Beverly-Hanks’ president, Neal Hanks, was on site at the Beehive Coffee Bar in Arden to deliver the 2016 Quarter Three Market Report. Watch the video below for his short report, or continue reading for a summation.
When highlighting our regional real estate markets, we consider three metrics: sales pace, home prices, and the supply of homes for sale. Here’s how the quarter breaks down by each metric:
Western North Carolina’s regional sales pace continues its upward trajectory that began in 2011. Year to date, the number of homes sold this quarter increased by 9% when compared to the same quarter in 2015. The growth is so strong, this quarter tied Q3 2006 for the most homes sold year to date.
Our recent gains in sales pace are due to the increasing number of homes being sold in counties other than Buncombe. The counties with the biggest percentage gains in Q3 included Haywood with 14%, Transylvania at 27%, and Polk County with a 33% increase in sales.
Home sales under $200,000 have begun to slow due to a shortage of homes for sale, while sales over $1M remain flat. The upward trend in sales pace is being driven by sales in the middle price tiers.
The Federal Finance Housing Agency reported that Asheville MSA’s home prices appreciated 5.89% over the last 12 months. It bears noting that prices have increased 2.24% in the past 90 days alone. This suggests that the trend is beginning to accelerate, and if it continues, could lead to a 12-month appreciation rate of over 8%.
Local MLS data suggests that the median sales price for the region is approximately $227,000. That amount is down slightly from last quarter, but still up 6% from one year ago. Buncombe County continues to support the highest median sales price at $260,000—an 11% increase since last year. Transylvania, Polk, and Haywood counties all posted double-digit increases, as well.
Supply of Homes
The small number of homes for sale, in most markets, continues to drive market activity in many communities. The supply of homes for sale in Buncombe County under $600,000 remains tight, giving sellers an advantage when negotiating the terms of a sale.
The shortage of low- and mid-priced homes is encouraging home buyers to look outside of the greater Asheville area. Compared to a year ago, when homes under $200,000 were widely available in the communities surrounding Asheville, only Madison County currently has more than six months of inventory. When a market has less than six months of inventory, buyers can expect prices to escalate.
2016 Quarter Three Summary:
Our housing markets are robust. The sales pace is strongest in the mid-priced tiers where there is a good balance between demand and supply. If home supply continues to shrink, we expect the sales pace to moderate due to a lack of homes to sell. The shortage will intensify competition among buyers and accelerate appreciation.
All real estate is local. In order to make confident real estate decisions, we believe it important for you to have timely and neighborhood-specific information. For more information about your real estate market, ask your Beverly-Hanks associate or click here.