a market with the demand that is outpacing supply, though 2021's growth of new listings seems positive. It will also be interesting to watch how rising mortgage rates impact our market with many agents reporting that more buyers are bringing cash to the closing table.
Please contact us with any questions you may have.
*Data in this report is based on information from Canopy MLS.