Asheville Real Estate Market Fall Quarter
When analyzing the Asheville Real Estate market we choose three different markers in the city of Asheville and Buncombe County: New Listings, Closed Sales, and Median Sales. While there are many others, we think these data points create an overall picture of our market. The third quarter exhibited more of an evening out than we’ve seen previously. The market is becoming more stable, although we do still consider it to be a seller’s market. While homes are sitting on the market for a little longer, we continued to be challenged by a limited inventory, especially in the $300,000 bracket, a very popular price point. Buyers have become very discerning, which could be a reason homes are sitting a little longer.
At the start of the quarter, the number of New Listings in Asheville was down 10% when compared to the number of New Listings for the same period in 2018. August showed a slight increase in inventory at 1.1%. September also showed a slight improvement in the number of New Listings.
When comparing New Listings in Buncombe County in 2018 vs. 2019 we see more stagnation this year than last. While there was a considerable uptick in New Listings July-August last year, New Listings in 2019 stayed relatively the same with 510, 513, 514 New Listings respectively.
The number of Closed Sales in Asheville during the third quarter increased from the same period in 2018. For the month of July, Closed Sales increased by 3.7%. August showed a significant increase at 22.4%. While September continued the trend exhibiting a 36.7% increase from August 2018 to August 2019.
The number of Closed Sales in Buncombe County decreased from August-September 2019, but the number was still higher than the same period in 2018. For instance, the number of Closed Sales jumped from 400 in July 2018 to 435 for July 2019, an 8.7% increase. August showed an even higher increase from 385 in August 2018 vs. August 2019, a 14.3% increase. We closed out the quarter with a very healthy 35.6% increase in Closed Sales for September.
MEDIAN SALES PRICE
The Median Sales Price in the City of Asheville declined slightly from July-September of 2019. However, when compared to the same period for 2018 we see that the Median Sales Price was up overall for the third quarter in 2019 as compared to the same quarter in 2018.
The Median Sales Price in Buncombe County behaved a little differently than it did in Asheville. There was an increase from July to August, but then it dipped again in September. However, compared to July-September 2018, we do see that overall the Median Sales Price was up in 2019 for the third quarter.
Pete Anderson, Broker | REALTOR here at DixonPacifica also had some more insights to share about what it means to be a hot market in Asheville:
As we near the end of 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.
Looking back at this year, 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 past 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 plus 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 Asheville market remain hot next year, you ask? No one knows the future but, as I mentioned, people from all over want to move here. To be sure, the ratio of closed price to list price is merely a reflection of the past. And so 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.