Monday, February 27, 2023 / by Amy Brown
Monday market in minutes
As interest rates continue to rise, we seem to have reached an inventory plateau. Less and less sellers are willing to come into the market regardless of competitive sales prices due to the difficulty of finding a new home.
In a month where we should be seeing an explosion of new homes coming to market, we are down 21.4% from this time last year as we enter the Spring buying season.
Compounding the inventory shortage, we are still seeing the same buying activity with pending sales remaining nearly the same further reducing the number of available homes but also demonstrating that this area remains highly desirable. This is very good news for those contemplating selling.
However, when we take a look at total inventory of homes available we are up significantly from last year. While this may seem confusing, you have to take these numbers into consideration in terms of condition and location. This graph illustrates inventory in the entire Asheville market, not just the city. What agents have been experiencing is that homes in the most desirable areas in move-in ready condition are selling in a matter of days while we have an excess of inventory in fair condition in rural or less desirable areas that is accumulating significant days on market giving the appearance of fuller index of inventory than is the reality.
This is evidenced by the cumulative days on market graph as shown here which is up by 21.1%.
What does this mean for sellers today?
This indicates that if a buyer is going to pay close to 7% interest on a mortgage, giving them less buying power, then a home that is up for sale needs to be in optimal condition incentivizing them to want to make the move. That is going to be even more the case for homes that are in challenging areas. Updates such as fresh paint, nice countertops, pretty lighting and fixtures, and mechanics that are updated and in good working order will be crucial.
For buyers, list prices are continuing to rise since the number of move-in ready homes in desirable neighborhoods is at an all-time low. Interest rates are set to rise 2 more times this year so make sure that you have your financing in order and are ready to put in an offer quickly when one of these homes comes on the market. The average list price in Asheville is now up to $696,283 up over $100K from this time last year.
Interest rates are rising daily. Please see my article on methods to reduce your interest rate, how to perform a self-qualification, and why using a local lender is important at https://www.ashevilleareahomefinder.com/blog/article/super-important-mortgage-self-qualification-how-to-lower-your-monthly-payment-why-using-a-local-lender-is-important/bl5d648d5746714a
I am available as your resource any time. Please call me with questions or concerns as we go navigate this volatile market together.
In a month where we should be seeing an explosion of new homes coming to market, we are down 21.4% from this time last year as we enter the Spring buying season.
Compounding the inventory shortage, we are still seeing the same buying activity with pending sales remaining nearly the same further reducing the number of available homes but also demonstrating that this area remains highly desirable. This is very good news for those contemplating selling.
However, when we take a look at total inventory of homes available we are up significantly from last year. While this may seem confusing, you have to take these numbers into consideration in terms of condition and location. This graph illustrates inventory in the entire Asheville market, not just the city. What agents have been experiencing is that homes in the most desirable areas in move-in ready condition are selling in a matter of days while we have an excess of inventory in fair condition in rural or less desirable areas that is accumulating significant days on market giving the appearance of fuller index of inventory than is the reality.
This is evidenced by the cumulative days on market graph as shown here which is up by 21.1%.
What does this mean for sellers today?
This indicates that if a buyer is going to pay close to 7% interest on a mortgage, giving them less buying power, then a home that is up for sale needs to be in optimal condition incentivizing them to want to make the move. That is going to be even more the case for homes that are in challenging areas. Updates such as fresh paint, nice countertops, pretty lighting and fixtures, and mechanics that are updated and in good working order will be crucial.
For buyers, list prices are continuing to rise since the number of move-in ready homes in desirable neighborhoods is at an all-time low. Interest rates are set to rise 2 more times this year so make sure that you have your financing in order and are ready to put in an offer quickly when one of these homes comes on the market. The average list price in Asheville is now up to $696,283 up over $100K from this time last year.
Interest rates are rising daily. Please see my article on methods to reduce your interest rate, how to perform a self-qualification, and why using a local lender is important at https://www.ashevilleareahomefinder.com/blog/article/super-important-mortgage-self-qualification-how-to-lower-your-monthly-payment-why-using-a-local-lender-is-important/bl5d648d5746714a
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I am available as your resource any time. Please call me with questions or concerns as we go navigate this volatile market together.
