Asheville, NC's housing market has become a standout in the state. Luring residents with its vibrant arts scene and proximity to the Blue Ridge Mountains, Asheville has seen a surge in buyer interest. This influx has impacted affordability and competition. Before diving in, this article explores Asheville's current housing market trends, home values, and valuable insights for navigating this dynamic scene.
So, How is the Asheville Housing Market Doing in 2024?
Asheville's housing market in 2024 is active with more listings and buyer interest. Prices are rising but at a moderate pace, and there's a better selection of homes for buyers compared to recent years.
Here's a breakdown of key data for April 2024, along with insights to help you make informed decisions.
New Listings and Inventory
In April 2024, the number of new listings surged to 1,360, marking a substantial 21.0% increase compared to April 2023. Year-to-date, new listings rose by 14.0%, from 3,754 to 4,281. This increase has expanded the inventory of homes for sale, which jumped by 35.9% to 2,425 homes. Consequently, the months' supply of inventory has grown from 2.0 to 2.9, reflecting a 45.0% increase. This boost in inventory suggests a more balanced market, giving buyers more options to choose from.
Pending and Closed Sales
Pending sales experienced a moderate rise of 7.4% in April 2024, totaling 1,005 transactions compared to 936 in the same month of 2023. Year-to-date, pending sales have seen a slight uptick of 0.9%, reaching 3,354. Closed sales also followed a positive trend with an increase of 3.3% in April, and a marginal year-to-date rise of 0.5%, totaling 2,893 closed transactions.
Sales Prices
Both median and average sales prices have seen a significant rise. The median sales price in April 2024 was $415,000, an 8.3% increase from the previous year’s $383,180. The year-to-date median sales price grew by 5.5%, reaching $401,000. The average sales price climbed to $530,350 in April, up by 13.6% from $466,922. Year-to-date, the average price rose by 10.2% to $502,399.
Market Efficiency
Original List Price Received and Days on Market
The percent of original list price received slightly declined by 1.5% in April 2024, with sellers getting 95.5% of their asking price compared to 97.0% in April 2023. Year-to-date figures show a smaller dip of 0.8%, down to 94.3%.
The average days on market until sale increased by 6.7% to 48 days in April 2024. Year-to-date, this metric saw a larger rise of 12.5%, extending to 54 days. Similarly, the cumulative days on market until sale went up by 14.6% in April and 17.6% year-to-date, reaching 55 and 60 days respectively.
Asheville Real Estate: A Look at Appreciation Trends
Asheville, North Carolina, has become a hotspot for both residents and real estate investors. Over the past decade, the city has seen explosive growth in home values, making it one of the top performers in the nation.
A Decade of Strong Appreciation
The past ten years have been a period of remarkable growth for Asheville's real estate market. From 2013 to 2023, home values have appreciated an impressive 137.62%, translating to an average annual increase of 9.04% (Neighborhoodscout). This positions Asheville within the top 10% nationally for real estate appreciation, a testament to its desirability.
Breaking Down the Numbers
Looking beyond the impressive overall figures, the table included in the original prompt offers a more granular view of appreciation rates across different timeframes. Here are some key takeaways:
- Short-Term Trends: While the long-term trend is positive, recent quarters have shown a slight moderation in appreciation. The latest quarter (Q3 2023 – Q4 2023) saw a modest increase of 0.27%.
- Year-over-Year Performance: The past year (Q4 2022 – Q4 2023) still reflects healthy appreciation at 8.03%.
- Long-Term Gains: When considering periods of 2, 5, and 10 years, Asheville continues to shine. Appreciation rates range from 10.07% for the past 5 years to a staggering 25.31% for the last 2 years.
Contextualizing the Growth
It's important to compare Asheville's performance to broader market trends. The table also includes comparisons with both North Carolina and the national average. Consistently ranking within the top 10 for both categories underscores Asheville's exceptional performance.
What's Driving the Growth?
Several factors contribute to Asheville's real estate boom:
- Natural Beauty and Outdoor Recreation: Nestled in the Blue Ridge Mountains, Asheville offers stunning scenery and abundant opportunities for hiking, biking, and other outdoor activities.
- Thriving Arts and Culture Scene: The city boasts a vibrant arts scene with galleries, studios, and a renowned music scene.
- Lively Downtown: Asheville's walkable downtown features a mix of shops, restaurants, and breweries, attracting residents and tourists alike.
- Limited Inventory: The demand for housing has consistently outpaced available inventory, putting upward pressure on prices.
Looking Forward
While Asheville's real estate market has seen remarkable growth, it's crucial to stay informed about future trends. Interest rate fluctuations, economic conditions, and new development projects can all influence appreciation rates.
For those considering buying a home in Asheville, the city offers a strong potential for long-term investment. However, it's wise to consult with a local real estate professional to understand current market dynamics and make informed decisions.
Asheville Housing Market Predictions 2024
The Asheville housing market has been a hot topic for years, attracting buyers seeking a beautiful mountain environment and a thriving community. But what does the future hold? Let's dive into the data and see what experts predict for the Asheville MSA (Metropolitan Statistical Area).
