Asheville and Buncombe County Market Analysis

First Quarter 2021

The housing market in the first quarter of 2021 pushed further into seller’s market territory from an already record-breaking seller’s market in 2020. High demand and low inventory were driving rising prices and frequent bidding wars. The market was largely fueled by low interest rates and demand from people relocating from major metro areas to Asheville, where the shift in being able to work remotely has created a “Zoom Town” — a place that has urban amenities, access to nature, and a lower cost of living than larger cities.

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Number of homes sold. Strong demand was a defining feature of the 1st quarter in 2021. With 353 home sales in the City of Asheville and 725 home sales in Buncombe County (not including Asheville), the 1st quarter of 2021 had the most sales of any 1st quarter on record.

Inventory levels.  While demand was strong in the 1st quarter of 2021, the supply of homes for sale was extremely low, creating very low inventory. When inventory levels are less than 6 months, it is a seller’s market and there is upward pressure on prices. In the 1st quarter, housing inventory in Asheville and Buncombe County was below 6 months in all price ranges below $1,500,000. Compared to the 1st quarters of previous years, inventory in 2021 was significantly lower in all price ranges, showing the breadth of the housing shortage in Asheville and Buncombe County.

Median home sale price. Historically low inventory levels drove quickly rising prices in Asheville and Buncombe County. In the 1st quarter of 2021, the median home sales price hit $355,000 in both the City and in the County, representing the highest 1st quarter median home sale price on record. The median home sale price in Asheville was 9.2% higher than the 1st quarter of the previous year, and in Buncombe County, the median home sale price was 16.5% higher. Additionally, when we look at seasonal trends, the unprecedented demand in the luxury market in Asheville and Buncombe County will most likely drive the 2nd quarter median home sale price higher than the 1st quarter in 2021. (Winter is our area’s low season, so the bulk of luxury sales typically happen in the 2nd through 4th quarters. Comparing the same time period quarter-to-quarter adjusts for seasonality and shows trends better than comparing one quarter to the immediately preceding one.)

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 1st quarter of 2021 hit record lows in Asheville and close to record lows in Buncombe County. In Asheville, the Average Days on Market (DOM) was 54, and in Buncombe County the Average DOM was 65.

 

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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