Cash was king on steriods in Tri-Cities’ June condo market

Cash on steroids was king of the Tri-Cities area condo sales market in June, according to the Northeast Tennessee Association of Realtors.

The association’s weekly Market Pulse report says a little more than six of every 10 local condo sales (61.3%) were cash deals last month.  The average cash sale was $3,837 above the list price and half were on the market for only 24 days.

Condos are gaining favor with locals, and builders are upping their place in the new home construction mix. However, not all of them are for sale. Condos have a strong local showing in the build-to-rent trend. One example is the complex nearing build out on West Stone Drive in Kingsport on what used to be a site developed for commercial use.

Townhomes are also factored into most of the regional housing developments that have been announced. Some market observers think the local focus on condos and townhomes is price driven and will fade as the market retreats to more normal conditions. Others contend their appeal with increase as a product for affordable housing in a region facing a crunch for workforce housing.

So far this year, there have been 51 fewer condo sales than last year’s first half. That’s as much a lack of inventory factor as consumer preference.

From a trends perspective, the typical mid-year condo sales price was $160,000. That’s $42,000 more than it was during the first six months last year.

Cash accounted for half of the sales during the first six months of the year, up from 49% during the previous year. The typical condo cash sales price of $160,000, while the average conventional financed sale was $159,900.

Convention loans and cash have dominated the 213 condo and townhome sales so far this year. There were seven FHA sales and two with VA financing.

Categories: REAL ESTATE

1 reply

  1. The market appears to be very active in June. I wonder how long it can remain that way and what that will look like in places like the Tri-Cities.