Current Market Trends
The Asheville housing market shows signs of a shift from a seller's market to a more balanced one. Here's a breakdown of some key metrics (as of April 30th, 2024):
- Average home value: $482,290 (up 5% year-over-year) (Zillow)
- Days to pending: 19 days (indicating strong buyer interest)
- Median sale to list ratio: 0.991 (close to asking price)
- Median sales price: $418,167
- Listings: Increase in new listings compared to last year
The Forecast: Modest Growth with a Possible Uptick in 2025
Zillow forecasts for the Asheville MSA predict modest growth throughout 2024, with a more significant rise in 2025. Here's a breakdown of their predictions:
- May 2024: 0.4% increase
- July 2024: 0.3% increase
- April 2025: 1.6% increase
Will it Crash or Boom?
Experts are unlikely to predict a housing market crash for Asheville. The Asheville market has strong fundamentals, with a growing job market and a desirable location. While the breakneck pace of price increases might slow down, a crash is improbable.
Here's what the forecast suggests:
- Gradual Price Appreciation: Prices may continue to rise, but at a slower rate than in previous years.
- Increased Inventory: With more listings coming onto the market, buyers will have more options and potentially some negotiating power.
- Balanced Market: The market may shift towards a more balanced state, favoring neither buyers nor sellers exclusively.
Important Factors to Consider
It's important to remember that these are just predictions, and the actual market performance can be influenced by various factors, including:
- National economic trends: A recession or significant rise in interest rates could dampen the housing market.
- Local job market: Continued job growth in Asheville could fuel buyer demand.
- Affordability: Housing affordability is a growing concern. If prices continue to rise, it could price out some potential buyers.
The Bottom Line
The Asheville housing market appears to be entering a period of moderate growth. While the seller's market dominance might be waning, Asheville remains a desirable location with a healthy market overall. If you're considering buying or selling in Asheville, staying informed about market trends and consulting with a local realtor is crucial for making informed decisions.
As depicted in this graph (Zillow), home values have increased year-over-year. This upward trend is expected to persist, with forecasts indicating continued growth over the next year.
Should You Invest in the Asheville Real Estate Market?
The Asheville real estate market has garnered significant attention in recent years, fueled by stunning mountain scenery, a vibrant arts scene, and a booming tourism industry. But is it the right investment for you? Let's delve into the key factors to consider before making a decision.
Asheville's Allure: Market Drivers for Investors
Population Growth and Trends
- Steady Growth: Asheville boasts a steadily growing population, attracting young professionals, retirees, and families seeking a unique lifestyle. The Asheville metro area is expected to grow by nearly 13% from 2020 to 2030, reaching a population of 400,000. This consistent increase translates to sustained demand for housing.
- In-Migration: Asheville experiences a constant influx of new residents, further bolstering the housing market. This trend is expected to continue, driven by Asheville's natural beauty and economic opportunities.
Economy and Jobs
- Diversified Economy: Asheville's economy is no longer solely reliant on tourism. The city has witnessed a surge in healthcare, education, and technology sectors, offering a wider range of job opportunities and attracting a skilled workforce. This economic diversification creates a more stable market for real estate investors.
- Booming Tourism Industry: Asheville remains a major tourist destination, attracting visitors with its majestic mountains, pleasant climate, and peaceful environment. Tourism is a significant economic driver, generating $3.1 billion annually for the local economy. This industry supports 27,240 jobs in Asheville and contributes $199.2 million in state and local taxes. In turn, this tax revenue helps reduce the average household tax burden by $1,950, making Asheville an even more attractive place to live.
Livability and Other Factors
- High Quality of Life: Asheville consistently ranks high in livability surveys, boasting a strong sense of community, excellent outdoor recreation opportunities, and a thriving arts and culture scene. This desirability factor fuels real estate investment due to the sustained attractiveness of the city.
- Natural Beauty: Asheville's breathtaking mountain setting offers a unique lifestyle advantage, attracting residents and tourists alike. This scenic beauty is a permanent feature, ensuring the city's long-term appeal.
Rental Property Market Size and Growth
- Strong Rental Market: Asheville's rental market is robust, with vacancy rates remaining low. This high occupancy rate translates to reliable rental income for investors.
- Growing Short-Term Rental Market: The popularity of short-term rentals like Airbnb and Vrbo has surged in Asheville, offering investors an alternative rental income stream. However, regulations surrounding short-term rentals can vary, so thorough research is crucial.
Other Factors Related to Real Estate Investing
- Real Estate Appreciation: While the breakneck pace of price increases might slow down, Asheville's real estate market has historically shown appreciation. This potential for long-term capital gains can be a significant factor for investors.
- Inventory Levels: As inventory levels rise, investors may find more favorable purchasing opportunities compared to the peak seller's market conditions. However, competition can still be present, especially for desirable properties.
- Interest Rates: Rising interest rates can impact investment returns. Carefully evaluate how interest rates will affect your overall investment strategy.
The Verdict: Consider Your Investment Goals
Asheville's real estate market presents compelling opportunities for investors seeking a balance of income generation and potential for appreciation. However, the decision ultimately depends on your individual investment goals and risk tolerance.
By carefully evaluating these factors alongside the data and trends outlined above, you can make an informed decision about whether Asheville real estate aligns with your investment goals.
