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Asheville's Real Estate Market in Fall 2024 Key Trends and Notable Properties
Asheville's Real Estate Market in Fall 2024 Key Trends and Notable Properties - Median Home Prices Drop 20% Year-over-Year in Asheville
Asheville's housing market is experiencing a significant downturn in Fall 2024, with median home prices falling by 20% compared to the previous year. This sharp decline, placing the median price at $484,990, is a stark contrast to the substantial 65% increase seen just a year prior. The current situation invites scrutiny regarding the future of Asheville's real estate market, especially considering its past periods of dramatic price spikes, including a peak resembling the 2007 market. This shift in the market dynamics presents challenges for sellers while potentially opening doors for buyers and investors. The realm of short-term rentals and platforms like Airbnb could be particularly impacted by this change. As the hospitality landscape continues to reshape itself, the evolving housing market demands that those involved in real estate marketing and property management adjust their tactics for attracting both buyers and renters. The need for effective staging, potentially including virtual staging, and targeted marketing will likely become even more important in this new environment.
1. While Asheville's median home prices have seen a notable 20% drop, the demand for short-term rentals, particularly those listed on platforms like Airbnb, has increased. This hints at a possible change in how the market is operating, with people favoring renting for short periods over buying homes long-term.
2. In a market where prices are falling, making a home visually appealing before selling it has become even more important. Research suggests that preparing a home for sale can significantly reduce the time it takes to sell, potentially by as much as 73%, highlighting the value of a strong presentation.
3. The use of virtual staging—using computer-generated images to furnish empty rooms—has become more sophisticated recently. This can boost engagement with a property by a significant amount (up to 400% compared to unfurnished listings). In a market with falling prices, this tool could be very useful for sellers.
4. Asheville continues to attract a large number of tourists each year (over 10 million annually), supporting the growth of the short-term rental market through platforms like Airbnb. This is happening even though some potential buyers may be hesitant due to the decrease in home prices.
5. In a market where buyers are more selective, the appearance of a property's outdoor space is particularly crucial. Homes with well-maintained landscaping and appealing outdoor furniture can command a premium of 5-10% compared to those without, showing that first impressions are important in attracting buyers.
6. The importance of high-quality real estate photography is evident in current market conditions. Data suggests properties with professionally taken images have a much better chance of selling (32% higher than those with poor-quality photos). In a softening market, quality photos play a crucial role in attracting buyers.
7. The hospitality industry in Asheville is responding to the changing real estate market. Traditional hotels are now looking at partnerships with platforms like Airbnb to benefit from the city's growing popularity for short-term stays. This is altering the dynamics of competition in the industry.
8. Even in a declining market, home improvements that improve energy efficiency can help sellers attract buyers. Homes with features like energy-efficient appliances and insulation can sell for 10-15% more on average, highlighting that some upgrades can compensate for the broader market downturn.
9. The adjustment in home prices has led to a shift in the rental market, with some Airbnb properties transitioning to long-term rentals. This presents an opportunity for investors to re-evaluate their strategies and adapt to the changing environment.
10. The economic climate has influenced people's attitudes towards homeownership. A notable trend is co-investing, where groups of individuals pool their resources to purchase properties. This suggests a change in the way homes are bought and owned.
Asheville's Real Estate Market in Fall 2024 Key Trends and Notable Properties - Rental Market Remains Competitive with 30% Increase Since 2020
Asheville's rental market continues to be a competitive landscape, with rents increasing significantly by 30% since 2020. This translates to a jump from a median rent of $1,347 to $1,761 by 2024. This trend mirrors a national pattern where high rental demand coupled with a limited supply of available units has led to reduced affordability for renters. While the local housing market is facing a downturn with home prices falling, the continued growth of short-term rentals, often facilitated through platforms like Airbnb, points to a changing preference among some residents towards renting over purchasing homes. As the tourism and hospitality sector adapts to shifts within the housing market, property owners and managers must be adaptable in their marketing approaches to attract renters. The use of effective staging techniques, including the burgeoning field of virtual staging, can play a significant role in drawing in potential tenants. In the face of these competing forces, the dynamic nature of Asheville's rental market will undoubtedly be a key factor in the evolving real estate scene of 2024.
Asheville's rental market, mirroring national trends, continues to be a competitive space, with median rents climbing 30% since 2020, reaching $1,761 in 2024. This surge, while significant, reflects a broader pattern seen across the country, where rental prices have risen about 29% since the pandemic's start, with a large portion of that increase concentrated in 2021. It's notable that the pace of rental increases seems to be slowing compared to the sharper spikes observed in 2022.
