Is the housing market slowing down? Current trends suggest it’s ‘leveling out’ in the Tri-Cities

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TRI-CITIES, Tenn. (WJHL) – Navigating the current housing market can be a headache, especially when you’re looking to buy.

From late 2020 to where we currently stand in 2021, the housing market has remained “hot” and booming. With high demand and low inventory, it’s certainly a seller’s market and that hasn’t changed, but a slight cool-down when it comes to the housing market could soon be coming to the Tri-Cities.

Realtors from across the region all agree it’s been one of the busiest years of their careers.

“I’ve been in the business for 22 years and I have never seen the market like this before,” said RE-MAX Checkmate Affiliate Broker Melissa Hicks.

Hicks sat down with News Channel 11 and touched on what she’s been seeing in recent months. She said the local housing market is transitioning to more normal conditions, but very slowly. According to the Northeast Tennessee Association of Realtors, prices were at all-time highs this past August and there is a slight increase in inventory, something Hicks said she is also seeing on a daily basis.

“Listings are increasing so inventory is increasing slightly, but the market is still hot. It is still very much hot,” she said.

While the market is slowing, Hicks said the proper term would be “leveling out” considering this slow down is nowhere near the one they’ve seen in recent years.

“End of October, beginning of November, all the way through to Valentine’s Day, that’s our typical slow time of the year, but who knows what this year is going to predict,” said Hicks.

Kelly Moran, a broker with HBX Realty of Keller Williams, said while the slowdown is good news for those looking to buy, people shouldn’t get too excited just yet. Demand and prices still remain high despite recent changes to inventory and interest. “The cooling is in regard to the multiple offer situations that buyers and sellers have been seeing for a year and that’s what’s sort of cooling off a little bit,” said Moran.

She said the cooling down or leveling out is centralized to our region at this time, as other states still continue to experience booms in some places and slow-downs in others. Here in the Tri-Cities, the multiple offers dying down seem to be the most notable change. Compared to late spring, Moran said a house would receive 10-15 offers in the first few days on the market, and now it’s about three to five, making it a little more accessible to have an offer actually accepted and contract drafted for hopeful first-time home buyers.

While Moran does not anticipate the switch to buyer’s market soon, she does see property values rising to an estimated 5% on a national scale.

“We are going to see a little bit of a leveling out over the next year but property values are going to continue to go up,” said Moran.

However, not everyone believes the market is cooling off here in the Tri-Cities. Real Estate Advisor for the Tim Stout Group Callie Weaks said she still believes Northeast Tennessee is such an affordable and attractive place to live, and those factors will keep the market here booming and competitive.

“It’s a different market everywhere so people are capitalizing on coming here and saying like, ‘hey, I can get this for this and still have room, I can build a house and do all this stuff,’ so in our particular market, I don’t see it dying down,” said Weaks.

Weaks, Hicks, and Moran all continue to work around the clock, helping their clients navigate the current housing market.

While buying a home right now may seem like a major headache, they all encourage those looking to buy not to give up.

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