January sales off to a strong start across the Asheville region

News release from Canopy Realtors:

January data from Canopy MLS show home sales across the region and MSA moving steadily towards normalization and recovering from the large fluctuations in sales, the region experienced over the last two years.  Sales in January increased 5.5 percent compared to sales in January 2022, with 618 properties sold compared to 586 the previous year.  However, month-over-month sales were down 13.8 percent compared to December 2023. December had 99 more homes sold during the month, as buyers rushed to take advantage of rates that slipped into the 6 percent range. Canopy MLS sales represented in this report are for single-family, condo, and townhome sales only.

Contract activity across the region increased by 7.4 percent year-over-year as 796 homes went under contract during the month. At the start of the year, 55 more homes were in under contract status than at the start of 2023. Contracts have risen steadily for three consecutive months.  Month-over-month contract activity, which signals buyer demand, rose by 32 percent. January showing reports indicated that buyer interest or foot traffic was strongest in the city of Asheville, where listings received an average of 4.2 showings or potential buyers per listing, followed by Hendersonville, where listings received an average of 3.4 showings per listing. Overall, buyer demand was strongest in Buncombe County, where listings averaged 3.7 showings per listing.

New listings, which represent seller confidence, were also steady during January, rising slightly (0.4 percent) year-over-year as sellers brought 728 new listings to the market. New listings compared to December were up significantly, by 27.5 percent, further boosting inventory and supply. New listing activity has been positive and increased steadily since October 2023.

“The region and MSA seem to be in a state of recovery,” said Steve Barnes, a Canopy MLS Board of Director, and VP/Managing Broker with Allen Tate/Beverly-Hanks Realtors®-Waynesville. “We still have some time before the spring selling season starts, but if listing activity continues building, the region and MSA should be better positioned to meet that demand.  Rates stabilizing and settling in the 6 percent range, could help us return to a healthier and more normal spring market.”

The region’s inventory in January increased 9.4 percent year-over-year to 1,938 homes for sale compared to only 1,771 during the previous year, while months of supply increased 21.1 percent to 2.3 months of supply compared to 1.9 months at the start of 2023. Still, December’s surge in sales activity put a dent into supply, which declined in January by 11.5 percent to 2.3 months of supply.  At the end of 2023, the region had 2.6 months of supply.  The region is still a solid seller’s market, as a balanced market of six months of supply, is still a long way off.  A balanced market favors neither sellers nor buyers.

Prices across the region moved higher, amidst rising demand. Both the median sales price ($395,000) and the average sales price ($502,438) rose 10.2 percent and 12.5 percent year-over-year respectively. However, buyers in January found some price relief, as both the median sales price and average sales prices softened a bit, decreasing 4.1 percent and 2.7 percent respectively. The average list price for the month increased 11.8 percent year-over-year to $560,57, which brought the original list price to sales price measure down 0.6 percent to 93.2 percent.

“As the market continues to settle, and move towards normalization, some price softening may occur, but buyers won’t see prices falling dramatically, if at all, as the region has enough demand and tight inventory to keep that from happening, said Barnes.”

Time on market continues to increase in buyers favor. The List to Close metric increased 7.7 percent to 112 days, compared to 104 days in January 2023, while days on market, the metric that accrues for “Active” and “Under-contract-show” statuses increased 8.3 percent to 52 days on market compared to 48 days on market at the start of 2023.

Asheville MSA 

Sales rose for the first time in two years across the four counties that make up metro-Asheville. In January sales rose 5.3 percent as 396 homes sold compared to 376 that sold in January 2023.  Sales were down 16.3 percent month-over-month, with December having 77 more units sold than in January. Still, contract activity, which is typically seen as a good gauge of future sales, since they tend to close within 45-60 days rose 9.5 percent year-over-year as 532 homes went under contract during the month.  Contract activity is up significantly compared to December, rising 32 percent month-over-month.

