Ivester Jackson Blackstream Christie's Asheville Luxury Market Report
2023
Q1
April 2023
MARKET REPORT
Inventory continues to be at an all time low while demand has remained steady for an extended period of time.
COMMUNITY UPDATES
Asheville (City, North)
Downtown Asheville Condos
Buncombe County
Arden
Biltmore Forest
Henderson County
Foothills
Fairview/Fletcher
FORECAST
Demand continues to buoy home prices moving into the second and third quarters of 2023
PODCAST
From market forecasts, interviews, and house marketing ideas, join the team at Ivester Jackson Blackstream I Christie's for the latest in Carolina's luxury real estate content
contents
Q1 Market Report
1st Quarter Luxury Market Report
As reported in the preceding Q4 Market Report, inventory continues to be at an all time low while demand has remained steady for an extended period of time. Inbound migration has continued to lead the way with buyers flocking from Texas, New York, and California to name just a few. Interest rates have dipped in recent weeks, but by and large have hovered around 6-6.5% during the first quarter of 2023. With limited inventory and strong demand, multiple offers above asking price are prevalent, specifically in the mid-market (500-999K) segment. Moving into the 2nd quarter, we expect the housing market to continue its upward trajectory as buyers migrate to the area in search of housing in both the luxury and midmarket price points.
INTEREST RATES INCH LOWER AS DEMAND HOLDS FIRM
City of Asheville
As spring approaches, pending contracts and thin inventory have continued to create bidding wars and sales price increases inside the city. Sales in the first quarter were down year over year, but pending contracts proved a strong demand with limited inventory. Showings were flat in the 500-999K range, while the luxury price point saw a drop of 25%.
Bidding wars continue in Asheville as the average listing to sales price ratio in Asheville is 98.5% for 500-999K and 97.25% for $1M+.
City of Asheville
North Asheville
Lack of inventory in North Asheville continues to push values higher as demand inches up. Many buyers have targeted North Asheville for its older established neighborhoods (such as Grove Park and Lakeview Park), its proximity to downtown, and its walkability to neighborhood amenities. Sales in both price segments are almost identical to the numbers produced in the 1st Quarter of 2022. Showings have dipped slightly, but can be attributed to lack of inventory, specifically in the 500-999K segment.
North Asheville
Downtown Asheville Condos
As tourists flock to Downtown Asheville, so do the real estate developers. Currently the city skyline is filled with new construction starts of condos, hotels, and mixed use buildings. Sell-through in the luxury market saw an uptick in activity, as well as pending contracts above $1M. The mid-market remained flat year over year, as potential buyers are on the sidelines waiting for new inventory to reach the market.
Downtown Asheville Condos
BUNCOMBE COUNTY
Showings in both the luxury and mid-market segments are relatively flat, as compared to the first quarter of 2022, while sales have slipped by 11% in the mid-market and by 19% in the luxury price point. We believe this to be a direct byproduct of lack of inventory across Buncombe County.
Showings have remained high, at or above 2022 numbers, which evidences elevated demand.
Pending sales point to a robust 2nd and 3rd quarter with 42 homes in the luxury price point currently under contract.
Buncombe County
345 Midland Drive | Asheville, NC $3.225 M Recently Offered 3259 Donahue Drive | Nebo, NC $1.1M 1409 Stonegate Drive | Shelby, NC $1.525 M 181 Ardmion Park Unit #2 | Asheville, NC $1 39 M
Significant Sales
7 Patton Avenue Suite 1807
262 M
$1
BILTMORE FOREST
Showing activity in the luxury market of Biltmore Forest rose 21% during the first quarter of 2023 compared to the same time period in 2022. While sales are down in Q1, logging only two sales above $1M, we note that the pending sales have skyrocketed to 6 homes currently under contract. During the first quarter, we also saw a flagship sale in Biltmore Forest of over $9.5M - the highest record sale of 2023 in Biltmore Forest.
Biltmore Forest
Arden & Fairview/Fletcher
As previously reported in the 4th quarter of 2022, showings were up across the board in Arden. That trend has continued in the first quarter of 2023 as showings are up 26% in the midmarket and 23% in the luxury market. This upward trend has been fueled by many new construction starts due to a plethora of buyers looking for the ease of a lock-and-leave lifestyle Sales in the mid-market are up an eye-popping 154% year over year, with almost half of the current inventory under contract in this price segment. Pending sales are also pointing to a robust selling season in Arden as the weather starts to warm up.
Lack of inventory has affected sell-through in the Fairview/Fletcher market. However, warmer weather has started to pad inventory and we are seeing elevated showing activity and pending contracts in both the luxury and mid-market price points This area saw 2 sales above $1M in the first quarter Fairview and Fletcher currently clocked 6 pending contracts moving into the second quarter of 2023. The luxury segment has also witnessed showing activity up 60% year over year, which proves strong demand as buyers migrate to the area.
Arden
Fairview/Fletcher
HENDERSON COUNTY
As inventory lags in Buncombe County, many buyers have turned to Henderson County where inventory is strong and vibrant. Both the mid-market and luxury markets showed strong sales numbers, up year over year at 2% and 7% respectively. The biggest jump we are starting to see is the showing activity in the luxury segment, with showings up a staggering 198%. We see this trend continuing into the future as more businesses pop up in downtown Hendersonville. Residents are discovering the value of small town living, while also being in close proximity to both Asheville, North Carolina and Greenville, South Carolina.
Henderson County
FOOTHILLS: POLK, RUTHERFORD, CLEVELAND COUNTIES
The Foothills (Polk, Rutherford, Cleveland Counties) were cooling in the 4th quarter and continued to cool moving into the 1st quarter of 2023. After many quarters of rapid expansion in the luxury market, this region is moving into a much more sustainable sales cycle. Still attracting buyers from larger cities such as Charlotte and Greenville, SC, the Foothills continues to be a hotbed for buyers: buyers who are equestrians, as well as buyers looking for a slower pace of life while still being conveniently close to international airports and larger cities.
Counties
Foothills: Polk, Rutherford, Cleveland
WESTERN NORTH CAROLINA MARKET FORECAST
Both buyers and sellers in the current market are seeing a mixed bag of events: a thin inventory across the region, an interest rate roller coaster, and limited new construction starts. This trend appears to be here to stay in the short term as local and regional banks have started to pull back on building loans and speculative loans, specifically in the higher range of values. Numbers in this new quarter have started to roll in that are very encouraging, as inflation has started to calm and the financial markets have reacted positively to this news. Continuing on the topic of positive news, Western North Carolina remains a destination for inbound migration from all over the country. This ongoing demand should buoy home prices moving into the 2nd and 3rd quarters of 2023.
Where
you L E T U S H E L P Y O U N A V I G A T E T H E J O U R N E Y center yourself
will
next?
Our Offices
Asheville Office - Ivester Jackson Blackstream
18 S Pack Square
Asheville, NC 28801
(828) 367-9001
Charlotte Office
1515 Mockingbird Lane Suite 900
Charlotte, NC 28209
(704) 817-9826
Lake Norman Office
21025 Catawba Ave #101
Cornelius, NC 28031
(704) 655-0586
Lake Norman North Shore Office
350 Morrison Plantation Parkway, Suite C1
Mooresville, NC 28117
(980)-435-5169
Wilmington Office - Ivester Jackson Coastal
527 Causeway Drive
Wrightsville Beach, NC 28480
910-300-5140
LISTEN TO OUR PODCAST TODAY! Find us by searching CAROLINA LUXURY REAL ESTATE on Spotify, iHeart Radio or Apple Podcasts
