Local home price indexes hit 42-year high
Local home prices continued their upward trajectory in June and reached the highest level since 1979.
The 12-month Home Price Index for the Johnson City metro area was 18.9%. It was 17.6% in the Kingsport-Bristol. Similar price benchmarks can be found in the latest NETAR Home Sales Report.
Year-over-year prices surged into the double-digit range April last year and have stayed there for 16 months with two exceptions. With plenty of cash still on the sidelines, very low mortgage rates, and more newcomers flocking to the region affordability will become a more acute issue for the foreseeable future.
July’s average sales price wasn’t an all-time record. But it was the second-highest. July’s average price was 14.9% better than July last year and the first month this year the year-over-year increase has dropped below 20%.
The annual average price of a local home in 2000 was $106,262. According to one of the popular web-based inflation buying power calculators, that price adjusted for inflation would require $167,660 in today’s buying power. Market appreciation based on last month’s average price beat inflation by almost $73,000 since 2000.
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