Luxury Markets in WNC – Q3 2023 Report

Bucking the trend, the mid-market in the City of Asheville has remained by and large fairly flat with 126 closed sales between 600k-999k as compared to 131 during the same time period of 2022. Pending sales and inventory numbers point to a flat 4th quarter as compared to 2022, which indicates high demand and low inventory. The ultra-luxury range has also remained flat year over year with 15 completed transactions, while inventory has soared with 45 homes currently on the market. With pending sales up across the board, we should see steady sales activity heading into the 4th quarter of 2023.

Low inventory has continued to hamper sales activity across price points in North Asheville. The ultra-luxury range (2M+) has seen a surge in activity with 7 closed transactions in 2023 vs only 4 in the same time period of 2022. We expect inventory to remain low heading into the 4th quarter which in turn will continue to stifle sales activity.

Condos in downtown Asheville have seen an increase in sales in the mid-market as well as the luxury market, while inventory has continued to grow across all price segments. New developer units are hitting the market on a weekly basis. As a result, we expect the 4th quarter to also show an increase in sales activity, as showings have remained fairly steady in recent months.

As one of the flagship neighborhoods in Buncombe County, we have seen an increase in sales activity in Biltmore Forest between 1-1.99M. The 3rd Quarter of 2022 saw only one sale in this price range, while the same time period of 2023 saw 4. The ultra-luxury range saw a dip in the action, but pending sales are showing strong numbers, thus pointing to an increase in sales during Q4. Inventory has remained sparse in Biltmore Forest which will prove to be the main obstacle rounding out 2023.

Inventory challenges and high-interest rates have continued to affect sales in the mid-market. The luxury segment was up and the ultra-luxury segment was flat as compared to 2022. New construction in neighborhoods such as the Cliffs at Walnut Cove will add much-needed housing stock in Arden. This mid-market has seen pending contracts dwindle to 8, which is a direct result of low inventory and sky-high mortgage rates.

The higher end of this market has remained flat with 12 sales in 2023 vs 13 in 2022 (1-1.99M) and 2 sales in 2023 as compared to 2 sales in 2022 in the 2M+ range. Sales in the rate sensitive mid-market segment saw sales cut in half with only 16 during the 3rd quarter as compared to 32 in 2022. Pending contracts have soared in all three segments, which points to robust sales numbers for the 4th quarter into 2024.

Henderson County has continued its upward climb with 2 of the 3 price points up year over year while the ultra-luxury range remained flat. The pending sales in all three segments are relatively high and should produce elevated sales numbers in the 4th quarter of 2023. Inventory is still low in Henderson County and will remain a stumbling block if demand continues to rise at its current pace.

The Foothills saw an inbound migration boom during much of 2020-2022, which has begun to slow, but is still ahead of pre-pandemic levels across the Foothills. Championed by its close proximity to Charlotte, Greenville, and Asheville, buyers are still looking for a slower pace of life as well as more bang for their buck. Inventory in the mid-market has risen steadily, while both luxury segments have seen inventory dwindle. Pending sales are showing signs of life and the 4th quarter should see steady sell-through across the Foothills.