We are proud to present you with this synopsis of the national, regional, and localized trends that matter most, found here in our Asheville 2023 Annual Report.
MARKET OUTLOOK – LOCAL LEVEL
At the beginning of each year, we engulf ourselves in the sales charts, devour the data, look back at goals set, and check in on how our predictions for the past year held true. We do our best to learn from the past and prepare our clients and agents for the new year ahead. 2023 in the real estate market reminded us of the old saying, “The more things change, the more they remain the same.” It was a year of change in the real estate market for sure, but the fundamentals did not change.
What did change in 2023? Mortgage interest rates went up significantly putting some buyers on the sidelines due to affordability. At the end of 2023, mortgage rates trended down over the last four data points. So much so that the National Association of Realtors economists stated that mortgage rates have peaked and could head back to the 6% range early in 2024. Sellers had to price properties more competitively, offer concessions, and homes stayed on the market longer.
What stayed the same in 2023? Home inventory rose minimally over the past year but still remained at historically low levels. Sellers held on to properties longer and new home starts remained significantly under what was needed to help balance the market. The fundamentals of supply and demand remained the largest headwind for the real estate market.
2024 is predicted to be an interesting year for the real estate market. With mortgage rates coming back down, most likely in the 6% range, more buyers are predicted to re-enter the market. This will most likely re-energize buyer competition for the homes listed for sale in 2024.
Our success as a brokerage extends beyond the number of transactions in 2023, although we are proud to say we ranked in the top 10 brokerages in Western North Carolina in 2023 with over 450 clients served. This year we doubled down on nurturing relationships within our company, our community, and our client family. Engaging and collaborating with the local community of Asheville and developing those relationships has made a positive impact in the quality of life for our neighbors and the quality of our work culture.
MARKET OUTLOOK – NATIONAL LEVEL
Every year starts naturally with a focus on the near future, and 2024 brings with it a mixed bag of economic signals that may at times contradict one another and provide a somewhat murky view of our year ahead. At Nest we are committed to providing our clients with the best and most relevant information to help you make some of the most important financial decisions of your life. On a national level, we focus on three key economic indicators—interest rates, consumer confidence, and employment—to help us look forward to what we should expect. The fundamentals of our nation’s economy are solidly on the right path: inflation rates have stabilized, interest rates have retreated, low unemployment has continued as a bright spot, and real wages finally seem to be making headway in a positive direction. But while the data may look cheery, our nation faces some of the lowest consumer confidence in more than a decade, driven, we believe, from political frustrations at home and geo-political instability abroad. With real estate in mind, a quick conversation with your Nest advisor will help you understand some of the problems created by historically low inventory.
The year 2023 began much differently than it ended. During the first half of the year, we were seeing record-breaking inventory lows, coupled with low mortgage rates, and high buyer demand. In short, houses were selling quickly, often far over the asking price. By the end of 2023, we faced rising mortgage rates and a drastic cooling off, with more days-on-market. The fact that the market has cooled from the frantic highs of 2022 and early 2023 is not a surprise. But the speed of how quickly things shifted, is surprising. And while we’re not in the business of predictions, it is our hope that we’re heading toward a more balanced market where both buyers and sellers have the time to make well thought-out decisions. With that, let’s look through the 2023 data to gain a deeper understanding of where we’ve been and where we are now. In this report, we start off with an overall snapshot of the national market, then take a closer look at what’s happening in our local market. Understanding both the national and local trends can help us better interpret your home’s value and where the local market is potentially headed.
—Nest Realty Asheville provides unparalleled client care, expert market knowledge, and a passion for all that makes Western North Carolina a magical place to live, work, and play. We pour our hearts into all that we do and are focused on giving back to the community we love. At Nest, we are all about intentional and strategic growth. As of 2022, we have 451 Nest agents buying and selling throughout 23 offices in 17 locations, spanning seven states across the U.S. With each new office that opens, we are able to expand our reach, better serving you, our incredible clients.