As mortgage rates continue to increase, the Tri-Cities real estate market shows no sign of slowing down. In fact, the average selling prices of homes have skyrocketed to record levels. The average sales price in March was $266,385, 16.5% higher than last year. Johnson City had the highest increase in home prices, with the average home selling for a staggering $316,529. This was a 48.7% increase over March 2021. In fact, every single metro area in the Tri-Cities had a significant increase.
The availability of homes continues to be a struggle that 5% interest rates can’t seem to level out. With less than a month of available housing inventory, buyers are fighting over a scarce commodity. Red Door Agency has even had sellers back out of listing their home over fears they won’t be able to find something to move into once they sell. The outcome of which has been homes on the market for days, rather than weeks or months. The average single-family home went from listing to closed in only 45 days.
Another outcome of the market has been a decrease in the number of homes sold. You can only sell what’s for sale, and in a market where fewer and fewer comes are coming on the market, this has caused a steep decline in the number of residential real estate closings. Even in the middle of the COVID-19 pandemic in 2021, the real estate market had positive growth in regard to sold listings. However, the start of 2022 has already seen Kingsport, Johnson City, and Bristol, VA with a deficit. All told, there’s been a decrease of almost 100 homes in the first three months of the year.
Curious about how the current real estate market could impact your ability to buy or sell? Contact us today for a free, no-hassle consultation.