Asheville region housing market hits second month of slower sales in August

Oct. 4, 2021

Contact: Kim Walker, 704-940-3149

CHARLOTTE, N.C. – Home sales across the Asheville region continued to lose steam and declined 9.5 percent year-over-year, as 1,186 homes sold in August 2021, compared to the 1,311 homes that sold in August 2020. This is the second consecutive month of year-over-year sales declines, reported by Canopy MLS, headed into the fall season.

Month-over-month, sales compared to July 2021, were down 4.4 percent, however year-to-date figures show sales during the first eight months of the year ahead of year-to-date 2020 closed sales by 22.2 percent. Should the overall pace of sales continue, annual sales at yearend could eclipse 2020 home sales. These are completed transactions that include single family and condo/townhome data only.

Buyer demand, as signaled by pending contracts or pending sales, were relatively flat when compared to buyer demand in August 2020, dipping slightly by 1.5 percent as 1,431 properties went under contract during the month. Contract activity in August compared to July 2021 was roughly on par, down 0.1 percent month-over-month. 

New listing activity continues its positive run, as 1,397 homes were listed throughout the 13-county region, a 1.5 percent year-over-year increase, showing listing activity on the same level as August 2020. Seller confidence has risen over much of the summer, which over time can bring the market back into balance, as neither a seller’s market (less than six months of supply) nor a buyer’s market (more than six months of supply).  

Growth in new listings will help buyers with more choice, but inventory across the region remains critically low, with 2,028 homes for sale at report time or 1.7 months of supply. This time last year the region had 3.3 months of supply. 

Brian Cagle, a Canopy MLS Board of Directors member and Vice President-Managing Broker of Beverly Hanks & Associates Waynesville said, “Though a second month of slower sales may indicate the market is cooling, it could also be the typical market activity that we generally saw, well before the pandemic, of buyers and sellers with families, shifting their focus from summer home sales to the usual routines of fall and back to school. Buyer demand and new listing activity are steady and the slower pace of sales should help relieve some buyer fatigue and competition, especially in the metro-Asheville area.” 

Both the median sales price ($352,375) and the average sales price ($441,380) rose 15.5 percent and 17.6 percent year-over-year respectively, while the average list price rose 13.5 percent year-over-year to $467,505.  This brought the original list price to sales price figure to 98.6 percent in August 2021, showing sellers in control of the market and getting nearly all of asking prices.  Days on market until sale continue to show how quickly homes are moving, as homes averaged 30 days on market until sale in August 2021. A year ago, in August 2020 homes were averaging 71 days on market. 

The Asheville region includes Burke, Buncombe, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania and Yancey counties.

 

Asheville MSA

Sales across the Asheville metropolitan statistical area (MSA) also endured a second month of declines, with sales down 10.7 percent year-over-year as 785 homes were sold versus 879 that sold in August 2020. Pending contract activity was somewhat on par with last year, dipping 0.7 percent year-over-year as 943 homes went under contract.  New listing activity was also in-line with seller activity last August, as 916 homes went under contract, just eight more than last year. Still, overall sales and new listing activity for the year is pacing well ahead of the first eight months of 2020.  Prices however are still being impacted by the low inventory environment, which showed 1,275 homes for sale at report time or 1.6 months of supply.  Both the median sales price ($384,000) and the average sales price ($466,600) rose 18.8 percent and 20.5 percent year-over-year, respectively, while sellers continue to test the limits, as seen by the 14.3 percent year-over-year increase in the average list price, which topped $503,467 in August. Sellers received nearly all of asking price as displayed by the original list price to sales price ratio of 99.3 percent, while their homes continued to sell quickly, as indicated by days on market averaging 26 days in August.   

Cagle added, “The unfortunate aspect of this extreme seller’s market is the pressure it puts on prices, which ultimately, impacts first-time home buyers and workforce buyers, the most. Home price appreciation is good for homeowners, but the extreme pace of home price appreciation continues to outpace wage gains, so it will take Realtor® leadership working alongside area city and county policymakers, and homebuilders to help ensure we are doing all we can to continue to boost the supply of homes in the area.” 

