Need your help- explain this to me (Johnson City, Kingsport: for sale by owner, real estate)

[willow wind]

Browsing around on various homes for sale website/realtor website. Basically looking in the Gray/Jonesborough general area When I read the messages on these boards I see lots of concern over the difficulty of finding a job and the low wages paid for much of the employment in this region. Yet what I find is lots and lots of new, expensive houses and lots of what you might call McMansion subdivisions. Not our cup of tea and plenty of homes in all price ranges. But our curiosity is aroused. Who is buying these homes ? Is this an area of haves and have-nots ? Are these homes aimed at well off retirees while most of the rest of the populace just scrapes by ? If so, what does that mean for the region over the next 10-20 years.

[utvols21]

Ill be honest with you i have always wondered the answer to that question as well. They talk about how the population is growing and Eastman is hiring workers etc.. and they need to build these new homes but with price ranges that a normal avg american can not afford. I thik reasonable new homes should range between the 100,000 to maybe top price 200,000 range for a majority of the people. These new subdivisions are asking 400,000 to 700,000 and more and the jobs in this area that can afford that are few and far between. Maybe you are correct that the retirement in this area is very high because of the low cost of living and people can sell their 1,000 square ft house in california and New York for 800,000 and downsize to a 400,000 sq ft masion here. I think this will only help the area and maybe with population equals growth and more new business locating here to attract the younger work force.

[rccrain]

A lot of "those houses" are empty. I'd guess there are two years worth of McMansion inventory in the Tri. Meanwhile $100k homes are gone before you can call your Realtor for an appointment.

[jchometeam]

You are actually right on rccrain. I just did the numbers in Johnson City, and there is almost exactly a two years supply of inventory in the 400-800k homes. And yet our crazy developers still insist on building these homes.

You are also right about the below 100k range. If it is below 100k, not a mobile home, and is livable...it is taken up pretty quickly. If it is below 200k and priced right , it is not uncommon for them to be gone within a few weeks. If it is above 200k or a condo, good luck!

[Ted Bear]

Some time back..like six months or so ago...i was chastised for not representing the market for homes in the tri cities area accurately.....basically saying what you are saying now: You can just about name your price for the bigger homes IF the owner HAS to sell....there are tons of them available and the owners are stuck. In the medium price range, there is some sensible activity, and on the least expensive end, there is lots of demand. This pretty much fits the demographic of the area...which was temporarily skewed by a huge spurt in higher end medical jobs--many of which have now been filled.

Those 'high end lots' which you see offered at pretty choice prices are not selling. Pick a development ( and there are MANY) and you will see that nothing is selling....whether it be a place like Sawyers Pond to a place along the lake--some of which have 'reorganized' in an attempt to recast their offerings as more 'middle class'--nothing is selling. Places like Willow Springs Reserve have completely recast from an upscale development for older folks and professionals to a tract development with homes built by Orth. Nice enough, but not the $400,000 to $700,000 homes originally contemplated.

If you look around, thre is virtually no new custom home building going on. The buyers are gone, the banks won't finance the spec builders nor the homeowners, and the focus of most of the former "McMansion" builders is rehab/remodeling. The market is, as you point out, saturated with plenty of supply and no buyers.

I am confident that over time this will change as the local economy catches uo to the supply of homes. Things look out of control now, but it really isn't that bad. There are lots of people wishing to move into the Tri Cities area IF they could sell their current house....so when/if the market recovers over the next few years, lots of the housing supply in the area will be absorbed, and ten years or so from now those wishing/having to sell will be out, and the cycle will resume to the upside. Time and patience....

[coffeelover4.0]

I have noticed this same thing. There are tons of homes in the 400-700 price range and I just laugh when I see them because they are not really all that nice. No way I would buy a new home in the area now because it looks like it is getting ready to bottom out. There are going to be big time steals in a couple of years.

[JoeyBooth2]

Johnson City Homes for sale 400k-800k less than 70 for sale
Jonesborough/ridges for sale 400k-800k less than 30 for sale
numbers do not include for sale by owner house

[jchometeam]

Johnson City homes sold in 400-800k range closed in past 12 months = 31
Jonesborough homes sold in 400-800k range closed in past 12 months = 11

2 year supply in Johnson City
3 year supply in Jonesborough

[old_grouch]

Originally Posted by jchometeam

Johnson City homes sold in 400-800k range closed in past 12 months = 31
Jonesborough homes sold in 400-800k range closed in past 12 months = 11

2 year supply in Johnson City
3 year supply in Jonesborough

Where do you find this data? I see you are real estate agents -- is this something anyone has access to, or just real estate agents?

thanks.

[stwit]

There is a case of extremes here in the TriCities and Kingsport in particular: really cheap houses and then overpriced "Mansions". We've been buying, fixing and selling homes in the $100,000 range just because of the great need for nice homes at reasonable price. Older remodeled homes can provide great value and the added plus of prime locations.