Tri-Cities all-cash home sales declined during the second quarter, but the Johnson City Metropolitan Statistical (MSA) market share is still higher than the state and national levels. Kingsport-Bristol has a higher share than the U.S. and is almost on par with Tennessee despite a 20% decline from this time last year.
The big question when looking at ATTOM Data Solutions’ Q2 numbers is what happened to Kingsport-Bristol. One facet of the complex answer can be found in the all-sales data for the 13 months ending in mid-June.
The market share of a home in the $200,000 to $399,999 price range in the four-county MSA increased 36% while sales in the $200,000 and below price range were up 4.9%. Last year and so far, this year, Kingsport-Bristol has led the region in market share and has seen some solid sales price growth that came despite the lackluster performance of a couple of the counties in the four-county MSA. The sales pace has burned through the area’s inventory of more affordable priced homes, which has accounted for a little better than 71% of all resales.
In other words, market success took a bite out of Kingsport-Bristol’s share of all-cash sales. The market – and inventory – is stabilizing, and the sale of the higher-priced homes are not as likely to bring all-cash sales as those in the lower price ranges do. At least not in the demographic that has been attracted to Kingsport-Bristol’s stock of more affordable homes.
The average listing price in Kingsport-Bristol was $296,716, up 14.3% for last year. The median was $$221,773, up 15.6% from last year.
The average sales price was $194,733, up 16.1% from last year. The median was $169,900, up 8.9% from last year.
Here’s home the Q2 all-cash sales looked:
Johnson City MSA – 31.2%.
Kingsport-Bristol – 27.2%
Tennessee – 30%
U.S. – 23%.
Cash sales are one part of ATTOM’s quarterly Home Sales Report. The local market missed out on the home seller gains. The region missed out because the cut-off for the analysis was MSAs with 1,000 sales during the quarter. Kingsport-Bristol had 919. Johnson City typically doesn’t make the report. It’s another example of how the Tri-Cities is a no-show in today’s data world because the region is a Consolidated Statistical Area (CSA) rather than an MSA despite the fact that it is one marketplace. But that’s another story.
Here’s how the two East Tenn. MSAs that did make the report looked for Q2 sellers. The numbers are the average gain from the original purchase price.
Chattanooga – percentage gain 43.4%, dollar gain $53,000.
Knoxville – percentage gain 43.5%, dollar gain $58,000.
In previous reports, Kingsport-Bristol sellers were on par – or better – for the percentage gain with neighboring areas. Both MSAs also rank high in the state based on the Federal Housing Finance Administration’s Home Price Index.
Categories: REAL ESTATE