Asheville's competitive landscape, ranked 4th nationally in rental competitiveness at the start of 2023, is partly due to a tight rental market. Vacancy rates, though slightly below pre-pandemic levels, remain low at 6.4% in September, indicating sustained demand. This dynamic, with high demand and limited supply, naturally pushes rent prices upward.
While the national average rental increase over the past four years has been around 7% annually, the local Asheville context includes the interplay of increasing tourism, the allure of the area for remote workers, and the broader real estate market dynamics. The significant rise in home prices since 2019, hitting a record median of $485,000, likely played a role in driving up rental costs, as some potential homebuyers transitioned to renting. Interestingly, though, the 2022 to 2023 price increase in homes was only 6%, indicating some slowdown in the previous blistering pace of price growth. How this moderation in home price appreciation influences rental markets in the near future remains to be seen.
The combination of a competitive rental market and slowing home price growth presents a complex picture for investors, homeowners, and renters alike. The Asheville real estate and hospitality sectors, already grappling with the recent softening in home prices, will need to adapt to the nuances of this evolving market landscape.
Asheville's Real Estate Market in Fall 2024 Key Trends and Notable Properties - Days on Market Extend to 46 as Sales Volume Declines
The Asheville real estate scene is experiencing a noticeable shift in Fall 2024, with properties staying on the market longer. The average time a home is listed before selling has stretched to 46 days, a change that reflects a slower pace in the market. Fewer homes are being sold, with July 2024 seeing a drop in sales volume to 93 units compared to the previous year's 117. This cooling trend suggests that the fast-paced buying seen in the recent past is easing, with buyers taking more time to evaluate their options. The economic climate and broader uncertainties could be influencing this trend, prompting buyers to be more selective and deliberate. Sellers may need to adapt their strategies, placing a renewed emphasis on preparing and presenting their properties effectively. This may involve a stronger focus on staging and marketing efforts to stand out in a market where sales aren't happening as quickly. Meanwhile, the short-term rental market, through options like Airbnb, could gain prominence as some individuals opt to rent instead of buying, possibly altering the future direction of the housing landscape.
The Asheville real estate market is showing signs of a shift, with homes staying on the market longer, now averaging 46 days—a significant increase from previous years. This extended timeframe suggests buyers are taking a more deliberate approach to purchasing decisions, potentially due to the recent downturn in home prices. This change in buyer behavior is notable, particularly as it deviates from the more rapid sales seen in recent years. Furthermore, the total number of homes sold has decreased, with only 93 transactions in July 2024 compared to 117 during the same period in 2023.
While home prices have decreased significantly, dropping by about 20% year-over-year, the rental market, particularly short-term rentals through platforms like Airbnb, remains competitive. Rents have risen by 30% since 2020, reaching a median of $1,761 in 2024. This increase, while significant, might be partly fueled by a continued influx of tourists and remote workers seeking housing options. However, the rate of increase seems to be moderating compared to the rapid price jumps seen earlier. The current state of the rental market indicates that some individuals are choosing to rent rather than buy in the face of falling home values.
This dynamic has implications for the local hospitality industry. With a softening home-buying market and increasing demand for short-term rentals, hotels and other traditional hospitality businesses may be finding it increasingly necessary to partner with platforms like Airbnb to compete for visitors and maintain revenue streams. It will be interesting to see how the competition for tourists shapes the hotel and rental industry moving forward.
The current market conditions are likely to influence how properties are marketed and presented. High-quality photography, virtual staging, and well-maintained outdoor spaces may play an increasingly important role in attracting buyers in this more cautious market. Sellers might need to be more creative and strategic in how they present their properties to stand out in a more competitive environment.
It's important to note that Asheville's tourism sector remains robust, attracting millions of visitors annually, suggesting that despite the broader market shifts, the demand for short-term rental options isn't likely to vanish. How the combination of a softening real estate market and a persistent tourism industry ultimately shapes the rental and hospitality sectors will be an important factor to watch in the coming months. The real estate landscape in Asheville, characterized by both a cooling sales market and a thriving rental scene, is entering a new phase with a variety of new challenges and potential opportunities.
Asheville's Real Estate Market in Fall 2024 Key Trends and Notable Properties - Local Market Outperforms State Median by 6%
Within the context of Asheville's overall real estate downturn, where home prices have decreased by 20% compared to the previous year, a curious anomaly emerges: the local market has outpaced the state's median home price by a notable 6%. While the median home price in Asheville has dipped to roughly $484,990 as of mid-September 2024, the strength of the local short-term rental market suggests a shift in how people are interacting with the housing scene. The ongoing demand for rentals, driven by the city's strong tourism appeal, could signal a growing preference for renting over buying, even with falling property prices. This dynamic could also indicate that sellers will need to adapt their strategies. Emphasizing the visual presentation of properties through staging, including using virtual staging, may be critical to attract buyers and renters in this changing environment. The interaction between the local real estate market, the tourist sector, and evolving consumer preferences will likely shape how Asheville's housing market behaves in the months ahead.
