Asheville Real Estate Market – Early Summer Insights
The Asheville real estate market in the late spring and early summer continued to be a seller’s market, but we’ve started to shift away from that slightly. Generally, a seller’s market is categorized as one in which a listing has a low number of days on the market, sells for list price or above, and there may be a multiple offer situation. What we’re seeing now is homes are sitting on the market a little longer and home prices aren’t rising as fast as they have been in previous years. Despite this, though, inventory remains low, which continues to be a challenge for Buyers. The number of New Listings from April-June of 2019 remained essentially stagnant and even exhibited a slight decrease the second quarter of 2019 as opposed to the same quarter in 2018. If you look at the line graph comparing the two, you’ll see a significant difference in the jump experienced in May of 2018 compared to the same period this year.
Even though the low inventory is contributing to a soft seller’s market, the housing market in Asheville had slightly lower prices than Buncombe County. Both areas demonstrated an increase in the number of sales compared to the same timeframe in 2018, but Buncombe County is beating out Asheville in terms of growth. One reason for the higher demand in Buncombe County could be attributed to the low interest rates we’ve been seeing this year as well as more affordability. The price per square footage is still lower in Buncombe County as opposed to Asheville. We’ll need to keep an eye on this, though, because as we move through 2019 we’re seeing an increase in the Median Sales Price in Buncombe County. We see the same thing in Asheville, but the pattern is different. Buncombe County shows a steady increase, whereas, the Median Sales Price dipped in in May before increasing in June.
Asheville and Buncombe County both exhibited the same increase in Closed Sales in May before decreasing in June. If we look at the graphs we also see that there were more New Listings available in Buncombe County suggesting there’s a correlation between New Listings and Closed Sales is proportionate in this case. Asheville shows a similar relationship between New Listings and Closed Sales. There was a pop in May before before a decrease in June in both New Listings and Closed Sales.
Pete Anderson, Broker | REALTOR here at DixonPacifica also had some more insights to share about the Asheville real estate market. Read below to see what he had to say:
As we roar through 2019, real estate in Asheville remains a hot commodity. People from all over want to live here and locals continue to want to pick and choose their homes.
One of the statistics I like as a nod to whether the market is likely to favor sellers or buyers is the ratio of Closed Price versus List Price. The higher that number, the hotter the market (read: seller’s market). This will vary based on inventory and by price point and certainly by location. For example, if you look at transactions in the $200,000 to $400,000 range this spring in Buncombe County (outside the city of Asheville) you were looking at a ratio of just above 98%. Hot market. But if you jumped to the $800,000 and up range you were below 94% in March and even lower in April. Then if you narrowed your focus to West Asheville and looked at the $400,000 to $600,000 range you’d be up over 99% for the closed price versus list price. Hot location, hotter market.
Will the hot market last, you ask? That we can’t know. To be sure, the ratio of closed price to list price is a reflection of the past. However, some people look at the yield curve in the bond market or, more specifically, for an inverted yield curve to indicate future economic trouble. Some people are leaning on the low 30 year fixed rate to continue to attract buyers. Regardless of what the future brings, having a local realtor in your corner will always be the smart play.
Please reach out to me with any questions or needs you have here in the Asheville area. I’d love to talk with you about what we do differently and why DixonPacifica truly will help you move smarter.