Feb. 22, 2023

Contact: Kim Walker, 704-940-3149

CHARLOTTE, N.C. — Sales across the 13-county Asheville region slipped 37.3 percent year-over-year in January, as 582 homes sold compared to 928 that sold in January 2022. Sales compared to the previous month were down 26.7 percent as buyer and seller behavior continue to reflect a return to seasonality and normalization. January’s sales are on par with sales at the beginning of January 2019, which was a healthier market.

Housing statistics included in this report are completed transactions that include single-family and condo/townhomes only, according to data from Canopy MLS.

Pending contracts, which signal buyer demand and are generally seen as a gauge of future sales, declined 6 percent year-over-year as 810 homes went under contract in January. The region’s contract activity compared to December 2022, however increased 38.5 percent. Surprisingly, contract activity started to tick-up in areas around the region, with year-over-year increases in Haywood, Henderson, McDowell and Polk Counties.

Buyer interest or foot traffic, as displayed in January’s Showings report, remains concentrated in Buncombe County, where homes priced $300K and up received an average of 6.3 showings (or potential buyers) per listing.  Overall, showings or buyer foot traffic was up 6.6 percent year-over-year, with active listings within the region averaging 3.3 showings per listing. Showing activity is up 61 percent month-over-month throughout the region.

New listings showed seller confidence down 7.6 percent year-over-year as sellers listed a little more than 700 homes for sale.  Month-over-month, new listings are up 35.7 percent.  As more new listings are added to inventory, supply over time should increase, giving buyers more choices.  Inventory across the 13 counties rose 7.4 percent year-over-year at report time to 1,696 homes for sale or 1.8 months of supply. New listing activity ticked up in January in Burke, Haywood, Henderson, Madison and McDowell Counties, which should help improve inventory and supply in these markets by spring.

“January’s sales continue to reflect a return to seasonality across our region and that means a slower winter sales market, which is completely normal for the mountains.” said Steve Barnes, a Canopy MLS Board of Director, and VP/Managing Broker with Allen Tate/Beverly-Hanks Realtors®-Asheville. “When sales activity increases this spring, buyers will likely find the region remains a seller’s market, albeit a bit softer one.  With demand still expected to outpace supply, well- priced homes in excellent condition will likely sell quickly with multiple offers sometime in play. Buyers should expect greater demand closer to metro-Asheville with more favorable pricing likely in some outlying areas.”

Prices across the region continued to rise in January. Both the median sales price ($360,000) and the average sales price ($448,713) rose 5.9 percent and 8.3 percent year-over-year respectively while the average list price rose 15.5 percent to $510,755. Compared to the previous month (December 2022) the region’s median and average sales prices have softened a bit and are down 2.8 percent and 1.8 percent respectively.

Barnes continued, “As inventory continues to build, appreciation should return to more normal levels which was witnessed in a number of areas across the region last year. However, fluctuating mortgage rates continue to challenge buying power, for first-time buyers, but as rent costs continue to outpace mortgage rates and properties continue to appreciate the pros of purchasing a home now may remain the wise choice.  Lenders are offering a number of programs like 2-1 Buydowns, which help buyers increase affordability. A Realtor® is skilled in helping buyers discuss options in shifting market conditions.”

The time a home spent on market increased in January. List to close averaged 104 days, compared to 95 days in January 2022. Days on market until sale across the region, which accrues for “Active” and “Under-contract-show” statuses, showed the region’s homes were on market 48 days compared to 37 days in January 2022.

Asheville MSA 

Sales declined significantly in January across metro-Asheville, falling 39.8 percent year-over-year as 375 homes sold compared to 623 at the start of January 2022. Sales compared to December 2022 were down 29.4 percent as seasonality returns to the MSA and only serious, measured buyers remain in the market. Contract activity was down six percent year-over-year as 532 homes went under contract during the month. Just 34 transactions market the difference between last January’s contracts and January 2023’s contract activity. New listings, which signal seller confidence was off by 30 listings when compared to activity in January 2022, as sellers listed 460 homes for sale. The slower pace of sales should allow inventory to build ahead of the spring selling season. Inventory for the MSA totaled a little over 1,000 homes for sale, a year-over-year increase of 7.9 percent, increasing supply by 33.3 percent to 1.6 months of supply. Still, the tight inventory situation will continue to pressure prices.  Both the median sales price ($400,000) and the average sales price ($480,431) increased 10.2 percent and 7.6 percent year-over-year while the average list price rose 23.3 percent compared to last year to $560,307.  This brought the original list price to sales price measure down slightly to 94.1 percent.  This time last year sellers received 97.6 percent of asking prices for their homes, while homes averaged 47 days on market until sale compared to 34 days on market in January 2022.

Barnes notes, “Metro-Asheville’s inventory will continue to be tight this year, with steady demand, since buyers typically seek homes closer to job centers and area amenities. Affordability will continue to be a major issue this year, and our community needs to collectively continue to find ways to increase the supply and variety of available housing, so that essential workers like teachers, medical personnel, police/fire and emergency workers as well as retail and service workers, are not priced out of the market. Being aware of loan options available to buyers can be essential to the process.”

