Western North Carolina Luxury Market Report & Forecast Q4 2023

LUXURY MARKET REPORT & FORECAST

Western North Carolina | Q4 2023

contents Q4 Market Report & Forecast | January 2024 MARKET REPORT Sales are up across the region, with the ultra luxury range leading the pack. Limited inventory in many price segments could stifle sell-through in the first quarter while pushing prices higher.

COMMUNITY UPDATES Asheville (City, North) Downtown Asheville Condos Buncombe County Arden Biltmore Forest Henderson County Foothills Fairview/Fletcher

FORECAST Increased demand in some segments, coupled with falling interest rates, should positively affect sell-through in the First Quarter of 2024.

Demand has remained high as North Carolina sees inbound migration continue to boost the housing market across the state.

PODCAST From market forecasts, interviews, and house marketing ideas, join the team at Ivester Jackson I Christie's for the latest in Carolinas luxury real estate content.

Current Trends Cash is still king across Western North Carolina in both the Luxury and Ultra-Luxury markets. In Buncombe County during the fourth quarter, we saw 29 closed sales over $2M with 24 of those being closed as all cash transactions, which is over 82%. In the luxury range ($1M - $1.99M) over 70% of those transactions were closed as all cash, with no mortgage involved.

As interest rates hover around 6.6% we expect this trend to continue across the region moving into the first quarter of 2024.

CITY OF ASHEVILLE Asheville ended 2023 on a high note with sales across all three price segments up year over year in the fourth quarter. While both the midmarket ($600k - $999K) and the luxury ($1M - $1.99M) saw tempered gains, 6.25% and 11.11%, the ultra-luxury range saw a whopping 150% in year over year sales numbers. Pending sales appear to be in line with previous pending rates and should produce solid sales numbers in the first quarter of 2024.

LAST 90 DAYS

CITY OF ASHEVILLE

Q4 Homes Sold

NORTH ASHEVILLE Continuing the trend from last quarter, the ultra luxury market is through the roof, with closed sales up 600%. The fourth quarter 2022 saw only 1 sale over $2M, while in the fourth quarter of 2023 we saw a staggering 7 closed transactions. The luxury range also fared well with sales up 67%, with 15 sales vs 9 sales in 2022. Inventory continues to slow, which will certainly affect sales heading into 2024.

LAST 90 DAYS

NORTH ASHEVILLE

Q4 Homes Sold

DOWNTOWN ASHEVILLE CONDOS Sales are down in 2 of the 3 price ranges as inventory woes continue to affect sell-through numbers as it relates to downtown condos. Half of the 14 current listings over $600,000 are proposed constructions that have not broken yet.

We expect to see diminished sales numbers downtown until inventory levels can recover over the next 12-18 months.

LAST 90 DAYS

DOWNTOWN ASHEVILLE CONDOS

Q4 Homes Sold

BUNCOMBE COUNTY Buncombe County continues its rise as all three price points are up year over year with ultra-luxury leading the way with sales increasing year over year in the fourth quarter by 142%. The mid ($600 - $999k) and luxury markets ($1M - $1.99M) are up 9% and 28% respectively, which evidences strong demand across all price points in Buncombe County. Cash buyers have flocked to the area with 82% of all transactions upward of $2M being closed as all cash transactions. We expect this trend to continue as consumers look to diversify their financial portfolios heading into an election year.

LAST 90 DAYS

BUNCOMBE COUNTY

Q4 Homes Sold

BILTMORE FOREST Biltmore Forest had a great fourth quarter and saw increased sales in all three price points with the ultra-luxury range leading the way up 200%. Sparse inventory continues to hamper sales in both the midmarket and luxury segments leading into the first and second quarters of 2024. Demand remains high in Biltmore Forest, but typically homes over $3M have a longer marketing time and days on market remain relatively high.

LAST 90 DAYS

BILTMORE FOREST

Q4 Homes Sold

ARDEN & FAIRVIEW/ FLETCHER With interest rates continuing to drop, demand in the mid-market has picked up steam as evidenced by the 70% rise in sales year over year in the fourth quarter. The luxury market was flat year over year, while the ultraluxury range saw a 200% increase in sales activity. We expect values to continue to rise as demand stays solid and inventory has struggled to keep pace. New construction in Arden has anchored this market in recent years and will certainly play a role moving into 2024.

