Two major third-party housing reports were a marketing boosts for the local housing market in January.  

The first was from the Wall Street Journal-Realtor.com Emerging Markets Index. The Johnson City metro area was again ranked among the top 10 markets in the nation. And Kingsport-Bristol’s #14 rating out of 300 metro housing marketing is outstanding. That was followed by a National Association of Realtors® (NAR) update listing the local metro areas among the top 10 markets in the nation for fourth-quarter price gains. 

Both reports, plus January’s market reports from the Northeast Tennessee Association of Realtors® (NETAR), are testaments to the vitality of the local market despite a lackluster inventory situation that continues to hold the real estate economy back. 

The Emerging Housing Market Index is significant because it gets national exposure, and it resonates with individuals and businesses looking for greener pastures. According to the Journal, the overall methodology for the index explores two main areas: real-estate markets and economic health. Those two areas comprise the following key indicators: real-estate supply (16.6%); real-estate demand (16.6%); median home-listing-price trend (16.6%); unemployment (6.25%); wages (6.25%); regional price parities (6.25%); amenities (6.25%); commute (6.25%); foreign-born residents (6.25%); small businesses (6.25%); property taxes (6.25%). In other words, it singles out areas that are a good place to live, and where housing is a good investment. 

The NAR fourth-quarter price increase report affirms what NETAR’s monthly and annual reports plus Attom Data Solution’s market risks assessment have to say. Attom’s risk ranking for the region’s two major county markets – Sullivan and Washington – puts them at the top of U.S. counties with the least risk for a market downturn.  

NETAR’s reports show that while price growth has softened, the trend is for continued growth this year. Of course, that’s given there’s not a catastrophic event to upset things between now and the end of the year. 

Another significant thing to remember is that even with such strong ratings from the Emerging Market Index, NAR’ and NETAR’s price reports, local housing remains affordable when compared to many other markets. The Johnson City metro market’s fourth quarter median price was $292,500. It was $260,300 in Kingsport-Bristol.    

Both quarterly reports are high compared to January’s report. Area-wide, the median sales price was $240,000. Of course, that varies when you look at the hyper-local effect of housing in city and community markets.  

Piney Flat’s numbers for last months are a good example. The median sales price was an eye-popping $570,000. Look a little closer and the reason for that unusually high price comes into focus. It was so high because there were only four sales. Two were luxury sales that skewed the median price. One sale was a little over $1 million. The other was over $500K. It was a big number even for the region’s hottest 2923 sub-market, but it wasn’t out of range for the annual median price of $385,623. 

Yes, the lack of inventory is a challenge for locals, but another look at the sales big picture shows that a third of existing single-family homes and condos last year were in the affordable range. Considering the demand for housing, that number would have been higher if there were more affordable homes on the market. 

These price context reminders are things that those poised to enter the market during the upcoming prime home buying and selling season should keep in mind. It looks like this year will be more competitive than expected. Mortgage rates have declined and while they’re not expected to dip below 6%, they’re at a level that NAR’s Research Dept. thinks will bring about 10,000 locals back to the market.  

Inventory is increasing, but it’s increasing at a snail’s pace and not enough to put much downward pressure on prices. These market examples are among the reasons both buyers and sellers need to enlist a professional Realtor®. Their local market resources and marketing street-smarts may not be the same as the hot headlines or with what some social-media experts trumpet, but day-in and day-out they have the track record that proves they are the actual experts.