Market Report for December 2016
The market trends we saw in December strongly reflect the larger market trends for our area. While there were fewer new listings and closed sales overall, the sharp increase in median sales price in Buncombe County as well as the significant decrease in month supply of homes in Asheville and Buncombe County indicates that the market is “hot.” Fewer days on the market until sale and fewer days between list and close compared to last December further support this conclusion. Check out the data below for a more targeted look at our local markets.
Asheville City Market Report
Buncombe County Market Report
If you’d like additional data about our market in general or even a specific neighborhood in the area, we’re happy to help. Send one of our agents a message or give us a call at (828) 232-4030. Happy New Year!
Market Report for November 2016
November is typically the slowest month of the year in the real estate industry. Clients find it challenging to make time for house hunting and keeping the home they’re selling pristine for showings during the holiday season. Because there are fewer sellers in the market, the months supply of homes is at the lowest it’s been this quarter, which means those sellers who do decide to list homes in November have less competition. We also saw that without as much inventory to choose from, the average days on the market ticked back down. That said, buyers don’t have it so bad either: the average sales price and the YOY change in average sales price is the lowest this quarter.
Asheville City Market Report
Buncombe County Market Report
For more information on the Asheville real estate market, you can check out the reports for October, September, and August or give us a call at (828) 232-4030. We’re happy to go in depth about the trends we’re seeing generally or more specifically in your area of interest.
6 Housing Market Predictions for Asheville in 2015
The U.S. had the best economic year in 2014 since the recession in 2008-2009 and 2015 looks even better. With an accelerating economy and job growth here in Asheville and across the nation we have a great feeling about 2015.
Data taken from Realtor.com Chief Economist Jonathan Smoke @ Realtor.org. The Asheville Area Chamber of Commerce & The N.C. Mountain MLS.
- Millennial Buyers Hit The Market: The millennial generation is beginning its ascent. Yes, they have faced huge challenges in the job market, but employment is improving, and older millennials are planning ahead. According to the National Association of Realtors about 65% of first-time home buyers are part of this older millennial group (ages 25-34), these young adults are at an age when many marry and start families. Of the millennials who are buying a home, 86% indicate that their motivation is a change in family size. More than two-thirds of household growth in the next five years is expected to come from millennials, according to Realtor.com Chief Economist Jonathan Smoke. This generation is bigger than the baby boomer generation, so even though its youngest members will be only 15 in 2015, the market is only beginning to feel its impact. Full article @ Realtor.org.
- Home Prices will slowly start to appreciate in the greater Asheville area: Home prices in the city of Asheville have increased nearly 5% from 2.3% in 2013 and pace of home sales has increased 4.6% over last year. According to our Chamber, Asheville area job growth is outperforming the nation and most of NC. Our unemployment rate is 4.9%, down over 1.6% from last year. We will likely see improving sales pace and more appreciation in Buncombe County and across WNC depending on neighborhood, condition of house and other factors. According to our MLS the sales trend is pointing upwards and we are looking forward to a strong 2015.
- Credit problems/New Changes May Make Getting a Mortgage Easier: If you have had past credit problems or can’t save up enough to cover a large down payment, Fannie Mae and Freddie Mac may have just cut you a break when it comes to getting a mortgage. Stricter credit score limits, large down payments and even heavy paperwork requirements have kept many would-be borrowers from buying a home in recent years, but new rules put in place by the government-sponsored enterprises may change that. Realtor.com/blog.
- Mortgage Rates Will Head Back Up Later in the Year: The flip side of the improving economy is that mortgage rates will head up again. We’ve had a great run, but the honeymoon is over, and it’s time to settle in for a relationship that balances job growth with higher-but-still-reasonable interest rates. The Federal Reserve has indicated it will increase the federal funds rate—which has an indirect but significant effect on mortgage rates—next year. The rate has remained near zero since December 2008. Although the Fed might wait as late as early 2016, realtor.com® Chief Economist Jonathan Smoke suggested the increase will come in mid-2015, and mortgage rates will increase ahead of the Fed’s move. “Our forecast for housing assumes the 30-year fixed rate will reach 5% by the end of 2015,” Smoke said. “The one-year adjustable rate will likely rise less if much at all, and accordingly, we are likely to see a shift into more adjustable and hybrid mortgages over fixed.”
- We Will Close Out the Foreclosure Crisis: It’s been seven years since the housing bubble burst and foreclosures skyrocketed, but in 2015 we’ll see the end of that era. Already this year has seen a major decrease in foreclosures and short sales.
“We are on pace for foreclosure inventories to end 2014 down more than 30%, and next year should see a slightly greater decrease as foreclosures fall to normal levels,” Smoke said. Full article @ Realtor.org.
- Builders Will Break New Ground in Asheville & Nationwide: Although total housing starts (construction on new housing units) barely broke 1 million in 2014 and was driven by multifamily homes, Smoke noted the pace will pick up in 2015 and shift in focus.
“We are forecasting 16% growth in starts, driven now more by growth in single-family starts, which we are expecting to grow 21%,” he said. In Asheville, we had a 5.3% decrease in number of residential building permits over 2013 (1061 vs. 1120 in ’13), we expect to see more housing starts in 2015, as there is a great need for new construction & solid inventory in and around Asheville and Buncombe County.
Madison County Market Stats Through 9-1-13
Madison County Market Stats Through 9-1-13.
Madison County Market Stats
August 7, 2013
Madison County Market Stats Through August 1, 2013
Click graph for larger view.
How Affordable is Housing?
A great article discussing where the housing market stands and if it really is turning.
Excerpts taken directly from the blog http://bonddad.blogspot.com/2012/02/how-affordable-is-housing.html Objective Facts, They are for real. By jon Stewart
In determining if the median American family can afford the median house, there are at least two separate factors to consider: (1) how affordable is the typical down payment? and (2) how affordable is the mortgage? Let’s look at each of them in succession.
The down payment, of course, is a percentage of the sale price of the house. So if, for example, we want to know how affordable a 20% down payment is, all we have to know is the sales price of the typical house, because then we can just divide it by five.
Summary for those of you short on time:
So, there are at least two answers to the question “how affordable is housing?” The first answer is that, in terms of down payments, house prices are probably very slightly — as in 5% or less — above their long term norm. Since it is mainly lower priced housing that is selling, it is possible that higher priced housing will continue to decline in price and if so, there will be an overshoot to the downside (which is good for home buyers).
The second answer is, that at least in terms of mortgage payments, now really is a good time to buy a house. We are probably at or near generational lows in affordable mortgage payments, particularly after factoring in family income.
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