Tri-Cities area home sellers felt richer last year, according to Attom Data Solutions 2019 Year-End Home Sales Report. They pocketed record dollar profits and sellers in the Kingsport-Bristol metro area saw their best return on investment gain since 2005.
Sellers in the Johnson City Metropolitan Statistical Area (MSA) had a $37,000 average raw profit. That represents a 30.1% return on investment (ROI) based on the difference between the 2019 median sales price and the most recent previous sales price of the same homes. It was the best dollar gain since 2005. The same can’t be said for the ROI. That benchmark came with 2007’s 50% gain. But last year was an ROI turn around after three straight annual declines for Johnson City MSA sellers.
Kingsport-Bristol sellers didn’t get as much dollar gain as Johnson City sellers, but the $31,000 they got was the metro area’s best raw profit since 2007 when it was $35,000. And when the focus shifts to the ROI sellers in the four-county MSA (Hawkins and Washington counties in NE Tenn. and Scott and Washington in SW Va.) were at the top of the leader board. Their 42.8% ROI was the best that the metro area has seen since 2005, according to Attom’s data.
The local dollar gains lagged the typical US sellers’ gain of $65,000, a 34% return on investment compared to the original purchase price. Both raw profits and the Return on Investment has improved nationwide for eight straight years.
“The nation’s housing boom kept roaring along in 2019 as prices hit a new record, returning ever-higher profits to home sellers and posing ever-greater challenges for buyers seeking bargains. In short, it was a great year to be a seller,” said Todd Teta, chief product officer at Attom Data Solutions. “But there were signs that the market was losing some steam last year, as profits and profit margins increased at the slowest pace since 2011. While low mortgage rates are propping up prices, the declining progress suggests some uncertainty going into the 2020 buying season.”
Unlike the “losing steam” national situation, Teta cited the local markets had one of their best years in 2019. The year-end Northeast Tennessee Association of Realtors (NETAR) Trends Report listed a 6.5% annual increase in residential sales, a 6.5% increase in single-family resales and a 5.6% increase in townhome/condo sales.
The annual local average residential sales price was up 5.9%. The average single-family sales price was up 6% and townhome/condo sales had an average 5.1% sales price improvement.
Categories: REAL ESTATE