Buncombe County sales in January declined 38.7 percent year-over-year as 204 homes sold compared to 333 during the same period last year.  Pending contracts were down 17.7 percent year-over-year as 256 homes went under contract during the month, while new listings fell 18.1 percent year-over-year to 226 homes listed in January versus 276 listed in January 2022. Inventory declined 3.4 percent year-over-year leaving 512 homes for sale or 1.5 months of supply. Last January there was 1.2 months of supply. Both the median sales price ($423,500) and the average sales price ($516,510) rose 10 percent and 5.4 percent year-over-year respectively, while the average list price rose 22.6 percent to $622,151. This brought the original list price to sales price ratio to 95.1 percent while homes were on market a bit longer in January, selling in 46 days compared to 33 days in January 2022.

Haywood County home sales declined 40.4 percent year-over-year as 53 homes sold compared to 89 sold last January. Surprisingly, contract activity rose 9.8 percent year-over-year as 101 homes went under contract during the month while sellers listed 77 homes for sale, an increase of 1.3 percent year-over-year. Inventory rose 27.3 percent to 196 homes for sale at report time or 2 months of supply. This time last year the county had 1.3 months of supply. Prices were stable in January.  The median sales price of $330,000 was unchanged while the average sales price of $379,499 dipped 0.7 percent year-over-year. The average list price increased 46.7 percent year-over-year to $509,246. This brought the original list price to sales price measure down 6.9 percent to 91.2 percent as sellers received less than asking price for their homes, while homes sold in 44 days in January, a 12.8 percent increase in time on market compared to last year at 39 days on market until sale.

Henderson County sales in January 2023 declined 44.2 percent as 96 homes sold compared to 172 that sold this time last year. Pending contracts showed buyer demand rose 11.9 percent year-over-year as 151 homes went under contract compared to 135 under contract in January 2022.  Seller confidence improved, as new listings rose 5.6 percent year-over-year as sellers listed 131 homes for sale.  Inventory at report time increased 13.3 percent year-over-year to 247 homes for sale or 1.5 months of supply. Last year at this time, the market had 30 days of supply. Still prices are rising, due to tight inventory. Both the median sales price ($412,250) and the average sales price ($473,602) rose 17.8 percent and 20.3 percent year-over-year respectively, while the average list price rose 22.5 percent to $499,923. This brought the original list price to sales price measure to down 4.8 percent to 94.5 percent as sellers move away from receiving all of asking prices for their homes. Time on market also increased in January, as days on market showed homes averaging 45 days on market until sale versus 28 days on market in January 2022.

Madison County had 22 homes sold in January 2023 compared to 29 that sold during the same period last year, while pending contracts showed 24 homes went under contract during the month compared to 28 in January 2022. New listings increased over last year, as sellers listed 26 homes for sale compared to 14 listed in January 2022.  Price declined in relation to inventory which jumped 52.4 percent year-over-year to 64 homes for sale or 2.7 months of supply. Both the median sale price ($344,000) and the average sales price ($418,832) declined 4.4 percent and 8 percent year-over-year respectively, while the average list price increased 23.3 percent to $478,200. This brought the original list price to sales price measure to down to 90.2 percent as sellers receive less than asking prices while homes averaged 79 days on market until sale versus 57 days on market in January 2022.

Other counties around the region

Burke County home sales declined 44.3 percent year-over-year as 44 homes sold compared to 79 that sold in January 2022. Pending contracts declined 2.7 percent year-over-year as 73 homes went under contract during the month, compared to 75 under contract this time last year. New listings increased 7.7 percent as sellers listed 70 homes for sale compared to 65 homes listed during the same period last year. Inventory at report time increased 13 percent to 104 homes for sale or 1.4 months of supply. This time last year Burke had 1.1 months of supply.  Prices increased dramatically. Both the median sales price ($254,500) and the average sales price ($316,542) rose 23.5 percent and 33.5 percent year-over-year respectively, while the average list price increased 8.7 percent year-over-year to $335,084. This brought the original list price to sales price measure to 95.3 percent while days on market increased 13.9 percent to 41 days on market in January versus 36 days on market in January 2022.

Jackson County had 13 homes sold in January 2023 compared to 17 that sold this time last year, while 13 homes went under contract last month, compared to 16 under contract a year ago.  New listings showed sellers listed 12 homes for sale compared to 20 listed this time last year. Inventory at report time showed 55 homes for sale or 2.5 months of supply. Prices increased significantly. Both the median sales price ($475,000) and the average sales price ($419,692) rose 68.6 percent and 47.2 percent year-over-year respectively, while the average list price increased 132.7 percent to $1.1M.  The original list price to sales price measure noted sellers in Jackson received 95.5 percent of asking price in January while homes sold faster than last January, averaging 52 days on market until sale compared to 81 days on market at the start of 2022.

