Local home prices soar in April; inventory hits all-time low

Home prices continued double-digit growth in April as inventory dropped to an all-time low. At month’s end, the region monitored by the Northeast Tennessee Association of Realtors (NETAR) Home Sales Report had a 1.3-month supply of homes for sale. 

“It was a given that the sales growth rate for April would be artificially high since it’s a comparison of this year’s strong growth to the first full-month reaction to the pandemic in April 2020,” NETAR President Kristi Bailey said. “With that said, last month was another chapter in the region’s six-year strong housing market history.”  

The average sale last month was $42,441 more than last year. Homes also continued selling quicker. The median time on the market was 49 days, down from 65 days last year. “Of course, that’s total time on the market. It’s not uncommon for a home to go from “listed” to “offer accepted” in a matter of days…sometimes hours,” Bailey said. It’s also becoming more common to see multiple offers and offers above the listing price. Some offers are being made before the person sets foot on the property, she added. 

New listings had their first 2021 year-over-year increase last month. There were 77 more than in March, but there were also more new accepted offers than new listings, so the active listings total remained under 1,000 for the second month. 

There were 797 closings last month, 201 more than in April last year, and 31 fewer than in March. The average sales price was $235,061, up 22 percent from last year. 

The largest share of April sales was in the $200,000-to-$250,000 price range. They accounted for 15 percent of all sales. 

Last month’s average listing price was $324,424, up 20.9 percent from last year, and the median listing price was $198,750, up 1.9 percent from last year.