Asheville Real Estate Weekly Market Report

May 25, 2024

Welcome to this week’s market update for the Asheville region, brought to you by Industry Property Group. Our aim is to keep you informed on the latest trends and statistics, ensuring you have a comprehensive understanding of the real estate market in our area. This week's data, provided by the Canopy Realtor® Association, highlights some significant trends and shifts that are important for both buyers and sellers to be aware of.

Key Highlights for the Week Ending May 25, 2024:

1. New Listings:

• The number of new listings remained flat at 311 compared to the same period last year.

• Over the past three months, new listings have shown an 11.8% increase, indicating a consistent inflow of properties into the market.

2. Pending Sales:

• Pending sales saw an impressive increase of 11.1% from the previous year, totaling 241 for the week.

• This uptick in pending sales suggests a strong buyer interest and activity in the market.

3. Inventory:

• The inventory of homes for sale increased by a significant 32.0%, reaching 2,637 homes.

• The rise in inventory provides more options for buyers and could lead to more balanced market conditions.

Monthly Insights for April 2024:

1. Median Sales Price:

• The median sales price increased by 8.3% from the previous year, reaching $414,845.

• This steady rise in prices reflects ongoing demand and potentially limited supply in certain segments.

2. List to Close:

• The average days from listing to closing remained unchanged at 93 days.

• This stability indicates a consistent market pace, with properties moving through the sale process at a regular rate.

3. Percent of Original List Price Received:

• Sellers received 95.4% of their original list price, a slight decrease of 1.6% from last year.

• While slightly lower, this figure shows that the market remains competitive, with sellers still achieving near their asking prices.

4. Months Supply of Homes for Sale:

• The months’ supply of homes for sale increased by 50.0%, now standing at 3.0 months.

• This increase suggests a shift towards a more balanced market, potentially easing the intensity of competition among buyers.

Detailed Market Analysis

Mortgage Rates:

Recent declines in mortgage rates have brought some relief to prospective homebuyers. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.94% for the week ending May 23, down from 7.02% the previous week. This is the first time since early April that rates have fallen below 7%, offering a bit of respite amid affordability challenges.

New Listings Trends:

New listings have shown a varied pattern over the past months. The number of new listings for the week ending May 25 was 311, matching the same week last year. However, analyzing the past three months, there has been a noticeable 11.8% increase in new listings. This suggests a healthy inflow of new properties, giving buyers more options to choose from.

Pending Sales Dynamics:

Pending sales for the week ending May 25 reached 241, marking an 11.1% increase from the previous year. Over the past three months, pending sales have shown a modest 1.1% increase, highlighting a consistent buyer activity. The rise in pending sales is a positive indicator of market health, reflecting strong buyer interest and market engagement.

Inventory Growth:

The inventory of homes for sale has seen a significant increase of 32.0%, reaching 2,637 homes by the end of May 25. This surge in inventory is a crucial development, as it provides more choices for buyers and can help moderate the pace of price increases. Over the past three months, the average inventory has risen by 31.8%, indicating a robust addition of homes to the market.

Price Trends:

• Median Sales Price: For April 2024, the median sales price increased by 8.3% to $414,845 compared to April 2023. This continuous rise in prices underscores the strong demand in the market.

• Average Sales Price: The average sales price in April 2024 was $526,930, a 12.9% increase from the previous year. This higher average suggests that higher-end properties are selling well, contributing to the overall price increase.

Market Efficiency:

• List to Close: The average days from listing to closing remained flat at 93 days, indicating a steady and predictable market pace.

• Days on Market: The average days on market increased by 6.7% to 48 days in April 2024. This slight increase suggests that while the market remains active, buyers are taking a bit more time to make purchase decisions.

Sales to List Price Ratio:

• The percent of original list price received decreased by 1.6% to 95.4%. While this is a slight decrease, it still reflects a strong market where sellers are achieving close to their asking prices.

Historical Context and Future Outlook

Historical Trends:

Analyzing historical data, we see that both median and average sales prices have been on an upward trajectory. The median sales price has grown from $375,000 in 2022 to $414,845 in 2024, reflecting the region's increasing desirability and market strength. Similarly, the average sales price has climbed from $444,811 in 2022 to $526,930 in 2024.

Housing Affordability:

The Housing Affordability Index for April 2024 stood at 67, down from 77 the previous year. This decline indicates that housing has become less affordable, likely due to rising prices and relatively high mortgage rates. The affordability challenge underscores the importance of careful financial planning for prospective buyers.

Months Supply of Homes for Sale:

The months' supply of homes for sale has seen a significant increase, rising to 3.0 months in April 2024, up from 2.0 months the previous year. This increase suggests that the market is moving towards a more balanced state, providing some relief to buyers who have been facing stiff competition.

The Asheville region's real estate market continues to show robust activity, with rising prices and increasing inventory. For buyers, the recent decline in mortgage rates offers some relief, while the increase in inventory provides more options. Sellers continue to benefit from strong demand, although the slight decrease in the percent of original list price received suggests a need for realistic pricing strategies.

At Industry Property Group, we are committed to keeping you informed about the latest market trends and providing expert guidance whether you're buying or selling. Our team is here to help you navigate the complexities of the real estate market and achieve your goals. For more detailed insights and personalized advice, visit our website industrypropertygroup.com and explore our extensive resources, including weekly, monthly, and quarterly market updates.

If you have any questions or need assistance with your real estate needs, please don't hesitate to contact us. We're here to help you make informed decisions and succeed in today's dynamic market.

For those interested in shopping real estate in the Asheville area, we invite you to explore the available properties on our website. Our comprehensive listings provide detailed information and photos to help you find the perfect home or investment opportunity.

Patrick Brooks
Lead Broker, Industry Property Group - Keller Williams Professionals Realty in Asheville, NC
Phone: (828) 989-5175
Email: patrick@industrypropertygroup.com

Stay tuned for more updates, and thank you for choosing Industry Property Group as your trusted real estate partner. Visit our website today to start your real estate journey in the Asheville area!