Home Market News Archives - Page 26 of 43

Data Confirms That Now Is a Great Time to Sell Your Home in Knoxville

March 6, 2019 By Troy Stavros

Heading into the spring buying market, there are strong trends starting to emerge.

The inventory of homes for sale has increased on a year-over-year basis for eight months in a row. Home price appreciation has continued to grow, although at a slower rate. The homeownership rate has reached heights last seen in 2014, with millennials and Generation X leading the way!

Let’s dive a little deeper into some of the recent reports that have been released and what they mean for the spring buying season!

1. National Association of Realtor’s Existing Home Sales Report

Sales of existing homes were down for the third consecutive month in January. Some of this can be explained by the natural seasonality that the real estate market experiences every year, and some can be explained even further by a lack of homes available for sale on the market.

Inventory

For the last eight months, nationally, the inventory of homes for sale has been higher when compared to the same month the year before, but what I always try to remind you is that real estate is local. In Knox County the opposite holds true, as inventory is down 10.5% compared to January of last year (we are using January’s numbers to compare directly with the time frame in the stated national report). The challenge in the market is also the mismatch of the type of home that is available for sale. First-time homebuyers looking for a starter home, are often competing with other buyers to stand out, often outbidding each other.

Lawrence Yun, NAR’s Chief Economist, agrees that the market is still experiencing an inventory shortage.

“In particular, the lower end of the market is experiencing a greater shortage, and more home construction is needed.”

Home Prices

Nationally, the median home price for homes sold in January was $247,500 ($207,450 in Knox County). This is up 2.8% from January 2018 (up 12.44% in Knox County!) and marks the 83^rd consecutive month of year-over-year gains. The 2.8% growth in home prices represents the smallest year-over-year change since February 2012 but is a welcome change for buyers who had feared being priced out of the market (unfortunately for buyers in Knoxville, but not for sellers, the price appreciation in Knoxville is well outpacing what is happening nationally).

Days on the Market

Properties that sold in January were on the market for an average of 49 days (54 days in Knox County) with 38% of homes on the market for less than a month.

Yun is positive about how today’s market conditions will help buyers this spring,

“Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.”

2. NAR’s Pending Home Sales Report

The national Pending Home Sales Index (PHSI) rose 4.6% to 103.2 in January from 98.7 in December. An index score of 100 is considered normal. All four major regions of the country experienced gains in January, with the largest increase coming in the South.

“The PHSI is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.”

Increases in the PHSI often predict increases in the level of home sales in the coming months, which is great news for the housing market leading in to spring! Yun had this to say,

“Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers.”

Bottom Line

The Knoxville housing market in 2019 will, as always, require homeowners to list their house at the right price, but depending on the price point, there could be lots of buyers interested in the same property which could lead to multiple offers. If interest rates continue to stay low while wages increase, and more inventory comes to market, 2019 could be one of the best years for home sales in recent history.

The Knoxville Housing Market Will “Spring Forward” This Year!

March 5, 2019 By Troy Stavros

Just like our clocks this weekend, in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in Knoxville has been holding back the market.

Many potential sellers believe that waiting until Spring is in their best interest. Traditionally, they would have been right.

Buyer demand has seasonality to it. Usually, this falls off in the winter months, especially in areas of the country impacted by arctic conditions.

That hasn’t happened this year.

Demand for housing in Knoxville has remained strong as mortgage rates have remained near historic lows. Even with an increase in rates forecasted for 2019, buyers are still able to lock in an affordable monthly payment. Knoxville home buyers are increasingly jumping off the fence and into the market to secure a lower rate.

The National Association of Realtors (NAR) recently reported that in 2018 the top 10 dates sellers listed their homes all fell in April, May, or June.

Those who act quickly and list now, before a flood of increased competition, will benefit from additional exposure to buyers.

Bottom Line

If you are planning on selling your home in 2019, meet with a local real estate professional to evaluate the opportunities in your market. If you are anywhere between Knoxville and Nashville, contact me, Troy Stavros with CornerStone Realty Associates and let’s sit down and formulate a plan for your specific situation. Call or text 865-999-0925 today!

No Need To Worry.. Home Prices Coming in for a SOFT Landing

March 4, 2019 By Troy Stavros

Home prices have appreciated considerably over the last five years. This has some concerned that we may be in for another dramatic correction. However, recent statistics suggest home values will not crash as they did a decade ago. Instead, this time they will come in for a soft landing.

The previous housing market was fueled by an artificial demand created by mortgage standards that were far too lenient. When this demand was shut off, a flood of inventory came to market. This included heavily discounted distressed properties (foreclosures and short sales).

Today’s market is totally different. Mortgage standards are tighter now than they were prior to the last boom and bust. There is no fear that a rush of foreclosures will hit the market. The Mortgage Bankers’ Association just announced that foreclosures are lower today than at any time since 1996.

