Asheville and Buncombe County Market Analysis

3rd Quarter 2020

The housing market in the 3rd quarter of 2020 was a seller’s market with continued strong demand, low inventory, rising prices, and bidding wars.  The market was largely being driven by low interest rates and demand from people relocating to Asheville, primarily from major metro areas, where the shift in being able to work remotely has created “Zoom Towns,” places that have urban amenities, access to nature, and a lower cost of living than larger cities.

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Number of homes sold. With 457 home sales in the City and 952 home sales in the County, the 3rd quarter showed a strong uptick in home sales from the slower 2nd quarter.  The County had the highest number of home sales per quarter by 16%, and the City had its second-highest quarterly home sales.  This was a sharp departure from the 2nd quarter, where there were fewer sales happening because of a COVID-related slowdown in both demand and supply.

Inventory levels.  In the 2nd quarter, pandemic-related fears meant that fewer people listed their homes, resulting in low inventory.  More homes came on the market in the 3rd quarter, but that did not help alleviate inventory issues, as demand outpaced supply. When inventory levels are less than 6 months, it is a seller’s market and there is upward pressure on prices.  In the 3rd quarter, housing inventory in Asheville was below 6 months in all price ranges below $800,000 and below 6 months in all price ranges below $900,000 in Buncombe County.  Inventory was also much lower in the 3rd quarter of 2020 compared to the 3rd quarter of 2019 — in the City, and even more so in the County. Inventory levels are some of the best predictors of housing prices, with low inventory leading to rising prices.

Median home sale price. Because of low inventory, prices in Asheville and Buncombe County remained high. For the City of Asheville, the 3rd quarter median home sales price hit $355,000, the highest quarterly median home sale price on record; 4.6% higher than the previous quarter.  In Buncombe County, the median sales price was also the highest on record at $335,0000, slightly above the previous record of $319,500, set in the 2nd quarter of 2019.

Average Days on Market (DOM)  In the 1st through 3rd quarters of 2020, in Asheville the Average Days on Market (DOM) was 58, and in Buncombe County, the Average DOM was 77.  DOM was down from the second quarter, where it was 65 in the City and 81 in the County.

 

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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