Asheville Buyers Pull Back Amid Swelling Inventory

The Asheville housing market is undergoing a notable shift, with signs pointing to a decisive power transfer from sellers to buyers. After a period of elevated activity, recent data indicates a substantial cooling, primarily driven by a significant reduction in buyer demand and an expansion of available inventory.

Demand and Pace

The most prominent indicator of this market rebalancing is the Buyer Demand Index, which has fallen to 27% this month. This means for every 100 homes on the market, only 27 are going under contract. This is a substantial decrease from previous periods, with a 4-percentage-point decline year-over-year. The trend over the last six months further illustrates this deceleration: the Buyer Demand Index has consistently moved downward, from 36% in April to the current 27%.

This softening demand directly correlates with the pace of sales. Median days on market (DOM) now stand at 84 days, a 9.4% increase year-over-year. Properties are taking significantly longer to move from listing to contract, giving buyers more time for due diligence and negotiation. This slowdown is consistent across much of the metro, though pockets like Lake Junaluska (28745) and Cashiers (28717) show relatively stronger Buyer Demand Index values at 50% and 48%, respectively. Conversely, areas like Hot Springs (28743) and Rosman (28772) exhibit extremely low demand, with Buyer Demand Index values of 4% and 7%.

Inventory Dynamics

Active listings in Asheville have expanded, increasing by 5.3% year-over-year to 2,829 units. New listings also saw a modest rise of 3.1% year-over-year, bringing 722 new properties to the market this month. This sustained influx of new homes, coupled with slower buyer absorption, has allowed overall inventory to build. This creates a more favorable environment for prospective buyers, offering a broader selection of homes and reducing the urgency to make rapid decisions.

However, local trends vary. While some areas like Barnardsville (28709) and Cedar Mountain (28718) have seen inventory double or more year-over-year, others like Lake Junaluska (28745) and Cashiers (28717) have experienced declines in their active listing counts, suggesting localized supply constraints.

Pricing and Value

Despite the clear cooling in demand and building inventory, the overall median listing price for Asheville remains stubbornly flat at $575,000, showing no year-over-year change. This suggests that sellers, on average, have yet to adjust their price expectations to the new market realities. However, this stability masks considerable volatility at the sub-market level. Several ZIP codes have seen substantial median listing price declines, such as Horse Shoe (28742) down 43% and Rosman (28772) down 37% year-over-year. Conversely, Cedar Mountain (28718) and Balsam (28707) have experienced significant price appreciation, up 70% and 35% respectively.

The share of price-reduced listings is 26.12%, a slight increase of 0.92 percentage points year-over-year. While not a dramatic spike, it indicates that a quarter of sellers are already finding the need to adjust their asking prices. The median listing price per square foot experienced a slight year-over-year decline of 1.1% to $293, hinting at underlying pressure on valuations even as the headline median price remains static.

Implications for Buyers and Sellers

For buyers, the expanding inventory and extended days on market represent a prime opportunity. The reduced competition, as evidenced by the low Buyer Demand Index, means more leverage in negotiations and less pressure to compromise on key preferences. For sellers, adapting to this shifting landscape is crucial. Holding onto outdated price expectations in a market with fewer active buyers and more homes for sale could result in prolonged market times and eventual deeper price reductions.

Primpted Research classifies Asheville as a Cooling market. The current market conditions suggest that while demand has softened, prices are not yet universally reflecting this change, creating a potential disconnect that astute buyers can exploit.

Looking ahead, it will be critical to observe whether sellers begin to align their pricing with the new demand dynamics, or if the disconnect persists, potentially leading to further inventory accumulation and increased price reductions.