Townhomes in Tri-Cities lead housing market performance

The demand for townhomes in the Tri-Cities region continues to rise steadily, indicating a preference for affordable and low-maintenance housing options among homebuyers. April’s market performance for townhomes in the area suggests an accelerated shift towards normalization compared to the broader housing market trends.

Notably, townhome prices saw a significant increase of 10.3% from the previous year, reflecting a consistent upward trend in appreciation rates. In contrast, the housing market at large experienced a more modest price growth of 0.3% in April, as reported by the Northeast Tennessee Association of Realtors (NETAR). However, experts predict that this rapid price appreciation may slowly moderate in the upcoming months as the supply of townhomes aligns with the growing demand.

While sales volume for townhomes declined in April, mirroring the overall market trend, this drop can be attributed in part to seasonal factors. Moreover, the housing market is transitioning away from the unsustainable rapid growth seen in the first half of the previous year, contributing to the decrease in consumer demand. The average time townhomes spent on the market before being sold varied significantly across different submarkets in the region, as highlighted in the May Realtor Property Research report.

Here is a breakdown of the median days townhomes spent on the market before being sold in various submarkets:

1. Johnson City: Median of 3 days.
2. Bristol, TN: Median of 8 days.
3. Bristol, VA: Insufficient data for the time on market analysis.
4. Abingdon: Median of 12 days.
5. Median 14 days.
6. Median 22 days.
7. Piney Flats: Median of 27 days.
8. Insufficient data for time on market analysis.

In April, the townhome market in the Tri-Cities region demonstrated the following key metrics:

1. Closed sales: 96, down by 5.9% from the previous year.
2. Median sales price: $215,000, marking a 10.3% increase from the previous year.
3. Average sales price: $226,547, up by 10.9% from the previous year.
4. Average days on market: 37, an increase from 31 days in the previous year.
5. Inventory: 153 active listings, reflecting a 33% rise from the previous year.
6. Total sales volume: $21.75 million, an 8.5% increase from the previous year.

Although buyers currently have the upper hand in the market due to affordability concerns and the area’s status as a seller’s market, sellers are facing increased pressure to strategically price their properties to attract buyers in the competitive landscape. As competition intensifies and buyers become more selective, sellers must adapt their pricing strategies to suit market conditions effectively.