Demand for Homes Remains Strong in Low-Cost Cities
New York, NY, October 25, 2022-Home-buying demand remained robust in low-cost cities with strong local economies in the third quarter, helping lift Johnson City, Tennessee, to the top of The Wall Street Journal/Realtor.com Emerging Housing Markets Index.
“Rising mortgage rates have made most home purchases less affordable and pushed many buyers out of the market. Existing-home sales dropped for eight straight months through September. Homes are sitting on the market longer, and more sellers are cutting prices.
“Buyers’ focus on affordability benefited Johnson City. The metro area’s median listing price was $379,000 in September, up 27% from a year earlier, according to Realtor.com, while median list-price growth nationwide was 14%. Johnson City’s median listing price was $48,000 below the median listing price nationwide last month.
“Johnson City, a metro area of about 205,000 people, was followed in the rankings by Visalia, California; Elkhart, Indiana; North Port, Florida; and Fort Wayne, Indiana.
“‘These more affordable markets continue to offer some opportunity,’ said Danielle Hale, chief economist at Realtor.com. ‘It doesn’t mean that they’re not seeing a slowdown in their housing markets, but they’re better positioned generally.’”