Cash is a four-letter word for many buyers in today’s housing market. Buyers love all-cash sales because it means less hassle and a faster transaction. But many buyers can’t compete with cash buyers.
During the third quarter of this year, there were 452 all-cash sales in the Tri-Cities. That’s a little more than one of ever thee single-family, townhome, or condos resales in the seven-county region, according to ATTOM Data Solutions’ Q3 Home Sales Report.
And while cash sales nationwide declined to 2007 levels, the local market isn’t seeing the same thing.
The market share for cash sales in the four-county Kingsport-Bristol Metropolitan Statistical Area (MSA) was down 3% from Q3 last year. That’s not unexpected. Three of the MSA’s counties enjoyed some hefty single-family price appreciation so far this year, and Sullivan Co. has been one of the hot spots in a market where the entire region is a hot spot. The Kingsport-Bristol MSA includes Sullivan and Hawkins counties in NE Tenn. and Washington and Scott counties in SW Va.
At the end of September, Sullivan County’s average price was running 9.1% better than the first nine months of last year while Scott’s 9-month average price appreciation was up 33.4%, and Hawkins year-to-date growth rate was 14.5%. Washington County’s rate was down 7.96%, according to the Northeast Tennessee Association of Realtors’ (NETAR) Home Sales Report.
Still, cash sales accounted for 441 resales. That’s a 31.9% share of all the MSA’s resales.
JOHNSON CITY MSA
There were 411 all-cash sales during Q3 in the three-county Johnson City MSA for a 36.5% market share, up 2% from last year’s annual market share. The Q3 market share was also higher than the 2019 annual 35.8% share. That MSA includes Washington, Carter, and Unicoi counties.
Two of those counties have year-to-date positive average price appreciation rates so far this year. Washington Co. prices are 23.7% better than the first nine months of last year, and Erwin has an 8.5% average price growth rate. Carter County’s year-to-date rate is 8% lower than it was last year.
LOCAL CASH SALES OUTPERFORM U.S. RATE
Nationwide, all-cash purchases accounted for 21.6% of single-family home and condo sales in the third quarter. That’s a 24% decline from Q3 last year and the lowest market share since 2007.
Cash sales are just one segment of ATTOM’s Home Sales Report that includes raw profit on home sales and return-on-investment data, homeowner tenure, and distressed sales. While the Tri-Cities market does meet most of the benchmarks for inclusion in all of the report’s segments, ATTOM does its analysis based on MSA-level data. The Tri-Cities market is broken into two MSAs, and ATTOM’s analysis is not reported on the Consolidated Statistical Area (CSA) level.
The localized Q3 distressed sales will be updated on this website later this week.
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Categories: REAL ESTATE