JOHNSON CITY, Tenn. (WJHL) — Millie Pendra wasn’t “absolutely” surprised Tuesday when she learned that Johnson City’s 37604 zip code was ranked #7 in the nation. at realtor.com “America’s Hottest Postal Codes” ranking — even with nearly 30,000 competitors.
“Tennessee is like three states: tax-friendly, beauty, and affordability,” the Century 21 realtor said in her office in the heart of a zip code that covers most of Johnson City. I love telling all buyers that.” It is on the west side of Route 26.
Pendola left his paralegal career two years ago to enter the real estate industry and has seen a very strong market around Tri-Cities. In fact, Kingsport’s zip code 37664 also made the top 50 at number 47.
“We had a lot of relocations from the California market, the Florida market, the New York market, and Washington DC. rice field. About three-quarters of her businesses are people who have immigrated from outside the region.
that’s right, realtor.com Affordability and relocation on a national scale were at least two of the three reasons 37604 was considered a hotspot. It was an opportunity for aspiring millennial homeowners, who own 56.9% of their homes in
According to realtor.com, the median price from January to June was $329,000 for 37604. According to Pendola data, the median list price year-to-date is $268,078. Anyway, it’s well below the national average of $450,000, and people who have sold elsewhere are coming to the area with plenty of cash. This is the 3rd lowest median list price among the top 10 most popular zip codes.
Pendola said all of his customers are here to take local jobs or work remotely, not to retire. for our market.
According to Pendola data, the average list price for July was $420,571 across 57 active listings, with a median of $300,000.
“It can get you here and elsewhere,” she said. There are big drivers out there because you can pay cash.”
What about affordable prices?
Will Crumley has built homes in the area, including 37604. There were houses so dilapidated that they were either vacant lots or had been demolished and replaced. He said demand for Johnson City was “unprecedented in our lifetime.”
Specifically, zip code 37604 does not have many new districts or subdivisions developed in recent years, and supply is limited, he said.
“A lot of these numbers are driven by demand alone,” he said. “People who come from here and those who move here want the amenities that downtown and town living offer. I think you’re looking for things like walkability and restaurants.”
While outsiders may still see the area as affordable, immigration and cash offers have steadily increased prices.
The median selling price for 37604 from January to July 2021 was $208,650. This means that half of the homes sold were purchased for less than that amount, and the other half were purchased for more. This year’s median price is $265,210, up 27% in just one year. The average price has increased by 18% from $255,548 to $301,894.
Available land is in short supply, and even landfills are now creating markets. Crumley says he never imagined growing up in Johnson City. Wilson Avenue, which runs parallel to West Market Street in the Mountain Home neighborhood, was the site of additional police patrols a generation ago for major drug trafficking problems, but has seen a revitalization in recent years. I was.
“We’re making over $200 a square foot in our new home,” said Crumley, who built on Wilson. In fact, records show that in October 2021 he bought a piece of land at 308 Wilson for $19,000, earlier this year he built a 1,008-square-foot home, and in April he bought the house for $214,900. sold at
Another lot at 419 Wilson was purchased in February of this year for $21,000 and an 884-square-foot home was built on it. Five months later, it sold for $200,000 ($226 per square foot).
Crumley said this is a boon for permanent residents, many of whom are moderately income.
“It helps revitalize old neighborhoods, bring new life into them, and increase property values for existing homeowners,” he said.
Crumley owns one house under construction on a landfill on West Chestnut Street and Wilson Avenue, but says buying such land is becoming increasingly rare.
Rare, but not completely unobtainable. Two of his homes under construction on his 100 block in West Chestnut were seen Tuesday afternoon. One was a demolition overseen by Sandra Walker of Walker Construction and Development, and the other was a vacant lot that Crumley was building, both of which are her two-story homes and he’s well over 2,000 square feet. I was.
“They’re selling as fast as I can get them built,” Walker said. I prefer to stay.
“We have a lot of customers, clients coming from Florida, Minnesota and California, and we want to build for them,” Walker said.
Even if inflation pushes rates higher, Walker, Crumley and Pendra all agree that Johnson City appears to be on a high demand and rising price trajectory, which is likely to continue for some time.
“I never thought Johnson City would become a hub, but yes, Johnson City has become a hub,” said Walker, who grew up here.
Pendra said Johnson City leaders “are doing a great job of optimizing for a growing population and believe their planning and zoning boards are enabling the creation of new residential areas. ” he said.
She said she believes demand is far from being met.
“I think it will continue. Again, beauty, tax generosity, and the affordability of our area are three things that are very attractive to people. I don’t think it will go away.”
While these fundamentals are good for Crumley’s business, he is concerned that rising prices are devaluing people who come from here for important middle-income jobs. .
In the first seven months of 2021, there were 186 active listings ranging from $100,000 to $200,000. This year he has 111, down 40%. Totals in the $200,000 to $300,000 range have changed little, with 108 last year and 117 this year. However, in the $300,000+ range, there were 154 listings this year, compared to 95 last year.
“A city can’t grow on the most expensive homes alone, at least in my opinion,” Crumley said. “True growth comes from growing across socioeconomic boundaries, people need those homes to move up, they need those homes to buy in the first place.”