Asheville and Buncombe County Market Analysis

Second Quarter 2021

The housing market in the second quarter of 2021 pushed further into seller’s market territory, breaking new records from an already record-breaking seller’s market. High demand and low inventory were driving rising prices and frequent bidding wars. The market has continued to be fueled by a confluence of factors including low interest rates, demand from people relocating to Asheville who can work remotely, people purchasing homes to use as vacation rentals, retirees moving to Asheville, millennials entering the housing market in significant numbers, and climate refugees who are escaping parts of the country that are being significantly impacted by climate change.

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Number of homes sold. Strong demand was a defining feature of the second quarter in 2021. More homes sold in the first half of 2021 in Buncombe County and the City of Asheville than in any previous year, with 1648 home sales in Buncombe County (not including Asheville), and 748 sales in Asheville for the first and second quarters combined.

 

Inventory levels.  The supply of homes for sale did not keep pace with demand, creating extremely low inventory in Asheville and Buncombe County. When inventory levels are less than 6 months, it is a seller’s market and there is upward pressure on prices. In the second quarter, housing inventory in Asheville and Buncombe County was below 6 months in all price ranges below $1,500,000. Compared to the second quarters of previous years, inventory in 2021 was significantly lower in all price ranges.

Median home sale price. Historically low inventory levels drove quickly rising prices in Asheville and Buncombe County. In the second quarter of 2021, the median home sales price hit $422,000 in the City and $382,000 in the County, representing the highest quarterly median home sale price on record.

Average Days on Market (DOM)  As expected with strong demand, low supply and tight inventory, the Average Days on Market (DOM) of home sales in the first half of 2021 hit record lows in Asheville and in Buncombe County. In Asheville, the Average Days on Market (DOM) was 47, and in Buncombe County the Average DOM was 54.

 

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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