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  • Monday market in minutes, low supply-high demand fueling home prices

    Monday, March 18, 2024   /   by Amy Brown

    Monday market in minutes, low supply-high demand fueling home prices

    Good morning everyone,

    Here is your Monday morning real estate market report for Asheville, Buncombe and surrounding counties.

    We are still on an upward trajectory as far as prices and will probably continue that way through the coming buying season. The last time that prices dropped in Western North Carolina was in the 3rd and 4th quarters of 2008 and we have been on an upward trend ever since. 
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    Let's look at average sales prices this week across the area: (sales means closed prices)

    Asheville city: $670,571, +3.6%
    Buncombe county: $621,633, +2.6%
    Henderson county: $508,360, +1.2%
    Haywood county: $426,628, +6.3%

    Inventory

    Homes for sale numbers are climbing again across all areas except Haywood county increasing your options and opportunity for finding just the right home.
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    Asheville city: 202, +13.5%
    Buncombe county: 433, +11%
    Henderson county: 198, +11.9%
    Haywood county: 183, -5.7%

    Days on Market

    Days on market until close are still very tight with most properties going under contract in 4-7 days at most. Lenders have been able to close fairly quickly so turnover is high.
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    Asheville city: 32 days
    Buncombe county: 35 days
    Henderson county: 30 days
    Haywood county: 43 days

    Sellers

    If you are looking to sell this season, you can still expect to receive fairly close to list price after all negotiations. Supply is still well below demand so competition for homes priced well is high. Sellers are receiving the following percent of original list price.

    Asheville city: 96%
    Buncombe county: 95.7%
    Henderson county: 96.9%
    Haywood county: 94.7%
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    Pending sales

    Pending sales are rising as buyers return to the marketplace. 

    Asheville city: +25.8%
    Buncombe county: +4.5%
    Henderson county: +5.0%
    Haywood county: +5.6%

    This is keeping competition high and buyers on their toes for competitively priced homes.

    Predictions

    So where do we see this headed? Home prices will only continue to rise as we go into the summer. The next projected interest rate decrease will be a small one (I believe somewhere in the 6.4% range) to occur in June. This will only bring even more buyers into the market as affordability improves thus increasing competition further.

    *A note on affordability

    Keep in mind that for every .1% drop in interest rates, your payment only lessens by about $27/month. You can achieve an equal decrease with paying $5,000 less for the home and purchase now!

    “No end in sight to rising house prices,” Thomas Ryan, a property economist at Capital Economics. “Even if mortgage rates fall to 6% as we expect, mortgage rate ‘lock-in’ will continue to curb home moves. As a result, we only anticipate a trickle of new resale supply coming onto the market over the next few years,” he added. And “that will keep a lid on any recovery in activity, even as lower mortgage borrowing costs draw some buyers off the sidelines." 

    As the weather heats up, so will real estate. You should see more and more listings upcoming but also increased buying activity. Call me for answers on how to strategically plan your financing and offer strategy so that we can get you into the right home at the right price.