865 Real Estate

East Tennessee Real Estate & Neighborhood Source

Thinking of Buying a Home Soon? Don’t Run Out Of Luck!

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Buying a home in Farragut Don't Run Out of luckAre you thinking of buying a home in Farragut or Knoxville soon? Don’t let your luck run out! With the 30 year fixed mortgage rates still below 4%, you might be on the fence about buying now or waiting, because you think you still have plenty of time to lock in a low interest rate. However, you might change your mind when you see what the experts predict will happen to rates over the next year.

Predictions for 2016 (2nd Quarter)

  • Fannie Mae Predicts 4.2%
  • Freddie Mac Predicts 4.7%
  • Mortgage Bankers Association Predicts 4.9%
  • National Association of REALTORS® Predicts 5.3%

Let’s take a look at what even a small, .5% increase in the rate could do to the net worth of your family.

Today, on a $250,000 home, with an interest rate of 3.86%, your monthly payment (principal and interest only) would be $1,173.

The Home Price Expectation Survey projects home prices will rise approximately 4.4% in the next year.  So in a year, the home above would cost $11,000 more and now be $261,000.  If we add on top of that the mortgage rate increase projection of Freddie Mac (about an average of all the projections) at 4.7%, the monthly mortgage payment on the same home rises to $1,354.

That is an increase of $181 per month.  And if you think that’s a big chunk of change, let’s multiply it over the course of a 30 year mortgage.  Ready?  You pay $65,160 more, just because you waited a year to buy.

What does this mean for you?

Well, it’s pretty obvious what it means for you as a buyer.  Waiting is going to cost you quite a bit of money.  It’s going to shrink your buying power and affordability.  That means you will be able to afford more house now, than you will in a year from now (if your income level stays the same).

What does it mean for sellers?  Well, what do sellers become after they sell?  Buyers!  So the same holds true for you.  If you are waiting to sell your home because you think it will be worth more in a year, guess what, so will the house you will be eventually buying.  Then add the higher interest rate on top of that.

So what this means for you is that there is no better time to buy and sell than right now.  If you are interested in talking more about any of the information above or want to discuss buying a home, or selling a home in Farragut or Knoxville, as always, don’t hesitate to contact me, Troy Stavros with Gables & Gates, REALTORS.  We’ll find a time that is convenient for you to sit down and discuss your plans and goals and how to best get them accomplished.  I look forward to talking with you!

Are Home Prices Going Up in Knoxville and Farragut?

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Whether you are thinking about selling your home in Knoxville or buying a home in Knoxville you will want to ask, “are home prices going up in Knoxville?”.  Knowing whether home prices are going up can determine whether it is a good time to buy or sell a home, at what price you should buy or sell a home, and whether it makes financial sense for you to buy or sell home.

Last week the National Association of Realtors® released their quarterly Metropolitan Media Area Prices and Affordability report.  The report showed that the majority of metropolitan areas experienced steady to slightly stronger price growth in the fourth quarter of 2014.  The reasons for this price growth is a combination of a decline in housing supply coupled with an increase in demand caused by lower interest rates and a stronger job market.are prices going up in Farragut

So where do Knoxville are Farragut stand as far as their home prices?

The median home price of a home in Farragut, TN came in at $312,900. Farragut saw a whopping 12.55% increase in the median sales price when comparing December of 2013 to December of 2014 and a 15.53% increase year over year.  Why?  Let’s go back to the basic principles we learned in our high school economics class.  Supply and demand.  The supply is low.  Inventory levels are down 7.2% from this same time last year and demand is higher because of the reasons stated above.

Knoxville as a whole saw a 4.2% increase in the median sales price over the 4th quarter of 2014. The median home price came in at $150,800, and the inventory of available homes was down 6% from 2013.

