High Country Market Update – February 2025: Signs of a Shifting Market?

[Cole Bossert]

The real estate market in the High Country (Ashe, Avery, and Watauga Counties) is showing mixed signals, presenting both opportunities and challenges for investors.

Prices are rising – The median sales price jumped to $472,500, a 13.4% increase year-over-year and a 23% spike from last month. While demand remains strong, this price growth could test affordability for some buyers.

Sales activity is sluggish – Only 88 homes closed, marking a 20% drop compared to last year. However, sales did rebound 17.3% from January, suggesting some seasonal momentum.

Inventory is building up – With 498 active listings and 5.7 months of supply, inventory is higher than last year, giving buyers more options. That said, new listings dropped 12.6% year-over-year, meaning sellers might be holding back.

Time on market is increasing – Homes are taking longer to sell, with a median of 96 days on market, a 61.9% increase year-over-year. This signals that buyers are becoming more selective, and overpriced listings may sit.

Investor Takeaways:

• Buyers may gain leverage – With rising inventory and slower sales, well-capitalized investors could find better deals, especially on properties sitting longer.

• Cash flow considerations are key – At $299 per square foot, property values remain high, so investors need to ensure rental yields still make sense.

• Sellers should price strategically – The market isn’t as hot as last year, and homes that aren’t priced right may linger.

With shifting conditions, are you seeing more negotiating power in your market? Would love to hear what others are experiencing.