Sales and affordability continue to fall across the mountain region of Western NC
July 21, 2022
Contact: Kim Walker, 704-940-3149
CHARLOTTE, N.C. – The mid-year report for the Asheville region shows the market may continue to cool to pre-covid levels as closed sales dipped 13.9 percent year-over-year in June, as 1,165 homes sold across the 13-county region, compared to June 2021, when 1,353 homes were sold. Sales are being affected by rising mortgage rates, lack of affordability and lack of supply. Year-to-date sales figures show tremendous sales volume when compared to the first half of 2020 and 2019, even though sales are down 8 percent compared to the first half of 2021, with just under 6,200 homes sold.
Sales transactions included in this report are for single-family and condo/townhome only, according to data from Canopy MLS.
Pending contracts were down 4.7 percent year-over-year from 1,236 homes under contract in June 201 to 1,178 in June 2022. Month-over-month pending sales were down 6 percent, with 75 fewer homes under contract. With so few contracts in the sales pipeline, sales over the next summer months will be weaker. Year-to-date figures show contract activity down 11.3 percent compared to January through June of 2021.
New listing activity also experienced a slight dip year-over-year, with 5.5 percent fewer homes listed for sale in June 2022. Sellers listed 1,604 homes for sale compared to the nearly 1,700 listed this time last year. Midyear figures show substantial new listing activity over the first half of the year (6,779), down 4.8 percent when compared to new listing activity by midyear 2021.
“As prices continue to rise, the increasing lack of affordability is of major concern, as a number of buyers, particularly first-time buyers, millennials, and workforce buyers become locked out of the market.” said Darrin Graves, a Canopy MLS Board of Director and Realtor®/broker with Beverly Hanks-Waynesville. “What we’ve seen over the last few years is homes priced below $350,000 across the region being quickly absorbed, leaving only higher-priced homes available for sale. And that lack of supply, is what’s forcing prices higher. When we start to see an increase in supply, which takes time, prices will moderate and appreciation will cool a bit.”
Lack of inventory continued to be a factor year-over-year, with 18.5 percent fewer homes available for sale. At report time in June, there were 1,960 homes for sale or 1.7 months of supply. However, inventory has increased compared to May 2022, increasing by 23 percent, with an additional 370 homes added to the market. At report time in May 2022 there were only 1,590 homes for sale or 1.4 months of supply. Of note, in June 2022, Haywood County was one of a few counties in the region to see a small increase (4.5 percent) in supply.
Prices continue to rise year-over-year in the region, with the average sales price ($498,611) and the median sales ($399,000) increasing by 17.1 percent and 14.7 percent, respectively. The average list price rose by 20.5 percent from $446,197 to $537,732 this past June.
Homes sold quickly in June, spending 36.4 percent less time on the market, a decline from 33 days in June 2021 to 21 days this past June.
The Asheville region includes Burke, Buncombe, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania, and Yancey counties.
Sales in the metropolitan area declined 15.2 percent year-over-year from 919 closed sales in June 2021 to 779 sales this past June, mirroring the rest of the region's trends. Year-to-date 2021 figures (January – June) show midyear sales last year, ahead of sales during the first half of 2022, but just 400 home sales, with 2022 sales over the past six months, down by 8.9 percent.
Pending sales declined 3.9 percent year-over-year from 812 homes under contract to 780 this past June. Month-over-month contract activity is down 6 percent when compared to May 2022. With less contract activity, future sales across the MSA are likely to be weak. New listings declined this June, with 1,065 homes listed compared to 1,143 newly listed in June 2021, a 6.8 percent year-over-year change. At report time, inventory included a little over 1,100 homes for sale or 1.6 months of supply compared to last June when there were more than 1,500 homes for sale and 1.9 months of supply.
The average sales price ($542,777) and the median sales ($441,237) increased by 21.1 percent and 19.3 percent year-over-year, respectively, while the average list price increased 18.5 percent year-over-year to $565,023. This brought the percent of original list price received by sellers down, by 1.7 percent to 101.5 percent of asking prices received, in June 2022. Homes are selling very quickly in metro Asheville, averaging 17 days on market until sale versus 28 days this time last year.
“Affordability is not only having an impact on home prices, but also on local rent prices, which, according to analysis earlier this year by ApartmentList.com, have made Asheville-area rents some of the most expensive in the state,” said Graves. “Mortgage rates, though rising, are still historically low, so when you couple fixed mortgage payments with the fact that rents are still increasing at record levels, it still makes more financial sense to own a home and start to build equity. To make the leap from renter to home owner can be challenging, especially in a difficult market like this, which is why working with a Realtor® who can help develop a home ownership plan is critical.”
