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A typical home sale in the Kingsport-Bristol metro area during the first three months of this year netted owners a $47,730 profit from the original purchase price. The gain is down from the previous two quarters, but it’s unlikely many sellers are complaining.
Small dips in profits are common in the first quarter as the home-buying season goes into its annual cold-weather lull, according to the ATTOM Data Solution’s Home Sales Report.
“The latest data on home prices and seller profits across the U.S. provide the latest markers of how the U.S. housing market keeps roaring ahead even as major parts of the broader economy try to overcome the impact of the pandemic,” said Todd Teta, chief product officer at ATTOM. “However, the market did take a break from rising prices in the first quarter of 2021, and while that’s not unusual for the beginning of the year, it’s definitely something to keep an eye on as we move into the Spring buying season. The next few months will speak huge volumes about whether the market keeps barreling ahead. For now, though, sellers remain in the drivers’ seat, ringing up great profits.”
Kingsport-Bristol, Knoxville, and Chattanooga are the only metropolitan statistical areas (MSA) that meet the benchmark to be included in the analysis. That benchmark is metro areas with at least 1,000 single-family and condo sales and a population of 200,000 or more. It’s another example of how the Tri-Cities market division of two MSAs excludes the regional marketplace from inclusion in varied analyses and studies.
Nationwide a typical first-quarter sale generated a profit of $70,050. That was down from $75,750 during the last quarter of 2020 but still higher than the 30.8% level recorded a year ago.
Kingsport-Bristol’s first-quarter gain was 36.4% higher than the $35,000 gain last year. It jumped to $42,600 in the second quarter then to $50,000 and finished the year with a $55,100 profit.
The typical first-quarter sale in Chattanooga had an $87,000 gain from the original purchase price and was up 80.1% from last year.
Knoxville led the region with a $119,700 profit that was 121.7% higher than last year.
The Tri-Cities housing market is going into its sixth year of strong growth. Currently, the inventory shortage is driving prices higher, but that hasn’t capped sales or higher prices. Kingsport Realtors were recently quoted in a recent Times-News report saying that new listings attract multiple offers and cash buyers from other areas are beating out locals who have to get loans.
According to the Northeast Tennessee Associations of Realtors’ (NETAR) first-quarter submarket drill down the Blountville, Rogersville, Piney Flats, Bristol, Kingsport markets had double-digit growth when compared to last year. All are part of the Kingsport-Bristol MSA which includes Hawkins and Sullivan counties in NE Tenn. and Scott and Washington counties in SW Va. Blountville was at the top of the growth leaderboard with a 142% increase in sales and a 50% increase in the average sales price. A story and graphic of that report can be found on the NETAR website at https://netar.us/blountville-piney-flats-church-hill-top-q1-housing-submarket-growth/ .
The only submarket in the Kingsport-Bristol metro area that reported a decline in sales was Church Hill which was coming down from a strong first quarter last year. The community continues in a growth mode.
Although home sales profits for the Johnson City metro area were not included in the analysis it has and continues to see sales and price growth that is basically equal to Kingsport-Bristol. The Greeneville Micropolitan Statistical Area is also seeing very similar market conditions.
The Johnson City MSA includes Carter, Washington, and Unicoi counties.
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Categories: REAL ESTATE