Q2 Western North Carolina Luxury Market Report & Forecast
Q2 Market Report & Forecast | July 2024
MARKET REPORT
We have seen increases in sell through across the region, regardless of price point and location Cash transactions dominate the Ultra Luxury market
COMMUNITY UPDATES
Asheville (City, North)
Downtown Asheville Condos
Buncombe County Arden
Biltmore Forest
Henderson County Haywood
Fairview/Fletcher
Foothills
FORECAST
Property values are likely to rise, supported by steady demand and a gradual recovery in inventory levels
PODCAST
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Current Trends
Interest rates have begun to retreat, prompting some buyers who were previously on the sidelines to enter the marketplace. Cash transactions continue to dominate both the Luxury and UltraLuxury markets across the region. By and large we have seen increases in sell through across the region, regardless of price point and location. With the presidential race looming ahead we may see a downtick in activity, but pending sales seem to paint a different picture. We will keep a close eye on showings and pending sales in the coming months.
CITY OF ASHEVILLE
In the second quarter of 2024, the Luxury $1-1.99M and Ultra-Luxury
$2M+ real estate markets experienced significant growth, with sales increasing in both segments compared to 2023 Meanwhile, the MidMarket segment has seen flat year-over-year numbers, a trend largely attributed to rising interest rates and increasing prices Inventory levels across all price segments have remained steady, and the number of pending contracts suggests a strong market heading into the summer
CITY OF ASHEVILLE
NORTH ASHEVILLE
North Asheville continues its slow and steady rise as one of the most desirable areas in town, thanks to its close proximity to the Country Club of Asheville, Beaver Lake, and the Grove Park Inn Year-over-year sales have increased across all three price points, with the two luxury categories leading the way Pending sales in the Ultra-Luxury segment indicate the potential for impressive closed sales in the third quarter, with seven properties currently under contract for over $2 million
NORTH ASHEVILLE
DOWNTOWN ASHEVILLE CONDOS
Condos in the center city have seen a sizable jump in the Mid-Market
$600-999K, with quarterly sales doubling in 2024 compared to 2023.
This increase comes despite lagging inventory and delays in new construction starts. Active inventory in downtown has slowed significantly, but there is hope for more inventory to hit the market in the coming weeks and months
DOWNTOWN ASHEVILLE CONDOS
BUNCOMBE COUNTY
Year-over-year sales in the second quarter have increased in two of the three price segments, while the Ultra-Luxury price segment remains consistent with last year ’ s figures Pending sales in the Ultra-Luxury range are exceptionally high, with 26 properties currently under contract We can expect these numbers to potentially double the second quarter sales in the third quarter of 2024 Existing inventory is on the rise but remains at healthy levels across Buncombe County
BUNCOMBE COUNTY
BILTMORE FOREST
The Ultra-Luxury market has shown solid growth in the second quarter of 2024, surpassing the sales figures from the same period in 2023 Pending sales are also on the rise, indicating a strong potential for elevated sales in the third quarter Meanwhile, the Luxury market has maintained stable performance, with sales comparable to last year and pending sales remaining flat The combination of sparse inventory and high demand has resulted in price increases and competitive buying scenarios, particularly in the $1 million to $2 million price range As demand continues to rise, it's expected that property values will also keep trending upwards
BILTMORE FOREST
Q2 Homes Sold
ARDEN & FAIRVIEW/ FLETCHER
Arden has experienced a notable increase in activity, with sales across all price points up year-over-year The Ultra Luxury segment leads the way with a 400% increase, with five closings compared to just one in the second quarter of 2023 Both the Mid-Market and Luxury segments have also seen gains, up 22% and 100%, respectively Pending sales across all price points suggest robust sales numbers projected for the third quarter of 2024.
The big story in the Fairview and Fletcher markets is the persistently low inventory that has continued throughout 2023 and 2024 Low inventory combined with increased demand has pushed prices higher as we head into the third quarter Sales are up across all categories, with the Ultra Luxury segment leading the way, showing a 100% increase compared to 2023 Pending sales are on par with previous quarters and should result in solid sales numbers heading into the third quarter
ARDEN
Q2 Homes Sold
FAIRVIEW/FLETCHER
Q2 Homes Sold
HENDERSON COUNTY
Henderson County presented a mixed picture during the second quarter of 2024 The Ultra-Luxury market surged by 200%, while the Mid-Market declined year-over-year, The Luxury segment remained flat, with 27 sales in 2024 compared to 28 in the second quarter of 2023. Henderson County has been a hotbed of activity over the past several years and is expected to continue seeing elevated sales activity into the second half of 2024
HENDERSON COUNTY
Homes Sold
HAYWOD COUNTY
Bucking the trend, Haywood County saw year-over-year sales growth in the Mid-Market segment However, inventory continues to lag and may cause sales to temper during the third and fourth quarters The Luxury and Ultra-Luxury price points remained flat and did not experience elevated sell-through during the second quarter However, pending sales indicate a potential uptick in closed sales in the third quarter. Haywood County tends to be a popular destination in summer and early fall, so we will monitor sales closely throughout the remainder of the summer.
HAYWOOD COUNTY
Homes Sold
FOOTHILLS: POLK, RUTHERFORD, CLEVELAND
COUNTY
The Foothills Region experienced a significant increase in the Ultra-Luxury price point in the second quarter of 2024, with five completed sales compared to zero in the second quarter of 2023 Notably, Joy Pharr represented the sellers of 1416 Barbee Road, achieving the second highest sale in Shelby in recent years Meanwhile, Luxury sales remained steady, with 14 sales in both the second quarter of 2023 and 2024. With ample inventory, we anticipate continued growth in sales as regional buyers are drawn to Western North Carolina.
FOOTHILLS: POLK, RUTHERFORD, CLEVELAND COUNTIES
Q2 Homes Sold
WESTERN NORTH CAROLINA MARKET FORECAST
Cash Transactions Dominate The Ultra-Luxury Market
Western North Carolina continues to be a hotbed for inbound migration, and this trend is expected to persist into the second half of 2024. Cash transactions dominate the Ultra-Luxury segment, with over 70% of deals closed as cash purchases versus mortgages. Interest rates are anticipated to ease, as the Federal Reserve has signaled potential rate cuts in the late third or fourth quarter. Property values are likely to rise, supported by steady demand and a gradual recovery in inventory levels. Consequently, the third and fourth quarters should yield solid sales numbers for the region.