New listing activity was weaker, declining 2.8 percent year-over-year as sellers brought 458 new listings to the market. New listing activity also rose, however, month-over-month by 31.6 percent. Still, growth in new listings continues to boost inventory and supply, which rose at report time in January. Inventory increased 6.3 percent year-over-year, to 1,135 homes for sale, while supply jumped 17.6 percent to 2 months of supply. At the start of 2023, the MSA had approximately 1.7 months of supply and slightly more than 1,000 homes for sale.

The median sales price for a home in the Asheville MSA increased 5.7 percent year-over-year to $422,750, but it is down 4.5 percent compared to December’s median sales price.  The average sales price of $525,473 rose 9.5 percent year-over-year, but it is down 4 percent when compared to December’s average sales price.  The average list price climbed to $630,381 which brought the original list price to sales price measure down slightly (0.1%) to 94.2 percent.  Properties are spending more time on the market, as days on market increased from 41 days in January 2023, to 50 days on market in January 2024.

Barnes said further, “Buyer and seller activity continues to be concentrated in the metro area, as buyers typically want to be closer to job centers and amenities. However, with contract activity building so early ahead of the traditional selling season, buyers should be prepared for a more competitive market this spring, if they’re seeking a home in the MSA. Buyers willing to commute, especially from adjacent counties with more supply, may fare better and see greater affordability.”

Counties in the MSA.

Buncombe County home sales in January increased 4.5 percent as 211 homes sold during the month, compared to 202 that sold in January 2023. Pending contract activity also increased 15.4 percent as 277 homes went under contract during the month, 37 more than were under contract a year ago. Sellers also offered more listings during the month, as new listings activity rose 6.5 percent year-over-year with 246 properties added to inventory this past January.  Inventory at report time showed 591 homes for sale or 2 months of supply, compared to 1.6 months of supply at the start of 2023. Both the median sales price ($440,000) and the average sales price ($586,179) increased by 3.5 percent and 13.1 percent year-over-year respectively, while the average list price increased 17 percent to $718,357. This brought the original list price-to-sales price ratio to 93.7 percent, which is down slightly from 95.2 percent at the start of 2023, while homes sold in 47 days compared to 46 days on market in January 2023.

Haywood County home sales in January rose 24.5 percent year-over-year as 66 homes sold compared to 53 that sold a year ago.   Contract activity however had a steep decline, falling 19.5 percent as 70 homes went under contract versus 87 that were under contract during January 2023. New listing activity also contracted by 27.2 percent as sellers listed 59 homes for sale compared to 81 the previous January.  Both inventory and supply were down at report time.  Inventory declined 15.3 percent to 172 homes for sale or 2 months of supply. At the start of January 2023, Haywood had 2.2 months of supply.  Prices moved higher due to drops in both inventory and supply. Both the median sales price ($382,500) and the average sales price ($429,126) increased 15.9 percent and 13.6 percent year-over-year respectively, while the average list price declined 9.3 percent to $451,454. This brought the original list price to sales price metric to 92.8 percent, while days on market indicated time on market had increased by 56.1 percent to 64 days compared to 41 days on market in January 2023.

 

Henderson County home sales increased 4.1 percent year-over-year as 102 homes sold in January 2024, compared to 98 that sold at the start of 2023. Pending contracts indicated buyer demand increased by 21.7 percent, as buyers wrote contracts on 168 homes in January.  New listing activity also increased slightly, rising 3 percent over last year as sellers brought 137 new listings to the market.  Both inventory and supply rose in January.  Inventory rose 15.1 percent to 2920 homes for sale, while supply increased 18.8 percent to 1.9 months of supply.  With tight supply, the median sales price of $422,750 rose amidst higher demand, while the average sales price held steady, dipping 0.8 percent to $467,047. This brought the original list price-to-sales price ratio to 95.8 percent, nearly on par with last January, while days on market increased 34.1 percent and showed homes on market 55 days compared to 41 days on market at the start of January 2023.

