Market Pulse 2-18

Condominium sales got off to a slow start last month. They matched last year’s performance, but were down 22% (six sales) from December. So was the $201,153 median sales price. It was down almost $19,000.

That dour showing in the primary counties monitored by Northeast Tennessee Association of Realtors (NETAR) should improve with February’s closing since there were 23 pending sales last month.

And pending sales are not the only bright spot. There were 43 new listings. That’s a 114% increase from what was on the market this time last year.

A little over half of last month’s sales (52%) were cash deals. The rest were conventional loans.

Condo sellers were not as aggressive with price reductions as their single-family counterparts. There were five price reductions before negotiations. That’s when things began to look like the rest of the local market. Buyers were able to negotiate asking prices down in 65%. The average was $4,520 for the conventional loans and $3,621 for the cash sales.

The popularity of condos and townhomes has increased, but demand for them has not matched the preference for single-family detached homes. That hasn’t dampened prices. This time last year, the median was $159,650. Last month it was $201,153.

Investors who are actively pursuing the local rental market have cut into some of the region’s townhome new construction.