Tri-Cities Real Estate Market Update | May 2022

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The Tri-Cities real estate market is at a crossroads. As interest rates rise to 6% or higher, buying power has decreased significantly in the past few months. For every 1% increase in interest rates, buying power decreases by around 10%. This means that a potential buyer that was looking at $250,000 homes at the beginning of the year, would now only be able to afford a $175,000 home. Not only is this going to have a drastic effect on overall cost of living, but the velocity at which homes have been selling is going to decrease. This, in turn, will lead to fewer homes being sold, and prices to decrease to pre-pandemic levels. However, this is not going to happen overnight. Expect these changes to happen over the next 6-12 months.

The market has already seen the availability of homes increase in just the past few months. At the end of May, the region had 1.05 months of inventory – up from 0.9 in March. Prices don’t appear to have been affected yet, but expect the median sales price to start to taper off within the next month or two. The average sales price in the Tri-Cities last month was $303,622, up 30.9% from last year.

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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