Troy Stavros, Author at 865 Real Estate

Thinking of Selling Your Home? Waiting Might Be The Hardest Part

October 29, 2019 By Troy Stavros

Tom Petty famously penned the words, “the waiting is the hardest part” in his early 80’s hit song The Waiting, and his thought process can surprisingly also be applied to individuals considering selling their homes today. Traditional thinking would suggest it may be best to wait until the spring to sell when there is a flood of buyers in the market, but right now may, in fact, be an even better time to list your home.

We can see the overall economy is good: wages are rising, there are near-record-low unemployment rates, and mortgage interest rates are still very low too. Over the past 10+ years, the housing market has stabilized, so what (if anything) is the biggest challenge in the housing market today?

The answer is simple: it’s inventory.

According to the Existing Home Sales Report by the National Association of Realtors,

“Total housing inventory at the end of September sat at 1.83 million, approximately equal to the amount of existing-homes available for sale in August, but a 2.7% decrease from 1.88 million one year ago. Unsold inventory is at a 4.1-month supply at the current sales pace, up from 4.0 months in August and down from the 4.4-month figure recorded in September 2018.”

What does this mean?

While homes are coming to the market, they aren’t coming fast enough! Right now, across the country there are less than 6 months of overall inventory of homes for sale, putting us in a seller’s market. The challenge is that there are not enough homes for sale to increase the supply needed for the number of people who want to buy, especially in the starter and middle-level markets.

To be in a balanced market (meaning we have enough inventory for the number of buyers in the market), we need to have 6 months of inventory available. Today we are nowhere near that number, and as a matter of fact, the last time we reached that height was August 2012 (as shown in the graph below):

When we look at the inventory challenge today, we can see that now is a great time to sell your house. Truthfully, waiting may end up being the hardest part in the long run. This landscape is a great place for sellers who own homes in the starter and middle-level markets to take the opportunity to sell in a sellers’ market before inventory catches up with demand. Serious buyers are actively in the market and ready to make a move at this time of year. When inventory is limited at the lower end, like it is today, selling before more homes are listed could mean a significant seller’s advantage to those who are ready to move up. The upper level of the market has much more inventory available to move into, so it’s a win across the board.

Bottom Line

If you’re considering selling your home, don’t wait – now is the time to make your move! Take advantage of the high housing demand and the low inventory of homes for sale at the lower end of the market and use your purchasing power while mortgage rates are low to go after the move-up home of your dreams. Let’s get together to decide if now is the right time for you.

Have questions or ready to get the process started? Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-205-6899 today!

3 Reasons the Current Real Estate Market is NOT like 2008

October 22, 2019 By Troy Stavros

No one knows for sure when the next recession will occur. What is known, however, is that the upcoming economic slowdown will not be caused by a housing market crash, as was the case in 2008. There are those who disagree and are comparing today’s real estate market to the market in 2005-2006, which preceded the crash. In many ways, however, the market is very different now. Here are three suppositions being put forward by some, and why they don’t hold up.

SUPPOSITION #1

A critical warning sign last time was the surging gap between the growth in home prices and household income. Today, home values have also outpaced wage gains. As in 2006, a lack of affordability will kill the market.

Counterpoint

The “gap” between wages and home price growth has existed since 2012. If that is a sign of a recession, why didn’t we have one sometime in the last seven years? Also, a buyer’s purchasing power is MUCH GREATER today than it was thirteen years ago. The equation to determine affordability has three elements: home prices, wages, AND MORTGAGE INTEREST RATES. Today, the mortgage rate is about 3.5% versus 6.41% in 2006.

SUPPOSITION #2

In 2018, as in 2005, housing-price growth began slowing, with significant price drops occurring in some major markets. Look at Manhattan where home prices are in a “near free-fall.”

Counterpoint

The only major market showing true depreciation is Seattle, and it looks like home values in that city are about to reverse and start appreciating again. CoreLogic is projecting home price appreciation to reaccelerate across the country over the next twelve months.

