December home sales surged, topping off a record year for the housing market in the 11-county area monitored by the Northeast Tennessee Association of Realtors’ Trends Report.
Carter County home sales were up by 25 over December 2014 and up by 16 over November. A total of 45 homes were sold locally in December in addition to three condominiums.
NETAR President Marsha Stowell said home sales hit record levels in May and never let up. “Last month was the strongest December we’ve seen since 2008 — the last normal market year before the Great Recession hit the local economy. Compared to 2008, annual sales are up by 925 homes,” she added.
According to the report, there were 444 closing on existing home sales last month. That’s a 19.4 percent improvement from December last year. The annual total was 5,287, up 9.6 percent from 2014.
There were 43 condominium closings, a 26.5 percent increase from December last year. That annual volume was 419, up 1.7 percent.
December’s average home sales price was $159,445, up 7.5 percent from the same month last year. The average condo sales price was $122,493, down 1.1 percent.
According to NETAR figures, the average home price for sales in Carter County during December was $116,325, up from $92,515 in December 2014, and $103,815 in November 2015. The average price of a condo sold locally in December was $84,967.
Local realtor Jimmy Street of Street’s Realty agreed with Stowell that 2015 was a much better year for the real estate market. “It’s still a good market locally, and little by little we are seeing an improved economy, which makes it better for the real estate market. With the interest rate staying low and the economy growing, it’s a good time to buy a home,” he said.
Street attributed the lower home prices in Carter County — the average lowest in the area — to a lower pay scale than surrounding counties. “The pay scale is much higher in Sullivan and Washington counties. The job market is better, which makes for a better market overall and does result in higher home prices. Home prices here tend to run 10 to 15 percent lower than surrounding counties, but that’s not a bad thing, if you’re in the market for a home,” he explained.
December’s average home sales price area-wide was $159,445, up 7.5 percent from the same month last year. The average condo sales price was $122,493, down 1.1 percent.
“During 2015 we saw three straight months when sales broke the 500 mark for the first time, and annual sales broke the 5,000 mark,” Stowell said.
The annual average sales price was a 3 percent improvement from 2014. Consumer confidence — bolstered by strong labor market reports and affordable home prices — were the primary market drivers, Stowell said.
The 2015 dollar value for sale of single-family homes and condos listed with the regional multiple listing service was $849.1 million.
December’s inventory was 4 percent lower than December last year. Inventory was tighter all year but not enough to exert a negative pressure on the market.
The average single-family home sold last month was on the market for 150 days, down from 165 days a year earlier. Days on market for December condo closings was 166 compared to 216 last year.