(WJHL) — The Northeast Tennessee Association of Realtors (NETAR) saw a drop in home sales in May, but the month also brought on a new peak in prices for real estate.
A news release from NETAR revealed that the median listing price has inched upward each month in 2022, with May’s median price nearly $19,000 more than listings seen in April.
“While it’s inevitable that rising prices will slow down in the coming months, it hasn’t happened yet,” stated President Rick Chantry in a news release. “Many of the metrics NETAR uses for monthly reports show declines when compared to last year.
“But last year was the strongest local housing market anyone can remember. Month-to-month comparisons tell a story that in some ways is typical of the peak home buying and selling season.”
In comparison to the median listing price, May’s typical sales price topped April’s by $30,000.
More listings and the slowing pace of sales improved inventory; however, houses available still drastically fall behind the inventory seen in a balanced market. According to NETAR, Northeast Tennessee had just over a month’s worth of inventory — a stark difference from the five to six months worth of inventory seen in a real estate market that is considered normal.
“There were 770 closings last month, down 34 from April and 58 fewer than May last year,” the NETAR release stated. “Last month’s typical sales price of $250,000 was up 31.6% ($40,100) from last year. The average was $303,622, up 30.9% ($71,598).”
May saw 101 sales involving properties over $500,000, and these high sales skewed the average price by raising it higher, NETAR noted.
Fewer homes have closed so far in 2022 compared to closings this time last year. NETAR revealed that 3,600 existing properties have closed — 138 fewer closings than in the first five months of 2021.
“From a trend perspective, we’re seeing sales decline and continued price increases,” Chantry said.
A home typically stayed on the market for 43 days before closing in May, with the average listing going under contract in just under two weeks.