Buncombe County

Sales in Buncombe County declined 7.6 percent year-over-year as 437 homes sold compared to 473 that sold in August 2020. Pending sales rose a modest 2.2 percent year-over-year as 510 homes went under contract during the month, showing buyers still in the market for homes in metro Asheville. New listings however, slipped by 2.5 percent year-over-year as 508 homes were listed in August, just 13 less than listed this time last year.  This will do little to help improve the inventory situation, which declined by 43.1 percent year-over-year, to 636 homes on market or 1.4 months of inventory.  Prices continue to rise, due to pressure from low inventory. Both the median sales price ($419,986) and the average sales price ($522,564) rose 23 percent, each year-over-year, while the average list price rose 8 percent year-over-year to $518,466. The original list price to sale price ratio showed sellers received 99.6 percent of asking price with homes on market an average of 26 days in August 2021. 

Haywood County

Haywood County home sales also slipped in August, falling 6.1 percent year-over-year as 124 homes sold compared to 132 homes last August. Pending contract activity showed under contract activity somewhat on par with last August’s, falling 1.3 percent year-over year a 149 homes went under contract versus 151 that were under contract in August 2020. New listing activity also declined 7.9 percent year-over-year as sellers listed 116 homes for sale versus 126 that were list in August 2020.  Pressured by falling inventory, both the median sales price ($322,500) and the average sales price ($374,792) rose 13.6 percent and 18.6 percent year-over-year respectively. Inventory at report time revealed just 207 homes for sale or 1.7 months of supply. Homes listed in August 2021 had an average list price of $414,540, an 11 percent increase over list prices this time last year. Sellers received 98.4 percent of asking prices as indicated by the original list price to sales price ratio, while homes averaged 21 days on market versus 71 days in August 2020.   

Henderson County

Sales in August across Henderson County fell 18.4 percent year-over-year as 200 homes sold compared to 245 that sold in August 2020. Pending contracts which, gauge buyer demand, declined 8.9 percent year-over-year as 246 homes went under contract versus 270 at this time last year. New listings continued to make gains, rising 9 percent year-over-year as 255 new listings were added to inventory. However, the rise in new listings does little to improve inventory, which declined 24.1 percent year-over-year leaving 362 homes for sale or 1.7 months of supply. Low supply will continue to pressure prices. Both the median sales price ($350,000) and the average sales price (403,851) rose 10.4 percent and 13.6 percent year-over-year respectively, while the average list price of $511,422 was 30.3 percent higher than list prices this time last year. Sellers in Henderson County received nearly all of asking price, as indicated by the original list price to sales price figure registering 99.9 percent.  Days on market were low, and showed homes were on market an average of 25 days versus 49 days in August 2020. 

Madison County 

(Due to small sample size of homes for sale, percentages of change can look extreme.) Sales in Madison County declined 17.2 percent year-over-year in August, as 24 homes sold compared to 29 that sold in August 2020. Pending sales, however increased 26.7 percent year-over-year as 38 homes went under contract during the month, eight more than last year.  New listing activity also rose 37 percent year-over-year as 37 homes were added to inventory.  However, inventory is low and declined 32.7 percent in August, leaving 70 homes for sale or 2.6 months of supply.  Prices are rising. Both the median sales price ($408,000) and the average sales price ($444,845) rose 27.5 percent 20.3 percent year-over-year respectively, while the average list price rose 28.1 percent to $522,111. Sellers received 96.5 percent of asking prices in August 2021, as indicated by the original list price to sales price ratio. Days on market showed homes averaging 49 days until sale versus 102 days in August 2020. 