So, to answer our question… Are home prices going up in Farragut and Knoxville? YES! How does knowing this information help us if we are thinking about selling or buying a home in either Farragut or the Knoxville area in general?  It screams, now is the time!  Prices are rising and interest rates are near historical lows.  If you are selling it means that your home is probably worth more now that it has ever been, and if you wait for it to increase even more, the home you will be buying will be increasing at the same rate.  If you are looking to buy a home, the time is now as well.  Prices should continue to rise and interest rates are expected to rise as well throughout the year.  Rising prices and rising rates means less affordability for you as a buyer, so the longer you wait, the less you can afford (this holds true for sellers who will turn into buyers as well).  Everyone’s goals and reasons for selling and buying are different, so contact me, Troy Stavros with Gables & Gates, Realtors® today to sit down and discuss how I can help you achieve those goals.  Are you interested in seeing what your Farragut or Knoxville area home might sell for?  CLICK HERE.  I look forward to serving you in any way that I can!  Talk with you soon!

Interested in how other parts of the country are fairing?  Check out the interactive map below.

How To Get The Best Deal When Buying A Home In Knoxville

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best deal on buying a knoxville homeA recent article on the Wall Street Journal’s MarketWatch website discussed housing affordability and how home buyers can get the best deal when buying a new home.  The article’s summary of the national market conditions showed that home prices will continue trending higher this year, but not as fast as 2013.  Mortgage rates are also expected to rise, but estimates say they will do so gradually.  Because of these two factors, home’s will be somewhat less affordable.

It is with these facts in mind that I echo these 6 pieces of advice for getting a better deal when buying a home in Knoxville.

  1. The sooner you buy the better.  Simple logic tells us that if both Knoxville home prices and mortgage interest rates are rising, then it’s better to buy sooner rather than later to take advantage of lower prices and lower interest rates.
  2. Find yourself an expert and work with them.  The last thing I want to do is bash other real estate agents, but just like in all professions, not everyone is created equal.  Find an agent who is intimately familiar with the area where you want to buy your next home, who is on top of market trends, and who has proven themselves as a good negotiator.
  3. Know the local home market.  Continuing off the advice in #2, a good agent will be able to look at a home’s price and tell you if it’s priced above, below, or at market value.  This is key in knowing not only what to offer, but how fast you need to offer.  Homes in the current Knoxville home market that are priced below market value are selling very fast, so if you delay in making an offer, chances are pretty good you will lose out to another interested party.  If your agent isn’t armed with the information to educate you, then you may lose out on a home you love.
  4. Get your financing in order.  As a Knoxville home buyer or a buyer anywhere for that matter, it is super important to understand how much house you can afford.  This dollar amount may or may not be what the mortgage broker says you can qualify for.  Think seriously about how much you are comfortable paying a month (they key term there is comfortable, don’t stretch yourself too thin).  Having a ceiling price can really help when you start getting emotional during negotiations and are tempted to offer more than you should.
  5. Make yourself attractive to sellers.  First and foremost a seller wants to know that you can afford to buy their home, so getting pre-approved by a lender and including a pre-approval letter with your offer is key.  Also keeping the number of contingencies in your offer to a minimum is important.  Oftentimes the highest price isn’t the most important thing to a seller.  When wearing my listing agent hat, I tell me sellers to take into account which offer has the highest probability of closing, as well as which has an attractive offer price. If an offer can’t close, it doesn’t matter how good the offer price is.
  6. Expand your geographic search area.  Depending on where you are looking for your home, sometimes you can get more for your money if you expand your search area a bit.  I’m not talking about moving to a different county (although that is an option), but a subtle zipcode change can make a big difference in pricing.  If you are trying to stay within a certain school district, there may be different pockets within that search area which may offer more house for the money.  Being flexible on location can not only save you money, but can open up additional options and perhaps get you a better overall home.

I’d love to sit down and talk to you about the Knoxville home market.  Contact me, Troy Stavros to discuss your goals in buying a home in Knoxville.

CLICK HERE to read the complete source article at MarketWatch.com.

Will Multiple Lenders Pulling My Credit Lower My Credit Score?

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If you are thinking of buying a home or a car, most of us will be using credit.  Our credit score can not only effect whether or not we will be approved but also if we get the best terms. A big question I hear is, “will multiple lenders pulling my credit lower my credit score?”. The answer is a conditional no.  Watch the video as Jordan Goldberg from Credit Plus explains why.  For answers to other real estate related questions contact me, Troy Stavros with Gables & Gates, REALTORS and I’ll be happy to assist in anyway that I can.

