865 Real Estate

East Tennessee Real Estate & Neighborhood Source

East Tennessee Homes For Sale at Historically Low Inventory Levels

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The East Tennessee housing market is starting off 2022 with 20% less inventory than a year earlier. In addition, the number of newly listed East Tennessee homes for sale fell 6.7% year over year.

We’re kicking off yet another year with a whole lot of buyers whose home search has been going on for months, and they are as eager to buy a home in East Tennessee as ever. This month, the stage will be set for the 2022 housing market, and we’ll be closely watching whether prices climb like they typically do in January or whether they start off high and then slow down due to rising mortgage rates.

Over the last year, the median home sales price in East Tennessee rose 20.16% year over year to $279,000.

Homes with a Knoxville, TN address saw prices rise 17.41% to $290,000.

Farragut, Tennessee, a higher-priced suburb saw median homes prices increase 26.6% to $524,750.

We also saw the average price per square foot of a home sold in East Tennessee rise from $146.62SF to $179.22 year over year.

Both pending and sold homes in East Tennessee witnessed increases. Year over year there was a 6.4% increase in homes pending sales and an 8.5% increase in homes sold.

Another result of the low inventory/high demand conditions is the decrease in the median number of days a home that sold in East Tennessee sat on the market. A year ago, this number was at 13 days, but during the four-week period ending December 31st, it was only 5 days days. A 61.54% decrease!

Homebuyers, however, do have some reasons to be optimistic. While we can’t expect prices to decline, as we head into spring, agents are expecting more listings to come on the market.

Have questions? Want to talk about buying or selling a home in East Tennessee? Call/Text the Troy Stavros TEAM at CornerStone Realty Associates today at 865-999-09825.

Should I Rent or Buy in 2022?

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Are you one of the many renters in East Tennessee thinking about where you’ll live the next time your lease is up? Before you decide whether to look for a new house or another apartment, it’s important to understand the true costs of renting in 2022.

As a renter, you should know rents have been rising since 1988 (see graph below):

Avoid the Rental Trap in 2022 | MyKCM

In 2021, rents grew dramatically. According to ApartmentList.com, since January 2021:

“. . . the national median rent has increased by a staggering 17.8 percent. To put that in context, rent growth from January to November averaged just 2.6 percent in the pre-pandemic years from 2017-2019.”

That increase in 2021 was far greater than the typical rent increases we’ve seen in recent years. In other words – rents are rising fast. And the 2022 National Housing Forecast from realtor.com projects prices for vacant units will continue to increase this year:

“In 2022, we expect this trend will continue and fuel rent growth. At a national level, we forecast rent growth of 7.1% in the next 12 months, somewhat ahead of home price growth . . .”

That means, if you’re planning to move into a different East Tennessee rental this year, you’ll likely pay far more than you have in years past.

Homeownership Provides an Alternative to Rising Rents

If you’re a Knoxville area renter facing rising rental costs, you might wonder what alternatives you have. If so, consider homeownership. One of the many benefits of homeownership is it provides a stable monthly cost you can lock in for the duration of your loan.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“. . . fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.”

If you’re planning to make a move this year in East Tennessee, locking in your monthly housing costs for 15-30 years can be a major benefit. You’ll avoid wondering if you’ll need to adjust your budget to account for annual increases.

Homeowners also enjoy the added benefit of home equity, which has grown substantially right now. In fact, the latest Homeowner Equity Insight report from CoreLogic shows the average homeowner gained $56,700 in equity over the last 12 months. As a renter, your rent payment only covers the cost of your dwelling. When you pay your mortgage, you grow your wealth through the forced savings that is your home equity. Maybe it’s time to stop paying off your landlord’s mortgage and start paying off your own.

Bottom Line

If you’re thinking of renting this year in Knoxville, it’s important to keep in mind the true costs you’ll face. Let’s connect so you can see how you can begin your journey to homeownership today.

Contact the Troy Stavros TEAM at CornerStone Realty Associates today at 865-999-0925 to talk about your alternatives and to formulate a game plan to get you building wealth and saying goodbye to rent increases.

What Are Experts Saying About The 2022 Housing Market?

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As we move into 2022, both buyers and sellers in East Tennessee are wondering, what’s next? Will there be more homes available to buy? Will East Tennessee home prices keep climbing? How high will mortgage rates go? For the answer to those questions and more, we turn to the experts. Here’s a look at what they say we can expect in 2022.

Odeta Kushi, Deputy Chief Economist, First American:

“Consensus forecasts put rates at about 3.7% by the end of next year. So, that’s still historically low, but certainly higher than they are today.”

Danielle Hale, Chief Economist, realtor.com:

“Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”

Lawrence Yun, Chief Economist, National Association of Realtors (NAR):

“With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”

George Ratiu, Manager of Economic Research, realtor.com:

“We also expect a growing number of homeowners to bring properties to market, taking some pressure off high prices and offering buyers more options.”

Mark Fleming, Chief Economist, First American:

“Strong demographic demand will continue to act as the wind in the housing market’s sails.”

What Does This Mean for Buyers in East Tennessee?

