Asheville and Buncombe County Market Analysis

2nd Quarter 2020

The housing market in the 2nd quarter of 2020 mirrored the housing market in much of the United States, with low interest rates and low inventory driving up prices and creating competition among buyers.

View entire report here

Number of homes sold. With 317 home sales in the City and 563 homes sales in the County, there were significantly fewer homes sales in the 2nd quarter of 2020 compared to the 2nd quarter of 2019. This drop in home sales represents a 30% year-over-year decline in the City and a 23% decline in home sales in the County. Year to date for 2020 the number of homes sales was down 10.5% in the City and 7.5% in the County.

Median home sale price. Because of low inventory, prices in Asheville and Buncombe County remained high. In the City of Asheville in the 2nd quarter the median home sales price hit $338,000, the highest quarterly median home sale price on record for any quarter. In Buncombe County, the median sale price was $315,0000, close to its previous record of $319,500 that was set in the 2nd quarter of 2019.

Inventory levels in Asheville are under six months in all price ranges below $900,000 Fewer home sales leads to increased inventory and declining prices, but due to COVID-19, many people were not selling their homes in the 2nd quarter, which caused the supply of available homes on the market to drop more significantly than demand. This dynamic created the lowest 2nd quarter inventory figures on record for Asheville and Buncombe County. 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 $900,000 and below 6 months in all price ranges below $700,000 in Buncombe County.

 

Average Days on Market (DOM)  In the 1st and 2nd quarter of 2020, DOM for a home in Asheville was 65, and in Buncombe County the Average DOM was 81. DOM is a lagging indicator because DOM for homes that are listed and not sold in previous quarters are calculated into the statistic when the home does sell. A home listed prior to the 2nd quarter of 2020 but which closes in the 2nd quarter of 2020 inflates the DOM calculation. If the market dynamics continue to hold, DOM should drop throughout the rest of 2020.

 

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.

Be sure to contact us with any questions as we're your local experts!