Troy Stavros, Broker and Partner with the 865 Real Estate team stated, “Whether it is when we are working with buyers looking at Knoxville homes for sale, speaking with our current sellers, speaking with past clients or talking with complete strangers, the question always comes up… What is happening with Knoxville real estate and where do you see it going?
Equipped with information from the National Association of REALTORS that was garnered at the recent 2012 Realtors Conference and Expo, the 865 Real Estate team shared the forecast. Stavros said, “With the important caveat that credit does not tighten further and a fiscal cliff is avoided, Knoxville home prices should continue to rise.” The 865 Real Estate team quoted NAR economist, Lawrence Yun who predicted a 6% increase in the median home price in 2012, followed by an increase of 5.1% in 2013, and comparable increases in 2014. Along with prices, sales are projected to increase each subsequent year as well. With 2012 seeing a 9% increase to 4.64 million, and 2013 increasing to 5.05 million, then 2014 to 5.3 million. The amount of distressed sales is predicted to decrease from about 25% in 2012 to only 8% in 2014. Economists saw mortgage interest rates increasing to and average of 4% in 2013 and moving higher to 4.6% in 2014 caused by inflationary pressure.
Stavros also noted that these predictions are for the national real estate market and reminded the 865 Real Estate team clients that Knoxville real estate has fared much better than most other markets. “Looking at the local market, with distinct indicators such as low inventory, buyer demand, and competitive bidding tells me there is only one place for our market to go, and that is up. The only reason I can see this not happening is if buyers cannot access money to buy Knoxville homes for sale, i.e. lending standards get tighter, or if there is a major governmental breakdown such as the fiscal cliff.”