Hope is on the horizon for 2022. You should see your options grow as more homes are listed and some of the peak intensity of buyer competition starts to ease. Just remember, rising rates and prices are a great motivator for you to find the home of your dreams sooner rather than later so you can buy while today’s affordability is still in your favor.

What Does This Mean for Sellers?

Make no mistake – this sellers’ market in East Tennessee will remain in 2022 as home prices are projected to continue climbing, just at a more moderate pace. Selling your house in East Tennessee while buyer demand is so high will truly put you in the driver’s seat. But don’t wait too long. With more listings projected to become available, your ideal window of opportunity to stand out from the crowd won’t last forever. Work with an agent who knows your local market and current inventory conditions to ensure you have the support you need to make an educated and informed decision about selling in the coming year.

Bottom Line

If you’re thinking of buying or selling, 2022 may be your year. Let’s connect to discuss your goals and the unique opportunities you have in today’s housing market.

Contact the Troy Stavros TEAM at CornerStone Realty Associates today at 865-999-0925 with questions or to get the process started.

The Perks of Putting 20% Down When Buying a Home in East Tennessee

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The Perks of Putting 20% Down on a Home | MyKCM

If you’re thinking of buying a home in East Tennessee, you’re probably wondering what you need to save for your down payment. Is it 20% of the purchase price, or could you put down less? While there are lower down payment programs available that allow qualified buyers to put down as little as 0%, it’s important to understand the many perks that come with a 20% down payment.

Here are 4 reasons why putting 20% down may be a great option if it works within your budget.

1. Your Interest Rate May Be Lower

A 20% down payment vs. a 3-5% down payment shows your lender you’re more financially stable and not a large credit risk. The more confident your lender is in your credit score and your ability to pay your loan, the lower the mortgage interest rate they’ll likely be willing to give you.

2. You’ll End Up Paying Less for Your Home

The larger your down payment, the smaller your loan amount will be for your mortgage. If you’re able to pay 20% of the cost of your new home in East Tennessee at the start of the transaction, you’ll only pay interest on the remaining 80%. If you put down 5%, the additional 15% will be added to your loan and will accrue interest over time. This will end up costing you more over the lifetime of your home loan.

3. Your Offer Will Stand Out in a Competitive Market

In the East Tennessee market where many buyers are competing for the same home, sellers often like to see offers come in with 20% or larger down payments. The seller gains the same confidence as the lender in this scenario. You are seen as a stronger buyer with financing that’s more likely to be approved. Therefore, the deal will be more likely to go through.

4. You Won’t Have To Pay Private Mortgage Insurance (PMI)

What is PMI? According to Freddie Mac:

“For homeowners who put less than 20% down, Private Mortgage Insurance or PMI is an added insurance policy for homeowners that protects the lender if you are unable to pay your mortgage.

It is not the same thing as homeowner’s insurance. It’s a monthly fee, rolled into your mortgage payment, that’s required if you make a down payment less than 20%. . . . Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your monthly payment.”

As mentioned earlier, if you put down less than 20% when buying a home, your lender will see your loan as having more risk. PMI helps them recover their investment in you if you’re unable to pay your loan. This insurance isn’t required if you’re able to put down 20% or more.

Many times, home sellers looking to move up to a larger or more expensive home are able to take the equity they earn from the sale of their house to put 20% down on their next home. With the equity homeowners have today, it creates a great opportunity to put those savings toward a larger down payment on a new home.

Bottom Line

If you’re looking to buy a home in East Tennessee, consider the benefits of 20% down versus a smaller down payment option. Let’s connect so you have expert advice to help make your homeownership goals a reality.

Contact the Troy Stavros TEAM at CornerStone Realty Associates today at 865-999-0925.

Historic Home for Sale on the Historic Downtown Loudon Square

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How about a Historic 100+ year old home on the square in Historic Downtown Loudon? Along the banks of the Tennessee River, you can take a step back in time and enjoy all the comforts of small-town living and then some. This charming multi-use facility was built in 1900 and has been remodeled/restored and is in outstanding condition. Located on the busy and revitalized Downtown Loudon Square, it sits directly across from the Loudon County Courthouse. Within a 5 minute stroll, you can enjoy multiple restaurants, shops, professional services, an ice cream parlor and more. Currently zoned commercial and on the docket for a possible zoning change to residential, this property could serve multiple uses. Office, coffee shop, antique shop, possible short-term rental, long-term rental, private residence, or shop/office with private residence above. Lots of possibilities. Public street parking in front and a private parking lot in the back. Don’t miss this amazing opportunity on a one-of-a-kind property. 

306 Wharf St, Loudon, TN 37774

$195,000
Property Type: Single Family Bedrooms: 2 Square Footage: 1,392 Lot Size (sq. ft.): 6,098 Status: Closed
Current Price: $195,000 List Date: 1/07/2022 Last Modified: 12/21/2023

Description

How about a Historic 100+ year old home on the square in Historic Downtown Loudon? Along the banks of the Tennessee River you can take a step back in time and enjoy all the comforts of small town living and then some. This charming multi-use facility was built in 1900 and has been remodeled/restored and is in outstanding condition. Located on the busy and revitalized Downtown Loudon Square, it sits directly across from the Loudon County Courthouse. Within a 5 minute stroll you can enjoy multiple restaurants, shops, professional services, ice cream parlor and more. Currently zoned commercial but this property could serve multiple uses. Office, shops, possible short term rental, long term rental, private residence, shop+residence.

