June local home sales, prices up – market transitioning

June’s home sales were up 6.4 percent from May, and the average sales price was 9.8 percent higher. 

“Last month’s housing data – with the exception of prices – also began showing signs that the local market is transitioning.” NETAR President Kristi Bailey said. “Inventory, while still very low, is inching higher.  Consumer demand – gauged by how long a property is on the market before selling and listing prices – moderated from the red-hot pace that began this time last year.  And while last month’s sales were up from May they were down from June last year. Prices increased across the board,” she added.  

There were 846 closings last month, down 3.4 percent from last year. The average sales price of $255,637 was 25.7 percent higher than last year.  The market’s mid-point – median sales price – was $209,900, up 23.4 percent from June last year. 

At month’s end, the area monitored by the Northeast Tennessee Association of Realtors (NETAR) had 1.4 months of inventory. It was 1.3 months in May. That’s still significantly below balanced market conditions, Bailey said.  

A typical home was on the market for 48 days last month, up from 47 days in May. It’s a slight increase; however, buyers were snapping up homes 10 days faster than they did a year ago, so it’s not a big shift in demand, Bailey said.  

There were 1,192 active listings at the end of June. That’s a little less than half of what it was last year, but up from 1,048 in May. It was also the third straight month active inventory increased. 

New listing increased by 93 for a June total of 1,148. It was the first time since September last year that new listings outnumbered the number of newly accepted contracts.   

The largest share of June sales continued to be in the $200,000-to-$300,000 price range. They accounted for one of every four existing home sales.  

Listing prices are another example of demand moderation. They declined from what they were in May but are substantially higher than this time last year. Last month’s average listing price was $319,468, down from $338,082 in May and up from $274,730 in June last year.