The Fairview/Fletcher market was a mixed bag of results in the fourth quarter of 2023. The luxury segment ($1 - $1.99M) produced 5 sales in 2023 vs 3 in 2022 and the ultra-luxury segment ($2M+) showed 3 sales in 2023 as compared to 3 sales in 2022. The mid-market has shown resilience with 21 closed units vs 24 during the same time period of 2022. The rebounding inventory and downward trend of interest rates are expected to give a boost to the mid-market heading into 2024.

LAST 90 DAYS

ARDEN

Q4 Homes Sold

LAST 90 DAYS

FAIRVIEW/FLETCHER

Q4 Homes Sold

Recently Offered

20 Snap Dragon Court | Asheville, NC

$2.2 M

263 Sylvan Lane | Mill Spring, NC $965,000

55 Plantation Drive | Asheville, NC $2.2 M

465 Lynn Cove Road | Asheville, NC $3.59 M

HENDERSON COUNTY Henderson County has seen a run of great quarterly results in 2023 and the fourth quarter is no different, with all three price points up year over year. Many buyers see Henderson County as a great alternative to Asheville/Buncombe County, with close proximity to Greenville and Asheville, and a slower pace of life with many dining, arts, and golf options. The ultra-luxury segment led the way with 5 sales in 2023 vs 2 in 2022, which is a 150% increase. As inventory and demand rise gradually, expect sales numbers to follow in 2024.

LAST 90 DAYS

HENDERSON COUNTY

Q4 Homes Sold

HAYWOD COUNTY Positive sales numbers out of Haywood County with two of the three price segments up year over year in the fourth quarter, with the ($1 - $1.99M) market up over 50%. Pending sales point to increased demand in both the mid-market and luxury segments.

We expect elevated sales activity coupled with pricing increases as demand is high and inventory remains tempered across the board.

LAST 90 DAYS

HAYWOOD COUNTY

Q4 Homes Sold

FOOTHILLS: POLK, RUTHERFORD, CLEVELAND COUNTY The ultra-luxury range posted huge gains in the fourth quarter with 6 closed sales over $2m as compared to zero sales during the fourth quarter of 2022, which accounts for a 600% increase year over year. The mid-market ($600K - $999k) also recorded a nice fourth quarter with sales up 38% as compared to the 2022 numbers. Inventory in the three-county radius is showing increases, along with sinking mortgage rates, which should set the stage for increased sales figures in 2024.

LAST 90 DAYS

FOOTHILLS: POLK, RUTHERFORD, CLEVELAND COUNTIES

Q4 Homes Sold

WESTERN NORTH CAROLINA MARKET FORECAST Cash Buyers Coupled By Strong Demand Propel Luxury Sales Across The Region Inventory across Western North Carolina has continued to lag as strong demand pushes prices higher in all price points. Interest rates have started to decline from their peak of over 8%, which should drive buyers in the mid-market from the sidelines. An impressive amount of cash has bubbled up in the market with 82% of transactions in Buncombe County over $2m being closed with cash. As the financial markets continue to see all-time highs, expect the luxury and ultraluxury segments to be cash-heavy as buyers look to diversify their personal holdings. 2024 should shape up to be a great year in real estate across the region.

Significant Sales

39 Sunset Summit | $6.3 M Damian Hall & Stacey Klimchuk | Lynn Roberts Representing Buyer

1 Evelyn Place | $2.7 M Anna Grace

Our Offices Asheville Office - Ivester Jackson Blackstream 18 S Pack Square Asheville, NC 28801 828-367-9001 Highlands-Cashiers 210 North Fifth Street Highlands, NC 28731 828-482-5022 Wilmington Office - IJ Coastal 527 Causeway Drive Wrightsville Beach, NC 28480 910-300-5140 Charlotte Office 1515 Mockingbird Lane Suite 900 Charlotte, NC 28209 704-817-9826 Lake Norman Office 21025 Catawba Ave #101 Cornelius, NC 28031 704- 655-0586 Lake Norman North Shore Office 350 Morrison Plantation Parkway, Suite C1 Mooresville, NC 28117 980-435-5169

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