We get it, we sound like a broken record, but we’ll say it one more time: Asheville’s real estate market is booming. But don’t just take our word for it. Forbes just included Asheville in a list of 25 US real estate markets entering a boom phase. It should come as no surprise to see our little mountain town mentioned in the same breath as Los Angeles and Denver. Everyone wants to live the active, artsy mountain lifestyle.
What Does a Real Estate Boom Mean?
The experts at Local Market Monitor have been tracking real estate booms for 25 years. They use a number of factors to define a “boom market” and track their growth, including home price vs. average income price, one-year home price change, and job growth rates. They say when home prices are over 15% of the local income price, you’re entering a real estate boom. Asheville’s home/income sits at 16% on their latest data.
The other contributing factors in a boom market look good for Asheville too. The national average for job growth is 1.6%, and Asheville is right around there at 1.5%. Asheville’s 3-year population growth is 4%, which puts it on par with San Francisco and Dallas. Our population is growing faster than in other big cities like Miami, where growth is only 3%.
These boom conditions could cause a steady surge in home prices that could last several years. Local Market Monitor says home prices can rise between 10% and 15% per year during a boom phase. So, what does that mean for you? That depends on if you’re about to buy a new home or if you’re eager to sell one you already own.
Homebuyers in Asheville: Don’t Wait!
A closer look at the Forbes data reveals that not all of the cities on their list are at the peak of their boom phase. While markets like Denver have been growing for a while, Asheville is still on the upswing. The Western North Carolina real estate market is showing continual, year-after-year growth with no signs of slowing.
If you’re on the fence about buying a home, don’t be. While nothing’s a sure thing, we have to stick with the trends and say right now is the lowest home prices will be in Asheville and the surrounding areas for quite some time. Homebuying can be a lengthy process, especially for first-time buyers, so get started right away and don’t let those prices continue to climb.
Homesellers in Asheville: Time to Stop and Think
Now that the word is out to the investment community at large you can bet competition for real estate will only continue to increase in the next few years. More competition and increasing home values are a great combination for sellers who want a big return on their property. If you’ve been contemplating a move up or out, it might be time to start making that dream a reality. Selling can be a lengthy process, even in a strong market with an eager buyer, so you should at least build out a rough timeline on selling your home.
Here’s where things get tricky: as we said before, the market is trending up. However, we can’t guarantee when that market will hit its peak. You might be impressed with an appraisal today, but it may be even higher in two, three, or five years. Unfortunately, we can’t make a sweeping assessment on if it’s smart to list today or wait for your home value to get even higher on a blog post. You’ll need to take a close look at your home’s condition and value as well as the trends in your neighborhood.
Making the Most of Asheville’s Boom Market
A surging real estate market gives you a lot to think about whether you’re buying or selling. If you’re buying, you certainly want to move sooner rather than later. It may even be a wise choice to look outside of Asheville to get ahead of the boom as it ripples from the city’s epicenter.
Sellers, on the other hand, will want to take a close look at their own neighborhood and see how it fits into the larger picture. Weigh your options and keep track of your home’s value. You want to leverage the boom to get the most out of your investment, but don’t wait too long—there’s always potential that the wave will crest sooner than expected.
No matter which position you’re in, your best bet is to get in touch with one of our local real estate experts today.
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