Fall Market Update

Residential Update:

For the High Country housing market, home inventory continues in a downward trend.  If you look back to 2020, we probably hovered around over 600 residential listings at this time a year ago.  Today the market is averaging around 400 active homes for sale over our primarily 4 county market (Avery, Ashe, Watauga, Alleghany).  

With around a 30% reduction in home inventory and strong buyer demand, average home values are remaining strong.  Average sale prices are close to 99% of list price, with some high demand properties selling for over asking price in multiple offer situations.  Likewise, the median home sale price was $363,915, around 20% up over a year ago.  

For full-time residents, the current landscape can be very challenging.  With an influx of second home and vacation rental investment buyers driving home demand, it makes housing almost unaffordable for full-time residents.  Still, there can be opportunities for homes that are in need of repair or updates and sit longer on the market longer.  

The turn-key vacation home and vacation rental market continue to be very hot.  Properties that are updated and ready for buyers to enjoy or rent short-term typically are competitive.  

Inflation and changing demographics are other elements to factor in with the current home market.  Inflation coupled with low-interest rates has helped drive price increases.  The flip side is that low-interest rates mean mortgage payments are still competitive when compared historically.

In terms of demographics, we are seeing a more diverse buyer coming into North Carolina.  An influx of buyers leaving larger areas such as New York or California and those looking to work remote have helped drive price increases in the High Country.  

Land Update

The land market continues to improve.  Land still moves at a relatively slower pace, but record low home inventory has helped the land market and values continue to improve.  

With very few homes for sale, more people are looking to build.  The continuing challenge would be that builders are still 2-3 years booked out.  For buyers that can wait to build, land can offer a good value in property selection.  There are over 2300 land/lots for sale offering more opportunities to find the right fit.  

Sellers have a great opportunity at this time to sell.  Neighborhood lots have done better as gated communities and country clubs are seeing more of a revival.  Unrestricted rural acreage can also be very desirable as buyers have out-of-the-box ideas for ‘glamping,’ to mini-farms and tiny homes. 

Best, -Nate & Kelsey Wright