Other counties around the region

Burke County
closed sales rose 28.8 percent year-over-year as 76 homes sold compared to 59 homes sold in August 2020. Pending sales show that buyer demand is heavy in the county, rising 49.3 percent year-over-year with 103 homes going under contract during the month compared to 69 that went under contract last year. New listing activity rose by 23.2 percent year-over-year with 101 homes newly listed versus 82 listed last August. The rise in new listings however does little to improve the current inventory situation, which declined 20.6 percent year-over-year leaving 108 homes for sale or 1.3 months of supply. Supply has improved slightly since June’s low of one month of supply. Prices were mixed. The median sales price of $196,500 declined1.5 percent year-over-year, while the average sales price increased by 5 percent year-over-year to $283,044.  Buyers should have been relieved by the average list price which softened substantially in August, declining 14.8 percent to $272,993. Sellers received 97.3 percent of asking prices in August, as evidenced by the original list price to sales price ratio, while their homes sold quickly. Days on market until sale in August 2021 averaged 23 days versus 47 days this time last year. 

(Due to small sample size of homes for sale, percentages of change can look extreme.) Jackson County, sales declined 2.6 percent year-over-year as 38 homes sold versus 39 in August 2020. Pending contract activity declined as well, falling 22.6 percent year-over-year as 24 homes went under contract compared to 31 this time last year. New listing activity, however increased 16 percent as 29 homes were listed versus 25 this time last year.  Prices were mixed, with the median sales price ($331,838) rising 10.6 percent year-over-year, while the average sale price declined 23.2 percent year-over-year to $376,386.  The average list price rose 3.3 percent year-over-year to $508,228, which brought the original list price to sales price ratio to 94.8 percent during the month. Inventory is down 53.2 percent year-over-year leaving 73 homes for sale at report time or 2.3 months of supply. Homes averaged 38 days on market until sale in August 2021, versus 139 days this time last year. 

McDowell County home sales decreased in August, falling 4.9 percent year-over-year as 39 homes sold versus 41 in August 2020. Pending contract activity showed buyer demand declined 7.5 percent year-over-year as 49 homes went under contract. New listing activity also dipped 1.7 percent year-over-year as sellers listed 59 homes for sale in August versus 60 this time last year. Inventory is tight and fell 31 percent year-over-year, leaving 87 homes for sale or two months of supply, a small improvement from July 2021’s 1.7 month of supply. Prices increased. Both the median sales price ($260,000) and the average sales price ($323,123) increased 10.6 percent and 0.2 percent year-over-year respectively, while the average list price rose 22.9 percent year-over-year to $344,816 in August.  The original list price to sales price ratio showed sellers received 98.1 percent of asking prices during the month, while homes sold quickly, averaging 36 days on market until sale.

(Due to small sample size of homes for sale, percentages of change can look extreme.)

Mitchell County had 19 homes sold in the month of August 2021, which is down 13.6 percent year-over-year. Pending contract activity fell 22.6 percent year-over-year as 24 homes went under contract compared to 31 that were under contract this time last year. New listings also declined by 32.4 percent year-over-year as sellers listed only 25 homes for sale compared to 37 listed in August 2020. Inventory dropped 45.8 percent year-over-year leaving 52 homes for sale or 2.8 months of supply. Prices increased. The median sales price of $305,000 rose 41.4 percent compared to last year while the average sales price of $338,026 increased 35.7 percent year-over-year. The average list price of $313,552 rose 6.7 percent year-over-year, which brought the original list price to sales price ratio to 98.1 percent, showing sellers getting most of asking prices, while days on market until sale averaged 69 days in August 2021. 

Polk County sales decreased 26.1 percent year-over-year as 34 homes sold versus 46 in August 2020. Pending sales fell 1.9 percent year-over-year as buyers drove 53 homes under contract versus 54 this time last year. New listings were unchanged at 46 new listings during the month. Inventory fell 33.1 percent year-over-rear, leaving 81 homes for sale or 2.1 months of supply.  Both the median sales price ($415,000) and the average sales price ($504,529) rose 37.2 percent and 32.2 percent year-over-year respectively, while the average list price of $527,265 rose 26.2 percent over last year’s list price.  This resulted in the original list price to sales price ratio registering 97.8 percent, as sellers get closer to all of asking price. Days on market averaged 36 days in August 2021 versus 62 days on market this time last year.


