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When is the best time to buy or sell?
The Greater Asheville area is no stranger to a real estate market influenced by a chronically low inventory of homes for sale. In the past few years, low inventory, combined with the area's growing demand, merged with even greater demand over the pandemic years. During these years, people sought to move out of large cities, and into cozier, more moderately-sized scenic mountain towns.
During the pandemic years (2020-2022), it was not uncommon for sellers to be able to list homes at well above typical market prices. Demand was at an all-time high and dramatically outpacing supply. The Asheville area had carried notable demand, but during the pandemic years, additional demand was driven by folks wanting to move out of bigger cities and people that were able to work remotely–which seems to have settled to some degree.
The Good News for Sellers
In Buncombe County, average sales prices were nearly $600,000 in June, and $570,000 year to date, with the median sales prices sitting around $506,000 in June. These numbers have grown exponentially over the past few years. Closings in June were down 23%, and yet inventory levels are even lower than in 2022.
At this stage, low inventory levels are still enabling sellers to price higher, but gone are the days of “pie in the sky” numbers and nearly every transaction including a bidding war which results in offers well above listing price (though this can still happen on occasion). At this stage, sales
prices are up 2.5% compared to 2022. Our market remains a seller’s market for now, as low inventory levels stabilize prices.
Good News for Buyers
In a landscape of higher interest rates, and slightly lessened demand, buyers are more willing to wait out prices that they consider to be above the market. We’ve seen this push “days on market” higher as sellers acclimate to the market shifts. For example, cumulative days on the market until the final sale of homes increased 46% from 28 days last year to 41 days this year. The percent of the original list price received has also softened, slightly – from 102% in June of 2022, compared to 98.4% in June of 2023. While this is not a major shift, it is still a welcome sign for buyers and an indication that some transactions could include more concessions or negotiations than in previous years.
Burke County’s June numbers revealed that sales prices had grown $19,000 higher than they were last June, but this was down 14% from the previous month. McDowell County’s average sales price had grown 10% from the previous month to $337,000. However, this was down 9% from the previous year – a $33,000 difference – suggesting that prices are still historically high, but may be more in “flux” in these markets when compared to Buncombe County.
It does seem clear that fewer sellers are looking to sell which is causing lower inventory levels. This is likely influenced by sellers wanting to retain their lower interest rates. On the flip side, buyers are contending with higher interest rates, and they are also seeing the market ease up slightly in terms of sellers not being able to always achieve sales prices that are at or above the asking price like they had in years past. Homes are sitting on the market for longer, though not dramatically. Time will tell what the market will do next, but at this point, there are “bright spots” for both buyers and sellers.
Want to know more? Contact the Greater Asheville real estate experts at GreyBeard Realty and Rentals today. Our agents are ready and willing to help you navigate the current market and buy or sell your home.