Western North Carolina Real Estate Market Update: Q3 of 2022
As we close out the 3rd quarter and enter the final stretch of 2022, it likely comes as no surprise that the impact of rising interest rates is becoming more evident in our market. While there are signs of softening demand in the Western North Carolina real estate market, low inventory levels are keeping home prices stable and even driving some increases.
Buncombe County
Closed sales in Buncombe County are down 11.6% compared to the 3rd quarter of 2021. The number of pending transactions is down 30% in September compared to September 2021, so we can expect that next month's closed sales will be down even more.
While inventories increased slightly in September, our Western North Carolina housing market continues to operate as a seller’s market. The months of inventory of homes on the market is still only 1.7 months which is well below the historical average. While demand seems to be slowing, the number of new listings (supply) decreased, keeping inventories low even as demand softens. September saw a 20% decrease in new listings compared to September 2021. Another dynamic we are observing is that homeowners are reluctant to give up their 3%+/- mortgage rate to move to a 6% rate at a different home, resulting in fewer houses coming on the market.
In summary, low inventories are keeping prices from decreasing even as demand softens in Buncombe County. The 3rd quarter average sales price in Buncombe County was $569,383 – an increase of 12.9% compared to the 3rd quarter of 2021.
Burke County
Burke County has been mirroring trends seen across the region. New listings were down 22% for September compared to September 2021, and the inventory of homes on the market actually decreased. This happened while closed sales also decreased by 17.8% compared to the 3rd quarter of 2021. Month supply of inventory in Burke county is 1.3 months – a 23.9% decrease from the 3rd quarter of 2021. Burke County remains a seller's market.
McDowell County
McDowell County has followed the same narrative. The number of new listings in September was down 6% from September 2021. Month supply of Inventory of homes on the market was 1.9 months, a decrease of 29.3% from the 3rd quarter of 2021. Compared to the 3rd quarter of 2021, the average sales price in McDowell increased 23.9% to $358,362. McDowell also remains a seller’s market.
The theory of supply and demand pricing is plain to see in today’s real estate market. Supply (inventory of homes) is decreasing while demand is also softening. Unlike other recent times when demand slows, prices are remaining the same, or even showing increases because of the decrease in supply that is being seen across Western North Carolina. Even if interest rates stay at the current levels or increase, we still anticipate prices will hold steady due to the low inventory.
Data in this report is based on information from Canopy MLS.
If you have any questions about buying or selling or have any questions about the Western North Carolina market, please don’t hesitate to reach out or visit us at one of our 4 office locations in Asheville, Black Mountain, Lake James, or Old Fort.