Asheville and Buncombe County Market Analysis

1st Quarter 2020

COVID-19 emerged in the first quarter of 2020 and the virus started to become a mainstream concern in early March 2020, the last month of the first quarter. Since housing is a lagging indicator, it is likely that the first quarter market analysis does not fully capture the virus’s impact on Asheville and Buncombe County’s housing markets

View entire report here

Number of homes sold. The housing market showed signs of strength in Asheville and Buncombe County in the first quarter of 2020. With 332 home sales, more homes sold in the first quarter of 2020 in the City of Asheville than in any other first quarter on record. Buncombe County had 587 sales in the first quarter, 3 sales shy of its first-quarter high in 2016.

Median home sale price. In the City of Asheville, the median home sales price rose between the first quarters of 2019 and 2020 to $323,840 — a 9.9% rise and the highest first-quarter median home sales price on record. In Buncombe County, it rose between the first quarters of 2019 and 2020 to $305,000 — a 10.9% increase. Similar to Asheville, this was Buncombe County’s highest first-quarter median sales price on record..

Inventory levels in Asheville are under six months in all price ranges below $800,000. Inventory levels are some of the best indicators of the health of a housing market. When inventory levels can sustain demand for more than 6 months, it is a buyer’s market and there is downward pressure on prices. When inventory levels can sustain demand for less than 6 months, it is a seller’s market and there is upward pressure on prices. Housing inventory in Asheville was well below 6 months in all price ranges below $800,000 and below 6 months in all price ranges below $700,000 in Buncombe County. Low inventory was being caused by fewer homes on the market and an increase in sales.

 

Average Days on Market (DOM)  rose in the City of Asheville between 2019 and the first quarter of 2020 to 83 DOM in Asheville and 99 DOM in Buncombe County. The higher DOM is likely a result of Buncombe County’s temporary stay-at-home order that was issued in March, making it necessary for virtual showings, combined with buyers’ general reluctance to see homes in person. In early April, in-person showings resumed.

 

For a complete market analysis, including Trends in Green Homes, Inventory or Price Per Square Foot, view the entire report here. If you have any questions or would like a price evaluation of your house, please contact one of our agents or call us at (828) 707-9556.

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