Troy Stavros, Author at 865 Real Estate

Why Homeownership Is A Key To Family Wealth

June 10, 2019 By Troy Stavros

There are many financial benefits to homeownership, but probably none more important than its ability to create family wealth.

How Housing Matters is a joint project of the Urban Land Institute and the MacArthur Foundation. It is an online resource for research and information on how homeownership contributes to individual and community success.

Their article, The First Rung on the Ladder to Economic Opportunity Is Housing, explains the importance of homeownership to a family’s financial health. In that article, they simply stated:

“The ladder to economic success can stretch only so high without the asset-building power of homeownership.”

To this point, National Association of Realtors’ (NAR) Economists’ Outlook Blog revealed in a recent post:

“Housing wealth contributes positively to the homeowner’s and children’s economic condition, because home equity can be tapped for expenditures such as investing in another property (which can generate rental income), home renovation (which further increases the home value), a child’s college education, emergency or major life events, or expenses in retirement…

Housing wealth (or net worth or equity) is built up over time via the home price appreciation and the principal payments that the homeowner makes on the loan.”

Here is a graph showing the build-up of wealth over time:

Just last month, NAR’s Chief Economist, Lawrence Yun, explained that even though home appreciation has slowed, homeowners are still building wealth:

“Homeowners in the majority of markets are continuing to enjoy price gains, albeit at a slower rate of growth. A typical homeowner accumulated $9,500 in wealth over the past year.”

Later in life, this wealth is crucial…

This wealth is important to a family’s retirement plans. In a recent report from the Joint Center for Housing Studies at Harvard University titled, Housing America’s Older Adults 2018, they revealed that a renter 65 years old or older has a net worth of $6,710. Meanwhile, a homeowner 65+ years old has a net worth of $319,200. That huge difference will allow for a dramatic upgrade in one’s lifestyle during your retirement years.

Bottom Line

Homeownership builds wealth. This, in turn, allows families to have more and better options when it comes to their children and their life in retirement. Contact me, Troy Stavros with CornerStone Realty Associates today at 865-999-0925 if you have any questions or you want to take the next step towards family wealth.

The Truth about Housing Affordability in Knoxville

June 4, 2019 By Troy Stavros

There have been many headlines decrying an “affordability crisis” in the residential real estate market. While it is true that buying a home in Knoxville is less affordable than it had been over the last ten years, we need to understand why and what that means.

On a monthly basis, the National Association of Realtors (NAR), produces a Housing Affordability Index. According to NAR, the index…

“…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”

Their methodology states:

“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”

So, the higher the index, the more affordable it is to purchase a home. Here is a graph of the index going back to 1990:

It is true that the index is lower today than any year from 2009 to 2017. However, we must realize the main reason homes in Knoxville were more affordable. That period of time immediately followed a housing crash and there were large numbers of distressed properties (foreclosures and short sales). Those properties were sold at large discounts.

Today, the index is higher than any year from 1990 to 2008. Based on historic home affordability data, that means homes in Knoxville are more affordable right now than any other time besides the time following the housing crisis.

With mortgage rates remaining low and wages finally increasing, we can see that it is MORE AFFORDABLE to purchase a home in Knoxville today than it was last year!

Bottom Line

With wages increasing, price appreciation moderating, and mortgage rates remaining near all-time lows, purchasing a home in Knoxville is a great move based on historic affordability numbers.

JUST REDUCED! 3507 Waterside Way, Louisville, TN 37777 Luxury Lake Home

June 4, 2019 By Troy Stavros

JUST REDUCED! Custom built for the current owners in 2005, this lakefront dream home, located in the gated Lashbrooke subdivision is setup for big family gatherings and entertaining. Natural light streams into the open spaces of all 3 levels. Multiple living areas on each level. Take in the beautiful, big water views at every turn. Enjoy the outdoors with a terrace level covered patio and main level deck/screened porch that span the entire length of the home. Private access to the deck from the main level owner’s suite. Sleep 20+ guests with the 7 bedrooms (2 master suites and 2 custom bunkrooms!), a bonus room and 7.5 baths. 2 full kitchens! Proximity to community dock/slip with private stone path makes boating super convenient and provides excellent overflow parking for your gatherings. Shallow sand bar at the lakeshore is great for the kids, or to board your kayak or paddle board. This special home has so much to offer. 20 minutes to downtown Knoxville or Turkey Creek. Contact Troy Stavros at 888-388-3667 xt.707 or text 865-999-0925.

