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BY WAYNE PORTER
NETAR PRESIDENT

Last year, conventional loans dominated local home sales, but they didn’t have the highest sales price. That distinction went to Veteran Administration loans.

The primary counties in the region monitored by the Northeast Tennessee Association of Realtors® (NETAR) had 6,576 sales. The median sales price was $275,000, and the average sales price was $319,732. The average is a good description of an overall price point for all sales, but it can—and has been—skewed by sales in our market’s upper or luxury-priced homes. The median sales price is a better indication of property values because it is less affected by outliers that skew public market perceptions. It identifies the middle of the market. In other words, half of the sales were for more than the median price, and half were for less.

The average sales price for all sales was $8,207 less than the average list price.

Here’s how that same data looks for the major financing methods in a look at how each purchase instrument performed in last year’s market.

CONVENTIONAL LOANS
Share of all sales: 47%
Avg. sales price: $338,672
Median sales price: $295,000
Avg. difference sales to list price: $7,960 below list

CASH SALES
Share of all sales: 29.6%
Avg. sales price: $318,585
Median sales price: $260,000
Avg. difference sales to list price: $13,058 below list

FEDERAL HOUSING ADMINISTRATION
Share of all sales: 12.2%
Avg. sales price: $256,050
Median sales price: $241,000
Avg. difference sales to list price: $2,217 below list

VETERANS ADMINISTRATION
Share of all sales: 8.5%
Avg. sales price: $338,554
Median sales price: $300,000
Avg. difference sales to list price: $3,116 below list

Both the number and sale price for the local VA loan sales contrast some of the misinformation about them. Sellers wary of VA-backed loans are turning away from a sizable and growing segment of the local population. According to state and VA reports, the First Congressional District, which includes the Tri-Cities, accounts for more than half of all Tennesseans eligible for VA benefits.

The most current count shows veterans account for 8.4% of the Tri-Cities population. That’s a little over 46,255 people. If they were all in one town, it would be the third largest in the Tri-Cities region. The area has and continues to be a vet destination due to the low cost of living, a welcoming and accommodating business, health care, and education climate. And there is a concentrated effort to increase the local housing and services for the veteran population.

It’s a trend that holds big potential for local real estate professionals. Aside from the data on VA loans, Census data show that the typical veteran has a higher income than the average local resident.

The number of vets who are attracted to the Tri-Cities region is nowhere near the number of new nonveteran residents, but the status of the region’s veteran population is well worth tracking.