The folks at Attom Data Solutions have added a new twist to “how what you home is near affects its value.” Think specialty food stores. And in a rapidly aging population like the Tri-Cities, it can elbow its way into considerations because a property’s proximity to a good school doesn’t carry as much weight with empty nesters and retirees as it does families with children.
Attom researchers averaged home values and price appreciation from 2014 to 2019, as well as current average home equity, home seller profits and home flipping rages of more than 1,800 ZIP codes national wide with at least one Trader Joe’s, Whole Foods or an Aldi’s. Locally, the analysis turned in some eye-catching Greeneville properties -, especially for investors.
Across the U.S. homeowners near a Trader Joe’s led the pack with 37% equity in their home ($247,445).
Owners near a Whole Foods had an average 31% equity ($187,035).
Those who own near an Aldi had an average 30% equity ($53,650).
Three counties in the Tri-Cities region met the analysis inclusion benchmark: Washington, Sullivan, and Greene. And since there’s no Trader Joe’s or Whole Food’s presence in any of those counties Aldi’s was the star influencer.
Some of the metrics are what you would expect, but there were surprises. For example, in ZIP codes with an Aldi: Greene County led the region for average 5-year home price appreciation, Q2 average home seller profit, Q2 home seller return on investment, and 2018 gross profit on flipped homes.
The only Tennessee county markets that broke out of the Aldi dominance are Davidson, Hamilton, Williamson, Shelby, and Knox, all have Whole Foods stores, and Davidson, Knox, and Shelby with their Trader Joe’s presence.
But why isn’t a local Trader Joe’s in the local mix? It’s been on the Johnson City, and Kingsport wishlist for a long time? The hard-core answer is there will be a Trader Joe’s when the company or investors decide the local economy will support one. It’s true that specialty food stores are one the shortage list of businesses on economic analysis reports for both cities, but neither Trader Joe’s nor Whole Foods have taken the plunge, yet. The current Trader Joe’s buzz is focused on the Exit 17 area in Boone’s Creek – but that’s another story.
Here how Attom’s analysis found the data stacked up for local properties in ZIP codes near an Aldi’s:
AVERAGE HOME VALUE
Washington – $178,515.
Greene – $142,821.
Sullivan – $125,993.
AVERAGE PERCENT EQUITY
Washington – 22.5% ($40,318)
Greene – 21.9% ($31,314)
Sullivan – 21.7% ($27,381)
YEAR-TO-DATE MEDIAN SALES PRICE
Washington – $148,400
Sullivan – $115,500
Greene – $103,000
AVG. 1-YEAR HOME PRICE APPRECIATION
Sullivan – 18%
Washington – 4%
Greene – down 3%
AVG 5-YEAR HOME PRICE APPRECIATION
Greene – 77%
Sullivan – 41%
Washington – 24%
Q2 AVG. HOME SELLER PROFIT
Greene – $49,200
Washington – $38,000
Q2 HOME SELLER RETURN ON INVESTMENT
Greene – 65.6%
Washington – 31.1%
2018 GROSS PROFIT ON FLIPPED HOMES
Greene – 141.1%. This is the second-highest in the state. Shelby flippers did better with 235.2%.
Sullivan – 84%
Washington – 56.7%
Categories: REAL ESTATE