Asheville and Buncombe County Market Analysis

Year End 2020

The housing market in 2020 had all the hallmarks of a strong seller’s market with high demand, low inventory, rising prices, and frequent bidding wars. The market was largely 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 lower costs of living than larger cities.

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Number of homes sold. Strong demand was a defining feature of the market in 2020, especially for the second half of the year. With 477 home sales in the City of Asheville and 966 home sales in Buncombe County (not including Asheville), 2020 had the most 4th quarter sales of any year on record. For the year, Buncombe County had 3,155 home sales, the highest number of home sales for any year on record by 8.8%. The City of Asheville had close to its record home sales in 2020 with 1,505 sales.

Inventory levels.  While demand was high in 2020, 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 4th quarter, housing inventory in Asheville and Buncombe County was below 6 months in all price ranges below $1,500,000. This is the first time ever that inventory has been below 6 months in Asheville and Buncombe County for all but the ultra-luxury price range. Inventory in the 4th quarter of 2020 compared to the 4th quarter of previous years shows the extent of the tight supply, with inventory in the most popular price ranges being below 2 months in the City and below 3 months in the County.

Median home sale price. Because of such low inventory levels, prices in Asheville and Buncombe County were quickly rising. In the 4th quarter the median home sales price hit $385,000 in the City and $349,500 in the County, representing the highest quarterly median home sale price on record; 6.9% higher in the City and 4.6% higher in the County than the previous high set in the 3rd quarter of 2020.

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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