Mike Cronin

mcronin@citizen-times.com

Asheville and Buncombe County housing markets are surging, eclipsing records in many categories that measure residential real-estate activity.

Through the first six months of this year, 725 homes sold in the city, smashing the record set in 2006 for that time span.

The pace through the first two quarters of 2016 indicates this year also will set new annual records for Asheville and Buncombe, said Mike Figura, owner and broker of Community Lifestyle Mosaic Realty in Asheville.

“The Asheville market is the strongest ever in all indices,” Figura said. “It looks like we will break the record for (home sales in the city in) the calendar year.”

The all-time high was set last year: 1,389 homes sold.

Asheville's growth as a year-round tourism destination has been a driving force, Figura said. People are buying and selling housing during all four seasons.

In many markets across the country, activity slows during winter when sellers de-list homes.

But in Asheville, “sale prices did not backslide last winter,” Figura said.

Measured by average price per square foot, in fact, they rose, according to Figura's data:

4th quarter 2014: $141

1st quarter 2015: $139

2nd quarter 2015: $146

3rd quarter 2015: $152

4th quarter 2015: $152

1st quarter 2016: $152

Records set this year so far include the highest home sale median prices on record in Asheville, $260,000, and Buncombe County (excluding Asheville), $243,000, according to data provided by Figura.

The Asheville number represents a leap of 7.2 percent over the same period last year, when the median price was $242,500.

“Asheville is flying high,” said Don Davies, founder of Asheville-based Realsearch, a company that analyzes real estate trends.

Buncombe County’s median home price increase was even greater in terms of percentage: 8 percent over last year’s median price of $225,000.

“It’s crazier than it’s ever been,” said Marie Reed, an Asheville native,who has been a Realtor in Buncombe County for 11 years.

“I had 10 listings and 20 contracts in June – that’s unheard of,” said Reed an agent for Exit Realty Vistas in Arden.

Figura’s business is comparably frenetic.

“I often get six offers when I list a property, and I didn’t under-list it,” Figura said. “There’s a lot of demand.”

Bidding wars now exist for houses with sale prices up to $800,000, Figura said.

Such fierce competition has contributed to another record. The average days on the market for homes in Asheville was 56 days through June 30, Figura said.

The previous low during that span was 64 in 2004, he said.

Average asking and median home prices in Bucombe County, including Asheville, also set records through this year’s first two quarters, Davies said.

The average asking price of all homes through July 6 in Buncombe County, including Asheville, was $594,685, according to data Davies provided.

The median asking price during that same span and in that same geographic area was $399,000, according to Davies’ data.

In another category that shows the continuing upward trend in the region’s housing market, the average selling price of all homes in Buncombe County, including Asheville, during the last 12 months also set a record: $298,934.

Inventory, or houses available to buy, continues to be low. And it has been for months.

“It’s the lowest it’s been in 15 years,” Davies said, which “is a little surprising considering the high sales volumes.”

A 4.6 month supply of homes exists across all price ranges, Davies said.

Figura’s data show that in Buncombe County, excluding Asheville, inventory was lower in every price segment during this year’s second quarter.

“That’s the first time I’ve seen it in every category,” he said.

Experts consider a healthy supply to be six months.

“New homes don’t appear to be coming in at a rate that might be necessary to drop prices below the record highs we have right now,” Davies said.

The situation is a good one for those who own homes, but “if you’re trying to buy here, it’s a wake-up call – unless you’re moving here from a higher-priced market,” Davies said.

It’s also a positive environment for those in the home-construction business, Figura said.

Demand allows contractors and subcontractors to increase their prices, he said.

“That’s good for those who are making their living that way; they’re a part of our economy,” Figura said.

But not enough home construction is occurring, Davies pointed out.

If the inventory stays low and no one builds houses in the $200,000 to $300,000 price range, people might stop coming here, Davies said.

“Unless they’re wealthy or retired, and they might have a different attitude of what they want Asheville to be (than those who already live here),” he said.

Reed said that more than half of her clients who are buying houses here are from out of town.

“The dilemma is: Where is Asheville going to head?” Davies said.

Figura has an idea.

“The longer-term trend suggests that we’re going to look back to 2016, 10 or 15 years from now and say, ‘Wow, home prices sure were good back then,’” he said.

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BY THE NUMBERS

Some records set in the Asheville and Buncombe County housing markets through the first two quarters of 2016

Most homes sold in Asheville: 725. The previous record was 679, set in 2006.

Highest home sale median price in Asheville: $260,000, a 7.2 percent increase over last year’s $242,500.

Highest home sale median price in Buncombe County, excluding, Asheville: $243,000, an 8 percent rise over last year’s $225,000.

Average days on the market for homes in Asheville: 56 days. The previous low was 64, set in 2004.

Average asking price of all homes in Buncombe County, including Asheville, through July 6: $594,685.

Median asking price of all homes in Buncombe County, including Asheville, through July 6: $399,000.

Average selling price of all homes in Buncombe County, including Asheville, during the last 12 months: $298,934.

Sources: Mike Figura, owner and broker of Community Lifestyle Mosaic Realty in Asheville; Don Davies, founder of Asheville-based Realsearch.