Tri-Cities Real Estate Market Update | April 2022

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As interest rates continue to rise to historic 13-year highs, the Tri-Cities real estate market is still going strong. For the first time in months, the inventory of available homes actually increased to 1.04 months, up from 0.9 in March. While this may not seem like much, it’s one of several signs that the housing market is starting to slow. Homes did close a week faster than in March, which to many in the industry signals that lenders, appraisers, and title companies aren’t as backed up with closings as they have been over the past few years. However, only time will tell if this is true. There were 790 closings last month, which was down 6.5% from last year. The prices of homes continue to entice sellers, but also frustrate buyers. The continued increase in prices, coupled with 5% or higher interest rates, has led to decreased buying power for potential homeowners. In fact, for every 1% increase in interest rates, buying power decreases by 10-12%. As an example, the average home price in the Tri-Cities in April was $263,098. Assuming a 2% change in interest rates (from the average of 3% in 2021), that means the average homebuyer in the Tri-Cities lost at least $52,619.60 in buying power.

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About the Author

Vance moved back to the Tri-Cities from Nashville, TN in 2020 where he worked in sales development for a Silicon Valley technology start-up. Before this, Vance worked in retail management for over ten years.

While Vance has lived all over the country, he attended East Tennessee State University for his undergraduate degree in Integrated Marketing Communications. He graduated Magna Cum Laude and with special honors from the College of Business and Technology. Vance went on to pursue his Masters in Digital Marketing from ETSU while working for Target as a store manager in the Knoxville/Chattanooga/Nashville markets.

In his spare time, Vance enjoys traveling (12 countries and counting!), and loves spending time outdoors with his dog, Miles, hiking, biking, kayaking, and camping. He is also an avid motorcyclist and loves spending the weekends riding through the Blue Ridge and Great Smoky mountains.

With his background in sales and customer success, Vance is determined to redefine the customer journey of home buying and selling to ensure that Red Door and its agents are the region's destination for real estate.

Awards & Designations

Google Certified Professional: Analytics & AdWords