While the broader Asheville housing market has seen a price decline, local market performance related to short-term rentals shows a different story. Airbnb listings, for instance, have seen an average revenue increase of around 15% in the past year. This suggests that, even with declining home values, the short-term rental sector is adjusting effectively and maintaining profitability.
This ability to adapt is possibly due in part to effective marketing strategies that target specific demographics based on data analysis. This type of precise approach can significantly improve occupancy rates, helping to counteract broader market trends. For example, the rise in remote work has led to an increase of around 25% in long-term leases for Airbnb properties as workers search for flexible housing choices. These are changes that are likely influenced by the broader hospitality industry responding to shifting patterns in tourist preferences.
It's interesting to note that the increased competitiveness in a softening real estate market has spurred innovations. Traditional staging, while effective in increasing home value, can be costly. This trend has driven a greater adoption of virtual staging as a cost-effective method of presentation. Virtual staging, which utilizes computer-generated images to furnish rooms, has seen an increase in use. The cost difference is significant: a virtual staging project typically costs between $100 and $500, whereas conventional staging can cost thousands. Furthermore, property marketing now often features professionally produced imagery: data shows that listings with high-quality photos get a much greater audience, with up to a 90% increase in views compared to those using standard pictures.
The Asheville tourism market remains strong, drawing over 10 million visitors a year, and this continues to drive the short-term rental market. The large influx of tourists into the city and area continues to fuel the need for lodging, especially as some people choose renting over buying in light of changing market conditions. The market, with its continued increase in rental prices, also sees a trend of premium pricing for multi-family properties and short-term rentals, which can be as much as 30% more profitable for investors than traditional single-family homes. This suggests that investment strategies might be shifting within the broader real estate sphere as investors react to market volatility.
It is also important to consider how a home's listing duration affects the sale price. In the current market, the average listing time is now 46 days. This prolonged period, compared to the past, can impact the final price of a property, as data suggests that every additional week a home remains listed potentially decreases the sale price by about 2%. Landlords are adapting through new practices, such as implementing quarterly rent reviews, which has helped them to prevent stagnation in occupancy rates and manage their income streams. This illustrates the need for strategic marketing and a flexible approach to maintaining steady revenue flow in an uncertain market.
The Asheville real estate environment remains multifaceted and responsive to broader economic influences, making it an intriguing setting to study as we move forward into 2024 and beyond.
Asheville's Real Estate Market in Fall 2024 Key Trends and Notable Properties - Tourist Influx Continues to Shape Fall Real Estate Trends
The influx of tourists continues to significantly impact Asheville's real estate market this fall. While home prices have fallen, the demand for short-term rentals, often facilitated by platforms like Airbnb, has remained strong. This suggests a change in how people are interacting with the housing market, with some potentially favoring short-term rentals over traditional home purchases in the face of economic uncertainty. Real estate professionals are adjusting their tactics, understanding that properties need to be presented in the most appealing way possible to attract buyers or renters. Staging, whether traditional or through the increasingly sophisticated use of virtual staging, has become a crucial element of marketing. As tourism remains a driving force in Asheville's economy, the hospitality industry is responding to the changing housing market, further highlighting the complex relationship between the two sectors and how it will likely shape the direction of Asheville's real estate landscape in the near future.
The influx of tourists continues to shape Asheville's real estate market, particularly the rental sector, even as home prices soften. With over 10 million tourists visiting annually, there's a clear preference for short-term rentals, altering how people interact with the housing scene. This trend is highlighted by the recent 15% rise in average Airbnb revenue, suggesting that the short-term rental market remains strong despite decreasing home values.
The importance of a home's presentation in today's market cannot be overstated. Research suggests that staged properties sell significantly faster, highlighting the critical role of visual appeal in attracting buyers. Virtual staging, in particular, has emerged as a powerful tool, with studies showing a potential 400% increase in engagement for properties using this technology. These techniques are crucial as sellers navigate a competitive market where the traditional methods of selling may not be as effective.
The rental market in Asheville continues to be highly competitive, ranking fourth in the nation. The tight supply of rental units, maintaining a low 6.4% vacancy rate, fuels the competitiveness. This dynamic indicates consistent demand despite broader market instability, suggesting that the desire to rent remains strong, whether it be for short or long terms.
High-quality images are no longer a luxury but a necessity in today's real estate market. Research indicates that properties with professional photography sell 32% faster, demonstrating how effective visual communication is in attracting potential buyers. This is particularly relevant in a slower-paced market where a property needs to quickly capture attention to stand out from the competition.
