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East Tennessee Real Estate & Neighborhood Source

Homes for sale in East Tennessee : MARCH 2022 Housing Market Update

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In today’s video, we dive into the East Tennessee real estate data for the month of March 2022 to see how the East Tennessee housing market is doing compared to one year ago.

We will look at the inventory of active homes for sale in East Tennessee. Homes for sale in Knoxville TN, homes for sale in Farragut TN, homes for sale in Knox County TN, homes for sale in Loudon County TN, homes for sale in Anderson County TN, homes for sale in Roane County TN, homes for sale in Blount County TN, and homes for sale in Sevier County TN. We will also look at what has happened to the median sales price of homes over the last year in those areas of East Tennessee. We will discuss the real estate data and how it affects buyers and sellers in today’s East Tennessee housing market. We discuss the extremely hot market for real estate investing in Sevier County and the areas of Gatlinburg, Pigeon Forge and the Smoky Mountains.

Here is some basic real estate data and news in regards to the East Tennessee housing market not covered in the video that covers the housing market ending in 2021 and the last few months:

Seasonally adjusted home sales in the Knoxville TN Area declined 6.1% in March despite continued year-over-year gains.

Key Highlights:

-Knoxville, TN area home sales were strong in March — up from the prior month and 13% from a year ago.

-Median home sales price in East Tennessee was $301,880 in March — up 21% from a year ago.

-Total housing inventory in Knoxville TN declined for the sixth consecutive month — down considerably from a year ago and enough to last less than one month at the current sales pace.

-Half of the homes sold in Knoxville TN in March were on the market for less than 4 days.

Bottom Line: Seasonally adjusted home sales in East Tennessee declined for the fourth consecutive month, a clear sign that lack of supply is constraining the market and hampering further gains. Rising sale prices in Knoxville TN combined with further median DOM decreases suggest demand remains high — and likely to remain elevated throughout the year. At this point, there are no indications that supply will rise in the short term.

A scientific poll commissioned by KAAR (Knoxville Area Association of REALTORS) in March shows more than 1 in 3 registered voters — 34 percent — indicated housing affordability in the Knoxville TN area was a very or fairly big problem. 28 percent said the same about housing availability. That being said, Urban Land Institute’s Terwilliger Center Home Attainability Index for 2021 ranks Knoxville, TN as the 5th most affordable region in the United States.

In their latest migration trends report comparing cities across the country, U-Haul ranked Knoxville No. 7 on its list of top 25 U.S. growth cities.

Have questions or need help in today’s crazy East Tennessee housing market? Contact the Troy Stavros team at CornerStone Realty Associates at 865-999-0925 today. We are here to serve you! #chimein #888388DOOR

South Knoxville home for sale! 3700 S. View Circle, Knoxville, TN 37920

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Amazing layout! Located in South Knoxville with easy access to Downtown Knoxville, McGee Tyson Airport, and less than an hour drive to Smoky Mountain National Park, Pigeon Forge, and Gatlinburg. Enter through the front door to soaring ceilings and a winding staircase. Just off the foyer is access to the main level owner’s suite featuring vaulted ceilings and a bath with a whirlpool tub, separate shower, dual sinks, and a large walk-in closet. At end of the foyer, you enter the two-story great room with a wall of windows giving off an abundance of natural light. Access the oversized deck from the great room and see the rolling hills of Tennessee in the distance. A formal dining room with more windows is located between the great room and the eat-in kitchen. Upstairs you’ll find 3 additional bedrooms and a bonus loft that looks out over the great room. Amazing opportunity to expand with another 1560SF in the unfinished, framed, plumbed walkout basement. This place has showplace potential!

