Remember those surveys that said 2018 was a good time to sell your home? They were right. The average home price gains since the purchase were the most profitable in a decade and the Tri-Cities numbers are no exception.
Sellers in the Kingsport-Bristol Metropolitan Statistical Area (MSA) had the third highest percentage gain among the state metro areas analyzed in Attom Data Solution’s 2018 Year-end Home Sales Report. And those in the Johnson City MSA ranked fourth in the state.
U.S. home sellers averaged a 32.6% return on investment compared to their original purchase. The U.S. average dollar gain was $61,000 Kingsport-Bristol sellers saw a 33.7% return while those in the Johnson City metro area had a 27.9% return.
Sellers in the Nashville had the best return in Tennessee – 52.7% followed by Knoxville then Kingsport-Bristol and Johnson City.
While local sellers had outstanding numbers when you look at the percentage of gain the situation was reversed when the focus shifts to dollars. It shifts because Tri-Cities homes are less expensive than they are in other state metro areas. But that doesn’t mute the strength in the growth rate of local sales returns.
“While 2018 was the most profitable time to sell a home in more than 12 years, those along the coast, reaped the most gains,” says Todd Teta, Attom’s chief product officer. “However, those are the same areas where homeowners are staying put longer. The economy is still going strong and home loan rates remain historically low. But there are potential clouds on the horizon. The effects of last year’s tax cuts are wearing off as limits on homeowner tax deductions are in place.”
The average number of years local buyers have lived in their home before selling was not included in Attom’s data. The national average during Q4 last year was 8.3 years.
From the local perspective, 2018 was the fourth straight year Kingsport-Bristol sellers have received a higher return based on the original purchase price than sellers in the Johnson City MSA.
Last year was the best year since 2009 in the three-county Johnson City MSA. It was the best year for Kingsport-Bristol sellers since 2007.
Attom’s Home Sales Report is derived from recorded sales deeds and loan data. Statistics for previous quarters are revised when each new report is issued as more deed data becomes available for those previous months. Median sales prices are calculated based on the sales price on the publicly recorded sales deed when available. If no sales price is recorded then the purchase loan amount is used to calculate median price, and if no purchase loan amount is available, the property’s Automated Valuation Model (AVM) at time of sale is used to calculate the median price.