Home Market News Archives - Page 25 of 43

Buyer Demand Surging in Knoxville as Spring Market Begins

April 18, 2019 By Troy Stavros

Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even belief we might experience a housing crash like the one that occurred during the last decade.

However, according to two separate reports*, buyer demand dramatically increased over the last three months, leading into this spring buyers’ market (the March data is not yet available).

Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show that buyer demand has increased in each of the last three months.

Why the increase in demand? The simple answer… Increased buying power.

According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.

“Due to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixed rate mortgage decreased from $60,425 in June 2018 to $53,783 as of February 2019, and the difference of $6,642 represents a gain in buying power because one can afford a home purchase at a lower level of income.”

Bottom Line

It appears the spring buyers’ market in Knoxville is going to be much stronger than many had projected. Whether you are selling or buying a home in Knoxville, this is important news. Contact me, Troy Stavros with CornerStone Realty Associates today, to sit down and form a game plan to achieve your real estate goals.

*The methodology behind the indices:

The ShowingTime Showing Index

“The ShowingTime Showing Index® tracks the average number of buyer showings on active residential properties on a monthly basis, a highly reliable leading indicator of current and future demand trends.”

The National Association of REALTORS® Buyer Traffic Index

“In a monthly survey of REALTORS®, NAR asks respondents ‘Compared to the same month last year, how would you rate the past month’s traffic in neighborhood(s) or area(s) where you make most of your sales?’ NAR compiles the responses into an index, where an index above 50 indicates that more respondents reported “stronger” traffic than “weaker” traffic.”

Are These Low Mortgage Interest Rates Here To Stay?

April 17, 2019 By Troy Stavros

Interest rates for a 30-year fixed rate mortgage have been on the decline since November, now reaching lows last seen in January 2018. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates came in at 4.12% last week!

This is great news for anyone who is planning on buying a home in Knoxville this spring! Freddie Mac had this to say,

“Mortgage interest rates have been steadily declining since the start of 2019. These lower mortgage interest rates combined with a strong labor market should attract prospective homebuyers this spring and could help the housing sector regain its momentum later in the year.”

To put the low rates in perspective, the average for 2018 was 4.6%! The chart below shows the recent drop, and also shows where the experts at Freddie Mac believe rates will be by the end of 2019.

Bottom Line

If you plan on buying a home in Knoxville this year, let’s get together to start your home search to ensure you can lock in these historically low rates today! Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 via call or text.

March Knoxville Area Housing Market Snapshot

April 9, 2019 By Troy Stavros

Here’s how the current real estate market is doing through the end of March, all around Knoxville, compared to last year. 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. Median sales price is also down, and we’ve seen a small uptick in the amount of available inventory. This is good if you are looking to buy in Farragut!

The 37922 zip code in West Knoxville saw a nice 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!

4 Reasons To Buy A Home This Spring In Knoxville

March 12, 2019 By Troy Stavros

Spring has sprung in Knoxville, and it’s a great time to buy a home! Here are four reasons to consider buying today instead of waiting.

1. Knoxville Home Prices Will Continue to Rise

CoreLogic’s latest U.S. Home Price Insights reports that home prices have appreciated by 4.4% nationally over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.6% over the next year.

Home values in Knoxville will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year fixed rate mortgage came in at 4.41% last week. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison, projecting rates will increase by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You Are Paying a Mortgage

Some renters in Knoxville have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Examine the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, greater safety for your family, or you just want to have control over renovations, now could be the time to buy.

Bottom Line

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Want to talk about your specific situation? Call or text Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!

February Knoxville Area Housing Market Snapshot

March 8, 2019 By Troy Stavros

Here’s how the current real estate market is doing all around Knoxville. 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. Hit me up for an analysis!

Here is what is happening in the West Knoxville/Farragut real estate market. Home sales are down in Farragut compared to the same time last year, median sales price is up slightly, and we’ve seen a nice uptick in the amount of available inventory. This is good if you are looking to buy in Farragut!

The 37922 zip code in West Knoxville saw a nice jump in price, but home sales are down, most likely because of the decline in available inventory. Interested in what your personal home analysis would look like? Call or text me at 865-999-0925!

Why an Economic Slowdown Will NOT Crush Real Estate this Time

March 7, 2019 By Troy Stavros

Last week, the National Association for Business Economics released their February 2019 Economic Policy Survey. The survey revealed that a majority of the panel believe an economic slowdown is in the near future:

“While only 10% of panelists expect a recession in 2019, 42% say a recession will happen in 2020, and 25% expect one in 2021.”

Their findings coincide with three previous surveys calling for a slowdown sometime in the next two years:

That raises the question: Will the Knoxville real estate market be impacted like it was during the last recession?

A recession does not equal a housing crisis. According to the dictionary definition, a recession is:

“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”

During the last recession, prices fell dramatically because the housing collapse caused the recession. However, if we look at the previous four recessions, we can see that home values weren’t negatively impacted:

January 1980 to July 1980: Home values rose 4.5%
July 1981 to November 1982: Home values rose 1.9%
July 1990 to March 1991: Home values fell less than 1%
March 2001 to November 2001: Home values rose 4.8%

Most experts agree with Ralph McLaughlin, CoreLogic’s Deputy Chief Economist, who recently explained:

“There’s no reason to panic right now, even if we may be headed for a recession. We’re seeing a cooling of the housing market, but nothing that indicates a crash.”

The housing market is just “normalizing”. Inventory is starting to increase and home prices are finally stabilizing. This is a good thing for both buyers and sellers as we move forward.

Bottom Line

If there is an economic slowdown in our near future, there is no need for fear to set in. As renowned financial analyst, Morgan Housel, recently tweeted:

“An interesting thing is the widespread assumption that the next recession will be as bad as 2008. Natural to think that way, but, statistically, highly unlikely. Could be over before you realized it began.”