Highlands-Cashiers Board of Realtors has provided data on the housing market trends as of Aug. 28. The market appears strong, but is being impacted by affordability, availability, and interest rates.
From the information provided, home sales appear healthy following the pandemic. John Muir, Highlands-Cashiers Board of Realtors President, said he believes HCBOR will continue seeing positive growth.
“In 2019 we sold 710 properties and in 2022 we transacted 712 properties,” Muir said. “The big difference is the dollar volume of those transactions which increased 56%.”
Increased interest rates and lack of inventory in HCBOR’s market are ongoing limiting factors.
As of Aug. 28, HCBOR has seen 736 new listings, 365 closed sales, and several pending sales. This trend appears cooler than previous years. 2022 saw 1,047 new listings with 712 closed sales. 2021 saw 1,154 new listings with 990 closed sales. 2020 saw 1,361 listings with 1,159 closed sales. Pre-pandemic, 2019 saw 1,342 listings with 710 closed sales.
Houses are selling quicker than 2019 through 2021, but a bit slower than 2022. Houses are staying on the market for an average of 127 days compared with an average of 122 days on the market in 2022, 130 days in 2021, and over 200 days for both 2019 and 2020.
Muir also said the buyer profile is shifting.
“Traditionally, Baby Boomers have made up the majority of our buyers pre-Covid, but currently we are seeing more Gen X buyers looking for second homes, and many people relocating to our area full time or buying homes as primary residences,” he said. Gen X is frequently referred to as those born between 1965 and 1980.
Muir said while HCBOR is experiencing positive growth for the majority of the market, affordability of housing is an on-going issue, making it especially difficult for first-time buyers and locals to find housing in HCBOR’s market. North Carolina has seen the third largest population increase following the pandemic after Florida and Texas, but nationally North Carolina is seeing the lowest levels of first-time buyers.
The average sales price has risen steeply since 2019. It has risen almost each year since, but 2023’s current trends indicate a slight dip.
In 2019, the average sales price was over $680,000 compared to over $789,000 in 2020, almost $942,000 in 2021, and over $1.2 million in 2022. 2023’s average price has been $1.19 million so far.
There are currently 321 single-family homes available and 32 townhouses or condos available in HCBOR’s market.
Muir thinks home values will continue to increase but at a slower rate than during the pandemic. This could help the market return to more normal, pre-pandemic levels.