The allure of rental income is also attracting investors who are adjusting their strategies. In Asheville, multi-family properties and short-term rentals can generate profits up to 30% higher than single-family homes, indicating a shift in investment preference as investors seek stability during market fluctuations.
The increased competitiveness is prompting landlords to employ new tactics. Data suggests that each week a home sits on the market beyond the current 46-day average can decrease its eventual selling price by about 2%. This emphasizes the importance for sellers to leverage all available tools to attract buyers in a timely manner.
The demand for short-term rentals through platforms like Airbnb isn't limited to weekend stays; it's extended to longer-term leases, too. With a surge of about 25% in long-term leases for Airbnb properties, Asheville is responding to the increased number of remote workers seeking more flexible housing options. This trend reflects how the housing market is evolving in response to broader changes in lifestyles.
Furthermore, the lines are blurring between traditional hotels and Airbnb. Hotels are now increasingly finding it advantageous to partner with platforms like Airbnb in an attempt to retain their market share. This interaction highlights the shifting landscape of Asheville's hospitality market, as hotels adapt to growing competition and demand for short-term rental options.
The continued influx of tourists, coupled with a softening home market, is leading to an interesting interplay between different segments within Asheville's real estate and hospitality industries. Understanding how these forces continue to shape consumer behavior will be crucial for anyone involved in the market, whether they are sellers, buyers, landlords, or industry professionals.
Asheville's Real Estate Market in Fall 2024 Key Trends and Notable Properties - Modest Growth Projected for Asheville Housing Market into 2025
While Asheville's real estate market has experienced a significant downturn recently, forecasts suggest a gradual recovery in the coming year. Experts predict modest growth through 2025, with a projected increase of about 4% in the coming months and a more substantial 16% rise by April 2025. This growth comes after a notable 20% decline in home prices, resulting in a median selling price of roughly $522,000 as of July 2024. The current market dynamic is further marked by a longer average time on the market—properties are taking an average of 46 days to sell—indicating that buyers are exercising more caution and taking more time to make decisions.
The rise of short-term rentals, especially through platforms like Airbnb, adds another layer to this dynamic. With more people choosing to rent rather than buy, sellers need to emphasize property presentations to entice buyers. Effective staging, and potentially virtual staging, will likely be crucial for anyone hoping to sell a home. The combination of falling home prices and a robust rental market creates a complex picture, with the future direction of Asheville's housing landscape likely influenced by how these trends interact.
Asheville's housing market is anticipated to see a gradual uptick through 2025, with forecasts suggesting a 4% increase in May 2024, a 3% rise in July 2024, followed by a more substantial 16% jump in April 2025. These projections, however, need to be considered alongside the broader context of the market.
As of July 2024, the median home price in Asheville was $522,000, representing a 20% year-over-year decline. This slowdown in sales seems to be related to a growing trend among buyers to take their time when evaluating options, with the average home sitting on the market for 46 days, up from 38 days the year before. Fewer homes changed hands in July 2024, with only 93 sales compared to 117 the previous year, potentially highlighting a more cautious buyer environment.
The rental market in Asheville remains remarkably competitive, having risen 30% in median rent since 2020, reaching $1,761 in fiscal year 2024. This rise is partly driven by the fact that Asheville was the fourth most competitive rental market in the US in the early part of 2023. The combination of increased demand from both tourists and remote workers, along with a limited number of properties available for rent, suggests that there is continued upward pressure on rental prices. The vacancy rate currently stands at 6.4%, which is just under pre-pandemic levels.
However, looking at recent history, it appears that the previous explosive growth in home prices has slowed. Home prices grew by just 6% between 2022 and 2023, a significant change from the record highs seen a few years ago. The interplay between this shift in home price growth and the rental market is an interesting aspect of the current environment, and it remains to be seen how it will impact the rental landscape in the coming months.
Examining the different bedroom types, a mixed picture emerges. While one-bedroom, two-bedroom, and three-bedroom homes have seen price declines ranging from 13% to 44%, the four-bedroom home market increased 23% in August 2024. Five-bedroom homes stayed relatively flat. These varying trends within the market highlight the potential for niche-specific influences impacting property values.
Regarding the national picture, the economic outlook suggests a modest decrease in US growth, with predictions ranging from 2.1% to 2% in 2024 and 2025, respectively. This could affect the broader US housing market, with predictions that national home prices may rise around 2.5% in 2025. Some anticipate growth of up to 4.4%, although there is certainly no guarantee of this.
Asheville’s housing market currently ranks 280th out of 451 small cities in the US in terms of competitiveness for 2024. This relative position, combined with the changing patterns in demand, indicates that Asheville's housing market is in a state of transition. How this dynamic interplay between tourism, investment patterns, and national economic trends will ultimately influence Asheville's real estate trajectory in the years to come remains an area of ongoing investigation.
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