Tri-Cities area cash deals at 33%, VA loan purchases have highest avg. sales price

All-cash deals increased to 33% of all sales last month while VA loans continued to have both the highest average and median sales price in June and for the first six months of this year.

All but the USDA, VHDA, and lease purchase sales had an average dollar value above the list price, according to the Northeast Tennessee Association’s weekly Market Pulse.

The average above list for the overall residential sales was +$830.

The largest average sales to list price difference was +$3,000 for the three THDA sales, followed by +$3,521 for the region’s 62 VA loan sales. There was less of an over-list average for the 390 convention loan sales. It was +$683 and +$465 for the 262 cash sales.

Here’s how the share of total sales shook out last month:

  • Conventional loans – 49.1%.
  • Cash – 33%.
  • VA – 7.8%.
  • FHA – 7.6%.
  • USDA – 1.6%.
  • THDA – 0.4%.
  • Trade/exchange – 0.3%
  • VHDA – 0.1%.
  • Lease/purchase – 0.1%.

VA loan sales had June’s highest typical sales price – $307,500. VA loans had the same status for the mid-year typical price trend.

June’s typical conventional loan sales price was $266,000. Conventional loans also lag VA loan sales price performance in the mid-year price trend.

All-cash deals peaked in the Johnson City metro area in 2011 when they accounted for 59% of all sales. That averaged to about 112 cash deals a month.

Cash deals peaked in the Kingsport-Bristol metro area four years later at 57.8% of all sales. The monthly average was 127 deals a month.

Currently the local monthly average is 277 all-cash deals a month.


Categories: REAL ESTATE

Leave a Reply