Asheville Housing Market: Prices, Trends, Forecast 2023-2024


Asheville, North Carolina sits in the Blue Ridge Mountains in the western part of the state. This area is often overlooked in favor of larger cities like Charlotte or Durham. However, the area has its attractions whether you’re a tourist or considering Asheville real estate investment. Asheville proper is home to around ninety thousand people. The Asheville housing market is larger than this, though, when you take the five-county metropolitan area into account. The larger Asheville real estate market is home to over four hundred thousand people.

Current Asheville Housing Market Update

How is the housing market doing currently?

The Asheville region includes Buncombe, Burke, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania, and Yancey counties. We will discuss the local real estate trends based on the November 2023 data provided by the Canopy Realtor® Association.

Year-to-Date Housing Metrics (2022-2023)

Let’s start by examining the key metrics comparing 2022 and 2023 year-to-date data:

  • New Listings: In 2023, there has been a notable increase of 12.7% in new listings, reaching 935 compared to 830 in 2022.
  • Pending Sales: The number of pending sales has shown a 9.4% increase, rising from 695 in 2022 to 760 in 2023.
  • Closed Sales: However, closed sales have experienced a 9.8% decrease, dropping from 870 to 785 in 2023.

These metrics provide a snapshot of the market activity, showing a mixed trend in new listings, pending sales, and closed sales.

Home Price Trends

The median and average sales prices are crucial indicators of the market’s health. Let’s examine the changes in prices:

  • Median Sales Price: The median sales price has seen a robust 12.5% increase, reaching $422,000 in 2023 compared to $375,000 in 2022.
  • Average Sales Price: Similarly, the average sales price has surged by 20.7%, jumping from $455,704 to $550,210 in 2023.

These price increases indicate a positive trend in the market, reflecting strong demand and potential appreciation in property values.

Market Dynamics

Understanding the dynamics of the market is essential for both buyers and sellers. Let’s explore key market dynamics:

  • Percent of Original List Price Received: Sellers have received 95.2% of the original list price in 2023, a slight increase from 94.8% in 2022.
  • List to Close: The time it takes for a property to go from listing to closing has increased slightly by 1.1%, reaching 88 days in 2023.
  • Days on Market Until Sale: The average days on the market until sale have increased by 5.6%, reaching 38 days in 2023.

These metrics provide insights into the negotiation dynamics and the time it takes for properties to move from listing to closing.

Inventory and Supply

Inventory levels and months of supply are critical for understanding the balance between supply and demand in the market:

  • Inventory of Homes for Sale: The inventory of homes for sale has increased by 7.4%, reaching 2,446 in 2023.
  • Months Supply of Inventory: The months supply of inventory has seen a 26.1% increase, reaching 2.9 months in 2023.

These indicators suggest an increase in available properties, potentially providing more options for buyers.

Is Asheville a Buyer’s or Seller’s Housing Market?

Given the analysis of key metrics, price trends, and market dynamics, it’s essential to determine whether the current housing market in Asheville favors buyers or sellers.

Key Takeaways

  • Price Appreciation: The significant increase in both median and average sales prices indicates a market that has appreciated over the year.
  • Inventory Increase: The rise in inventory levels suggests more choices for buyers, potentially tilting the market in their favor.
  • Days on Market: The increase in days on market may provide buyers with more time for decision-making.

It appears that the Asheville housing market is currently balanced, offering opportunities for both buyers and sellers. Buyers may find a variety of options, while sellers can benefit from the overall appreciation in property values.

Are Home Prices Dropping in Asheville?

Contrary to expectations, the data reveals a clear upward trend in home prices, with both median and average prices experiencing significant growth. This suggests that, as of November 2023, home prices in Asheville are not dropping but are, in fact, on the rise.

Asheville Housing Market Forecast 2023-2024

Anticipating the future trends in the Asheville housing market is crucial for both prospective buyers and sellers. Let’s explore the forecast for Asheville’s real estate scene and delve into key metrics to gain a comprehensive understanding of what the future may hold.

According to the latest data from Zillow as of November 30, 2023, the average home value in Asheville stands at $459,606, reflecting a 3.9% increase over the past year. Homes in Asheville typically go pending in approximately 25 days. The current market snapshot includes 568 homes for sale, with 152 new listings as of November 30, 2023.

