Ivester Jackson Blackstream Christie's Asheville Luxury Market Report
Q2 2022
Q2 Market Report
contents July 2022
MARKET REPORT As interest rates continue to tick up, the Western North Carolina housing market shows a steady hand.
COMMUNITY UPDATES Asheville (City, North) Downtown Asheville Condos Buncombe County Arden Biltmore Forest Henderson County Foothills Fairview/Fletcher
FORECAST Housing market steadies as interest rates rise
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2nd Quarter Luxury Market Report HOUSING MARKET STEADIES AS INTEREST RATES RISE
As interest rates continue to tick up, the Western North Carolina housing market shows a steady hand. Inventory remains low in most areas, which in turn has kept pricing and days on market stable across the region. It will be interesting to keep an eye on interest rates and inventory over the next 60-90 days, as it will certainly impact pricing and days on market moving forward. As noted in the most recent market reports, outlying areas such as Polk, Jackson, and Cleveland Counties are seeing a surge in luxury home sell-through and many markets have seen record breaking sales.
City of Asheville & North Asheville The city of Asheville saw an increase in both the luxury and mid-market price ranges with sales jumping 35% and 17% respectively. Pending sales are slightly down year over year, which points to a slower third quarter in the Asheville area market. Active inventory continues to be an issue, as demand appears to be firm across the Asheville region. We’ll keep an eye on showings and pending contracts over the coming months. Historically, North Asheville has been a steady force in the Asheville area as it relates to real estate. Values have continued to rise at a sustainable rate in the last few years and sales activity has been robust. For the second quarter of 2022, we saw a blip on the radar in the mid-market ($500k-$999k) as both sales and pending sales are down. With that said, showings are up year over year, therefore demand appears to be strong. The luxury market remained flat, but pending transactions and showings were both up. Inventory (or lack thereof) will play a key role in how the North Asheville market area will respond in the 3rd and 4th quarters.
City of Asheville
North Asheville
Downtown Asheville Condos We’ve all heard the old saying “Cash is King.” Well it’s especially true in the downtown Asheville luxury condo market. With 10 sales over $1M, compared to 6 in the 2nd quarter of 2021, nine of the ten sales were all cash transactions. With buyers selling second and third homes across the country, we expect to see more cash make its way to the downtown condo market. Many new condo projects are well underway and values have continued to rise. As these projects come to a close, we anticipate many more cash transactions in the higher end market. Showings are down in both categories, but can be attributed to low inventory and sparsely completed new construction projects in downtown Asheville.
Downtown Asheville Condos
BUNCOMBE COUNTY Buncombe County continues its upward trajectory as luxury home ($1M+) sales rose year over year in the second quarter by 30%, while showings also saw a 45% increase year over year. The mid-market segment ($500k-$999k) shows similar numbers with showings up 41% and sales up 28%. Pending sales dipped slightly but still point to a robust 3rd quarter of 2022.
Buncombe County
Buncombe Homes Sold: 9 Winding Poplar Road | $1.275 M 111 Points West Drive | $1.265 M 4 Stuyvesant Crescent | $1.175 M
BILTMORE FOREST Biltmore Forest has continued to see a decrease in the number of sales in the luxury segment consistent with reporting in Q1 of 2022. This can be attributed to the lack of new inventory, rapid appreciation over the previous 24 months, and flattening demand. The second quarter saw a drop in sales of 36% year over year in the $1M+ range, while sales in the mid-market remained flat with only 2 sales. Biltmore Forest has historically been a very strong, stable market and we expect new inventory to push the market forward in the coming months.
Biltmore Forest
Arden & Fairview/Fletcher Hot is the word that best describes the Arden area as both mid-market and luxury sales are up over the second quarter of 2021. Arden has many new home construction starts in both price segments and thus continues to propel sales across the board. Showings in Arden are also up year over year which should trickle down to more robust sales activity in the 3rd and 4th quarters of 2022. Both the mid-market, as well as the luxury market, indicated a decrease in transactions as inventory continued to lag and buyers started to sit on the sidelines. New construction starts in Fairview and Fletcher have also begun to slip as available land is sparse, although building costs have remained fairly flat. Showings in both price points are up year over year and pending contracts have surged in the second quarter. Keep an eye on this market for a bounce back in the 3rd quarter of 2022.
Arden
Fairview/Fletcher
HENDERSON COUNTY The luxury market in Henderson County has continued its upward trajectory. We saw an 86% increase in sales year over year along with 15 currently pending transactions over $1M. The mid-market also saw a jump in sell-through of 12%, which has been stifled by historically low levels of inventory and skyrocketing mortgage rates. Showings are up in both segments which point to stabilized demand and historically low inventory.
Henderson County
FOOTHILLS: POLK, RUTHERFORD, CLEVELAND COUNTIES The Foothills region continues to see the midmarket ($500k-$999k) surge across the board, with sales, showings, and pending contracts all up year over year. This area has been able to put together a nice run in the mid-market and looks to build on that in the 3rd quarter and beyond. The sell-through in the luxury segment has slowed a bit, but with 9 pending transactions, it appears we may see a bounce in activity later this year.
Foothills: Polk, Rutherford, Cleveland Counties
WESTERN NORTH CAROLINA MARKET FORECAST While both closed sales and pending transactions are up in most of the segments outlined above, we do expect a bumpy ride for the remainder of the year. The FED has continued to signal interest rate hikes. The mid-market is much more sensitive to interest rate hikes, while the high end market is much more tied to the stock market. The financial markets have been up and down for most of the year and many of the top economists believe we will likely continue this trend until at least the end of 2022. Razor thin inventory across Western North Carolina will continue to hamper sell-through as demand will more than likely continue to outstrip supply moving forward. We anticipate sales volume to cool slightly, while values continue to remain stable.
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