The Tri-Cities Market in 2021

The Tri-Cities Market in 2021
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Continuing our journey through our different markets, our next stop is in the Tri-Cities area of Tennessee. As we stated in our previous blog entry, “the pandemic provided the housing market with a degree of uncertainty—in the early stages, home sales slowed greatly and real estate saw a drop in year-over-year transactions. Then, as 2020 came and went, the market shifted to a seller’s market with low inventory across the nation. Home prices were increasing, and real estate investing only grew more popular.”

 

Looking ahead as we break into the Tri-Cities market, we invite you to join us in assessing its potential for the remainder of 2021.

 

 

The Tri-Cities Market in 2020

With the pandemic leading to a diminished supply of inventory and a large demand for homes nation-wide, it’s no surprise that the Tri-Cities area experienced growth. In December of 2020, donfenley.com reported that sales in the area overall were up 7% for the year. Looking at the sub-markets individually, Johnson City had 4.9% growth, Bristol had 4.3% growth, and Kingsport had 9.9% growth. The site also reports that Johnson City maintains the majority of the market share at 41.3%. Kingsport comes in second at 28.2%, and Bristol ranks third at 17.7% of market share.

 

In looking at realtor.com, all three cities have similar median price ranges. These prices are reported to be from $145,000 in Bristol to $189,900 in Johnson City. Currently, there are 182 homes on the market in Bristol, 512 in Kingsport, and 424 in Johnson City. Note that homes on realtor.com also include land-only deals as well.

 

For anyone ready to move into the Tri-Cities area, you should be prepared to face a scarce inventory of only 1.3 months supply of homes on the market (Northeast Tennessee Association of Realtors). The Tri-Cities region is ripe for growing, but the market is finding it difficult to keep pace. Competition is tight, and sale prices are at their height. According to NETAR, half of the homes sold in the previous month were on the market for 53 days or less. If you’re ready to take on the challenge, Johnson City, Bristol, and Kingsport are ready for investors in search of an area with projected growth through 2021 and beyond.

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