June home prices back off all-time high, sales perk up
June’s typical home sale price backed-off May’s all-time high, but not by much. At the same time, closings perked up from the previous month.
“Almost all six-month trend metrics are down from last year but the local market continues struggling with a lot more demand than supply,” said Rick Chantry, president of the Northeast Tennessee Association of Realtors (NETAR). Higher mortgage rates have tapped the brakes on loans and there are more homes on the market, but it continues to be a competitive marketplace. Prices also continue outpacing wages, so affordability is taking a hit.” Chantry thinks the market will probably see more of the slowing trend after deals from the peak home buying and selling season are closed.
There were 825 closings in June. That’s 35 more than May, and 50 fewer than June last year. The six-month trend is down 154 sales (3.3%) from last year.
June’s typical existing home sales price was $239,000, down from $250,000 in May but almost $30,000 more than it was last year. The six-month price trend is up 20%. A typical seller who sold during the first half of this year netted $37,500 more than the median price last year.
Active inventory continued advancing at a snail’s pace last month. At the end of June, the region has 1.3 months of inventory. That’s the best it has been this year, but woefully shy of the 5-to-6 months of inventory needed for balanced market conditions.
The typical home sale that closed in June was on the market for 44 days. The average listing went under contract in two weeks or less.
Chantry said sales continue to be driven by new residents. At the same time, there continues to be a lot of pent-up demand from local Millennials, who are in their prime home-buying years and itching for their first home. Some of those who bought early are also in the market for their first trade-up. And investors also continue to be active, he added. “That adds up to a market that is slowly coming off its frantic pace but remains very competitive.”
The six-month sales and price trend in the region’s 15 city and community submarkets shows softer sales in 10 city and submarkets. Prices for the first half of this year are up by double digits in all but two city and community markets.
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 1,600+ 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