Asheville, North Carolina sits in the Blue Ridge Mountains in the western part of the state. This area is often overlooked in favor of larger cities like Charlotte or Durham. However, the area has its own attractions whether you’re a tourist or considering Asheville real estate investment. Asheville proper is home to around ninety thousand people. The Asheville housing market is larger than this, though, when you take the five-county metropolitan area into account. The larger Asheville real estate market is home to over four hundred thousand people.
Asheville Housing Market Update
The housing market in Asheville Metropolitan Statistical Area (MSA) has experienced significant changes in the first half of 2023. The data from the Local Market Update for July 2023 show some interesting trends in the region's real estate market. Let us dive into each metric in detail using the report published by the Canopy Realtor® Association.
Here is an overview of key metrics and trends shaping the real estate market in the Asheville region, which includes Buncombe, Burke, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania, and Yancey counties. By examining new listings, pending sales, closed sales, median sales price, days on the market, and more, we aim to offer valuable insights for buyers and sellers in the area.
Key Metrics Overview
The Asheville housing market in July 2023 reflects shifting dynamics, with changes in key metrics such as prices, inventory, and days on the market. Buyers and sellers in the Asheville region should pay close attention to these trends when making real estate decisions. Here's a summary of the crucial metrics for July 2023, comparing them to the same period in 2022:
New Listings
In July 2023, there were 1,095 new listings in the Asheville region, which marks a 24.4% decrease compared to the previous year. Year-to-date, there have been 7,404 new listings, reflecting a 17.8% decline.
Pending Sales
The number of pending sales in July 2023 stood at 990, representing a 5.7% decrease year-over-year. Year-to-date pending sales reached 6,225, indicating a 14.1% decline.
Closed Sales
There were 883 closed sales in Asheville in July 2023, down 11.2% from the previous year. Year-to-date, the number of closed sales reached 5,712, showing a 19.7% decrease.
Median Sales Price
The median sales price in Asheville in July 2023 was $427,000, representing a 6.4% increase over the past year. Year-to-date, the median sales price reached $399,000, reflecting a 5.2% rise.
Average Sales Price
The average sales price in Ashevillein for July 2023 was $528,311, marking a 10.1% year-over-year increase. Year-to-date, the average sales price reached $480,117, showing a 4.2% uptick.
Percent of Original List Price Received
In July 2023, the percent of original list price received was 97.3%, down 0.9% from the previous year. Year-to-date, it reached 96.3%, reflecting a 3.1% decrease.
Days on Market
The average number of days on market until sale in July 2023 was 35 days, marking a 45.8% increase compared to the previous year. Year-to-date, this number reached 42 days, showing a 44.8% rise.
Average List Price
The average list price in Asheville for July 2023 was $561,286, reflecting an 8.4% increase year-over-year. Year-to-date, the average list price reached $564,356, indicating an 11.6% rise.
Inventory and Months Supply
Inventory of homes for sale in July 2023 decreased to 2,044, down 10.8%. The months' supply of inventory increased to 2.4, marking a 14.3% rise.
Asheville Housing Market Forecast 2023-2024
Anticipating the future trends in the Asheville housing market is crucial for both prospective buyers and sellers. Let's explore the forecast for Asheville's real estate scene and delve into key metrics to gain a comprehensive understanding of what the future may hold.
Zillow Home Value Index (ZHVI)
According to the Zillow Home Value Index (ZHVI) as of July 31, 2023, the average home value in Asheville stands at $451,401. Over the past year, this figure has experienced a 2.5% increase, reflecting the ongoing demand for real estate in the region.
Properties in Asheville are going pending in approximately 24 days, indicating a relatively fast-paced market where buyers must act promptly to secure their desired homes.
