New construction has gained momentum, making a distinct impact on the local market inventory. For the January 1 through May 1 window, new construction single-family home sales increased 50% over the same timeframe of 2024. Overall single-family residential sales rose 10% during the same period. “New construction has been a major contributor to increased local sales numbers year to date in 2025,” Guffey said.

While unit volume is up, average home prices have slightly dipped—down 2% year-to-date, from $540,354 in 2024 to $528,118 in 2025. Guffey attributes this decline to a slowdown in luxury home transactions. “As importantly, the YTD median single family rental home price has increased approximately 2% from $455,500 to $464,500,” she added, emphasizing that the broader market remains stable outside the high-end tier.

The attached and semi-attached housing segment is also booming, with condos and townhome sales up 42% compared to the same time last year. “Many of the local new construction communities consist of townhome units,” Guffey said. Of the 108 units sold in this category year-to-date, 30 were new construction townhomes—double the number sold in 2024. “The expectation of the rise of sales of this type of home is due to price point,” she added, pointing out that 37% of these sales closed at $400,000 or less.

Overall, total residential unit sales—including condos, townhomes, and single-family homes—are up 15% from this time last year, climbing from 495 units in 2024 to 568 in 2025. That growth includes a 59% increase in new construction transactions across all housing types. 

But while some segments are heating up, others face mounting challenges. In the $300,000–$399,999 price range, inventory is especially tight, with only a two-month supply. “Interest rates have hit this price point particularly hard in buyer's ability to access the available inventory,” Guffey said. She explained that a buyer qualified for a $400,000 home in 2021—when mortgage rates hovered around 3%—would now only qualify for approximately $250,000 at today’s 7% rate. “Simultaneously, while a buyer’s purchase power decreased by 37.5%, property values increased nearly 53%,” Guffey said, citing Federal Housing Finance Agency data showing that properties in the Asheville MSA appreciated 52.92% from Q1 2021 to Q1 2025.

That affordability crunch is also reflected in how quickly homes are moving. The median days on market in Henderson County is currently 28, with 54% of closed sales going under contract in fewer than 30 days.

Looking ahead, Guffey believes the region may be transitioning toward more balance. “We are on the cusp of shifting to a more balanced housing market,” she said. “It's my expectation that some of the market hesitation is temporary and/or reactionary to various economy-driven and/or political factors, and not necessarily specific to the local market.”

As for the long shadow cast by Hurricane Helene, Guffey said the recovery is far from complete. “Each area within our region was impacted differently by Helene with a range of severity,” she said. “The long-term effects of the full scope of impact that the storm has had on our economy are not yet fully realized.” She emphasized the importance of Asheville’s recovery for the larger region, especially in hospitality. “Getting the message out that WNC is open for business is imperative,” she said.

Statistics referenced in this article are from the Hendersonville Board of Realtors. Learn more at hbor-nc.com.