McDowell County had 22 homes sold during the month of January, a decline of 35.3 percent year-over-year compared to 34 that sold last January. Pending contract activity increased 5.6 percent as buyers drove 38 homes under contract during the month compared to 36 in January 2022. New listings also increased 13 percent year-over-year as sellers listed 26 homes for sale during the month.  Inventory showed 69 homes in active status, an increase of 6.2 percent year-over-year, bringing months of supply to 1.8 months compared to 1.5 months at the start of 2022. Prices were mixed. The median sales price increased 2.0 percent to $267,500, while the average sales price declined 6.3 percent to $337,460. This brought the original list price to sales price measure to 96.7 percent as sellers received a sizeable amount of asking price within the county, while days on market showed homes selling faster, averaging 30 days on market compared to 50 days this time last year.

Mitchell County had ten closed sales in January 2023 and twelve homes under contract. New listings totaled 13 during the month, while inventory rose 23.7 percent to 47 homes in active status. Months of supply also increased from 2.1 months to 2.9 months of supply. All price indices declined. The median sales price ($169,250) and the average sales price ($208,390) declined 43.6 percent and 39.4 percent year-over-year while the average list price dropped 14.3 percent to $315,923. This brought the original list price to sales price measure down 6.4 percent to 86.6 percent. This time last year the metric was 92.3 percent. Days on market until sale increased 21.7 percent to 73 days on market from 60 days this time last year.

Polk County closed sales declined 28.6 percent year-over-year as 15 homes sold compared to 21 in January 2022. Pending contract activity rose 25 percent year-over-year as buyers drove 25 homes under contract during the month compared to 20 at the start of 2022. New listing were unchanged with sellers listing 25 homes for sale. Inventory at report time increased 11.3 percent to 69 homes for sale, or 2.5 months of supply. Prices were mixed. The median sales price ($370,000) declined 7.3 percent year-over-year while the average sales price increased 2.8 percent to $496,967. This brought the original list price to sales price measure to 92.2 percent while homes were on market longer, averaging 45 days on market until sale compared to 62 days on market in January 2022.

Rutherford County home sales declined 43.2 percent year-over-year as 42 homes sold compared to 74 in January 2022. Pending contracts also declined in January, 10.7 percent as 67 homes went under contract during the month, compared to 75 this time last year. New listing activity also decreased 18.7 percent year-over-year as sellers listed 61 homes for sale compared to 75 at the start of 2022.  Inventory rose 7 percent at report time and showed 138 homes for sale or 1.9 months of supply. All price indices though already affordable, declined. Both the median sales price ($191,250) and the average sales price ($243,330) dropped 20.5 percent and 15.5 percent year-over-year respectively, while the average list price dipped 0.1 percent to $301,098. This brought the original list price to sales price measure down 3.9 percent to 91.9 percent compared to 95.6 percent of asking sellers received at the beginning of 2022. Time on market also increased 77.8 percent, showing homes averaged 48 days on market until sale compared to 27 days on market in January 2022.

Transylvania County home sales declined 13.2 percent year-over-year in January as 33 homes sold compared to 38 this time last year. Pending contracts showed buyer demand had fallen 20.6 percent in January as buyers brought 27 homes under contract during the month compared to 34 the previous January. New listing activity was down 11.8 percent year-over-year as sellers listed 30 homes for sale compared to 34 newly listed in January 2022.  Inventory at report time showed 104 homes for sale or 2.1 months of supply. Both the median sales price ($435,000) and the average sales price ($692,434) rose 0.1 percent and 16.6 percent year-over-year respectively, while the average list price dropped 16.5 percent to $490,286. This brought the original list price to sales price measure up 0.1 percent to 92.9 percent while days on market were unchanged compared to last year, showing homes on market an average of 48 days this past January.

Yancey County had 21 homes sold in January 2023, a decline of 27.6 percent year-over-year, while 18 homes went under contract during the month, a decline of 5.3 percent year-over-year. New listing activity was down 29.4 percent as sellers listed 12 homes for sale compared to 17 in January 2022. Inventory at report time showed 73 homes for sale or 3.2 months of supply, which is up 45.5 percent from 2.2 months of supply last January.  All price indices declined. The median sales price ($300,000) and the average sales price ($346,651) declined 10.4 percent and 17.5 percent year-over-year respectively, while the average list price declined 15.2 percent to $358,808. Sellers received 89.8 percent of asking price, according to the original list price to sales price measure, down from 98 percent at the start of 2022, while days on market showed homes averaged 53 days on market until sale, which is unchanged compared to January 2022.

For more residential-housing market statistics, visit www.CarolinaHome.com and click on “Market Data.” For an interview with a Realtor®/broker representing the Canopy MLS service area in the western/mountain region of North Carolina, please contact Kim Walker.

Original Publish Date: 2/22/2023