Regarding Manhattan, home prices are dropping because the city’s new “mansion tax” is sapping demand. Additionally, the new federal tax code that went into effect last year continues to impact the market, capping deductions for state and local taxes, known as SALT, at $10,000. That had the effect of making it more expensive to own homes in states like New York.

SUPPOSITION #3

Prices will crash because that is what happened during the last recession.

Counterpoint

It is true that home values sank by almost 20% during the 2008 recession. However, it is also true that in the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6%.

Price is determined by supply and demand. In 2008, there was an overabundance of housing inventory (a 9-month supply). Today, housing inventory is less than half of that (a 4-month supply).

Bottom Line

We need to realize that today’s real estate market is nothing like the 2008 market. Therefore, when a recession occurs, it won’t resemble the last one.

Have questions or want to get the home buying or selling process started? Call/Text me, Troy Stavros with CornerStone Realty Associates today at 865-205-6899.

Your Real Estate Agent Needs To Be More Than A Guide

October 11, 2019 By Troy Stavros

In a normal housing market, whether you’re buying or selling a home, you need an experienced guide to help you navigate the process. You need someone you can turn to who will tell you how to price your home correctly right from the start. You need someone who can help you determine what to offer on your dream home without paying too much or offending the seller with a low-ball offer.

We are, however, in anything but a “normal market” right now. The media is full of stories about an impending recession, a trade war with China, and constant political upheaval. Each of these potential situations could dramatically impact the real estate market. To successfully navigate the landscape today, you need more than an experienced guide. You need a ‘Real Estate Sherpa.’

A Sherpa is a “member of a Himalayan people living on the borders of Nepal and Tibet, renowned for their skill in mountaineering.” Sherpas are skilled in leading their parties through the extreme altitudes of the peaks and passes in the region – some of the most treacherous trails in the world. They take pride in their hardiness, expertise, and experience at very high altitudes.

They are much more than just guides.

This is much more than a normal real estate market.

The average guide just won’t do. You need a ‘Sherpa.’ You need an expert who understands what is happening in the market and why it is happening. You need someone who can simply and effectively explain it to you and your family. You need an expert who will guarantee you make the right decision, even in these challenging times.

Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Bottom Line

Hiring an agent who has a finger on the pulse of the market will make your buying or selling experience an educated one. Contact Troy “Sherpa” Stavros (Ha!) with CornerStone Realty Associates for answers to your questions and a guide to get you through the process of buying and/or selling a home.

3 Signs The Housing Market Is Stepping It Up A Notch

October 3, 2019 By Troy Stavros

The residential real estate market has been plodding along for most of the year. However, three recent reports show the market may be on the verge of a rebound:

1. Existing Home Sales (closed sales) are up, marking two consecutive months of growth.

2. Pending Home Sales (contracts signed) are up with each of the four major regions reporting both month-over-month growth and year-over-year gains in contract activity. Here is the month-over-month growth:

The Northeast rose 0.7%
The Midwest increased 0.6%
The South increased 1.4%
The West grew 3.1%

3. Buyer Traffic (the number of people shopping for a home) is up compared to the same time last year, and for the first time in 13 months.

The Northeast is up 5.9%
The Midwest increased 1.3%
The South is up 2.7%
The West grew 2.2%

In their most recent report, ShowingTime Chief Analytics Officer, Daniil Cherkasskiy explained:

“The trend we saw in year-over-year buyer traffic in previous months continued across the United States. For all four regions there were more showings per listing this year compared to last year, making it the most competitive August in the last five years.”

Lawrence Yun, Chief Economist with the National Association of Realtors, believes the uptick in activity will continue into the future:

“It is very encouraging that buyers are responding to exceptionally low interest rates…With interest rates expected to remain low, home sales are forecasted to rise in the coming months and into 2020.”

Bottom Line

If you are thinking about selling your house, there are purchasers out there who are ready, willing, and able to buy. Call or text me, Troy Stavros with CornerStone Realty Associates at 865-205-6899 to get to process started!