Knoxville Real Estate Market Update Through June

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It’s always good to see how the Knoxville real estate market is trending when you are thinking about selling or buying a home in Knoxville. Let’s take a look at the interesting trends I’ve found in the Knoxville real estate market, by studying the home sale data through the month of June.

  • Compared to the month of June of last year, the luxury price point over $500,000 has seen a 72.2% increase in sales.  Year to date the same price point has seen a 37.9% increase in homes sold.
  • Homes price between $400,000-$499,999 saw a 35.1% increase since the same month last year and a 18.1% year to date increase in homes sold.
  • Coinciding with the sold numbers, homes pending sale are also trending in the luxury sector with a 48.5% increase from June of last year and 50.3% increase year to date for homes over $500,000.  Homes pending a sale in the $400,000-$499,999 range have seen a 26.5% increase from last June and 36.4% year to date increase.
  • Trends are showing us that stricter lending standards are limiting the sales in the price points under $100,000, with multiple pricing categories under $100K being down quite a bit both year over year and year to date.
  • Total inventory is down 12% compared to last June and is also down 5.6% year to date with the thinnest inventory being $140,000 and below.
  • Typically one of the best selling price points, $250,000-$299,999 is showing sluggish sales most likely from a lack of inventory.  Home sales in this price point are down 2.9% from June last year and 7.9% year to date, with inventory being down 9.5% from last year and 4.8% year to date.
  • The reduced inventory levels are putting the law of supply and demand in effect as witnessed by a 13.99% year over year increase in the average sales price and a 5.24% increase in the average sales price year to date.  Another factor showing demand is the amount of time it is taking for homes to sell.  Average days on the market has decreased 32.87% year over year and 28.57% year to date.  Average days on the market in June across all pricing categories was 96 days and the average for 2014 is 105 days.

June Knoxville Real Estate Market Stats

What does this information mean for you, as someone possibly looking to sell your home in Knoxville or buy a home in Knoxville?  As a seller, low inventory levels mean that this is a great time to put your home on the market, as there is less competition.  Also the law of supply and demand tells us that less inventory is pushing prices higher.  As a buyer, buying a home in a low inventory home market means, you need to be less aggressive with your offers as there is increased competition in the marketplace.  Making low offers or hesitating too long in deciding to make an offer will most likely cause you to lose out on desirable homes, as they will be snapped up by competing buyers.

Thinking about selling and wondering how much your Knoxville home might be worth?  CLICK HERE for an instant estimate.

For more information or to discuss your personal goals in selling or buying a home in Knoxville, contact me, Troy Stavros with Gables & Gates, REALTORS today.

The Hot Season To Buy Or Sell A Home In Knoxville Is Upon Us!

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Whether you are in a warm weather market, cold weather market, or a high tourist seasonal market, you will see the hot time of the year to buy and sell a home ebb and flow throughout the year.  There will be times of the year that will slow down and others will take off.  Locally, we are about to step into the busiest time of year to buy and sell a home in Knoxville.  As evidenced by the graphics below, we typically see a drop in sales volume, sales price, and inventory throughout the winter months.  Then once we hit February or March, the trend does an about face and the number of homes sold increases, along with the prices of those homes and the number of homes available.

Knoxville Real Estate Volume and Prices Chart March

Knoxville Homes Inventory Graph March

What does this mean for you?

  • If you are looking to sell a home in Knoxville, there is good news and not so good news.  The good news is, the odds of selling your home will increase along with the odds of selling it for a higher price.  The not so good news is you will have more competition.
  • Seller’s takeaway:  Get your home on the market as soon as possible, before more competition hits the market alongside of you. 
  • If you are looking to buy a home in Knoxville, the good news is you should be seeing more options hit the market as inventory increases.  The bad news is that you will most likely be looking at higher prices and more competition for homes as well.
  • Buyer’s takeaway:  Start looking today and when you find the right home don’t mess around.  Waiting too long or submitting low offers will invite additional offers in to compete against you.

If you are even considering buying or selling a home in Knoxville in the near future, contact me, Troy Stavros with Gables & Gates, REALTORS, to sit down and plan out your strategy for achieving your Knoxville real estate goals. I look forward to talking with you!

Farragut Homes by Price