2023 2nd Quarter Real Estate Market Update for Asheville
7/22/2023: Our latest market update starts below and was published on July 22, 2023. You can also skip down to our section of real-time Real Estate Statistics for the Asheville Area.
The second quarter of 2023 has seen a continuation of trends that started in late 2022 and the first quarter of 2023. Increased interest rates have succeeded in softening demand for homes and land, and inventory levels are starting to rebound. However, home prices continue to climb.
Interest rates have gradually increased, but thankfully not at the rate they went up over the last year. From day to day, rates have been hovering around 7%, but well-qualified buyers can usually find a rate around 6.5%. Non-conforming (jumbo) loans are actually even cheaper, with rates in the low 6’s. In fact, a buyer of one of our listings recently qualified for a sub-6% non-conforming mortgage.
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Inventory is Slowly Increasing
While the number of homes for sale is increasing compared to 2022, it’s just now getting back to the same levels we saw in 2021 (which was still a low level). The trend is moving in the right direction, but we still need much more inventory to get to a balanced market. We are still very much in a seller’s market.
Months Supply of Homes is Trending Up
The number of months of home supply is right around 2.3. In our 1st quarter update, it was 1.7 months. A balanced market would be closer to 4 months, so even with the increase, we are still very much in a seller’s market.
New Listings are Trending Down
Over the last year, the number of new listings is still trending down. Earlier we mentioned the increase in inventory, but this is mostly due to homes on the market taking longer to sell, and less overall demand due to interest rates. There is less “move-up” selling as well, meaning that fewer homeowners are selling their entry-level or “starter” home in order to move into a larger home. Even though these owners likely have great home equity, much of that equity needs to be applied to the move-up home, and at a higher interest rate. A lot of sellers have chosen to stay on the sidelines for now.
Overall Sales Figures are Down
In Buncombe County, the number of sales over the last 12 months (through the end of the 2nd quarter) has returned to pre-pandemic levels. In fact, it is the lowest we’ve seen in April 2019. It’s safe to say the pandemic boom is over, at least in terms of demand.
Price Negotiation is Coming Back
A trend that we began to see in our 2022 Year-in-Review update has continued, and that is buyers’ ability to negotiate on price. However, it’s still worth noting that homes in a good location, in good condition, and well-priced are still attracting multiple offers (and selling for over list price). But since more homes are sitting on the market and fewer buyers are in the market, there are opportunities to negotiate, especially for homes that have been on the market for a few weeks.
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Home Prices are Flattening
One pandemic-related trend that does not seem to be reversing is the price of homes, at least not yet. Prices do see to have leveled off. If you follow new listings online, you’ll notice more price reductions. But even with these reductions, the overall market (in terms of both median and average sales price), has remained relatively flat.
Land Sales are Down
Land sales have also returned to pre-pandemic levels. During the pandemic, land was bought frequently as a “Plan B” for buyers who really preferred to buy a home. But with low inventory at the time, a common tactic was to purchase land and consider building in the future. But now that homes are on the market longer, many buyers are content to spend more time to shopping for an existing home instead of waiting for a build project.
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Asheville & Black Mountain Area Real Estate Trends and Statistics
At Freestone Properties, we’re a little bit geeky. We love statistics, especially when they help to identify trends in the market. The statistics in this section of our website are updated in real-time. We’ve included many different charts and graphs based on geographic area, price range, square footage range, and other factors. The graphs are interactive, so hovering your mouse over the graphs will show the detailed figures.
We hope you find this information useful if you’re considering selling your home or considering moving to the Asheville area. Keep in mind that statistics such as days on market, sale-to-list-price ratio, price per square foot and other figures can vary greatly depending on a lot of factors. Each property is different, so contact us to discuss a specific property.
Residential Real Estate Statistics and Trends by Geographic Area
Residential Real Estate Statistics and Trends by Property Type in Buncombe County (Countywide Data)
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 the Asheville area and specific surrounding areas. If you’d like to see a specific statistical graph that we haven’t provided, please use ask us to create it!