2022 Spring Homebuying Season: What to Expect in Asheville

Over the past several years, the real estate market in Asheville and across the U.S. has seen everything from historically high purchase prices to low inventory and skyrocketing demand. The rollercoaster markets of 2020 and 2021 give rise to questions about what to expect in Asheville for the real estate market in 2022.

 

Trend Predictions for Homes in Asheville, North Carolina, This Spring

Historically, spring is the season that sees the largest number of homes being listed on the real estate market. What will this spring and the months afterward hold for buyers, sellers, and realtors in Asheville?

 

Another Year of Low Inventory and High Demand

Many Asheville, NC, realtors are expecting another interesting homebuying season with low inventory and high demand—although perhaps not as high as 2021. This seller’s market is predicted to extend at least through the third quarter, with some degree of cooling off toward the last few months of the year.

 

Climbing Mortgage Interest Rates

Interest rates have been climbing since they hit historic lows last year, which was big news for homebuyers throughout the area. This spring will bring with it rising interest rates, though they will remain at historically low levels, topping out at around 6% on average.

The spring will likely mark a sharp change from the record-breaking buyer’s market of 2020, when interest rates drastically fell, and demand soared.

 

Falling Loan Originations

Predictions for the spring homebuying season include loan originations that are falling—and rising. Industry experts expect a sharp 62% drop in refinance loan demand, but also anticipate a 9% increase in demand for home purchase loans.

Overall, total origination volume (which includes loans for purchases and refinancing) is expected to drop by 33% to $2.59 trillion across the country, including in Asheville.

 

Attractive Loan Limits

The drop in origination loans may result in an increase in competition among home mortgage lenders. In addition to that, Asheville, NC, realtors predict that home prices will hold strong for a while, and loan limits will likely increase because of it.

Those who want to buy homes in Asheville, including those who are looking to purchase a new home through an FHA loan, will have more buying power.

 

Homes in Asheville, North Carolina, are being prepped for another spring homebuying season that’s sure to keep mortgage lenders, builders, realtors, buyers, and sellers busy.