Home sales profit margins up $23,000
The typical profit on Tri-Cities area single-family existing home and condo sales is up $23,000 (10%) from the first three quarters of last year and trending toward the fourth best annual appreciation rate since 2005.
That’s based on the median sales price. So, since the median benchmarks the middle of the market half of the sales were for more. The median sales price at the end of Sept. was $253,000 and the average was $298,839.
And that’s a regional number. When you look at how some of the community and city markets are performing the hyper-local effects of real estate kick in. For example, here’s the sub markets with double-digit price performance for the first nine months of this year compared to the same period last year:
Roan Mountain – up 45%
Bulls Grap – up 19%
Mountain City – up 16%
Kingsport – up 16%
Greeneville – up 14%
Rogersville – up 13%
Jonesborough – up 10%
Some of those big percentage increases in the smaller markets are skewed. It only takes a couple of high-end sales in markets like Bulls Gaps’ 29 year-to-date sales or Roan Mountain’s 27 sales to do the trick. But many of the region’s smaller markets have and continue to see structural growth in both population and home prices.
Hawkins and Johnson counties are two examples. They have the highest estimated year-over-year population growth rates in the region so far this year.
But the market that has seen the least year-to-date price performance is the region’s second largest and the fastest growing. Johnson City’s median resales price is down 0.6% from where it was this time last year. And Piney Flats, which has the region’s highest sales prices so far is running 0.9% behind what it was this time last year.
NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee, Southwest Virginia region, representing over 1,800+ members and 100+ business partners involved in all aspects of the residential and commercial real estate industries. Weekly market reports and information for both consumers and members are available on the NETAR website at https://netar.us