Are you looking to buy or sell real estate in East Tennessee or Knoxville? Understanding the latest market trends can help you make informed decisions. Here’s a detailed look at the current state of the housing market in these regions as of May 2024.
East Tennessee Market Overview
Home Sales and Inventory:
- Home sales decreased by 1% compared to last year, marking a shift in the market.
- However, pending sales rose by 10.1%, indicating strong buyer interest.
- Inventory surged by 42.8%, providing more options for buyers.
Prices and Absorption Rates:
- The median sales price increased by 8.96%, reaching $365,000.
- The average price per square foot stands at $221.
- The absorption rate climbed to 3.14 months, suggesting a balanced market with increased inventory and slightly reduced demand due to high interest rates.
Key Trends:
- The most active price range for sales was $300,000 to $350,000.
- The $350,000 to $400,000 range saw the most new listings and pending sales.
- Days on market are decreasing, reflecting quicker sales.
Knoxville Market Insights
Sales and Inventory:
- Home sales in Knoxville rose by 7.8% from last year.
- Inventory increased by a substantial 55.1%, offering more choices for buyers.
- New listings were up by 12.2%, further expanding the market.
Pricing Dynamics:
- The median sales price saw a modest rise of 2.04%, reaching $397,950.
- The average price per square foot is $227.
- The absorption rate increased to 1.64 months, still indicating a seller’s market.
Significant Segments:
- The $300,000 to $350,000 price point had the highest number of sales.
- The $350,000 to $400,000 range dominated pending sales and new listings.
- The market remains competitive, especially in the lower to mid-range price segments.
County-by-County Breakdown
Roane County:
- Inventory up by 92.7%, pending sales stable.
- Median sales price up by 11.67%, at $334,900.
Knox County:
- Inventory up by 58.6%, pending sales up by 8.3%.
- Median sales price up by 1.56%, at $389,450.
Anderson County:
- Inventory up by 55.8%, pending sales up by 2.4%.
- Median sales price up by 13.98%, at $318,000.
Loudon County:
- Inventory up by 46%, pending sales down by 6.9%.
- Median sales price up by 15.26%, at $532,500.
Sevier County:
- Inventory up by 36.38%, pending sales down by 12.07%.
- Median sales price up by 8.9%, at $590,000.
Blount County:
- Inventory up by 61%, pending sales up by 11.2%.
- Median sales price down by 5.07%, at $370,000.
Market Action and Affordability
The market action index has been trending down, indicating more supply and slightly reduced demand due to higher interest rates. Despite this, the market remains a seller’s market, especially in Knoxville where inventory is still below pre-pandemic levels.
Affordability Challenges:
- High mortgage rates (over 7%) are affecting affordability.
- Only 15% of homes are affordable for those earning the median household income of $62,911.
- Interest rates’ movements will significantly impact market dynamics.
Future Outlook:
- Low mortgage rates are unlikely in 2024 due to inflation.
- Significant drops in home prices are not expected in the near term.
- Lot availability and new construction remain challenges, contributing to higher home prices.
Conclusion
Whether you’re buying or selling, understanding these market trends is crucial. More inventory means more choices for buyers, while still low overall inventory keeps the market favorable for sellers. Stay informed, consult with your real estate agent, and keep an eye on interest rates to make the best decisions in the current East Tennessee and Knoxville housing markets.
For personalized advice and insights, don’t hesitate to reach out to Troy Stavros with Cornerstone Realty Associates. Happy house hunting!
