Q1 2024 WNC Luxury Market Report & Forecast

Western North Carolina | Q1 2024

contents

Q1 Market Report & Forecast | April 2024

MARKET REPORT

Year-over-year sales have surged in the majority of areas across Western North Carolina, with the ultra luxury $2M+ segment leading the way. Inventory has begun to thaw as many buyers seek to capitalize on equity gains over the past 36 months.

COMMUNITY UPDATES

Asheville (City, North)

Downtown Asheville Condos

Buncombe County

Arden

Biltmore Forest

Henderson County

Foothills

Haywood

Fairview/Fletcher

Haywood

FORECAST

Cash buyers, coupled with strong demand across the region, have continued to drive values to alltime highs, not only in Asheville and Buncombe County but also in areas such as Mills River, Waynesville, and Hendersonville.

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.

Current Trends

Interest rates have remained steady, around 7%, which initially sidelined some buyers. However, many have adjusted to this new normal. We anticipate cash transactions will dominate especially in the luxury $1M - $1.99M and ultra-luxury $2M+ segments as we head into the spring selling season. For instance, Asheville experienced 14 ultra-luxury sales over $2M in the first quarter, with 11 being all cash transactions. We expect this trend to persist throughout 2024.

CITY OF ASHEVILLE

The Asheville market has started 2024 on a high note, with all three price segments experiencing year-over-year increases in the first quarter. The ultra-luxury $2M+ segment saw the most significant leap, with 14 closed transactions compared to 3 in the same period of 2023. Pending sales in both the mid-market $600K - $999K and luxury $1M - $1.99M segments are up, indicating a promising spring selling season. However, inventory in the mid-market continues to lag, although we anticipate a rebound during the warmer months.

CITY OF ASHEVILLE

NORTH ASHEVILLE

North Asheville has historically been robust, with values steadily climbing. This trend continued into the first quarter of 2024, with all price points experiencing year-over-year increases. However, inventory remains a challenge due to homeowners locking into low-interest rates during 20202022. We expect values to continue rising rapidly as low inventory clashes with heightened demand. North Asheville is poised for a great second and third quarter of 2024

DOWNTOWN ASHEVILLE CONDOS

Condo sales in downtown Asheville varied, similar to the trend observed in the fourth quarter of 2023. While new construction slowed temporarily in the Central Business District, marketing efforts for upcoming condos suggest a potential resurgence. The mid-market ($600K - $999K) remained steady year-over-year, while the ultra-luxury ($2M+) segment saw limited activity. We anticipate increased activity as new constructions ramp up and more inventory continues to hit the market throughout 2024.

BUNCOMBE COUNTY

Like Asheville, Buncombe County witnessed year-over-year increases across all three price points in the first quarter 2024, with the ultra-luxury segment experiencing the most significant growth, up 114% in year-over-year sales. However, the midmarket is struggling to keep up with demand, with a notable number of pending sales and limited inventory. This could lead to multiple offers and higher listing prices in the county, both short and long term.

BUNCOMBE COUNTY

Q1 Homes Sold

BILTMORE FOREST

Biltmore Forest had a strong first quarter, with increased sales in two of the three price points, notably in the ultraluxury $2M+ and luxury $1M - $1.99M segments. Rising inventory in the $1M - $1.99M price range suggests pending sales contracts should show up later in the second quarter as closed sales transactions. Showing activity remains steady, indicating sustained demand in the area.

BILTMORE FOREST

Q1 Homes Sold

ARDEN & FAIRVIEW/ FLETCHER

A combination of higher interest rates, along with unfinished new construction starts in Arden has pushed sell-through lower in the mid-market $600K - $999K segment. During the first quarter of 2023, we saw 15 sales between $600K$999K, while in 2024 we only saw 10 sales, a decrease of 33%. This is also the case in the ultra-luxury range, as we saw a tail-off of 67% in year-over-year sales.

Pending sales look to reverse that trend and should produce a solid second quarter, with 3 pending sales over $2M.

The Fairview/Fletcher market saw a blip on the radar during the first quarter of 2024 with only the luxury price segment $1M - $1.99M up in year-over-year sales. In 2023 we saw only one sale between $1M - $1.99M, while in 2024 we saw seven closed transactions in that same time frame. Inventory has also picked up steam in the price range and pending sales are on track to have a robust second quarter.

Pending sales have also seen a huge uptick in the ultra luxury market $2M+, with five currently under contract in excess of $2M. If demand, new construction, and inventory continue to track at this pace we should see increased sales activity across all three price points in the second and third quarters.

FAIRVIEW/FLETCHER

HENDERSON COUNTY

While we did not see any sales in the ultra-luxury $2M+ range during the first quarter which was on par with 2023 sales numbers and not much of a surprise. In the luxury range $1M - $1.99M we saw a jump in the action of 47% in year-over-year sales. The midmarket $600K - $999K was flat with 45 sales as opposed to 47 during 2023. New construction in Henderson County continues to add much needed housing stock to the market and should continue to show up during the second and third quarters of 2024. Pending sales appear to be through the roof and should produce elevated sell-through for the next few months.

HENDERSON COUNTY

Q1 Homes Sold

HAYWOD COUNTY

While sales varied greatly in Haywood County across the three price points, the luxury range saw an increase of 200% with 6 sales between $1M - $1.99M during the first quarter of 2024 vs only 2 sales during the same time period of 2023. Cash transactions accounted for over 83% of all closings in this price point, which we should continue to see for the foreseeable future as interest rates continue to push higher. Inventory levels have started to increase, which should give buyers additional options during the spring and summer months. Pending sales are robust and should produce elevated sales numbers moving forward.

HAYWOOD COUNTY

Q1 Homes Sold

FOOTHILLS: POLK, RUTHERFORD, CLEVELAND COUNTY

The ultra-luxury range $2M+ posted sizable gains in the first quarter of 2024 with 3 closed sales over $2M as compared to zero sales during the first quarter of 2023, which accounts for a 300% increase year-over-year. The mid-market $600K - $999K also saw some moderate gains in sell-through, with 22 closed transactions vs 18 in 2023. Inventory levels across all three price segments have increased in recent weeks and this area will surely see a great second and third quarter.

FOOTHILLS: POLK, RUTHERFORD, CLEVELAND COUNTIES

MARKET FORECAST

Cash Buyers Flock to the Area as the Luxury Market Gains Steam Across the Mountains of Western North Carolina.

Cash transactions are expected to continue driving both the luxury and ultra-luxury markets. Consumers in the mid-market appear to have adjusted to mortgage interest rates in the 6.5 - 7% range. Values are anticipated to rise further as demand remains strong, despite inventory challenges. New construction projects are likely to influence the market positively in 2024, making it a promising year for luxury real estate across the region.

Our Offices

Asheville Office - Ivester Jackson Blackstream

18 S Pack Square

Asheville, NC 28801

828-367-9001

Highlands-Cashiers

210 North Fifth Street

Highlands, NC 28741

828-482-5022

Wilmington Office - IJ Coastal

527 Causeway Drive

Wrightsville Beach, NC 28480

910-300-5140

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

LISTEN TO OUR PODCAST AND VISIT OUR VIDEO PAGE

Check out our podcast and videos featuring lifestyle pieces, market information, and North Carolina guides!

VIEW OUR LISTINGS

IJBProperties.com