NEW KITCHEN UPDATE! 2104 River Sound Drive, Knoxville, TN 37922

October 2, 2019 By Troy Stavros

NEW KITCHEN UPDATE! Seller’s JUST updated the kitchen and DIDN’T raise the price! New countertops, new tile backsplash, 3 new under-mount sinks, 3 new faucets, and a new Bosch cooktop!

Beautiful luxury home for sale in West Knoxville’s sought after River Sound neighborhood, located at 2104 River Sound Drive, Knoxville, TN 37922.

Let’s talk location! It’s amazing for so many reasons. If you travel, you are a mere 17 minutes to the McGee Tyson Airport. You are a short ride up I140 to Oak Ridge. Choose 3 different routes to downtown Knoxville. Grocery stores, banks, restaurants, and schools are just minutes away.

Let’s talk neighborhood! The only neighborhood in the metropolitan Knoxville area with a year-round indoor saltwater swimming pool. Additionally, there is a clubhouse, outdoor pool and tennis courts to enjoy. There is a private Marina that is restricted to River Sound property owners. Though there are only 38 slips, Slip B-2 is available to purchase with this home. Free outdoor storage area where you can keep your boat trailers or the like. People are friendly, properties are well kept, and when you say you live in River Sound, everyone will know you have been blessed and have chosen wisely.

Let’s talk house! Open floor plan! Enjoy the grandeur of the two-story entry and the curved staircase. Relax in the open family area with a cathedral ceiling adjacent to the kitchen. Functionally, this house is equipped with a 400+ sq ft dream kitchen. Starting with the Bosch 5 burner gas cook-top stove and double convection oven that is programmable from your phone. There is plenty of surrounding prep space for all elements of cooking. Within the 12-foot tile island is a vegetable sink with its own disposal and an instant hot water faucet. The best gourmet cooks will marvel at the setup and space utilization of this room and would love cooking in it given the opportunity. Have a cup of coffee by one of the 4 fireplaces or outback on the lighted Timber Tech deck that spans the length of the house and looks out over a private backyard. Between the outside decks, the big yard perfect for games of all kinds, a driveway meant for a basketball hoop, and a basement designed for fun, there’s a space for everyone. The owners can escape to a luxurious Master Suite with a spa-like bath, inclusive of a Jacuzzi tub and walk-in shower. The unfinished portion of the basement (846SF) has a workshop area and phenomenal storage. This area could be finished with relative ease. As great as the storage space is in the basement, there is also a walk-up attic (800+SF). It has easy access to tie in heating, air conditioning, water and electric. It is framed and ready to build should you want additional space. What else does this house have? It has two hot water heaters, 3 HVAC units, a three-car garage, four gas fireplaces, four full baths, two half baths, and two hoses for the Beam in-wall vacuum system.

For more information about this home or to schedule a private showing, contact Troy Stavros with CornerStone Realty Associates at 865-235-1333 or at the office at 888-388-DOOR xt. 707.

This listing is no longer available.

10264 Canton Place Lane – ALL FARRAGUT SCHOOLS!

October 2, 2019 By Troy Stavros

Tucked away on the outskirts of Farragut, and zoned for ALL Farragut schools. Enjoy safe walks and bike rides down the neighborhood sidewalks. This home has been well kept and nicely updated. The large eat-in kitchen offers plenty of granite-topped counter space, loads of cabinets, and an oversized pantry as well as counter seating and a place for your kitchen table. Also tucked in is a command central desk area. The family room is light and bright and made even cozier at times with a gas log fireplace. Step out the back door to the deck, which is great for outdoor entertaining and grilling, which looks out over the flat, fenced backyard. Owner’s suite up w/ double sinks, jacuzzi tub and shower + 2 more bedrooms + bonus room. Oversized 3 car garage (one bay being 26′ deep!). Sealed crawl.

Have questions or want to schedule a showing? Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-205-6899.

This listing is no longer available.