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There is an air of optimism as we march into the beginning stages of 2024. This is due, in large part, to the news that interest rates have begun to decline from a high 7% to the mid-6% range. While sellers in our market have continued to benefit from low inventories over the past year, the market itself slogged along as fewer sellers sold and fewer buyers bought. Now it seems as if the interest rate decline may lead the way to renewed buyer activity and market movement.
Buncombe County
The number of closed sales in Buncombe County was down 19% for December, reflecting 2023’s trend. However, pending sales are up 17% for December compared to December 2022. We view this spike in pending sales as a likely indicator that lowered interest rates are creating movement in the housing market. The inventory of homes on the market is up 5.7% from last year — but still at a historically low level. The average home price increased to $597,701 over 2023 —or a 7.6% increase compared to 2022. We will be keeping a close watch on pending sales as the year progresses.
View our Asheville and Black Mountain homes for sale.
Burke County
Similar to Buncombe County, Burke County’s pending sales were up 13.6% in December 2023 compared to pending sales in December 2022. Closed sales, a lagging indicator, were down 15.2% compared to December 2022. Inventory also remains low in Burke County but was up 5.7%
from December 2022. Sales prices were up 8.5% in Burke County in 2023, reaching $299,343.
View our Lake James homes for sale.
McDowell County
Speaking of possible indicators of market shifts, McDowell's pending sales were up 42.9% in December 2023 compared to December 2022. While the County’s numbers are small, this increase is still notable. Closings for the year were down 19% from 2022. Unlike Buncombe and Burke County, the average price fell 4.2% in McDowell County to $353,160 compared to the average price in 2022. The inventory growth that McDowell County experienced over 2023 (unlike Buncombe and Burke County), may explain the decrease in average sales price.
View our Old Fort homes for sale.
Conclusion
As the saying goes, one month doesn’t make a trend, but the spike in pending sales and news of decreasing interest rates have left us wondering if the market may be shifting in a positive direction.