Case Shiller looks at the percentage of appreciation as compared to the same month the year prior. Here is a graph of their findings over the last ten months:

As we can see, home price appreciation is softening, as more inventory comes to the market. This shows that real estate prices are not crashing, but merely returning toward historic appreciation numbers, of 3.6% annually.

Bottom Line

Knoxville home prices are leveling off. Long term, that is a good thing for the housing market. Have questions about what your home’s value might be? Want to talk about what buying or selling a home might look like for your specific situation? Call me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today and let’s set up a time to sit down and talk.

Mortgage Interest Rates Hit New 12 Month Low!

March 1, 2019 By Troy Stavros

According to Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at their lowest for 2019. Rates like these haven’t been seen since February 2018!

Last week’s survey results reported an interest rate of 4.35%. This is a welcome change from the near 5% rates seen in mid-November. At 4.32%, the second week of February 2018 was the last time rates were this low. This can be seen in the chart below.

Freddie Mac’s Chief Economist, Sam Khater, had this to say:

“Mortgage rates fell for the third consecutive week, continuing the general downward trend that began late last year.

Wages are growing on par with home prices for the first time in years, and with more inventory available, spring home sales should help the market begin to recover from the malaise of the last few months.”

Bottom Line

If you plan on buying a home in Knoxville this spring, meet with a local real estate professional who can help prepare you for today’s market before rates increase!

Why A Normal Real Estate Market is Just What We Need

February 22, 2019 By Troy Stavros

The housing market in Knoxville has been hot for a while now. Homes in certain price ranges have been flying off the shelves as fast as they have been listed. Buyers have been competing in bidding wars just to find a home to buy, let alone find their dream home.

This ‘seller’s market’ has driven Knoxville home prices to new heights. Home price appreciation averaged over 6% across the country.

However, home price growth has recently started to cool down. The latest report from CoreLogic shows that home prices have only risen by 4.7% over the last 12 months.

Many buyers and sellers planning to enter the housing market this year have started to wonder if we are headed towards another housing crash. Ralph McLaughlin, Deputy Chief Economist at CoreLogic, recently stated in an interview,

“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 real elephant in the room here is housing supply.”

The simple answer is we are returning to a ‘normal’ market. The inventory of homes for sale more closely matches the demand in the market. The added supply means fewer buyers are outbidding each other. Therefore, prices are experiencing less upward pressure. McLaughlin went on to explain,

“If there are a lot of homes on the market and suddenly no one wants to buy them, you’ll get into a downward spiral of price competition. Right now, however, we’re in the opposite situation, there isn’t an over-abundance of homes on the market.”

As many of those renting in Knoxville begin looking for their piece of the American Dream and enter the housing market, demand for housing will continue to grow. The Joint Center for Housing Studies at Harvard University estimates over 30 million new households will enter the market from now through 2040.

“There’s the natural life cycle of young people getting older and starting to do adult life things which include … buying a house and that’s a lot of potential inertia that could last indefinitely.”

Bottom Line

National and Knoxville home prices will start to appreciate by historical norms as we continue to head towards a more ‘normal’ market, rather than the over 6% seen over the course of the last couple of years. This is great news! Homeowners in Knoxville looking to sell their home will have buyers, as more buyers will be able to afford them!

Year End Housing Snapshot: Sales Declining Nationally, Knoxville Still Strong

February 1, 2019 By Troy Stavros

Nationally, at the end of 2018, pending home sales fell, possibly due to concerns about the economy and rising home prices, according to a recently released housing index from the National Association of REALTORS®.

Chief economist for NAR, Lawrence Yun said, “The stock market correction hurt consumer confidence, record high home prices cut into affordability, and mortgage rates were higher in October and November for consumers signing contracts in December.”

Compared to a year ago, all four major regions of the U.S. posted declines, with the South posting the largest decrease (the South also had the highest level of sales going in.)

Yun also said, ““The longer-term growth potential is high. The Federal Reserve announced a change in its stance on monetary policy. Rather than four rate hikes, there will likely be only one increase or even no increase at all. This has already spurred a noticeable fall in the 30-year, fixed-rate mortgages. As a result, the forecast for home transactions has greatly improved.”

That being said, one thing we know for certain is that while it’s good to look at what is happening nationally, real estate is local. Knoxville has fared better than what the information above would have you think. While the South showed the biggest decrease, that isn’t true everywhere as witnessed in the images below.

This first image relates to the national numbers:

This next image looks at the same timeline of December, comparing LOCAL Pending Sales and Median Sales Price by County (December 2018 vs. December 2017):

This last image looks at the year to date numbers comparing single family home sales and median sales price, locally by county 2018 vs 2017:

Wondering how your specific subdivision, neighborhood, or your personal home has fared? Just contact me, Troy Stavros with CornerStone Realty Associates and I’d be happy to go over those with you!