 

Madison County home sales in January dropped 26.1 percent compared to January 2023, with 17 homes selling during the month compared to 23 that sold at the start of 2023. Seventeen homes went under contract during January 2024, a decline in contracts of 19 percent year-over-year, while new listing activity had a steeper decline of 38.5 percent year-over-year as sellers offered 16 new listings compared to 26 that were newly listed in January 2023.  Both inventory and supply rose during the month by 18.8 percent and 10 percent year-over-year respectively, bringing total inventory in January to 82 homes for sale and 3.3 months of supply. Both the median sales price ($442,185) and the average sales price ($469,621) increased by 26.7 percent and 19.7 percent, largely due to the smaller pool of inventory.  The average list price of $573,180 rose 21.9 percent compared to last year, bringing the original list price-to-sales price ratio up 4.6 percent to 94.7 percent. At the start of 2023 the ratio was 90.5 percent.  Homes are on   market longer, at 65 days in January, compared to selling in 78 days in January 2023.

Other counties around the region  See data for January 2024

Burke County experienced decreases in most metrics except inventory, closed sales, and the median sales price. There was a 14.4 percent increase in inventory levels, with 127 properties available, equivalent to a two-month supply. Home sales saw a 6.7 percent rise to 48 units sold in January 2024. The median sales price saw a marginal increase of 0.4 percent from the previous year to $255,000. Conversely, the average sales price fell by 11.5 percent to $277,978, and the average list price also declined by 2.0 percent year-over-year to $321,534. The ratio of the original list price-to-sales price  experienced a slight decrease of 0.3 percent to 94.9 percent in January, down from 95.2 percent the year before.

Pending contract activity decreased 8.7 percent with 63 homes under contract during the month compared to 69 during the same period last year. New listings dropped 10.0 percent as sellers brought 63 homes to market compared to 70 in January 2023. Days on market decreased 16.3 percent to 36 days in January compared to 43 days this time last year.

Jackson County had 18 homes sold in January compared to 13 that sold in January 2023, while contract activity showed 18 homes under contract during the month compared to 11 the previous January.  Sellers offered 15 new listings compared to 12 new listings added In January 2023. Inventory rose 5.1 percent to 62 homes for sale, while supply increased 18.5 percent to 3.2 months of supply. Prices declined in January, presenting some relief for buyers.  The median sales price of $341,000 declined 28.2 percent year-over-year while the average sales price declined 2.7 percent to $408,389. The average list price plummeted, 35.5 percent to $749,027, which brought the original list price-to-sales price ratio down 8.6 percent to 87.3 percent, which is highly favorable to buyers.  Days on market in January showed homes on market longer, averaging 80 days on market until sale, compared to 52 days on market at the start of 2023.

McDowell County home sales in January increased 37.5 percent as 33 homes sold compared to 24 that sold a year ago in January. Pending contracts also increased, rising 14.3 percent as 40 homes went under contract compared to 35 that were under contract at the start of 2023. New listings jumped by 30.8 percent as sellers listed 34 homes for sale. Inventory at report time showed 104 homes for sale, an increase of 38.7 percent, and 3.1 months of supply, which is up 55 percent from 2 months of supply at the start of 2023. Prices increased amidst rising demand. The median sales price ($306,000) rose 11.3 percent year-over-year, while the average sales price ($497,985) increased by 45.8 percent year-over-year.  The average list price rose 23.2 percent to $372,003, bringing the original list price-to-sales price ratio to 90.1 percent, as sellers lose their strong position from last year’s 96.1 percent. Homes are on market longer, averaging 49 days until sale compared to 32 days on market at the start of 2023.

