News
November 16, 2017

NE Tenn. homes prices down in October, sales up 9.5%

Northeast Tennessee home prices declined for the first time in 14 months in October while sales increased 9.5%.

October's price drop is a reaction to the lack of inventory and buyer fatigue – especially in the $200,000 price range, according to Northeast Tennessee Association of Realtors® (NETAR) President Eric Kistner. "Our market is still very much on track for another record year. But there are some headwinds building," he added.

The big issue is two years of record sales have rendered the inventory of homes in the $200,000 price range to a point where much of what's on the market is not compelling enough to demand higher prices. "Homes in that price range traditionally account for more than 70% of local existing home sales." Much of the average price increase has come from more sales in the upper price ranges.

Last month there were 160 fewer listing than there were in September and 730 fewer than October last year, Kistner said. Currently, the region has a five-month inventory of homes on the market – roughly the same level it has been at since August. That's creating some buyer fatigue, which puts downward pressure on sales prices.

NETAR's Trends Report on market conditions in the 11-county region shows there were 575 closings on single-family home sales last month. That's 35 more than September and 50 more than October last year. October's average sales price was $152,918, down $3,803 from last year and $19,695 less than September's average.

So far, this year 5,281 single-family homes have closed – 130 more than during the first 10 months last year, and the average sales price is $7,535 (4.7%) better.

October was also a strong month in the condominium and town home market. There were 59 closings, up 22 from October last year and the average sales price of $127,912 was $11,458 better. October was the fourth straight month year-over-year prices have increased.

So far this year, 495 condo and town home sales have closed. That's a 21% increase (86 closings) from the first 10 months of last year. The average sales price is 4.4% ($5,302) better that last year.

The average single-family home sold in October was on the market for 125 days. The days on market for condo and town home closings was 117 days.

Here's a capsule look at how city and county October single-family sales and average prices looked compared to October last year.

CITY MARKETS:

Johnson City: Sales - 68, up 14. Avg. price - $180,106, down $14,094.

Kingsport: Sales - 55, down 6. Avg. price - $151,495, down $29,837

Bristol, TN: Sales – 31, down 1. Avg. price - $142,598, down $37,189.

Bristol, VA:  Sales - 21, up 8. Avg. price -  $103,295, down $43,730.

Greeneville: Sales – 17, down 1. Avg. price - $134,718, up $14,281.

Erwin/Unicoi: Sales – 15, down 8. Avg. price - $118,313, down $31,738.

Elizabethton: Sales – 11, down 2. Avg. price - $115,700, up $10,154.

COUNTY MARKETS
Sullivan: Sales – 155, down 14. Avg. price - $167,204, down $9,230.

Washington TN: Sales – 145, up 38. Avg. price - $184,210, down $6,595.

Greene: Sales – 69, up 8. Avg. price - $149,094, up $25,219.

Hawkins: Sales – 47, up 2. Avg. price - $118,576, down $7,493.

Washington, VA: - 47, up 9. Avg. price - $131,618, down $25,262.

Carter: Sales – 37, down 8. Avg. price - $153,420, up $37,484.

Wise: Sales – 29, up 16. Avg. price - $88,907, up $526.

Scott: Sales – 16, up 9. Avg. price - $88,344, down $41,085.

Johnson: Sales – 9, down 6. Avg. price - $157,257, up $30,190.

Lee: Sales – 5, up 3. Avg. price - $71,300, down $73,700.

NETAR counts city sales as those in the high school zone. City sales and price data are included in the county totals.

 

 

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