3rd Quarter 2023
Our WNC regional real estate market analysis is updated quarterly. Scroll down the page for the Asheville / Buncombe County real estate data and trends, or click these buttons to download the full report PDF for each area.
Asheville/Buncombe County Market Analysis
The housing market in 2023 started the year in seller’s market territory and remained a seller’s market through the end of the 3rd quarter in most segments of the market.
Interest Rates. Interest rates moved up towards the mid-7% range at the end of the 3rd quarter 2023. Higher interest rates make it more expensive for buyers getting loans to purchase homes. It also creates a dynamic where people who have fixed-rate low interest loans are reluctant to sell because they don’t want to lose their low interest rates. The lack of sellers restricts supply, but the higher interest rates prices out would-be buyers, reducing demand. The balance of supply and demand sets pricing. So far, lower supply has slightly outweighed lower demand, with the result being a slight increase in home prices over the last year. But as interest rates increase further and inventory increases, the balance may shift towards buyers. If the balance shifts, it would likely come as a slight decline of prices, not a crash
Number of homes sold.
Inventory levels. Most price ranges in Asheville and Buncombe County had inventory levels lower than 6 months (Table 1 and Table 2). Economists generally consider a balanced market to have 6 months of inventory, meaning that it would take 6 months for all the available homes to sell based on the rate of sales within the last 12 months. Less than 6 months is considered a seller’s market, where there are more buyers than homes available. While inventory remains low, there is a shift happening towards a more balanced market in some price ranges with the inventory increasing between the 3rd quarters of 2022 and 2023. And in the more expensive price ranges, inventory exceeds 6 months.
Median home sale price. The median home sale price was the highest on record in Buncombe County at $475,000 in the 3rd quarter of 2023, while in the City of Asheville, the median home sale price of $475,000 was the highest 3rd quarter median sales price on record.
Average Days on Market (DOM) DOM ticked upwards as buyers became more discriminating, with Average DOM in Asheville at 35 DOM and 43 DOM in Buncombe County (Chart 5). The number of home sales in the 3rd quarter of 2023 was also lower in both Asheville and Buncombe County compared to recent 3rd quarters (Chart 2). This decrease in home sales is the result of higher prices and higher interest rates, along with a lack of available homes.
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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