Signs for slowing price growth rate
May’s median existing-home sales price was 18.8% higher than it was in May 2020. That double-digit year-over-year trend has been consistent for 10 of the past 11 months. And while it’s less than the average sales price growth rate, it’s a better measure of the market.
It’s better because it sets the middle point for prices instead of the average, which has recently skewed higher with the sales of high-end homes.
At the same time, the difference between the median listing price and median sales price has moved into the double-digit range for the first time in six months. During May the discount was 12.8%. In February, the homes sold at the median listing price. During the other four months, discounts ranged from 2.6% to 6.3%.
Many market experts think that a return to seasonal patterns, which the local market has seen in the past two months, with slightly more inventory will moderate the price growth rate.
NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee, Southwest Virginia region, representing over 1,800+ members and 100+ business partners involved in all aspects of the residential and commercial real estate industries. Weekly market reports and information for both consumers and members are available on the NETAR website at https://netar.us