 

(Due to smaller sample sizes in counties where there is a smaller pool of listings, percentage increases or decreases may seem extreme)

Mitchell County had seven homes sold in January 2024 compared to ten a year ago, while four homes went under contract compared to eleven under contract at the start of 2023. New listings totaled five compared to 13 new listings in January 2023.  At report time there were 45 homes in inventory or 3.8 months of supply. The median sales price increased 129.8 percent to $389,000 and the average sales price increased 153 percent year-over-year to $527,143. This brought the original list price-to-sales price ratio to 89.2 percent.  At the start of 2023, the ratio was 86.6 percent, while homes averaged 72 days on market until sale compared to 73 days on market at the start of 2023.

 

(Due to smaller sample sizes in counties where there is a smaller pool of listings, percentage increases or decreases may seem extreme)
Polk County home sales in January 2024 rose 46.7 percent to 22 homes sold compared to 15 that sold at the start of 2023.  Pending contracts declined 20.8 percent to 19 homes under contract during the month compared to 24 homes in pending status. New listings dipped 45.8 percent year-over-year as sellers offered 13 new listings versus 24 offered at the start of 2023. Inventory and supply increased substantially and showed 84 homes for sale or 3.5 months of supply.  The median sales price increased 27.6 percent to $435,148, while the average sales price declined 9.7 percent to $435,148. This brought the original list price-to-sales price ratio to 91.5 percent, down 2.3 percent from last January’s 93.7 percent, while days on market showed homes averaged 65 days on market until sale compared to 44 days on market in January 2023.

Rutherford County home sales increased 4.7 percent as 45 homes sold compared to 43 that sold in January 2023. Buyers wrote contracts on 59 homes, an increase of 5.4 percent year-over-year, compared to 56 under contract in January 2023. New listings also jumped by 36.7 percent, as sellers offered 82 new listings, a boost for inventory. Inventory at report time increased 23.2 percent to 186 homes for sales or 3 months of supply, which is an increase of 42.9 percent year-over-year. Prices increased substantially. Both the median sales price ($246,000) and the average sales price ($399,865) rose by 29.5 percent and 65.3 percent year-over-year respectively, while the average list price increased by 24.1 percent to $366,979. This brought the original list price to sales price metric to 91.7 percent, nearly on par with last year, while days on market increased 22.4 percent to 60 days on market, compared to homes selling in 49 days at the start of 2023.

Transylvania County home sales increased by 3.1 percent year-over-year as 33 homes sold compared to 32 that sold a year ago in January. Pending contracts, indicating buyer demand also increased by 55.6 percent as 42 homes went under contract during the month, compared to 27 under contract during the same period last year. New listings increased by 18.8 percent as sellers offered 38 new listings versus 32 in January 2023. Inventory increased by 8.4 percent and showed 103 homes for sale at report time or 2.5 months of supply.  A year ago, supply stood at 1.9 months.  Prices increased as a result of rising demand.  The median sales price rose 3.4 percent to $437,000 while the average sales price rose 12.1 percent to $778,405.  The average list price increased 24.4 percent over last year to $612,797, bringing the original list price-to-sales price ratio down 3 percent to 89.9 percent, a sign that sellers are losing their strong position.  Days on market showed homes averaged more time on market in January, increasing 14.3 percent to 56 days compared to 49 days on market at the start of 2023.

(Due to smaller sample sizes in counties where there is a smaller pool of listings, percentage increases or decreases may seem extreme)

Yancey County sales at the start of January showed ten homes sold compared to 21 that sold at the start of 2023. Pending contracts declined to 14 in January compared to 16 contracts written in January 2023.  Sellers offered 15 new listings during the month, compared to 12 new listings last January.  Inventory dropped 9.1 percent to 70 homes for sale or 3.9 months of supply. Both the median sales price ($345,000) and the averages sales price ($402,570) increased 15 percent and 16.1percent year-over-year respectively, while the average list price increased 2.3 percent to $364,167. This brought the original list price-to-sales price ratio to 90.3 percent, an increase from last January’s 89.8 percent, while days on market showed homes averaged 62 days on market until sale compared to 53 days on market in January 2023.