I recently wrote an article that talked about why homeownership far outweighs renting when it comes to building net worth and also posted another article about why a billionaire says buying a home to live it is the single best investment. One of the most important factors when seeing if owning a home is a good investment, is to look at the quality of that investment over time. We can do that by looking at the home price trends in Farragut, Knoxville, and beyond. We all know from looking at the stock market that investments fluctuate. Some years they go up, other times they go down, but most experts say it’s important to buy and hold an investment to allow it to really be fruitful. That’s what we typically do with owner occupied real estate. We buy it to live in for years to come. Let’s see how our investment would have done if we bought over the last few years.
Farragut TN Home Price Trends
- From 2013 to 2014 median home price went up by 15.72%
- From 2012 to 2013 median home prices went down by -4.07%
- From 2011 to 2012 median home prices went down by -2.64%
- From 2010 to 2011 median home prices went up by 2.71%
- From 2009 to 2010 median home prices went up by 2.52%
- From 2008 to 2009 median home prices went down by -12.24%
- From 2007 to 2008 median home prices went up by 10.55%
- From 2006 to 2007 median home prices went down by -3.42%
- From 2005 to 2006 median home prices went up by 6.26%
- Today’s median sale price in Farragut is $315,750 compared to $265,000 in 2006.
So, these numbers show us that over the last 10 years, even going through the real estate downturn, the average home in Farragut saw a price appreciation of 15.39%.
Knoxville TN Home Price Trends
- From 2013 to 2014 median home price went up by 2.66%
- From 2012 to 2013 median home prices went up by 4.72%
- From 2011 to 2012 median home prices went down by -1.36%
- From 2010 to 2011 median home prices stayed flat at 0.00%
- From 2009 to 2010 median home prices went down by -0.07%
- From 2008 to 2009 median home prices went down by -5.41%
- From 2007 to 2008 median home prices went down by -4.52%
- From 2006 to 2007 median home prices went up by 3.74%
- From 2005 to 2006 median home prices went up by 6.80%
- Today’s median sales price in Knoxville is $149,900 compared to $145,000 in 2006.
This shows us that Knoxville as a whole over the last 10 years, even after the housing downturn, the Greater Knoxville area saw a price appreciation of 6.56%.
National Home Price Trends
The infographic below shows the history of appreciation in the national housing market:
What does this mean for you?
While the numbers above might not look like a home run investment as far as percentage increases go, ask yourself, what other investments can you live in and enjoy with your family? What other investments can you pay down and build equity in? What other investments can you sell after two years and keep all of the profit that you’ve made, tax free! I don’t know of any others. Plus, have you seen what your money earns in the bank lately?
The following graphic shows what experts predict as far as home price trends over the next 5 years:
Keep in mind that all of the numbers above are median averages, and always remember that real estate is local. Local, down to the side of the street you live on sometimes. Your neighborhood might be appreciating significantly more or less when compared to one across town for various reasons. This is why it’s important to find a trusted real estate advisor, who knows the local Farragut real estate or Knoxville real estate markets. If you have questions about the market in your neighborhood, or want to know how much your home could sell for today, feel free to contact me, Troy Stavros with Gables & Gates, REALTORS and I would love to help. I am here to serve you!