Buncombe County sales declined 8.7 percent to 450 homes sold in June 2022 from 493 homes sold last June. Pending sales in the county also declined by 2.9 percent from 453 homes under contract last year to 440 this June. New listings remained stable year-over-year at 589 new homes listed. The month's supply of inventory declined by 17.6 percent, from 1.7 to 1.4. The inventory of homes for sale also decreased by 21 percent from 752 to 594 this June which continues to pressure prices. The average sales price ($596,722) and the median sales ($475,000) increased by 18.3 percent and 18.8 percent year-over-year, respectively. The percent of original list price received increased to 102.2 percent, as sellers received more than asking price for their homes in June. Homes spent 16 days on the market until a sale this June, a 51.5 percent decrease from 33 days on market in June 2021.
Haywood County closed sales decreased by 31.4 percent year-over-year as 94 homes sold versus 137 that sold in June 2021. Pending sales declined by 2.3 percent from 128 homes under contract last year to 125 in the pipeline of sales in June 2022. New listings also declined by 1.6 percent year-over-year from 189 homes added to the market to 186 in June 2022. Last month (May 2022) Haywood County had an uptick (4.7 percent) in new listings – the uptick, impacted months of supply in June 2022, increasing supply from 1.7 months of supply to 2.3 months of supply. At report time there were 249 homes for sale a decline of 8.8 percent year-over-year. Low supply continues to pressure prices which rose in June. Both the average sales price ($380,002) and the median sales ($357,500) increased by 20.5 percent and 19.6 percent year-over-year, respectively. The percent of original list price sellers received increased to 98.8 percent, a 1.1 percent bump. This June, homes spent 21 days on the market until a sale versus 30 last June, a 30 percent decline.
Henderson County sales declined 22 percent from 259 homes sold in June 2021 to 202 sold this past June. Pending sales decreased 10.4 percent year-over-year as buyers drove 190 homes under contract compared to 212 homes under contract this time last year. New listing activity also declined by a rate of 21.8 percent year-over-year as sellers only listed 247 homes for sale compared to 316 that were listed in June 2021. At report time inventory continued to fall and showed 268 homes for sale or 1.4 months of supply compared to 1.9 months of supply in June 2021. With supply critically low, prices are rising. Both the average sales price ($506,809) and the median sales price ($436,950) increased by 23.1 percent and 21.4 year-over-year, respectively. The percent of original list price received increased to 101.7 percent, as sellers continue to demand all of asking price and more for their homes in June. Homes continued to sell quickly, averaging 15 days on market until sale compared to 19 days on market this time last year.
Madison County closed sales increased by 10 percent year-over-year as 23 homes sold compared to 30 in June 2021. Buyer interest in the form of pending contracts increased 31.6 percent year-over year as 25 homes went under contract versus 19 in June 2021. New listings fell 12.2 percent year-over-year as 43 homes were listed compared with 49 listed in June 2021. At report time there were 72 homes for sale or 2.5 months of supply. Prices were mixed. Buyers will like the 9.8 percent year-over-year decline in the median sales ($365,500) While the average sales price increased 10.5 percent year-over-year $490,992. The average list price of $708,904 reflects a year-over-year increase of 32.8 percent. The percent of original list price sellers received increased by 2.7 percent to 99 percent. Homes spent 19 days on the market in June 2022 versus 27 days on market last year.
Other counties around the region
Burke County closed sales declined in June 2022 by 4.4 percent year-over-year to 87 closings versus 91 closings in June 2021. The county's pending sales also declined by a rate of 25.5 percent year-over-year as buyers pull back from the market, with just 73 homes under contract during the month compared to the nearly 100 under contract in June 2021. New listings decreased by 13.9 percent from 115 newly listed properties on market to 99 in June 2022. At report time, there were 100 homes for sale in inventory or 1.2 months of supply of homes for sale compared to 1.5 months of supply this time last June.
As supply continues to be constrained, both the average sales price ($296,934) and the median sales ($240,000) increased by 14.2 percent and 11.7 percent year-over-year, respectively. Homes spent 23 days on the market this June, a 9.5 percent increase from 21 days in June 2021.
Jackson County closed sales declined 41 percent from 39 homes sold last year to 23 homes closed in June 2022. Pending sales decreased by 14.7 percent from 34 homes under contract year-over-year to 29 under contract this past month. New listings also declined by 28 percent year-over-year, as sellers brought just 36 homes to the market compared to 50 new listings last June. AT report time inventory totaled 62 homes for sale or 2.5 months of supply at the current pace. This time last year the market had 2.9 months of supply and nearly 100 homes for sale. The average sales price ($525,787) and the median sales ($355,00) increased by 18.7 percent and 14.5 percent year-over-year, respectively, while the average list price increased 59.9 percent to $737,697. This brought the percent of original list price sellers received to 96.2 percent in June 2022. Homes spent 86 days on the market last year compared to 57 days on market in June 2022, a 33.7 percent decrease.
