Local high-end home sales pick up steam
While there is some softness in overall existing home sales, the $500,000 and above existing market continues booming. Last month there were 101 sales. That is slightly better than twice the number sold in May last year. And sales have increased every month since the first of the year.
There’s also no lack of inventory. During the last two months, new listings for high-end homes have more than doubled where they were at the beginning of the year.
Active inventory at the end of May was 10 more than this time last year. It has also increased every month since February.
The local data is counter to reports that sales of high-end homes are slowing in the wake of rising mortgage rates, soaring inflation, and a shortage of properties for sales.
So, why’s the local high-end market soaring?
As the data show, inventory is increasing. Maybe that’s happening because sellers think the market is about the peak. And both sales show there’s no lack of demand.
There’s also a value proposition for those who can afford it. It’s estimated that new residents from high property value states like California and Washington State have a housing budget about 30% higher than what local buyers have. That means the $500,000 home here is comparable to about $650,000 in the market they’re accustomed to seeing.
How long the boom in local high-end home sales will last is anyone’s guess. What isn’t guesswork for this housing market segment is that the music hasn’t slowed down, and buyers and sellers are dancing as fast as they can.
A mid-June check of local listings shows 155 listings in the $500,000 to $1 million price range and 41 listings for $1 million and above.
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