Rutherford County sales rose 21.6 percent year-over-year, as 107 homes sold versus 88 that sold in August 2020. Pending sales, which signal buyer demand were nearly on par with last year’s contract activity, falling 1.9 percent year-over-year as buyers drove 105 homes under contract during the month. New listing activity rose 13.8 percent year-over-year as 99 homes were listed. This will help buyers in the area with more choice, however it does little to improve inventory, which fell 33.8 percent year-over-year leaving 133 homes for sale or 1.5 months of supply.  Prices are rising. Both the median sales price ($250,000) and the average sales price ($356,715) rose 22.5 percent and 18.8 percent year-over-year respectively, while the average list price rose 45.8 percent year-over-year to $384,878. The original list price to sales price ratio registered 97.8 percent in August, showing sellers getting closer to full asking price. Homes sold quickly. Days on market averaged 16 days in August 2021 versus 81 days this time last year. 

(Due to small sample size of homes for sale, percentages of change can look extreme.)

Swain County had very little activity during the month of August 2021, with just three sales reported compared to five sales in August 2020. Pending sales activity increased as five properties went under contract during the month, compared to three under contract in August 2020.  New listing activity increased by 50 percent year-over-year, as sellers brought six properties to market versus four in August 2020.  Prices were mixed. Inventory fell to 18 homes for sale at report time or 2.7 months of supply at the current sales pace. The median sales price of $425,000 increased 14.9 percent year-over-year while the average sales price declined 6.8 percent year-over-year to $425,000.  The average list price declined 63.4 percent compared to last August, to $273,133. The original list price to sales price ratio registered 105.1 percent in August, showing sellers getting all of asking price and more. Homes averaged three days on market in August 2021, according to the days on market statistics, compared to 188 days on market last August.

Transylvania County sales decreased by 38.7 percent year-over-year as 57 homes sold versus 93 that sold this time last year.  Pending contracts also declined, indicating buyer demand has waned some, as 78 homes went under contract during the month a decrease of 22.8 percent year-over-year. New listing activity declined 21.2 percent year-over-year as sellers listed 78 homes for sale versus 99 listed in August 2020. Inventory is pressuring prices. Both the median sales price ($413,000) and the average sales price ($575,692) rose 21.5 percent and 38.3 percent year-over-year respectively, while the average list price rose 12.5 percent year-over-year to $521,003.  This brought the original list price to sales price ratio to 96.9 percent, showing sellers getting ever closer to full asking prices.  Days on market until sale showed homes averaged 45 days on market versus 100 days in August 2020.

Yancey County sales in August 2021 declined 28.2 percent year-over-year as 28 homes sold versus 39 that sold in August 2020. Pending sales were also down, 13 percent year-over-year as buyers drove 47 homes under contract versus 54 in August 2020. New listing activity rose 35.7 percent year-over-year as sellers brought 38 homes to the market. Inventory continues to fall and totaled 85 homes for sale at report time or 2.6 months of supply at the current sales pace.  Prices are rising.  Both the median sales price ($270,000) and the average sales price ($462,311) rose 2.9 percent and 40.5 percent year-over-year respectively, while the average list price rose 26 percent year-over-year to $433,484. The original list price to sales price ratio registered 94.8 percent in August, showing sellers inching closer to full asking prices, while days on market until sale averaged 165 days in August 2021, down from 199 days on market in August 2020. 

For more residential-housing market statistics, visit www.CarolinaHome.com and click on “Market Data.”  For an interview with an Asheville-area Realtor®/broker, please contact Kim Walker.

 


Canopy MLS is a wholly-owned subsidiary corporation of Canopy Realtor® Association and is the private broker cooperative used by Realtors® to bring buyers and sellers together with access to thousands of residential listings in a multicounty service area, including Charlotte, the mountains area of North Carolina, South Carolina, and beyond. Canopy MLS, which has 21,000 subscribers, provides the most trustworthy, timely, accurate and complete property data along with proprietary tools for showings, market stats, predictive analytics, and more. Canopy MLS is used by its members to support consumers in their residential real estate transactions, whether selling, buying, investing or renting.

Original Publish Date: 10/4/2021