McDowell County sales decreased 8.2 percent year-over-year from 49 to 45 this June. Pending sales also declined by a rate of 2.4 percent from 42 to 41. New listings decreased by 9.1 percent from 66 last June to 60 this year. The months’ supply of inventory went down 29.2 percent from 2.4 to 1.7 this June. The inventory of homes for sale went from 103 to 73 this June, a 29.1 percent decrease. The average sales price ($370,339) decreased .5 percent year-over-year, while the median sales price ($300,000) increased 17.6 percent this June. The percent of original list price received increased 1.9 percent to 98.8 percent year-over-year. Homes spent 21 days on the market compared to 32 last June, a 34.4 percent decrease.
Mitchell County sales declined 4 percent to 24 homes sold from 25 last June. Pending sales increased 50 percent to 30 homes under contract this June from 20 last year. New listings also increased by 7.4 to 29 from 27 year-over-year. The month's supply of inventory increased to 3.5 from 3.3 last year, a 6.1 percent change. The inventory of homes for sale increased 1.6 percent from 64 last year to 65. The average sales price ($257,904) declined 1.7 percent this June, while the median sales price ($241,250) increased 10.9 percent year-over-year. The percent original list price received increased by 3.6 percent to 98.5 this year. Homes spent 16 on the market in Mitchel County this June, compared to 36 last year, a 55.6 percent increase.
Polk County closed sales declined 19.6 percent from 46 last June to 37. Pending sales, however, increased 48.3 percent from 29 to 43 year-over-year. New listings increased 28.3 percent to 59 versus 46 last year. The month's supply of inventory declined by 4.2 to 2.4 from 2.4 last June. The inventory of homes for sale decreased from 96 to 83 this June, a 13.5 percent drop. The average sales price ($460,553) went down 13.2 percent, while the median sales price ($330,00) increased 3.9 percent year-over-year. The percent of original list price received by sellers increased 2 percent to 100.6 percent this June. Homes spent 29 days on the market until a sale this June versus 48 last year, a 39.6 percent decrease.
Rutherford County sales increased 3.9 percent to 79 homes sold from 76 last June. Pending sales decreased 8.3 percent from 96 to 88 year-over-year. New listings in the area declined 5.8 percent to 113 from 120 last June. The month's supply of inventory also declined by a rate of 11.1 percent from 1.8 to 1.6 year-over-year. The inventory of homes for sale decreased by 11.6 percent to 137 homes available from 155. The average sales price ($391,159) and the median sales ($305,00) increased 11.3 percent and 20.7 percent year-over-year, respectively. The percent of original list price received declined .7 percent to 98.6 percent this June. The amount of days homes spent on the market remained stable at 25 this June.
(Due to small sample size of homes for sale, percentages of change can look extreme.)
Swain County closed sales increased 80 percent from 5 to 9 homes sold this June. Pending sales decreased 33.3 percent from 6 last year to 4. New listings increased 50 percent from 8 to 12 year-over-year. The monthly supply of inventory increased 130 percent to 4.6 from 2 last June. The inventory of homes for sale rose 93.3 percent from 15 last year to 29. The average sales price ($388,700) and the median sales ($350,000) increased 116.7 percent and 89.2 percent year-over-year, respectively. The percent of original list price received increased 9.4 percent to 95 percent. Homes spent 97 days on the market this June, an increase of 288 percent compared to 25 days last year.
Transylvania County sales declined 24.7 percent year-over-year from 77 homes sold last year to 58 homes sold in June 2022. Pending sales decreased 10 percent from 60 homes under contract to 54 under contract this past June. New listings increased 3.8 percent year-over-year to 81 homes listed in June 2022 from 78 last June. This should continue to help impact inventory over time, in Transylvania County, should new listing activity continue. The monthly supply of inventory in the region increased 33.3 percent from 1.8 months of supply to 2.4 months of supply in June 2022. At report time, there were 137 homes listed for sale in inventory. Both the average sales price ($595,634) and the median sales price ($471,500) increased 22.5 percent and 18.4 percent year-over-year, respectively. The percent of original list price received decreased by 3.7 percent to 95.8 percent this June. Homes spent 33 days on the market until sold, a decrease of 28.3 percent from 46 days on market in June 2021.
Yancey County closed sales decreased 7.7 percent from 26 to 24 this June. Pending sales also declined 7.7 percent to 36 from 39 this year. New listings increased 11.1 percent to 50 from 45 last June. The month's supply of inventory decreased 3.2 percent from 3.1 to 3 this year. The inventory of homes for sale decreased 14.2 percent from 106 last year to 91. The average sales price ($470,451) and the median sales ($354,250) increased 31 percent and 11.7 percent year-over-year, respectively. The percent of original list price sellers received in June declined 1.3 percent to 94.7 percent. Homes spent 40 days on the market until sold this June, a 68 percent decline from 125 last year.
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, Asheville and Catawba Valley regions spanning across North Carolina, South Carolina and outside of the Carolinas. 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: 7/21/2022