Based on data from September 2023, the regional housing market has seen prices level somewhat, primarily in Buncombe and Henderson Counties, and that trend should continue through the first quarter of 2024, according to the Regional Vice President for NC Realtors Dave Noyes.

The median residential single family home price has increased by 8.6% year over year, and is up 21% since 2001. Often learning of WNC by hearing about Asheville, Buncombe County is typically more popular, according to Noyes; however, many of those relocating to the area get “sticker shock” and begin looking in outlying areas. 

Sellers around the region were receiving about 98% of asking prices at the end of summer 2023, and moving into Fall, they were typically receiving 100% of their asking price. Within the last year, the market has seen a slight increase in inventory, up by 4.3% in Henderson County and 4.1% in Buncombe County. The number of days houses spent on the market increased from five days in June to seven days in October — a significant relative increase.

“It’s interesting to look back over recent months,” Noyes said. “Some houses are still sitting because of their condition or location in places like under power lines or next to train tracks, but prices are still higher.”

While Noyes said national news platforms may indicate housing prices are dropping, he doesn’t anticipate that happening in WNC, although value appreciation may slow. When housing prices dropped in 2008, people were overextended on their loans. With the current shift, there are trillions of dollars in home equity around the country, so a significant crash is not expected.

“With this equity trend, we are seeing many people selling homes in one area and using their equity to pay cash for another home in another area,” Noyes said. “This can lead to a significant increase to their household budget. They can take that money and put it toward retirement or other lifestyle purchases they’d like to make. It’s enough to change someone’s life.”

Buyers in the market have seen an increase in interest rates over the last year, reaching about 8% in early October. Noyes said this rate almost doubles the payment on a $350,000 home compared to loans available in 2020. The higher interest rates drove many buyers requiring loans out of the market, but Noyes said he is seeing them slowly return. The added cost of interest; however, has lowered buyer budgets, slowing appreciation on available properties. 

For real estate agents, these market shifts are changing the way they run their business. Agents who have begun their real estate careers since 2020 are having to learn new skills, and experienced agents are having to return to older patterns and strategies for conducting business. 

“Open houses are returning, and more agents are going back to advertising and marketing campaigns,” Noyes said. “Many are taking advantage of internet marketing, and some are returning to knocking on doors which leads to success because of building their sphere and knowing the neighbors. These lessons will produce more professional and well-rounded brokers.”

Homeowners with short-term rental businesses like VRBO or AirBnb are seeing lower returns with similar numbers of bookings. The operating costs of their rentals are increasing, thereby reducing profits. Noyes said with many owners seeing 20% to 25% increases in their home values, now may be a good time to sell.

Noyes said the National Association of Realtors’ Chief Economist Lawrence Yun predicts fewer short-term rental bookings, and with only a 2.5 months’ supply of inventory despite more homes coming to market, another possibility for STR owners is converting to long-term rental models.

“The market needs more houses for sale,” Noyes said. “There is also a demand for long-term rentals. Lots of newcomers to the area are renting at first to get a lay of the land, and they are paying a premium to rent. The cash flow for the homeowner is less than a short-term rental, but the tenants are also assuming more responsibility.”

With higher prices and lower inventory, Noyes said those originally looking to purchase a home in Asheville or Hendersonville may end up buying in outlying areas that are a little less expensive and less crowded. Current legislation may help too, according to Noyes, expanding circumstances under which multiple units may be built on one property. 

“When it comes to affordable housing or workforce housing, multiple buildings or spaces on one property would go a long way toward filling the affordability gap,” Noyes said. “It’s important to get workforce housing built.”