As the national real estate market continues to change the real estate market in Asheville, North Carolina stays strong.  During the spring and summer of 2006, Asheville has slowly transformed into a buyer’s market.  Although this shift occurred more slowly in areas of Western North Carolina than in other parts of the country, Asheville residents will now see an increased number of homes on the market, higher interest rates than 2005 and a shrinking pool of potential homebuyers.  However, sellers fear not!  The economic outlook for Asheville is stable and blossoming.  With change often comes great opportunity!

The Summer Keeps Sizzling

Asheville still sustains a hot real estate market.  The city’s new advertising campaign highlights that Asheville has something for everyone and as summer temperatures keep rising in the flatland, many people come looking for more comfort and a better quality of life.  Currently, West Asheville and North Asheville are the hottest parts of the city.  Homes sold near Beaver Lake, the Grove Park Inn, the University of North Carolina and Merrimon Avenue are still in high demand.  Properties located in neighborhoods accessible to Patton Avenue and Haywood Road are also moving more quickly.  Homes selling in Leicester and Candler are the slowest, sometimes taking 3 or 4 months.

The key to a successful home sale in Asheville is pricing.  Overpricing hurts home sellers in a real estate market with fewer buyers who take more time to decide.  In West and North Asheville, a well priced home can sell in 2 or 3 weeks.  Higher pricing will now sit longer, even in areas like Kenilworth, which used to be one of the most sought after neighborhoods in Asheville.  It is also important to consult a professional.  As the buyer’s market becomes consistently more competitive, sellers will need to rely on the service and expertise of a professional real estate agent.  One who can realistically price the home and market it efficiently.

We Are All Connected

According to the 2006 Asheville Metro Economy Outlook (AMEO), completed in June of this year by the Asheville Metro Business Research Center and the Asheville Area Chamber of Commerce, “Local Strengths Assure Continued Economic Growth & Stability.”  The AMEO also indicates the unemployment rate in Asheville, at 3.2 percent, is well below rates for the nation and state.  The AMEO describes six contributing factors that support the balanced economic growth in Asheville: a specialized healthcare industry, record-setting tourism activity, an emerging professional services sector, the resilient housing market, the baby-boom fueled population growth and the transformation of the manufacturing sector.  It also reports that population growth in Asheville is consistent and in the last 35 years has never declined.

The 2006 Asheville Metro Economy Outlook also highlights one of the most unique characteristics of Asheville; 90 percent of local population growth is from “in-migration”.  The state of North Carolina supplies approximately 40 percent of the “in-migrants,” but the state sending the next highest number of “in-migrants” is Florida, at 12 percent.  I know approximately 80 percent of the homebuyers I work with are from Florida.  I believe this year’s hurricane season will make or break the Florida real estate market.  The Asheville market has slowed in some ways because the Florida market is slowing considerably.   After the hurricane, many homeowners put houses on the market.  As these sit for longer periods of time, potential buyers from Florida are unable to move to Western North Carolina and purchase homes.  The effect of this phenomenon is a feeling of putting on the brakes in both Florida and the Asheville region.

Despite all of the changes during the last year, the Asheville real estate market still offers steady population increases, secure job growth and comparatively affordable residential home prices.  As of June, homes sales were up 10.3 percent for 2006 and the average home price was up 7.8 percent as reported by the AMEO.  For more information about the Asheville real estate market and to learn tips for selling your home in the Western North Carolina region call me at 828-242-1897.  In the meantime, happy home selling!