By DON FENLEY
TRI-CITIES, Tenn. – Tri-Cities area vacant land sales declined last year, according to the Northeast Tennessee Association of Realtors (NETAR). It was a relatively small decline on the heels of several years of rapid expansion.
The biggest sales declines came at the lower end of the market, with sales in the $30,000 range seeing a 26% decline.
The best performance came in the $400,000 to $500,000 price range. Those sales were up 33%.
Year-end inventory is highest in the $300,000 and up range. The largest number of active listings is in the $500,000 and more price band.
Interest in land sales as an investment began increasing during the latter part of 2022 as inflation fears and speculation about inflation this year increased.
NETAR is also reporting that at year’s end, new listings, pending sales, and active inventory vacant land listings were also down on their two local listing services. At the end of December, there were almost 2,000 active vacant land listings on the NETAR Commercial Multiple Listing Service (CMLS) and Flex.
Realtor.com currently has 1,600 vacant land listings in Carter, Greene, Hawkins, Johnson, Sullivan, Unicoi, Washington Co. TN and Washington, VA.
The Land Network Comparable Sales Program reports that the land market value they have listed in Tennessee’s Eastern region is approximately $3 billion. “The region ranks first in the state by total land value,” according to the program.
Competition for developable land for lot development continues to be aggressive as the region grapples with a housing shortage. The National Home Builders Outlook is for a 2023 sales drop off, then a rebound in 2024. Local builders expect a better showing, with new home sales to be about the same as last year.
Categories: REAL ESTATE