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Homes for sale in West Knoxville – 6536 Airtree Lane, Knoxville, TN 37931

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OPEN HOUSE THIS SUNDAY FROM 12-5PM! This will be the first available time to see this home so make plans to come out! Located at 6536 Airtree Lane, Knoxville, TN 37931. Super cute 2 story home tucked away in convenient West Knoxville location close to shopping, schools, etc. 3-minute walk to the neighborhood pool and clubhouse. Newer updates include a covered patio overlooking the completely fenced backyard and an updated HVAC system. Inside you’ll enjoy hardwood floors, crown molding, and a fireplace in the large family room. The kitchen with island features quartz counters, custom backsplash, and stainless steel appliances. An oversized formal dining room/flex space finishes off the main level. Upstairs you’ll find the owner’s suite complete with tray ceiling and a bath with updated shower with glass door, as well as double vanities, garden tub, and a walk-in closet. 2 additional bedrooms up plus a large bonus room which could serve as a 4th bedroom. OFFERED at $350,000.
Have questions or want to schedule a private showing? Contact the Troy Stavros TEAM at CornerStone Realty Associates at 865-999-0925

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Homes for sale in East Tennessee… Where are they at?!

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One key question that’s top of mind for homebuyers in East Tennessee this year is: why is it so hard to find a house to buy? The truth is, we’re in the ultimate sellers’ market, so East Tennessee real estate is ultra-competitive for buyers right now. The number of buyers searching for a home in the Greater Knoxville area greatly outweighs how many homes are available for sale.

While low inventory in the East Tennessee housing market isn’t new, it’s a challenge that continues to grow over time. Here’s a look at two reasons why today’s housing supply is low and what that means for you.

1. New Home Construction Fell Behind for Several Years

The graph below shows new home construction for single-family homes over the past five decades, including the long-term average for housing units completed. Builders exceeded that average during the housing bubble (shown in red on the graph). The result was an oversupply of homes on the market, so home values declined. That was one of the factors that led to the housing crash back in 2008.

Since then, the level of new home construction has fallen off. For the last 13 straight years, builders haven’t been able to construct enough homes to meet the historical average (as illustrated in green on the graph). That underbuilding left us with a multi-year inventory deficit going into the pandemic.

Buyers Want To Know: Why Is Housing Supply Still So Low? | MyKCM

2. The Pandemic’s Impact on the Housing Market

Then, when the pandemic hit, it fueled a renewed appreciation and focus on the meaning of home in East Tennessee. Having a safe space to live, work, school, and exercise became even more important for Americans throughout the country. So, as mortgage rates dropped to at or below 3%, buyers eagerly entered the market looking to capitalize on those low rates to secure a home that would fulfill their changing needs. At the same time, sellers in East Tennessee hesitated to put their houses on the market as concerns about the pandemic mounted.

The result? The number of homes available for sale in East Tennessee dropped even further. A recent article from realtor.com explains:

“Last month, the number of home listings dropped 26.8% compared with the same time a year earlier. This meant there were about 177,000 fewer homes listed in what’s already typically a slower month due to the holidays and colder weather. . . .”

What Does All of This Mean for You?

For a buyer in East Tennessee, low inventory can be a challenge. You want to find the home of your dreams, and you don’t want to settle. But what if there just aren’t that many homes to choose from?

There is some good news. Experts are projecting more homes will soon become available thanks to sellers re-entering the market. Danielle Hale, Chief Economist at realtor.com, shares this hope, but offers perspective:

“We expect that we’ll start to see a turnaround and inventory will stabilize and start to go up a little bit in 2022. . . . But that means we’re looking at inventory levels of roughly half of what we saw before the pandemic. For buyers, the market is likely to continue to move fast. If you see a home you like, you want to jump on it right away.”

Basically, inventory in East Tennessee is still low, very low, HISTORICALLY LOW, even though more homes are coming. But you shouldn’t put your plans to buy a home on hold because you’re waiting for those additional houses to hit the market.  Instead, stick with your search and persevere through today’s low inventory. You can find your next home if you’re patient and focused.

Remember your goals and why finding a home is so important. Those things should be the driving force behind your search. Share them with us and be clear about your priorities. Your trusted advisor is your greatest support as you navigate today’s low housing supply to find the home of your dreams.

Bottom Line 

If you’re planning to buy this year in East Tennessee, the key to success will be patience given today’s low inventory. Let’s connect to discuss what’s happening in our area, what homes are available, and why it’s still worthwhile to prioritize your home search today.

