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Knoxville Real Estate Market Update July 2014

August 18, 2014 By Troy Stavros

The Knoxville real estate market is chugging along on a pretty steady pace, while other parts of the country seem to be slowing down.

NATIONAL HOME PRICES:

June 2014 to July 2014 – DOWN 3.1%

July 2013 to July 2014 – DOWN 6.8%

KNOXVILLE HOME PRICES:

June 2014 to July 2014 – UP 4.6%

July 2013 to July 2014 – UP 7.8%

With school starting back up, we can expect an increase in average days on the market. This is already being witnessed as average days on the market in Knoxville went from 96 days in June to 102 days in July, but this is still much better than July of 2013 when average days on the market in Knoxville was 193 days.

One of the main reasons for the rising prices and reduced days on the market for Knoxville real estate is lower inventory levels. Here are some comparisons to give you a picture of the inventory of Knoxville homes for sale:

KNOXVILLE REAL ESTATE INVENTORY LEVELS

July 2013 to July 2014 – DOWN 10.5%

YTD 2013 to YTD 2014 – DOWN 6.1%

Some of the statistics vary widely depending on what price range you are in when selling or buying Knoxville real estate. This chart will break it down (don’t hesitate to contact me with any questions you have about the numbers above or in the chart below).

Now the big question is what does this information mean for you as someone 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. 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.

Knoxville Real Estate Market Update Through June

July 21, 2014 By Troy Stavros

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.

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.

What Is A Zombie Property And Does Knoxville Have Any?

June 26, 2014 By Troy Stavros

First off, you might be thinking, Troy is losing it. Zombie property? But it is a real term used in the industry. A “Zombie Property” is any property that has started the foreclosure process, but never been foreclosed and the homeowner has vacated the property.

Does Knoxville have any “Zombie Property?” Of course, the nationwide numbers are too large to spare Knoxville. According to RealtyTrac, nationally, zombie properties totaled 141,406 in the 2nd quarter of 2014. This accounted for 21% of the properties in foreclosure. Another interesting statistic that leads to zombie properties is that 1 in every 5 foreclosures has been vacated by the homeowner before the foreclosure has even been completed.

The lenders with the most zombie properties on the books are Wells Fargo, Bank of America, Chase, and US BankCorp.

So now you don’t have to be scared of a “Zombie Property”. Who knows you might even get a great deal on one!

For help in finding a great deal on a home in Knoxville, contact me, Troy Stavros with Gables & Gates, REALTORS to setup a time to talk and formulate a plan.

Knoxville Luxury Homes Leading The Way With Large Gains

May 30, 2014 By Troy Stavros

As I study the trends in the Knoxville housing market there are some interesting numbers that stand out. The sale of Knoxville luxury homes seem to be leading the way through April. When researching the SOLD and PENDING home data in the luxury price point we see some encouraging numbers.

Homes SOLD between $400,000-$499,999 are up 29.1% year to date.
Homes PENDING SALE between $400,000-$499,999 are up 53.8% year to date.
Homes SOLD over $500,000 are up 13.8% year to date.
Homes PENDING SALE over $500,000 are up 66.3% year to date.

The Knoxville home market is not alone with it’s trend of increases sales of Knoxville luxury homes. A recent study by Redfin showed that the sales of the most expensive, 1% of homes in the U.S. are up 21% so far this year, and saw a gain of 35.7% in 2013. Whether this is a sign of an improving economy or a result of moving money from lackluster investments into real estate, it is a good sign for sellers of Knoxville luxury homes.

If you are thinking of buying or selling a luxury home in Knoxville, contact me, Troy Stavros with Gables & Gates, REALTORS to discuss your goals and formulate a plan to achieve them.

Knoxville Home Sales Activity Report for May 28, 2014

May 28, 2014 By Troy Stavros

I like to stay on top of the current trends in the Knoxville Home Market. The latest statistics can show us where the trends are in Knoxville home sales. Here is where we are, year to date, up to May 28th, 2014 in Knox County, Tennessee.

Current Active Homes For Sale – 3547
Knoxville homes SOLD – 2159
Homes Under Contract – 1067
Average Sales Price – $191,807
Average Days On The Market – 120

If you have any questions about the market, how much your current home may be worth, or if you would like the Knoxville home sales stats for a different county other than Knox County, contact me, Troy Stavros with Gables & Gates, REALTORS and I’ll be happy to discuss it with you.

Why Are There Not Enough Homes For Sale In Knoxville?

May 14, 2014 By Troy Stavros

Ask most Knoxville real estate agents and they will tell you that there is a shortage of good homes for sale in Knoxville. There are plenty of buyers in the market right now, and many are having trouble finding a home that suits them. In fact, the supply of homes in Knoxville has DECREASED by 15.6% from one year ago and is DOWN 8.1% year to date. Why is that?

The “Profile of Home Buyers and Sellers Report” released by the National Association of REALTORS shows that the median tenure, or the amount of time a person lives in their home before buying another, has increased from 6 years to 9 years within the last 4 years.

Here are the 5 reasons I believe we are seeing a shortage of homes for sale in Knoxville:

There are still some sellers who are underwater in their mortgages. Also in the “Profile of Home Buyers and Sellers Report”, seller’s were asked if they wanted to sell earlier but waited because their home was worth less than their mortgage. 13% of recent sellers who went on to purchase another home reported being in this situation. That is 13% who sold and bought again, so that doesn’t take into account the sellers still waiting.
Sellers whose property values decreased are waiting to build up their equity. Similar to reason #1, these sellers saw the value of their home decrease during the downturn in the market. Typically, most seller’s will use the equity in the home they are selling to provide the down payment money on the home they are buying. With many lenders looking for 20% down payment, these sellers are waiting for their equity to build back up so they can have enough money for a down payment on a new home.
As home prices dropped a few years ago and interest rates hit record lows, housing affordability hit record levels as well. This allowed those buying at this time, to buy more home for the money than was possible in the past. Because of this, first time home buyers and other buyers who might normally be trading up to a larger or more upgraded home aren’t doing so. They purchased it the first go around, most likely with a great interest rate that is keeping their payment low, and therefore are choosing to stay in their homes longer. The same holds true for sellers who refinanced their homes at historically low interest rates. Those low, locked in rates, make buying a new home at a higher interest rate that much harder of a decision.
The inventory of new construction homes as well as distressed properties are both very low in Knoxville. These are two categories that historically supplement existing housing inventory. While low amounts of distressed property is not a bad thing, until new home construction is ramped up, we may continue to see low inventory numbers in general. Lack of new construction is pushing buyers into purchasing existing homes, which puts further downward pressure on inventory and upward pressure on existing home prices.
Those of us who have lived in Knoxville for at least 4 years know that 2011 brought a severe hail storm through the area that did some major damage to homes. Areas like Farragut and many other communities throughout Knoxville were hammered by the storm. As a result, most homeowners not only got new roofs paid for by their insurance, but new windows, siding, decks, patios, doors, and more. Many owners were able to do major updates on their homes with little, to no money out of pocket. New decks and patios turned into new outdoor entertaining spaces. New windows and doors turned into lower utility costs. New siding turned a tired looking house into something fresh. I believe this is another major reason for our inventory shortage. Many homeowners pushed “refresh” on their existing homes in 2011-2012, and had that not happened, they would probably be a large pool of sellers looking to upgrade and putting their homes on the market.

Whether you are a seller looking to take advantage of low competition or a buyer looking for guidance in winning against the competition, contact me, Troy Stavros with Gables & Gates, REALTORS to discuss your goals and formulate a game plan.