Economic/housing conditions (Johnson City, Kingsport, Bristol: days on market, for sale, real estate)

[bound2TN]

Last year there was a thread about the above subject including a quote about the local housing market. I am wondering what the situation is now? Thanks

Kingsport-Bristol home sales price post another gain; magazine ranks Johnson City as real estate safe haven - Kingsport Times-News Online

[kamoshika]

Last year, home prices fell around the region except in Kingsport.

NE Tenn. - 3924 homes sold in the NE Tenn region during 2008 - 993 fewer than 2007. (-20.2% )
The average sales price dropped $7,107 to $145,653. That a 4.64% decrease.

Kingsport - 1161 homes sold in 2008 - 338 fewer than 2007 (-22.5% )
The average sales price was: $144,657 (+5.6%)

Johnson City - 1738 homes sold - down 418 from 2007 (-19.3% )
The average sales price was $169,097 (-3.1%)

Bristol - 522 homes sold - 84 fewer than 2007 ( -13.8% )
The average sales price was $144,181 (-6.4%)

Greeneville - 503 homes sold - 155 fewer than in 2007 (-23.6% )
The average price was $124,676 (-14.2%)
Kingsport 2008 home sale prices up 5.6%, total sales down - Kingsport Times-News Online

More info:
Cost of new housing rises in Kingsport - Kingsport Times-News Online
Kingsport jobless rate at 8.4%; all area cities, counties, MSAs post increases - Kingsport Times-News Online
Tri-Cities Retail Sales Report Third Quarter 2008

[Tony1790]

Overall NE TN is holding up fairly well compared to places like CA, FL, WA, AZ, etc. However, the economy has taken a bit of a turn, so I'm not sure if TN will escape the full effect. Land has taken a beating, I have a large tract of land that hasn't sold and I've talked with a few realtors and investors that have said land and some of the high end homes are just sitting. Hopefully things will pick up in the spring, loans are fairly cheap right now, assuming you can get one.

Tony

p.s. Where is mbmouse and JChometeam, they'll know the strength of the current housing market better than anyone here.

[Beretta]

Originally Posted by Tony1790

Overall NE TN is holding up fairly well compared to places like CA, FL, WA, AZ, etc. However, the economy has taken a bit of a turn, so I'm not sure if TN will escape the full effect. Land has taken a beating, I have a large tract of land that hasn't sold and I've talked with a few realtors and investors that have said land and some of the high end homes are just sitting. Hopefully things will pick up in the spring, loans are fairly cheap right now, assuming you can get one.

Tony

p.s. Where is mbmouse and JChometeam, they'll know the strength of the current housing market better than anyone here.

mbmouse is busy and has been off duty for a week and a half. She hopes to be able to return tomorrow or Thursday. I haven't seen JChometeam.

[jchometeam]

Here is what I am seeing:

cheap houses are selling very quickly. Large houses and most land is taking much longer to sell.

Yes, the volume of homes did decrease this past year, and the last quarter of 08 was absolutely terrible. Overall this area's prices are holding more steady than most of the country. Prices are steady to maybe a little lower, but nowhere near the 20%+ drop that much of the country has suffered through.

I believe there are a couple reasons: First, this area has alot of regional/smaller banks that did not get involved in the sub prime mess. Therefore foreclosures are not nearly as common here and we dont have as many people in interest only loans. And actually, foreclosures are not nearly as good of a deal here as they are in much of the country. Most of the sellers in this area dont HAVE to sell. Therefore they can accept the longer days on market, and wait for the house to sell. This has kept prices fairly stable, while pushing days on market up a good bit.

In the last month or so, things have picked up a little with the low mortgage rates.

Thats my sense from where I am at. We will know alot more in the next 4-6 months. If we are slow in the normal peak time, I dont see much reason for Sept.-Dec. to be very good. I would be interested to see what others are seeing out there, especially lenders.

[Josh Woods]

JCHomeTeam:

I have seen a few things that match what you are seeing:

1. Local Banks are just now starting to suffer. I deal with three local banks and they are now starting to take back some of the loans that they have given out. This is coming from people losing their jobs and cut backs who were good borrowers, just fallen on hard luck.

2. The "clientale" in this area is a group who can afford to sit on things a bit longer than most. Most people in this area are good borrowers who often can put down a large chunk of money, so it takes longer to get in trouble.

Running an auction company with my uncle, I have seen in the last two months a mamoth amount of condo developers coming to us about auctioning their properties. In the last 3 weeks, over 45 condo's have went to auction in the area that have never been lived in. Prices on the ones that are selling are falling into the $85-90.00 per sq.ft. range.

With over 150 condo's in the Johnson City area alone still for sale that have never been lived in and the tightening of financing for these units from lenders, I believe that our condo market is what will get hit the hardest.

I personally have experienced a good Jan 2009, but I had some buyer's sitting on the fence who were good borrowers with 20% down who waited for the right deal to come along and when financing hit 4.5% @ 30yr, they jumped on board.

[mbmouse]

Hi Ya'll, I'm back!(Thank God!) been stuck in CA for the past 9 days. Yuck!
I agree with the last two posts. Condo's have taken a beating and a lot of that is because back in the beginning of 08 started the declining market for condos across the country and the first market the national lenders backed out of. They would just not touch a condo, period. Unfortunately, that is when a lot of condos in this area were just about being finished up because they were suddenly being built like a wild fire spreads.
Been doing some refi's, appraisals seem to be coming in very conservative (lots of crack downs on appraisers right now) and folks are still seeing an equity increase, a few were very surprised to see more of a growth than they thought. So all in all, from what I am seeing first hand, property values are still holding and on the same slow steady growth we have seen in the past here in N.E.TN. It is between a 4%-7% per year equity growth, depending on the locality.

[DADDYO49]

Originally Posted by kamoshika

Last year, home prices fell around the region except in Kingsport.

NE Tenn. - 3924 homes sold in the NE Tenn region during 2008 - 993 fewer than 2007. (-20.2% )
The average sales price dropped $7,107 to $145,653. That a 4.64% decrease.

Kingsport - 1161 homes sold in 2008 - 338 fewer than 2007 (-22.5% )
The average sales price was: $144,657 (+5.6%)

Johnson City - 1738 homes sold - down 418 from 2007 (-19.3% )
The average sales price was $169,097 (-3.1%)

Bristol - 522 homes sold - 84 fewer than 2007 ( -13.8% )
The average sales price was $144,181 (-6.4%)

Greeneville - 503 homes sold - 155 fewer than in 2007 (-23.6% )
The average price was $124,676 (-14.2%)
Kingsport 2008 home sale prices up 5.6%, total sales down - Kingsport Times-News Online

More info:
Cost of new housing rises in Kingsport - Kingsport Times-News Online
Kingsport jobless rate at 8.4%; all area cities, counties, MSAs post increases - Kingsport Times-News Online
Tri-Cities Retail Sales Report Third Quarter 2008

Thanks so much for this great information. Suffice it to say that although I am retired; I have various health issues ( along with my disabled adult step-son ) who resides with my wife and I so..........good health care is very important to us + I would like to be able to buy a new or newer townhouse/condminium with lower upkeep......I would love to retire to Tri-City Tn area.....are there specific towns or communities and/or condominums/ gated communities that would fulfill my medical & residential needs ?
Thanks...DK