May – Real Estate Market Update for the Asheville, NC Area
May 4, 2025
Every day we’re seeing more and more people in town as tourist season ramps up. At the same time, more homes and lots are coming on the market. It’s officially the real estate listing season in Western North Carolina! With this added inventory, the market is tipping towards a buyer’s market. Sellers are more willing to negotiate in many cases.
A few factors are contributing to this:
- Many houses that were on the market when Hurricane Helene hit our area were withdrawn from the market after the storm. Those homes are now coming back on the market.
- Easter was later than usual this year, and it’s not usually a tourism holiday. That was a weekend of less than normal real estate activity.
- Our region has certainly needed time to recover from Helene. Much of the area’s focus has been on clean up an rebuilding, and the results have been nothing short of remarkable. It has only been 7 months since the storm, and the recovery effort has been rapid. There is still work to do, but we are ready for tourism and out-of-town visitors (and real estate buyers) to return!
- There is uncertainty in other markets, especially in the stock market. When there is uncertainty, buyers and investors often pause. Might we recommend diversifying your investment portfolio to include real estate in Western North Carolina?
Note: In the graphs below, the Asheville MSA (Metropolitan Statistical Area) includes Buncombe, Haywood, Henderson, and Madison Counties.
Interest Rate Update
There’s not much news on the interest rate front. 30-year mortgages have remained below 7% for a few months now, but we haven’t seen a steady decline that might get more buyers (especially first-time homebuyers) off the fence and into purchase contracts.
Inventory
If you follow any real estate website that offers automatic listing notifications, you’ve probably noticed an increase in inventory. The number of homes for sale has climbed for the 3rd straight month, so home buyers will have ample choices.
Months Supply
The added inventory in April has pushed our months’ supply to around 5 months region wide. Generally speaking, more than a 4 months’ supply can be considered a buyer’s market. It’s more important for sellers to price their homes correctly and have them in show-ready condition as much as possible.
New Listings
In the chart below, there was a significant increase in inventory in April. This is a normal occurrence for this time of year. Combined with March, we’ve had consecutive months of spring listing inventory, setting us up for a busy summer of showing more houses than in recent years. If you schedule a tour with one of our knowledgeable buyer’s agents, we’ll be able to show several good options in your price range.
Closed Sales (Units)
Closed sales in April were up (for the second straight month). With added inventory to choose from and the selling season rapidly approaching, we expect this number to continue to rise through the summer.
Negotiation
Negotiation is still happening, with sale prices averaging right around 95% of list price.
Home Prices
Median home prices are still climbing. Since the end of 2022, we’ve seen incremental growth across the broader market. Note the Black Mountain line (in blue) bounces around a lot, but Black Mountain is a smaller market and just 1 or 2 sales can skew the data in either direction. Average homes prices have remained relatively flat since Helene.
Land Sales
Land sales increased in March but decreased in April. Winter is always a slower time for land sales, so it has been hard to know what to expect for land sales this spring. With added housing inventory, it’s not surprising that land sales are down. We are often asked about the pros and cons of building a new home versus buying an existing home. Buying an existing home is almost always more affordable, and it’s definitely easier. When we have more homes available, we typically see fewer lot sales.
Talk to a Local Agent About the Asheville Real Estate Market
Please feel free to contact us to speak with a local Asheville real estate agent about the real estate market in Asheville, NC and the surrounding areas.
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