It’s hard to believe that in nine short months, Western North Carolina’s real estate has experienced unprecedented changes. Only a few months ago, we were working with our clients to prepare for a considerable slow down to the market. Now, it is almost impossible to describe local real estate activity without using hyperbolic headlines. Simply put, last quarter was nothing short of the most memorable market in modern history.
To give you the rundown of the current market, Beverly-Hanks President Neal Hanks, Jr. has delivered the Q3 2020 Real Estate Market Report. When breaking down the markets, we examine four metrics: supply of homes for sale, sales pace, home prices, and the availability of financing.
Read the full report or contact your Beverly-Hanks real estate expert to learn more about the dynamics of your neighborhood.
WNC Supply of Homes for Sale
The supply of homes for sale in WNC has remained tight since 2014 when the months of inventory dropped below 12 for the entire year. Since then, supply has only further diminished to today’s all-time lows.
Exacerbating the supply situation has been the uncertainty associated with the COVID-19 pandemic. Many sellers remain reluctant to make significant life decisions amid economic uncertainty. The fear of inviting strangers into their homes as the virus continues to spread is also contributing to the low number of homes for sale. However, sellers who are willing to put their homes on the market face limited competition, a more painless sales process, and more demand for their properties.
Since this time last year, WNC’s supply of homes for sale has dropped 50%. Compared to 2011, when local inventory peaked, we are down 76%. Almost every community is experiencing too few homes for sale to keep up with current demand. Across WNC, the market strongly favors sellers in most communities all the way up to $600,000.
With a shortage of homes for sale, it’s important to review new homes for sale quickly.
- View new homes for sale in Asheville.
- View new homes for sale in Brevard.
- View new homes for sale in Hendersonville.
- View new homes for sale in Waynesville.
WNC Regional Sales Pace
While sellers remain on the sidelines, buyer demand has surged over the last 90 days. The arrival of COVID-19 shifted sales activity from the summer, typically our most active time of the year, to the autumn months. Year-to-date sales are up a modest 4.63%, but compared to Q3 2019, sales are now up 19%.
As the pandemic continues, we are finding that an increasing number of mobile affluent consumers are choosing to establish residency in smaller metropolitan areas, like Asheville. When compared to the same period last year, luxury home sales skyrocketed from 38 to 109. The unprecedented increase likely represents a combination of delayed activity from earlier in the year and new demand for the quality of life found in our mountains.
In the coming months, all buyers will face intensifying competition and will have to act decisively to secure a home. The few homes that make it to the market are selling at an increasingly fast pace, and prices are running at all-time highs due to the demand.
WNC Home Values
Home values continue to appreciate at a measurable rate. And because of the increase in demand for luxury properties, median sale prices are skewing much higher, as well.
The Home Price Index provided by the Federal Housing Finance Agency is one of the most accurate in the industry for home values. However, it does lag our local MLS data by one quarter. According to the Federal Finance Housing Agency, Asheville MSA’s home prices appreciated 3.8% in the second quarter of the year. When taking into account our low inventory and high demand, it is likely that appreciation will continue through the remainder of the year.
The Federal Reserve’s Survey of Consumer Expectations report, published in July, reveals that Americans believe home prices will rise a median of 2% over the next 12 months. Lawrence Yun, NAR’s Chief Economist, expects this supply-demand dynamic to keep prices elevated for the foreseeable future.
Canopy MLS reported a 13.72% increase in median sales price in Q3 over the same quarter in 2019. The median sale price for homes in WNC is $314,950. Transylvania County’s median sales price currently leads the region at $350,000. Rutherford County is the most affordable at $226,000.
Availability and Cost of Financing in WNC
Further fueling buyers’ appetite and buying power are the historically low interest rates that have persisted long beyond predictions. Low rates are expected well into 2021 and are expected to push home prices even higher.
To make the most of the current situation, work closely with your Beverly-Hanks Mortgage Services loan officer. Supply all your income and asset documentation so you are prepared to act when you are ready to make a confident decision. There’s no substitute for being well prepared in tumultuous times.
Planning a move? We’re Here to Help!
The 2020 real estate market has been anything but predictable. Now more than ever, it pays to have an experienced professional in your corner. Beverly-Hanks agents are known for having the experience and skills to guide their clients no matter the market conditions.
With inventory shortages expected to continue for homes priced under $600,000, buyers will continue to experience challenges through the fall. At the same time, sellers will face limited competition, a more painless sales process, and more demand for their properties. If you would like to learn more, our Beverly-Hanks REALTORS® are here to assist you.
All real estate is local. In order to make confident real estate decisions, we believe it is mportant for you to have timely and neighborhood-specific information. Request a Q3 2020 Real Estate Market Report from your Beverly-Hanks real estate agent.