Is Asheville and environs real estate still close to the top of the market, or is it leveling off a bit? Obviously, this is a speculative question and nobody has a crystal ball on this issue, however, I think close consideration of the fundamentals are important in making a decision about this. First, look at the overall growth rate. Then, look at the growth rate supporting the sector you intend to invest (Are you looking at rentals, if so what price point, etc..). My personal observation having invested in Asheville considerably this year, and having met many others who have also, is that Asheville is not even close to peaking. Take millennials for example, most of them want to own a home, but cannot get a mortgage because home affordability is accelerating beyond their ability to get qualified for the type of home they want. Meaning there is a massive pent up demand for affordable housing (sub-300k). So even if the market takes a "turn" for the worse, there is still going to be a huge demand on this market in Asheville, Charlotte, Raleigh etc.. Second, and this is unique to Asheville, is that boomers are retiring there in massive numbers, and buying with cash more than other comparable markets, inflating prices everywhere. This does not appear to be slowing as the boomer generation retires. Personally, I'm very bullish on the Asheville market. Having sold 2 houses sub 300k in the municipality this year, and having to deal with multiple offer situations during the height of Covid within hours of listing, I do not see this as market that is going to suffer that much from a market correction.
Does it help when investing to buy with cash? Obviously yes, although, creatively financing when possible will allow you to stretch your investment and potential upside, but yes, cash offers have won out in every single one of my deals that I have sold in Asheville.
Are there many/any bank-owned or lien properties available? I specialize in these types of deals, and actually go to the Buncombe Co courthouse twice per month to keep tabs on these, I can tell you with certainty that foreclosures are WAY DOWN. This is a conundrum as more people are default this year than ever since 2009, but I think the reason is all the government assistance, and the extremely high demand for sub-prime loans. Personally I expect a wave of foreclosures in 2021, but right now, there is almost nothing available as banks and consumers are taking advantage of Covid forbearance allowances.
I'll be closing on a funding property for a 1031 exchange mid-January 2019 and wonder if there might be any opportunities to choose a replacement property there. Since this is an investment (maybe retirement home in the long-run) which I must hold for at least two years, I don't want to buy at the top of the market. Again, nobody wants to buy on the top of the market, but it will always appear if it's at the top if it's the highest it's ever been, or goes through any kind of minor market correction. This doesn't automatically mean it's "at the top" as you have to consider the LONG term trends, and the fundamentals driving the market. Depending on what and where you want a home, there are always options.
I'm also looking for a real estate agent who might be available to discuss and help with the process if you could make a recommendation for this type of situation? I live now in Colorado and have a 1031 agent in place. Florida-born. So I'm not a realtor, I'm an investor with experience in that market.
Lastly, is Asheville as charming, amazing and wonderfully diverse as it seems? Would you live the rest of your life there, assuming it remained so? The short answer is yes. You will always have people that are bitter or have a bad taste in their mouth for whatever reasons, but living in Asheville offers opportunities that is not offered anywhere in the world. It is what you make it. Coming from Colorado, you will find aspects of Asheville familiar to where you live now that you won't find anywhere else on the East Coast, but with all the advantages of living in the South.