Key Market Indicators
Understanding key market indicators offers insights into the dynamics of Asheville's real estate:
- Median Sale-to-List Ratio (June 30, 2023): 1.008
- Percent of Sales Over List Price (June 30, 2023): 50.0%
- Percent of Sales Under List Price (June 30, 2023): 36.2%
- Median Days to Pending (July 31, 2023): 24
The median sale-to-list ratio above 1.0 suggests that, on average, properties are selling for slightly above their listed prices. Additionally, the high percentage of sales over list price and a relatively low percentage under list price indicate a competitive market where sellers may have the upper hand.
Asheville MSA Housing Market Forecast
Looking ahead, let's consider the housing market forecast for Asheville in the broader Metropolitan Statistical Area (MSA). The data indicates the following projections:
Asheville, NC MSA Housing Market Forecast
- Base Date: 31-07-2023
- 31-08-2023: 0.8% growth
- 31-10-2023: 1.9% growth
- 31-07-2024: 7.4% growth
These forecasts suggest a generally positive outlook for the Asheville MSA housing market, with expected growth in home values over the coming months. However, it's essential to consider that real estate markets can be influenced by a multitude of factors, including economic conditions, interest rates, and regional developments.
The Asheville housing market forecast indicates promising opportunities for both buyers and sellers, with a recent increase in average home values and a competitive environment. As you navigate the real estate landscape, it's advisable to stay informed about evolving market conditions and consult with local experts who can provide tailored guidance based on your specific goals and needs.
Asheville Real Estate Investment Overview
Is it worth buying a house in Asheville, NC? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Asheville is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Asheville housing market forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Asheville we have collected ten evidence-based positive things for those who are keen to invest in the Asheville real estate in 2022 and beyond.
Investing in Asheville real estate will fetch you good returns in the long term as the home prices in Asheville have been trending up year over year. Let’s take a look at the number of positive things going on in the Asheville real estate market which can help investors who are keen to buy an investment property in this city.
The Large and Diverse Student Market
Any college creates a large population of permanent renters. The Asheville housing market beats many college towns because it is home to several different universities. We’ll ignore the technical community college in Asheville and look at schools like Black Mountain College, Shaw University, Brevard College, Lenoir-Rhyne University, and Mars Hill University. Each has several hundred to several thousand students.
You could own multiple Asheville real estate investment properties, each near a different school, and thus have a diversified real estate portfolio for relatively little money. Yet the area’s economy is so diverse you could rent the same properties out to students if any of these small liberal arts colleges fold. Or you could simply rent out properties in the Asheville real estate market to UNC Asheville students.
Asheville and the Asheville metropolitan area have higher rents than the average for North Carolina but are generally close to the national average. Rents are increasing in the Asheville market, but prices fluctuate and options exist at both the low and high ends of the rent spectrum.
Studio apartments are the most affordable option, averaging $866 in Asheville and $794 in the Asheville metropolitan area. In this market, median rents are $848 based on 29 units available, down 7% over one year. One-bedroom apartments, a popular option, are slightly more, averaging $870 in the city and $799 in the metro area. In this market, median rents are $1,071 based on 204 units available, up 6% over one year.
CURRENT RENTAL TRENDS: As of August 2023, the average rent for a 1-bedroom apartment in Asheville, NC is currently $1,487. This is a 4% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Asheville increased by 11% to $1,418. The average rent for a 1-bedroom apartment increased by 3% to $1,487, and the average rent for a 2-bedroom apartment increased by 1% to $1,877.
The Demand for Affordable Homes is High
Given the amazing views, proximity to nature, and examples like the Vanderbilt property in the area, the Asheville real estate market has seen more luxury homes built than affordable ones. Yet it is the smaller homes that appeal to couples looking for starter homes and retirees who don’t need something big. Depending on the area in the Asheville real estate market, it can be hard to find properties below 400,000. This is compounded by neighborhoods that say homes must be at least 1000 or 1200 square feet in size, preventing much cheaper homes from being built. This creates strong demand for affordable single-family rentals in the Asheville housing market.
The Literal Constraints of Geography
The same geography that attracts many tourists to the city limits the growth of the city. Asheville has east-west access via I-40 while Highway 26 connects it to other towns north and south. However, new construction going up mountainsides is expensive and risky. They simply cannot expand into Pisgah National Forest or the massive Nantahala National Forest. This limits the potential growth of the city.
