Considering the competitive environment, increased prices, and expanding inventory, the current Asheville housing market appears to be more balanced. It provides both buyers and sellers with opportunities, making it essential for them to approach transactions with strategic considerations. Asheville 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 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.
Current Asheville Housing Market Trends in 2024
The Asheville housing market, encompassing counties such as Buncombe, Burke, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania, and Yancey, is experiencing dynamic shifts in 2024. Let's delve into the key metrics provided by Canopy Realtor® Association for a comprehensive understanding of the current real estate scenario.
How is the Asheville Housing Market Performing?
The year 2024 has witnessed a subtle increase in new listings, with a marginal uptick of 0.4%, indicating a steady flow of properties entering the market. This may contribute to the overall vibrancy of the real estate landscape, offering more options for potential buyers.
On the other hand, the pending sales have seen a noteworthy surge of 7.4%, suggesting a heightened demand for properties. The increased pace of pending sales is indicative of a proactive and competitive market environment.
Moreover, closed sales have risen by 5.5%, reflecting a positive trend in completed real estate transactions. This uptick is a testament to the robust nature of the housing market, with buyers and sellers actively participating in property transactions.
Asheville Housing Market Competitiveness and Pricing Trends
As we delve into pricing trends, the median sales price has witnessed a substantial increase of 10.2%, reaching $395,000 in 2024. This surge is a notable indicator of the appreciation in property values, potentially attracting sellers looking for profitable returns.
The average sales price has also experienced a significant uptick of 12.5%, reaching $502,438. This surge in average sales prices suggests a favorable environment for sellers, potentially enjoying higher returns on their property investments.
Despite the positive trends, there is a slight decrease in the percent of original list price received by 0.6%. However, with 93.2% still being achieved, it emphasizes the overall stability and attractiveness of the Asheville housing market.
Asheville Supply and Demand Dynamics
The Asheville housing market is currently characterized by an inventory of homes for sale showing a 9.4% increase, reaching 1,938 homes. This expansion in available inventory is a positive sign for buyers, providing them with a broader array of options.
However, the months supply of inventory has seen a 21.1% increase, reaching 2.3 months. This suggests a shift towards a slightly more balanced market, providing both buyers and sellers with reasonable negotiating positions.
Future Market Outlook for Asheville
The days on market until sale have increased by 8.3%, indicating a slightly extended timeframe for properties to be sold. Additionally, the cumulative days on market until sale have surged by 23.9%, signaling a need for sellers to be patient in this evolving market.
As we analyze the average list price, showing an 11.8% increase to $560,575, it becomes evident that the market anticipates sustained growth and demand in the coming months.
Asheville Housing Market Forecast 2024
According to Zillow, a reliable source for real estate data, the average home value in Asheville stands at $453,415, reflecting a noteworthy increase of 4.8% over the past year. Notably, homes in Asheville typically go to pending status in approximately 37 days, indicating a dynamic and fast-paced market. Let's delve into the intricacies of various housing metrics to gain a comprehensive understanding.
Key Housing Metrics:
- For Sale Inventory (January 31, 2024): As of January 31, 2024, Asheville boasts a for-sale inventory of 480 properties, showcasing the array of options available in the market.
- New Listings (January 31, 2024): During the same period, there were 93 new listings, highlighting the ongoing activity and fresh opportunities for potential buyers.
- Median Sale Price (December 31, 2023): As of December 31, 2023, the median sale price in Asheville was $468,583, providing insights into the pricing dynamics in the region.
- Median List Price (January 31, 2024): With a median list price of $498,000 as of January 31, 2024, sellers in Asheville are setting their expectations in line with market trends.
Asheville MSA Housing Market Forecast: Looking ahead, the Metropolitan Statistical Area (MSA) forecast for Asheville paints a promising picture. According to the latest data, as of January 31, 2024, the forecast indicates a 0.2% growth by February 29, 2024, followed by a robust 1% increase by April 30, 2024, and an impressive 5% surge by January 31, 2025. This forecast suggests sustained growth and stability in the Asheville housing market over the coming months.
Asheville is part of the MSA classification, denoting a region with a significant urban center (Asheville) and its surrounding communities, considered as an economic and social unit. In the case of Asheville, this MSA encompasses various counties, contributing to the overall economic and housing landscape.
The housing market within the Asheville MSA is characterized by its diversity and dynamism, offering a range of housing options to cater to the varied preferences of residents. The forecasted growth indicates sustained interest and investment in the Asheville housing market, making it an area to watch for both buyers and sellers.
Are Home Prices Dropping in Asheville?
Despite the overall growth in the Asheville housing market, the question of whether home prices are dropping requires a closer look at specific metrics. The median sale price of $468,583 as of December 31, 2023, indicates a steady market with reasonable pricing. While not experiencing a decline, the market exhibits stability, providing potential buyers with a sense of assurance. Monitoring further trends in median prices will be essential to gauge the market's trajectory.
Will the Asheville Housing Market Crash?
As of the current analysis, there is no indication of an imminent housing market crash in Asheville. The forecasted growth in the Metropolitan Statistical Area (MSA) points towards a positive trend, with incremental increases of 0.2%, 1%, and 5% by February 29, 2024, April 30, 2024, and January 31, 2025, respectively. This forecast suggests stability and resilience, alleviating concerns of a sudden market downturn. However, continuous monitoring of economic indicators and real estate trends remains prudent to stay prepared for any unforeseen shifts.
Is Now a Good Time to Buy a House in Asheville?
Considering the current dynamics of the Asheville housing market, now can be considered a good time to buy a house for those who find the right opportunity. With a diverse inventory, reasonable median prices, and a forecast indicating growth, potential buyers have options to explore. However, individual circumstances and preferences play a significant role in determining the optimal time for a purchase. Engaging with real estate professionals and staying updated on market trends will empower buyers to make well-informed decisions.
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.
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 February 2024, the median rent for all bedroom counts and property types in Asheville, NC is $1,855. This is -4% lower than the national average. Rent prices for all bedroom counts and property types in Asheville, NC have decreased by 5% in the last month and have decreased by 7% in the last year.
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.
Housing Market Data & Statistics
Job & Student market
Short term rentals