By DON FENLEY

This year’s prime home buying and selling season left sales across the region a little better than last year and sellers with slightly higher prices. But it was far from a typical season and set the stage for what could be a chaotic fall and winter season. A season where buyers are increasing their purchasing power; where market hopes are pinned to 6% mortgage rates; and a barrage of competing media reports about what market metrics have reached pre-pandemic prices and inventory levels.

While the Tri-Cities region hasn’t achieved a pre-pandemic status, sales, and price growth trends are headed that way. Sales at the mid-year point were 206 better than last year. Whether it will hit the 2018 pre-pandemic benchmark is still in question, but it will be closer.

Median price growth rate slowed to 4.04% for the first six months of this year and given current conditions it looks to have staying power. But there’s there are clear signs buyers have a stronger position than they did last year. What is less clear is whether their buying power aligns with their bargaining power.

The number of multiple offers in the $300K and above price ranges has declined, as have sales in those price ranges. Contingencies in those price ranges are also on the rise. Sellers are also making more price reductions and concessions. In contrast, conditions are the opposite in the affordable housing price ranges.

COMMUNITY MARKET UPDATES

A mid-year update of the region’s 21 city and community markets illustrates just how hyper local the real estate market is as each market evolves. There has been notable market growth in some of the smaller submarkets. Some growth rates are skewed in markets with small sales volumes.

MOST AFFORDABLE MARKETS

Markets with a median price below the mid-year regional price include Elizabethton, Rogersville, Church Hill, Bristol TN, Erwin, Surgoinsville, and Bristol VA.

HIGHEST PRICE MARKETS

Fourteen markets have a mid-year price higher than the regional media. Piney Flats is the priciest market, closely followed by Jonesborough.

Markets with a price higher than the regional median include Telford, Bluff City, Gray, Roan Mountain, Morresburg, Blountville, Johnson City, Greeneville, Bulls Gap, Mountain City, Kingsport and Mount Carmel

PRICE GROWTH RATES

Markets with growth rates higher than the region include Blountville, Bulls Gap, Bristol TN, Bluff City, Morresburg, Elizabethton, Mountain City, Telford, Mount Carmel, Johnson City, and Jonesborough. Markets with higher growth rates don’t necessarily have the highest median prices.

Markets with positive growth rates that are below the regional median include Piney Flats, Greeneville and Rogersville.

Markets with a mid-year declining price growth rate include Kingsport, Bristol VA, Roan Mountain, Erwin, Gray, Church Hill, and Surgoinsville.

MOST SALES

Kingsport had the most home sales at the mid-year mark, followed by Johnson City. Greeneville and Jonesboro round out the number three and four total sales spots.

SALES GROWTH RATES

Markets with a six-month growth rate higher than the regional rate include Kingsport, Erwin, Jonesborough, Gray, Bristol VA, Greeneville, Blountville, and Rogersville. Also included in this group due to market skews are Mountain City, Bulls Gap, Surgoinsville, and Roan Mountain.

Markets with a negative mid-year growth rate include Bristol TN, Johnson City, Church Hill, Bluff City, Elizabethton, Mount Carmel, Telford, Morresburg, and Piney Flats. Several of these markets are coming off record sales highs last year and while they remain robust, this year is not sustaining the previous growth rate.

Categories: REAL ESTATE