The Tri-Cities new home market was as lethargic as the existing home market in February with one exception – prices were up 7.6%. According to the Northeast Tennessee Association of Realtors (NETAR) the broader housing market price increase was 4.8%.

New construction sales were down 33% from the previous month and down 23% from last year. NETAR’s Home Sales Report lists the overall Feb. market sales decline at 17%.

New home inventory also declined.

The local builder sentiment mirrored the decline reported by the National Home Builders Association (NHBA). The U.S. confidence level was down five points from January.

There were 52 new construction sales last month, down from 39 in January and 68 last year.

New construction listings (238) were down 42.4% from last year.

Last month’s median sales price was $357,000. This time last year it was $331,840.

Average total sq. footage for a February sale was 1,996.5. It was 1,996.8 this time last year.

One fresh item that was on the new home market decision list was D.R. Horton East Tennessee Division President’s affordability solution at the Appalachian Highlands Economic Forum at ETSU. Barrak Saltzman told the audience of academic and civic attendees that some things on the path to affordability were already underway. That includes a smaller new home footprint with fewer features and single-car garages. But they haven’t made enough change to get prices in the desired affordable range.

He cited buyers’ desire for more than they can afford and some local requirements that  add to the price tag.

His solution was extending the current standard 30-year mortgage to 40 or 50 years. The suggestion didn’t receive any noticeable response from the audience.

The new home outlook for this year is for modest growth with prices increasing 2% to 4%. Sales are expected to move slowly as overall inventory increases.

Most of last month’s new construction sales (24) were in Washington Co. followed by 17 in Sullivan Co.

There were 13 cash sales, down from 20 last year.