Key Metrics

  • Median Sale Price (October 31, 2023): The median sale price is $428,083.
  • Median List Price (November 30, 2023): The median list price is $519,500.
  • Median Sale to List Ratio (October 31, 2023): The ratio is 0.999.
  • Percent of Sales Over List Price (October 31, 2023): 36.3% of sales were over the list price.
  • Percent of Sales Under List Price (October 31, 2023): 42.4% of sales were under the list price.

These metrics provide a comprehensive view of the current market dynamics, indicating a balanced mix of pricing strategies among sellers.

Asheville MSA Housing Market Forecast (2023-2024)

The Zillow forecast for the Asheville Metropolitan Statistical Area (MSA) reveals insights into the region’s expected real estate performance. As of November 30, 2023, the forecast suggests a modest growth rate, with a predicted increase of 0.2% by the end of 2023, followed by a further 0.1% increase by February 29, 2024. Looking ahead to November 30, 2024, the forecast anticipates a more substantial 0.6% growth in the Asheville MSA housing market.

The Asheville Metropolitan Statistical Area (MSA), located in North Carolina, encompasses the surrounding counties and represents a significant housing market. The MSA includes various counties, each contributing to the overall real estate landscape. It plays a pivotal role in regional economic activities and serves as a key indicator of housing trends in the broader Asheville area.

Will the Asheville Housing Market Crash?

Given the current data and forecasts, there is no immediate indication of a housing market crash in Asheville. The consistent growth in average home values, coupled with a moderate forecast for the coming months, suggests stability rather than a downturn. However, real estate markets can be influenced by various factors, and individuals should stay informed and monitor updates from reliable sources to make well-informed decisions.

Asheville Housing Market Forecast 2023-2024
Source: Zillow

Asheville Real Estate Investment Overview

Is it worth buying a house in Asheville, NC? Investing in real estate is touted as a great way to become wealthy.  Many real estate investors have asked themselves if buying a property in Asheville is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Asheville housing market forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Asheville we have collected ten evidence-based positive things for those who are keen to invest in the Asheville real estate.

Investing in Asheville real estate will fetch you good returns in the long term as the home prices in Asheville have been trending up year over year. Let’s take a look at the number of positive things going on in the Asheville real estate market which can help investors who are keen to buy an investment property in this city.

The Large and Diverse Student Market

Any college creates a large population of permanent renters. The Asheville housing market beats many college towns because it is home to several different universities. We’ll ignore the technical community college in Asheville and look at schools like Black Mountain College, Shaw University, Brevard College, Lenoir-Rhyne University, and Mars Hill University. Each has several hundred to several thousand students.

You could own multiple Asheville real estate investment properties, each near a different school, and thus have a diversified real estate portfolio for relatively little money. Yet the area’s economy is so diverse you could rent the same properties out to students if any of these small liberal arts colleges fold. Or you could simply rent out properties in the Asheville real estate market to UNC Asheville students.

Asheville and the Asheville metropolitan area have higher rents than the average for North Carolina but are generally close to the national average. Rents are increasing in the Asheville market, but prices fluctuate and options exist at both the low and high ends of the rent spectrum.

Studio apartments are the most affordable option, averaging $866 in Asheville and $794 in the Asheville metropolitan area. In this market, median rents are $848 based on 29 units available, down 7% over one year. One-bedroom apartments, a popular option, are slightly more, averaging $870 in the city and $799 in the metro area. In this market, median rents are $1,071 based on 204 units available, up 6% over one year.

CURRENT RENTAL TRENDS: As of September 2023, the average rent for a 1-bedroom apartment in Asheville, NC is currently $1,490. This is a 3% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Asheville decreased by 14% to $1,248. The average rent for a 1-bedroom apartment increased by 1% to $1,490, and the average rent for a 2-bedroom apartment remained flat.

The Demand for Affordable Homes is High

Given the amazing views, proximity to nature, and examples like the Vanderbilt property in the area, the Asheville real estate market has seen more luxury homes built than affordable ones. Yet it is the smaller homes that appeal to couples looking for starter homes and retirees who don’t need something big. Depending on the area in the Asheville real estate market, it can be hard to find properties below 400,000. This is compounded by neighborhoods that say homes must be at least 1000 or 1200 square feet in size, preventing much cheaper homes from being built. This creates strong demand for affordable single-family rentals in the Asheville housing market.

