Asheville and Buncombe County Market Analysis

Third Quarter 2021

The housing market in the third quarter of 2021 remained deep in seller’s market territory. High demand and low inventory were driving rising prices and frequent bidding wars. The market continues 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 third quarter in 2021. More homes sold in the first three quarters in 2021 in Buncombe County and the City of Asheville than in any previous year, with 2,579 home sales in Buncombe County (not including Asheville), and 1,241 sales in Asheville for the first through third 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 3rd quarter, housing inventory in Asheville and Buncombe County was below 6 months in all price ranges below $1,500,000. Compared to the 3rd quarters of previous years, inventory in 2021 was lower in almost every price range.

Median home sale price. Historically low inventory levels kept prices high in Asheville and Buncombe County. In the 3rd quarter of 2021, the median home sales price was $395,000 in the City and $400,000 in the County, representing the highest quarterly median home sale price on record in Buncombe County. In the City of Asheville, the median home sale price in the 3rd quarter was slightly lower than the 2nd quarter, when the median home sale price was $422,000.

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 three quarters of 2021 hit record lows in Asheville and in Buncombe County. In Asheville, DOM was 39, and in Buncombe County the Average DOM was 45.

 

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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