Market Pulse – April 26
The overall NE Tenn. housing market is hot, hot, hot. But so far this year luxury homes are the hottest of the hot. They have outpaced the growth rate for affordable and mid-price range homes by far thanks to the region’s reputation for an affordable lifestyle, home values, record-low mortgage rates, stock price gains, and the ability to work from anywhere.
A mid-month market update shows 102 sales of homes in the $500,000 and up the price range for the first three-and-a-half months of this year. This time last year, there were 28. That’s a 264% increase. The only growth rate close to that is a 129% increase for sales in the $400,000-$500,000 price range.
Sales are not the only notable increase. New listings in that price range were up 44% so far this year.
And those listings are not staying on the market very long. There was a three-month supply of homes in the $500,000 to $600,000 price range in April. The $600,000 to $700,000 market had a 2.2-month supply. You must go to the $1 million and up range for an inventory in the 10-months and plus range. And in mid-April, there were 46 area residential listings for $1 million or more.
Demand for high-end homes isn’t letting up in the new home sector either. There were 138 permits for them last year – 43 were pulled in the fourth quarter.
NE Tenn.’s demand for high-end homes was also higher than its regional neighbors. High-end permits were up 36%. Asheville increased 5.4%. Knoxville was up 3.6%. Chattanooga was down 1.9%.