The Literal Constraints of Geography

The same geography that attracts many tourists to the city limits the growth of the city. Asheville has east-west access via I-40 while Highway 26 connects it to other towns north and south. However, new construction going up mountainsides is expensive and risky. They simply cannot expand into Pisgah National Forest or the massive Nantahala National Forest. This limits the potential growth of the city.

Asheville is a charming city and metropolitan area that offers something for everyone, including scenic mountains, live music, locally produced food and drink, and a thriving arts scene. With approximately 89,000 residents and a metropolitan population of approximately 425,000, Asheville is the largest city in western North Carolina. Asheville can be found nestled between the Blue Ridge and the Great Smoky Mountains. Its location is one of the many factors that contributed to its inclusion on our list of the best places to live in North Carolina.

Walkable communities are all the rage. It is so important to many young couples and downsizing couples that new walkable planned neighborhoods are being built around the U.S. The Asheville housing market is unusual for already having an established, walkable downtown. The downtown is large enough to be a community in its own right, but it isn’t so large that the Asheville real estate market is depressed by blighted areas.

The Diversified Job Market

If Asheville’s lifeblood was tourism, we couldn’t recommend Asheville real estate investment because it would be too risky. However, the Asheville real estate market is buoyed by a diversified, solid job market. The city is the regional services hub. This means that the city, the state, and several government agencies are large local employers. So, too, are the local VA medical center, school system, and health system. Furniture makers, equipment manufacturers, and research facilities dot the area. This creates a large, healthy job market that can weather almost any storm.

The Potential for Short Term Rentals

The lush forests around Asheville attract tourists for hiking, rafting, and other outdoor activities. The city has limited short-term rentals, but that doesn’t mean this isn’t an option if you own Asheville real estate investment properties. For example, parts of the Asheville real estate market are zoned as “resorts”. You can rent these properties out on short-term rental sites to your heart’s delight.

Properties that already had short-term vacation rental permits are grandfathered into the existing rules, though you should verify the permit could transfer to you before buying the Asheville real estate investment property. Towns outside of Asheville proper have their own rules, too, and are more relaxed in this regard.

The Landlord-Friendly Environment

North Carolina in general is landlord friendly. The state is also far more landlord friendly than surrounding states like South Carolina, Virginia, and Tennessee. You can evict people for non-payment of rent, breaching the lease, criminal activity, and remaining on the property after termination of the lease. Major cities in the state don’t tack on additional tenant protections, either. We just can’t give North Carolina extra points on being tax-friendly for property owners; they’re literally average when it comes to income and property taxes.


References

Housing Market Data & Statistics
https://www.zillow.com/asheville-nc/home-values/
https://www.zillow.com/asheville-nc-28802/home-values/
https://www.carolinahome.com/market-data/monthly-reports
https://www.redfin.com/city/555/NC/Asheville/housing-market
https://www.realtor.com/realestateandhomes-search/Asheville_NC/overview
https://www.neighborhoodscout.com/nc/asheville/real-estate/

Job & Student market
https://en.wikipedia.org/wiki/Asheville,_North_Carolina

Walkable
https://expertvagabond.com/asheville-things-to-do

Landlord friendly
https://wallethub.com/edu/best-worst-states-to-be-a-taxpayer/2416
https://www.avail.co/education/laws/north-carolina-landlord-tenant-law

Short term rentals
https://www.usatoday.com/story/tech/news/2018/06/02/one-airbnb-hosts-fight-asheville-n-c-nearing-1-m-fines/657653002
https://www.citizen-times.com/story/news/local/2018/01/18/guide-ashevilles-short-term-vacation-rental-rules-can-you-rent-your-space/1035531001



Source link

Recommended For You

About the Author: Tony Ramos

Article Content Writer We write content articles for all businesses. We produce content that can include blog posts,website articles, landing pages, social media posts, and more. Reach out for more information to mydailyrealestatenews@gmail.com, "Best regards" Tony.

Leave a Reply

Your email address will not be published. Required fields are marked *