By DON FENLEY
TRI-CITIES, Tenn. – June was an exception to a luxury home market that has softened so far this year.
Thirteen $1 million plus home sales closed last month in the NE TN – SW VA region. Three more were just under the $1 million price tag.
The top sale was for $2.6 million in Piney Flats, and it was a cash sale.
Jonesborough, Johnson City, Bristol TN, and Telford also shared a spot on the $1 million plus cash sales luxury market leaderboard.
New construction for high-end homes has not fared as well, so far this year. Only two new home permits with a construction cost of $1 million or more have been pulled. Both were in Johnson City.
There are currently 64 local properties listed, with an asking price of $1 million or more.
The city with the most high-end listings is Kingsport (11) closely followed by Greeneville (10). Elizabethton and Butler each have listings for $1 million or more.
June’s luxury sales, plus a 16.9% increase in the move-up market sales, were enough to bump the overall market’s median sales price to an all-time high of $267,500. The average sales price was $312,445, which is also a new high.
The current and future luxury market may not be defined by just size or price. Buyers are looking for premium properties that meet their needs in all categories. According to luxury market trends studies, these buyers will pay the price if the property meets their desire for exclusivity, the quality of the property and it fits into their real estate portfolio. A recent report from Mordor Intelligence predicts the global luxury real estate market will see a compound annual growth rate of better than 2% each year for the next five years.
Looking at local demand, sales, and inventory for the first half of the year point to the luxury market’s of sales in the $500K range remain are softer but resilience as a seller’s market.
Year-to-date 367 sales are down 12% while active inventory has increased almost 20%. New listings are up 5.7% and the pending sales six-month trend is 8% better than last year.
Categories: REAL ESTATE