Asheville 2026 home market may be changed by war in Iran, experts say

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The Asheville-area housing market has balanced in the first quarter of 2026, but is likely to change depending on the national economic outlook.

Median home sale prices in the city of Asheville were $506,000 at the end of 2025, but the first quarter of 2026 saw prices fall to $495,000, according to a first quarter market report from Mosaic Community Lifestyle Realty. Median home prices in Buncombe County dropped from $450,000 to $446,000 in the first quarter.

Days on market increased to 110 in Buncombe County and 106 in the city of Asheville, according to the report — the highest in both the city and county since 2015. Homes priced in the median sales range are between four to five months of inventory, just below what is generally considered a balanced market.

It's a sign that Asheville's housing market has again found itself shifting toward a fairer market for both buyers and sellers, said Mike Figura, owner of the Asheville-based Mosaic Community Lifestyle Realty. The trend could continue, but is likely going to be sensitive to interest rate increases and economic headwinds.

"Interest rates were going down and the market really seemed to be picking up," Figura said of early 2026. But after the U.S. began its bombing campaign in Iran, interest rates began to increase, he said. Cost of living, including the cost of housing, has already increased since the war began.

Inflation rapidly increased since the war began. According to reports from the U.S. Bureau of Labor Statistics Consumer Price Index, prices rose 0.6% from March to April and increased 3.8% compared to 2025. The cost of gasoline and energy has increased significantly in the past two months as shipping corridors have been closed and supply chains disrupted.

After reaching their lowest point in nearly four years, mortgage rates increased by over a quarter of a point from the beginning of March to the beginning of April. From Feb. 26 to May 14 rates for a 15-year fixed rate mortgage increased from 5.44% to 5.71%, a roughly 6% increase. In that same time, rates for a 30-year fixed rate mortgage increased from 5.98% to 6.36%.

If interest rates continue to rise, the Asheville-area housing market will likely see a dip in activity, Figura said. National estimates have already been revised to reflect this.

The National Association of Realtors chief economist Lawrence Yun said the organization no longer expects a 14% increase in sales in 2026, USA TODAY reported April 13. Home sales are now estimated to increase just 4% increase compared to 2025, Yun said. Over 4 million homes sold in 2025, according to the NAR.

On May 19, the NAR released a report indicating that pending home sales increased moderately compared to March, a trend indicating buyers are "coming out with cautious optimism despite increasing economic uncertainty and a slight rise in mortgage rates," Yun said.

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Will Hofmann is the Growth and Development Reporter for the Asheville Citizen Times, part of the USA Today Network. Got a tip? Email him at [email protected] or message will_hofmann.01 on Signal.