This listing is no longer available.

UNDER CONTRACT! Cute & Convenient in Clinton, TN – Only $115,000!

May 22, 2019 By Troy Stavros

UNDER CONTRACT IN 1 DAY WITH MULTIPLE OFFERS! Home for sale located at 301 Edgewood Avenue, Clinton, TN 37716. Offered at $115,000! The super convenient location is walking distance to downtown Clinton. This dollhouse features three bedrooms, one bath, hardwood floors, an updated kitchen with stainless steel appliances, and a flat, fenced backyard with two storage buildings. This would be a wonderful home for a first time home buyer as it has been well maintained, has a newer HVAC, and is also eligible for 100% financing! Be sure to watch the LIVE video tour that walks you through the home. Schedule your showing today as this super cute home is sure to sell fast!

For more information or to schedule a private showing contact Troy Stavros with CornerStone Realty Associates at 865-999-0925 directly or through the office at 888-388-DOOR xt.707.
This listing is no longer available.

What is Really Happening with Knoxville Home Prices?

May 20, 2019 By Troy Stavros

Home values have softened over the last twelve months. We are no longer seeing 6-7% annual appreciation levels for the national housing market. The current numbers are closer to 4%. Some have suggested that year-over-year appreciation levels could fall to 3% or less this year.

However, a stronger-than-expected economy and a good spring housing market have changed some opinions. Some analysts are now predicting that home value appreciation may begin to increase as we move forward.

Here are three examples:

Mark Fleming, Chief Economist of First American

“Data on the movement of unadjusted house prices during the early spring home-buying season won’t be available for a few more months, but it’s quite likely that price appreciation will accelerate again.”

***CoreLogic*’s April “Home Price Insights**”

“Home prices nationwide, including distressed sales, increased year over year by 3.7% in March 2019 compared with March 2018…The CoreLogic HPI Forecast indicates that home prices will increase by 4.8% on a year-over-year basis from March 2019 to March 2020.”

***Pulsenomics*’ Quarterly “Home Price Expectation Survey”**

The 2018 4^th Quarter survey called for 3.8% appreciation for 2019.
The 2019 1^st Quarter survey raised the appreciation projection for this year to 4.3%.

Bottom Line

Price appreciation has slowed over the past year. However, a strong economy and a good housing market have many experts thinking that home values might re-accelerate moderately throughout the rest of this year. Interested in what the value is of your specific property? Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 and I’d be happy to do the research for you.

Want to see what is happening in your zip code in the Knoxville area? Find your zip code and the info here.

April Knoxville Area Housing Market Snapshot

May 15, 2019 By Troy Stavros

Here’s how the current real estate market is doing through the end of April, all around Knoxville, compared to last year (including Knox County, Loudon County, Anderson County, Blount County, Monroe County, and Roane County.)

Remember, real estate is hyper-local, meaning your county may show one thing but your specific subdivision or home may be doing something completely different. Contact me for a personal analysis!

Here is what is happening in the West Knoxville/Farragut real estate market compared to last year. Home sales are down fairly considerably in Farragut, compared to the same time last year. The median sales price is also down, and we’ve seen a very small increase in the amount of available inventory. There can be drastic differences depending on the price point you are in, so contact us for a more targeted assessment of your situation.

The 37922 zip code in West Knoxville saw a decent jump in price, but home sales are down, most likely because of the decline in available inventory.

Not seeing your particular zip code referenced above? View the stats for your specific zip code by clicking HERE.

Interested in what your personal home analysis would look like? Call or text me at 865-999-0925!