April’s townhome market shows the growing appetite in the Tri-Cities area for low-maintenance and affordable housing. The regional townhome market outlook is showing signs of normalization faster than the rest of the market.

Prices were up 10.3% from last year. That’s a continuation of an appreciation trend. The townhome market is outperforming the rest of the housing market where April’s price was up 0.3%, according to the Northeast Tennessee Association of Realtors (NETAR).

The price appreciation will probably moderate in the coming months as supply catches up with demand.

Sales volume followed the rest of the market’s decline that can be attributed partially to the seasonal tend. The fact that the housing market is continuing its transition from the unsustainable red-hot condition that prevailed through the first half of last year is also a prime factor.

There was also a decrease in consumer demand as monitored by the average time a townhome spent on the market before selling. That metric varied widely from submarket to submarket across the region, as illustrated by the May Realtor Property Research report. Those results for the time a property is on the market before sellers accepted a contract are:

• Median 3 days.
• Johnson City. Median 8 days.
• Bristol, TN. Median 3 days.
• Bristol, VA. Not enough data to display time on market analysis.
• Abingdon – Median 12 days.
• Median14 days.
• Median 22 days.
• Piney Flats. Median 27 days.
• Not enough data to display time on market analysis.

Here’s the capsule market summary for April:

• Closed sales – 96 down 5.9% from last year.
• Median sales price – $215,000, up 10.3% from last year.
• Average sales price – $226,547, up 10.9% from last year.
• Average days on market – 37, up from 31 last year.
• Inventory – 153 active listings, up 33% from last year.
• Total sales volume $21.75 million up 8.5% from last year.

Overall conditions continue to favor buyers despite affordability challengers and the region’s status as a seller’s market. That is putting pressure on sellers to price strategically as competition grows and buyers become more selective.

Categories: REAL ESTATE