The prime home buying and selling season is upon us, and it looks like another year of dueling outlooks and confusion. If you thought absorbing local market information was like trying to drink from a fire hose last year, buckle up because the pressure is being dialed up. Here’s why. 

After seven months of declining sales, the market is picking up in some price ranges. Homes under $400K are moving quickly. Certain submarkets are also hot, and homes priced under $300k are beginning to see multiple offers. The luxury market, which has been robust, is seeing some softening. 

Currently, sales are slightly higher than they were before the pandemic. Some think they are at the base for the new normal. At the same time, seven months of softer sales have slowly nudged inventory to the best level locals have seen since 2020. That’s good news, but it doesn’t conceal the fact that we have a housing shortage, and the current market/economic dynamic has created an affordability issue. Many locals have and continue to be priced out of the market. 

The dominant assessment is the local market is a moderating sellers’ market. That’s based on an analysis of prices in the region’s four primary markets and time on the market. Some markets are in or near balanced conditions in specific price ranges. But that’s not the broader market dynamic. The market may be friendlier for buyers, but sellers still have the upper hand. 

 Here’s where the trying to drink from a fire hose comes in. The March Zillow Heat Index gets a lot of media play and attention. It ranks both the Kingsport-Bristol and Johnson City metro areas as neutral markets. Zillow’s economists use home price changes, inventory levels, and days on the market as the hotness model. 

Another example is the headlines that trumpet inventory has reached pre-pandemic levels. That’s true in some metro markets, but not in the Tri-Cities. 

And there’s just as much conflicting news about prices. The Northeast Tennessee Association of Realtors® (NETAR) comparison of March median sales prices found the Knoxville and Cleveland markets had the highest regional price increases, followed by the Tri-Cities. It also showed the Tri-Cities is the most affordable market in East Tenn. Based on the median sales price. 

There are other examples, but you get the idea. Real estate is hyper local and the critical information for buyers and sellers is watching and using the most current local information. The primary source for that information is NETAR and local Realtors®. 

Each month, NETAR provides a series of charts, graphs, and stories on how the local market is doing. It begins the first week of the month with the Home Sales graphic on netar.us accompanied by charts outlining the current month’s level and trend for prices, sales, inventory and more. The progression of those items, plus the weekly Market Pulse and this column, continues through the end of the month. 

The motive is simple. NETAR and its members are the voice for real estate in the local market. While all real estate is location, location, location the best and most accurate information is local, local, local. 

The bottom line is local markets are expected to warm up as we get into the prime season. Buyers and sellers who watch NETAR’s website and social media sites and are partnered with local Realtors® and looking at their options through the lenses of expert local market knowledge will be well-prepared to seize opportunities without having to delay.