Winter High Country Market Update
Residential Update: We hope this newsletter finds you well. It has been a while since our last update, and we are excited to share some insights into the recent happenings in the High Country real estate market. Despite a broader slowdown in the national real estate market, 2023 proved to be a steady and consistent year for us. The market for homes in our region has remained healthy throughout the fall and winter seasons. Values continue to hold steady and, in some areas, are experiencing an upward trend. In January alone, the market closed 124 residential sales in our four-county area, marking a year-over-year increase of almost 16%. However, as with any market, there are nuances to be aware of. Properties are taking a little longer to sell, with the average days on the market being longer at 76 days. Supply and demand continue to drive the price growth. A recap of why we continue to see strong values in our area could be attributed to the following - This area is still a desirable place to be and there are still few options available. Buyers want to move from more crowded (Florida) and tax-disadvantaged locations (New York/California). Many buyers would still rather purchase an existing home rather than go through the lengthy build process. Many builders do not want to speculative build affordable housing in our area, so inventory remains low. Many buyers locked in on low-interest rates have less incentive to sell. For sellers, this continues to be an opportune time to list your property due to the prevailing low inventory. The High Country has transformed into a year-round living destination post-COVID, making it more of a year-round place to live. On the flip side, buyers are facing challenges, including higher home values and interest rates that act as barriers to entry. Some economists speculate that pent-up demand for homes may be brewing, driven by these factors. In conclusion, the High Country real estate market remains resilient, presenting both challenges and opportunities for buyers and sellers alike. As always, we are here to assist you with any real estate needs or questions you may have. Land Update: With a continued low inventory of homes, the land market has shown pockets of steady activity. There are still great deals in the land market compared to the housing market.The land market still is much slower than the home market due to a greater number of listings. Land buyers also find additional challenges in finding a builder as many builders are 1-2 years out from starting. Still, there are innovative options in building and construction. For buyers who want to create something completely custom to their needs, this presents a good opportunity. Source: https://www.highcountryrealtors.org/2024/02/16/march-2023-high-country-mls-market-report-copy-copy-copy-copy-copy-copy-copy-copy-copy-copy/
Summer 2023 Market Update
Residential Update: The housing market in the High Country remains an ever-changing landscape. This winter we saw another year of near-record low home inventory. We have also seen lower volume of sales in the first part of the year simply due to there being less available to sell. This dynamic has kept values stable or even pushed some home values to record levels highs even despite greater economic uncertainty and higher interest rates. Perspective is important to keep in mind. Our market is relatively small compared to the rest of the country and there is still strong demand for people to relocate or live here. For homeowners who may have bought in the last few years when rates were very low, it is hard to justify selling or relocating with few options to choose from and higher borrowing costs. This has contributed to low inventory levels.For buyers that want to relocate to the area, some positives are that the pace of the market has slowed which is helpful. Rates in the 6-7% range historically have been more normal and the High Country still offers a great quality of life for full and part-time residents. For sellers, it is still a great time to sell due to low inventory. Values are still holding stable and summer through fall tends to be a high-traffic time for our area. Land Update: With a continued low inventory of homes, the land market has shown pockets of steady activity. There are still great deals in the land market compared to the housing market which appreciated in value very quickly.Active land inventory in Watauga/Avery counties is down 45% year over year so there are fewer options available. If this trend continues it will help land values. Also, because of lower home inventory, we are still seeing demand for land as people have fewer options but to build. Source: https://www.highcountryrealtors.org/2023/05/11/march-2023-high-country-mls-market-report-copy/
Fall 2022 Market Update
Residential Update: Wow! Summer flew by and here we are. We started off with a year of low-interest rates and have seen the effects of higher rates and more economic uncertainty play into the market. While widespread bidding wars on homes have slowed, some homes in the mountains have still been competitive due to low inventory. This has been another year of record-low home inventory so far. The supply and demand element has kept values in many areas stable. One outlier this summer was Beech Mountain where we did see more homes and condos come on the market relative to the greater market. For buyers, a somewhat slower pace of buyer competition could benefit your search compared to 6 months ago, but there are still limited options. For sellers, it is still a good time to evaluate your property going into fall/winter. In the past few years, we have had strong fall/winter market activity. Given that there are still limited options out there for buyers, certain properties still have the potential to sell quickly if they are priced right. Land Update: The land market has been slower-paced but consistent. Challenges in the land market have been the shortage of contracting labor and increased building costs. Most builders in our market have been booked out 2-3 years and materials have been either hard to get or expensive. Lumber prices today in the Wall Street Journal were reported to be back down to pre-COVID levels, so perhaps this will help. For long-term-minded buyers looking to build a vacation or retirement home, there are still some great values to be had on land. The land market did not see the large increases in values that residential has over the past few years. Inventory on land is down 19% year over year in Avery/Watauga counties. While there are still more land tracts or parcels for sale, inventory has gone down in recent years. In Other News... Boone gained some national attention in past weeks when Appalachian State Football almost beat UNC-Tarheels with a record attendance of around 40,000. A week later they then beat Texas A&M. A week after that, App hosted ESPN College Gameday in Boone for the Troy game, winning the game with a hail mary pass in the final play. This is all to say, I think increased recognition for our area and long-term demographic trends will continue to help the High Country grow. We are blessed to be in an area where people want to live. Best, -Nate & Kelsey Wright
