Tri-Cities area condo sellers get extra $11,000 per sale
GRAY, Tenn. – Tri-Cities sellers are getting an average of $11,000 more per townhome/condo sale in NETAR’s primary service area while the number of sales is down 26% from August last year. The sales decline is more of an inventory issue than a lack of product popularity.
So far this year 277 condo sales have closed. The typical sales price is $162,500. The average time on the market was 46 days. That’s almost 10 days better than the single-family time on the market.
Demand for townhomes and condos has increased with the rising cost of single-family homes and higher mortgage rates. Builders are increasing the output of townhomes and condos, but some of those are being redirected to the build-to-rent status to cash in on the surging demand and rent hikes. Builders are being advised to shift their marketing toward renters and focus on converting the 25% of current homeowners who would rather rent than own and those renters who don’t like apartment living.
Townhomes rentals is the apartment community’s top competition because a growing number of renters have some wants apartments don’t offer. They want their own small backyard. They don’t want someone living above or below them. Townhome and single-family rentals also tend to be more pet-friendly than apartments.
Currently, the vacancy rate for the Tri-Cities’ 6,500 apartments is 3.3%. The only other East Tennessee metro area with a lower vacancy rate is Knoxville.
The overall vacancy rate for the region’s 65,983 single-family and townhome rentals is 2.6%. It’s higher in the less desirable locations and lower in others. Some zip codes in Attom Data Solutions’ current vacancy report have no single-family rental vacancies.
Cash sales in the condo market have increased from 45% during the first eight months of last year to 51% this year. Half of those cash buyers are paying an average of $1,800 above the list price this year. This time last year they were getting a typical deal $700 below the list price.
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 1,600+ 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