Local home prices up 27% in February

Home prices soared 27.3 percent in February, while sales in the inventory-starved NE Tenn. – SW Va. market were up 9.3 percent.

“It’s a crazy, red-hot market,” Northeast Tennessee Association of Realtors (NETAR) President Kristi Bailey said. “The momentum from the surge during the last half of 2020 has carried into this year. Last month the average sale was $46,451 more than it was February last year. While the local super-tight inventory is squeezing sales it – and small increases in mortgage rates – continues putting upward pressure on prices.” 

There were 554 closings last month – 47 more than last year, according to the NETAR Home Sales Report.

The average resale price was $216,568. It was $170,117 this time last year. The median sales price of $170,000 – up $20,500 from last year. The median is the price where half of the sales were for $170,000 or more and the other half for less. The difference between the average and median is caused by sales in the higher price ranges skewing the average higher.

Inventory remains at an all-time low. There were 1,044 active listings last month. “That a 1.4-month supply of homes on the market. This time last year, we had 3.3 months of inventory,” Bailey said.

Homes are also selling at the fastest-ever pace. The median time a sale that closed in February was on the market was 63 days – 19 days fewer than last year.  

“This continues to be a super-hot seller’s market,” Bailey said. “Buyers should have their best-possible offer ready and expect to compete in a multiple offer environment.”

Sellers accepted 835 new offers in February, 179 more than last year.

Last month’s average listing price was $307,973, up 16.9 percent from last year, and the median listing price was $194,950, up 2.7% from last year.

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