Last month’s price drop was a reaction to the lack of inventory and buyer fatigue, especially in the $200,000 price range, according to NETAR President Eric Kistner.
“Our market is still very much on track for another record year. But there are some headwinds building,” Kistner noted.
The big issue, NETAR pointed out, is that two years of record sales have reduced the inventory of homes in the $200,000 price range to a point where much of what is on the market is not compelling enough to demand higher prices.
“Homes in that price range traditionally account for more than 70 percent of local existing home sales,” Kistner stressed.
Last month, there were 160 fewer listings than in September and 730 fewer than October 2016, Kistner said.
The region has a five-month inventory of homes on the market — roughly the same level since August. That is creating some buyer fatigue, which puts downward pressure on sales prices, according to NETAR.
NETAR’s Trends Report on market conditions in the 11-county region shows there were 575 closings on single-family home sales last month. That’s 35 more than September and 50 more than October 2016. Last month’s average sales price was $152,918, down $3,803 from last year and $19,695 less than September’s average.
So far this year, 5,281 single-family homes have closed — 130 more than during the first 10 months last year, and the average sales price is $7,535 (4.7 percent) better.
October was also a strong month in the condominium and townhome market. There were 59 closings, up 22 from October last year, and the average sales price of $127,912 was $11,458 better. October was the fourth straight month year-over-year prices have increased.
Year to date, 495 condo and townhome sales have closed. That’s a 21 percent increase (86 closings) from the first 10 months of last year. The average sales price is 4.4 percent ($5,302) better that last year.
The average single-family home sold in October was on the market for 125 days. The number of days on market for condo and townhome closings was 117 days.
In Kingsport, there were 55 sales, down six. The average price was $151,495, down $29,837.
For more, go to www.netar.us.