More Information MLS# 1176711

Location Tax Legal Info

House #: 306 Street Name: Wharf St Suffix: St State/Province: TN Zip Code: 37774 Property Sub-Type: Residential PIN #: 041A B 007.00 Subdivision: Downtown Loudon Geo Lat: 35.742017 Geo Lon: -84.336449

Contract Info

Auction Y/N: No Listing Price: 199900 Current Price: $195,000 Status: Closed Listing Date: 2021-12-27

General Property Description

Type: 2 Story Acres: 0.14 Acre Source: Tax Records Site Built: Yes Restrictions: Yes SqFt - Total (Aprox): 1392 SqFt - Main Lvl: 816 SqFt - 2nd Flr Lvl: 576 # Bedrooms: 2 Baths - Full: 1 # of Rooms: 5 Fireplace: Yes # Fireplace: 4 Property Status: N/A HOA: No Year Built: 1900 Bonus Room: No

Status Change Info

Status Change Date: 2022-01-26 Under Contract Date: 2022-01-09 Sold Date: 2022-01-24 Sold Price: $195,000

Property Features

Style: Historic; Traditional Construction: Frame Siding: Wood Basement: Crawl Space Lot Description: Level View: Other Fireplace: Brick; Masonry; Wood Burning Floors: Carpet Fuel: Electric; Gas (Natural) Heat: Central; Forced Air Cooling: Central Cooling Appliances: Refrigerator; Smoke Detector Sewer: Public Sewer Water: Public Other Rooms: Bedroom Main Level; Den/Study; Family Room Misc Features: Internet Available Exterior Features: Patio; Prof Landscaped Showing: See Agent Instructns New Financing: Cash; Conventional; New Loan; VA Loan
Listing Office: Doorbell Real Estate
Office Phone: 888-388-3667
Last Updated: December - 21 - 2023
306 Wharf St, Loudon, TN 37774- MLS# 1176711
The data relating to real estate for sale on this Web Site comes from the IDX Program of the Knoxville Area Association of REALTORS® Multiple Listing Service. © Copyright 2020 All rights reserved. IDX information is provided exclusively for consumers' personal, non-commercial use, it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that the data is deemed reliable but is not guaranteed accurate by the MLS. This information is updated weekly, however, some of these properties may subsequently have sold and may no longer be available. The Real Estate Broker providing this data believes it to be correct, but advises interested parties to confirm the data before relying on it in a purchase decision.
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The Average Homeowner in Tennessee Gained $53,000 in Equity over the Past Year

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When you think of homeownership, what’s the first thing that comes to mind? Chances are you might focus on the non-financial benefits, like the security or stability that a home provides. But what about equity? While it can be overlooked, a homeowner’s equity helps build long-term wealth over time. Here’s a look at what equity is and why it matters.

For a homeowner, your equity is the current value of your home minus what you owe on the loan. So, as home values climb, your home equity does too. That’s exactly what’s happening today. There aren’t enough homes on the market to meet buyer demand, so bidding wars and multiple offers are driving prices up. That’s because people are willing to pay more to buy a home. Right now, this low supply and high demand are giving current homeowners a significant equity boost.

Dr. Frank Nothaft, Chief Economist at CoreLogic, explains it like this:

“Home price growth is the principal driver of home equity creation. The CoreLogic Home Price Index reported home prices were up 17.7% for the past 12 months ending September, spurring the record gains in home equity wealth.”

To find out just how much rising home values have impacted equity, we turn to the latest Homeowner Equity Insights from CoreLogic. According to that report, the average homeowner’s equity has grown by $56,700 over the last 12 months.

The Average Homeowner Gained over $56,700 in Equity over the Past Year | MyKCM

Curious how your Tennessee stacks up? Check out the map above and you’ll see our average is $53,000 in equity gained.

How Rising Equity Impacts You

If you’re already a homeowner in East Tennessee, equity not only builds your wealth, it also opens doors for you to achieve your goals. It works like this: when you sell your house, the equity you built up comes back to you in the sale. You can use those proceeds to fuel your next move, especially if you’ve decided your needs have changed and you’re looking for something new.

If you’re thinking about becoming a homeowner in East Tennessee, understanding the importance of equity can help you realize why homeownership is a worthwhile goal. It builds your wealth and gives you peace of mind that your investment is a wise one, not just from a lifestyle perspective, but from a financial one too.

Bottom Line

Whether you’re a current homeowner in East Tennessee or you’re ready to become one, it’s important to know how equity works and why it matters. If this inspires you to make a move, let’s connect to explore your options and find out what steps you need to take next.

Contact the Troy Stavros TEAM at CornerStone Realty Associates today at 865-999-0925.

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