The Asheville region’s housing market shows no sign of slowing down as summer sales marked another month of gains, with 1,296 homes sold across the 13-county area of the Western North Carolina mountains, representing a 24.4% year-over-year increase over sales in June 2020.
The Asheville region includes Burke, Buncombe, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania and Yancey counties.
The data represents a record number of transactions for any June, according to Canopy MLS. Sales compared to the previous month (May 2021) increased 12.6%, while year-to-date figures show sales at midyear pacing 35.9% ahead of sales during the first six months of 2020. These are completed transactions that include single-family and condo/townhome data only.
Pending sales figures show the region still has plenty of demand, as buyers drove 1,388 properties under contract during the month, an increase of 2.4% year over year. June’s pending sales activity was nearly on par, with May 2021 down slightly, 0.6%, still year-to-date figures show just how strong contract activity has been during the first half of the year, rising 30.1% over the first six months of 2020.
Sellers are responding to the market favorably as represented by a 16.3% year-over-year increase in new listings in June, as sellers added 1,672 homes to the market. However, with inventory already critically low, this will do little to change strong seller’s market conditions. Inventory declined 49.8% year over year, leaving 1,922 homes for sale or 1.5 months of supply at report time.
“The Asheville region continues to see unprecedented growth and shows just how desirable it is to live in the region,” said Dave Noyes, a Canopy MLS Board of Directors member and Broker-in-Charge with RE/MAX Results. “June’s record sales numbers show how strong the market is, even as our low inventory situation continues to impact prices. However, the outlook is encouraging and the steady growth in new listings, should help to improve supply over time and give buyers more options.”
Prices across the region continued to rise in June, with both the median sales price ($348,000) and the average sales price ($427,218), increasing 24.3% and 32.1% year over year, respectively. The average list price rose 8.5% year over year to $453,930, bringing the original list price to sales price measure to 99.4%, showing sellers receiving nearly all of asking prices this past month. Homes are selling quickly as indicated by days on market, which averaged 32 days compared to 64 days on market this time last year.
Asheville Metropolitan Area
Sales across the Asheville metropolitan statistical area (MSA) mirrored that of the region, rising 26.4% year over year with 880 homes sold during the month of June. Month over month, June sales were up 13.5%. Though pending sales were down 3.8% compared to June 2020, showing slower buyer activity than June 2020, year-to-date figures show buyer demand remains strong across the metro area, rising 27.9% over buyer activity during the first half of 2020.
New listing activity remains a bright spot for buyers, increasing 13.2% year over year, as sellers listed 1,124 homes for sale versus 993 listed in June 2020.
Still, buyers will find the inventory situation is less than ideal, falling 46.3% year over year and leaving 1,221 homes for sale or 1.5 months of supply. Buyers will continue to face headwinds of low supply amid rising prices.
Both the median sales price ($370,000) and the average sales price ($450,931) rose 23.4% and 29.6% year over year, while the average list price of $484,542 rose 13% compared to last June.
Sellers in the metro area are getting nearly all of asking price, as displayed by the original list price to sales price ratio increasing 4.1% year over year to 99.8% of asking price. Days on market averaged 28 days this past June versus 50 days in June 2020.
“While Realtors are encouraged that housing continues to lead our economic recovery, we are keenly aware that the lack of inventory and rising prices, are keeping a number of first-time home buyers and workforce buyers from being able to purchase,” Noyes said. “Industry leaders working with elected officials will need to work creatively to address the challenges surrounding affordability, until the market reaches a more balanced position, allowing more people access to homeownership.”
Sales in Buncombe County rose 23.8% year over year in June with 468 homes sold compared to 378 that were sold in June 2020. Pending sales were level with pending sales activity last year, rising just 1.2% year over year with 504 properties entering the pipeline of sales.
Seller confidence seems to be rising, as indicated by new listings, which rose 6.1% over last June, as sellers brought 577 homes to market versus 544 that were newly listed in June 2020. Inventory fell 51.9% year over year, leaving 581 homes for sale or 1.3 months of supply at report time.
Prices are being impacted by the low inventory environment, causing both the median sales price ($400,000) and the average sales price ($507,976) to rise 23.1% and 32% year over year, respectively.
The average list price rose 17.8% year over year to $538,628.
While the original list price to sales price ratio showed sellers getting 100.4% of asking price during the month of June.
Buyers can expect a fast-moving market, as indicated by days on market averaging 33 days during the month of June.