Asheville is a charming city and metropolitan area that offers something for everyone, including scenic mountains, live music, locally produced food and drink, and a thriving arts scene. With approximately 89,000 residents and a metropolitan population of approximately 425,000, Asheville is the largest city in western North Carolina. Asheville can be found nestled between the Blue Ridge and the Great Smoky Mountains. Its location is one of the many factors that contributed to its inclusion on our list of the best places to live in North Carolina.
Walkable communities are all the rage. It is so important to many young couples and downsizing couples that new walkable planned neighborhoods are being built around the U.S. The Asheville housing market is unusual for already having an established, walkable downtown. The downtown is large enough to be a community in its own right, but it isn’t so large that the Asheville real estate market is depressed by blighted areas.
The Diversified Job Market
If Asheville’s lifeblood was tourism, we couldn’t recommend Asheville real estate investment because it would be too risky. However, the Asheville real estate market is buoyed by a diversified, solid job market. The city is the regional services hub. This means that the city, the state, and several government agencies are large local employers. So, too, are the local VA medical center, school system, and health system. Furniture makers, equipment manufacturers, and research facilities dot the area. This creates a large, healthy job market that can weather almost any storm.
The Potential for Short Term Rentals
The lush forests around Asheville attract tourists for hiking, rafting, and other outdoor activities. The city has limited short-term rentals, but that doesn’t mean this isn’t an option if you own Asheville real estate investment properties. For example, parts of the Asheville real estate market are zoned as “resorts”. You can rent these properties out on short-term rental sites to your heart’s delight.
Properties that already had short-term vacation rental permits are grandfathered into the existing rules, though you should verify the permit could transfer to you before buying the Asheville real estate investment property. Towns outside of Asheville proper have their own rules, too, and are more relaxed in this regard.
The Landlord-Friendly Environment
North Carolina in general is landlord friendly. The state is also far more landlord friendly than surrounding states like South Carolina, Virginia, and Tennessee. You can evict people for non-payment of rent, breaching the lease, criminal activity, and remaining on the property after termination of the lease. Major cities in the state don’t tack on additional tenant protections, either. We just can’t give North Carolina extra points on being tax-friendly for property owners; they’re literally average when it comes to income and property taxes.
Summary
Maybe you have done a bit of real estate investing in Asheville, NC but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Asheville real estate investment opportunity would be a key to your success. in If you invest wisely in Asheville real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. The Asheville, North Carolina area is a stable, steadily growing housing market with several profitable rental markets investors would appreciate. It counterbalances this with a healthy job market and demographic momentum that will keep it going strong for years to come.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Asheville, NC is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Asheville real estate. Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your own research and taking the help of a real estate investment counselor.
Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill up the form given here. One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References
Housing Market Data & Statistics
https://www.zillow.com/asheville-nc/home-values/
https://www.zillow.com/asheville-nc-28802/home-values/
https://www.carolinahome.com/market-data/monthly-reports
https://www.redfin.com/city/555/NC/Asheville/housing-market
https://www.realtor.com/realestateandhomes-search/Asheville_NC/overview
https://www.neighborhoodscout.com/nc/asheville/real-estate/
Job & Student market
https://en.wikipedia.org/wiki/Asheville,_North_Carolina
Walkable
https://expertvagabond.com/asheville-things-to-do
Landlord friendly
https://wallethub.com/edu/best-worst-states-to-be-a-taxpayer/2416
https://www.avail.co/education/laws/north-carolina-landlord-tenant-law
Short term rentals
https://www.usatoday.com/story/tech/news/2018/06/02/one-airbnb-hosts-fight-asheville-n-c-nearing-1-m-fines/657653002
https://www.citizen-times.com/story/news/local/2018/01/18/guide-ashevilles-short-term-vacation-rental-rules-can-you-rent-your-space/1035531001
