Housing market remains strong in final quarter of 2020
Low inventory indicates seller’s market in Buncombe County
Chip Craig
Guest columnist
The Valley Echo
October 22, 2020
Greybeard Realty owner and founder Chip Craig. Photo courtesy of Greybeard Realty
In a year of uncertainty related to the pandemic, the housing market has remained very strong, and at this point in the final quarter of 2020, our area real estate market is seeing tremendous growth over last year. The industry’s stability may relate, in some ways, to what homes and property mean to us – they are the places we dwell, find shelter from the elements, share meals. They provide a sense of security.
In addition, I think there has been an overall shift in thinking for many folks about where they should live, as many people are trading city life for a home in the mountains— this can manifest as people looking for a second home to retreat, and our realtors are also finding that there are a growing number of people that are working remotely (even permanently now) and deciding they’d prefer to call Western North Carolina home.
There are also compelling numbers at play which I believe have influence in the current state of our hot market. For example, we are experiencing the lowest levels of home inventory that I’ve seen in my 20-plus years of being a real estate broker. When inventory is low, prices go up and that is exactly what has happened in our market that was already experiencing low inventory in September of last year.
As of September 2020, there were 916 homes for sale in Buncombe County compared to 1664 in September 2019 – a decrease in inventory of 45%.
All real estate stats are showing signs of a continuing seller’s market that is tightening. For example, the time from home listing to the closing date has decreased from 122 days to 96 days. The percent of original list price received has increased from 95.5% to 96.8%.
The average sales price is up 32% for September 2020 compared to 2019 and up 11% year to date. This doesn’t mean the average home price is up 32%, but it does mean the homes that are selling are on average 32% more expensive – it could also mean that people are buying a different size or type of home.
In Black Mountain and the Swannanoa Valley, specifically, the number of homes sold in the 3rd quarter of 2020 increased 35% from 2019 – 150 homes sold compared to 111 last year, and average closed price was up 21% ($368,480 compared to $305,736).
As of now, in Buncombe County, pending sales are up 60% over September 2019 pending sales, indicating that the 4th quarter will be as strong as the 3rd quarter.
Chip Craig is the owner and founder of Black Mountain-based GreyBeard Realty and GreyBeard Rentals. He established the real estate business, which is named after the largest of the Seven Sisters mountains that form the familiar chain north of town, in 1999. Craig is an avid trail-runner and has served on multiple boards and commissions, including the Buncombe County Board of Education, Black Mountain Swannanoa Valley Endowment Fund, Buncombe County Sports Commission, Buncombe County Tourism and Development Authority and others. For more information on GreyBeard, visit greybeardrealty.com or greybeardrentals.com.