Contact us, the Troy Stavros TEAM at CornerStone Realty Associates today with any questions or to talk about getting the process started.

East Tennessee Housing Costs and Inflation: Is It Smart To Buy A Home Now?

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If you’re following along with the news today, you’re probably hearing a lot about record-breaking home prices in East Tennessee, along with rising consumer costs, supply chain constraints, and more. And if you’re thinking about purchasing a home in the Knoxville area this year, all of these inflationary concerns are likely making you wonder if you should wait to buy. Investopedia explains that during a period of high inflation, prices rise across the board. And while East Tennessee home prices aren’t immune from this increase, here’s why inflation shouldn’t stop you from buying a home in 2022.

Homeownership Offers Stability and Security

Home prices in East Tennessee have been increasing for quite some time, and experts say they’re going to continue to climb throughout 2022. So, as a buyer, how can you protect yourself from rising costs for things like food, shelter, entertainment, and other goods and services? The answer lies in housing.

Buying a home allows you to lock in your monthly mortgage payment for the foreseeable future. That means as other prices in East Tennessee rise, your monthly payment will be consistent thanks to your fixed-rate mortgage. This gives you the peace of mind that the bulk of your housing costs is shielded from inflation.

James Royal, Senior Wealth Management Reporter at Bankrate, says:

“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”

If you rent in Knoxville, you don’t have that same benefit and you won’t be protected from rising housing costs. As an added incentive to buy, consider that today’s mortgage interest rates are lower than they have been in decades. While inflation decreases what your dollars can buy, low mortgage rates help counteract it by boosting your purchasing power so you can get more home for your money. They also help keep your monthly payments down. This is especially important during an inflationary period because you’ll want to protect yourself from the impact of inflation as much as possible.

Ali Wolf, Chief Economist at Zonda, explains:

“If you have cash and are expecting inflation, you want to think through where you can put your money so it does not lose value. Housing is commonly looked at as a good inflation hedge, especially with interest rates so low.”

Bottom Line

The best hedge against inflation is a fixed housing cost. That’s why you shouldn’t let it stop you from buying a home in East Tennessee this year. Not sure where to start? Let’s connect so you have expert advice and help throughout every step of the homebuying process.

Call/Text/DM the Troy Stavros TEAM at CornerStone Realty Associates at 865-999-0925 today.

East Tennessee Homes For Sale at Historically Low Inventory Levels

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The East Tennessee housing market is starting off 2022 with 20% less inventory than a year earlier. In addition, the number of newly listed East Tennessee homes for sale fell 6.7% year over year.

We’re kicking off yet another year with a whole lot of buyers whose home search has been going on for months, and they are as eager to buy a home in East Tennessee as ever. This month, the stage will be set for the 2022 housing market, and we’ll be closely watching whether prices climb like they typically do in January or whether they start off high and then slow down due to rising mortgage rates.

Over the last year, the median home sales price in East Tennessee rose 20.16% year over year to $279,000.

Homes with a Knoxville, TN address saw prices rise 17.41% to $290,000.

Farragut, Tennessee, a higher-priced suburb saw median homes prices increase 26.6% to $524,750.

We also saw the average price per square foot of a home sold in East Tennessee rise from $146.62SF to $179.22 year over year.

Both pending and sold homes in East Tennessee witnessed increases. Year over year there was a 6.4% increase in homes pending sales and an 8.5% increase in homes sold.

Another result of the low inventory/high demand conditions is the decrease in the median number of days a home that sold in East Tennessee sat on the market. A year ago, this number was at 13 days, but during the four-week period ending December 31st, it was only 5 days days. A 61.54% decrease!

Homebuyers, however, do have some reasons to be optimistic. While we can’t expect prices to decline, as we head into spring, agents are expecting more listings to come on the market.

Have questions? Want to talk about buying or selling a home in East Tennessee? Call/Text the Troy Stavros TEAM at CornerStone Realty Associates today at 865-999-09825.