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February 2024 Farragut, TN Real Estate Market Update: Expert Insights for Buyers & Sellers

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CLICK HERE TO SEE ALL HOMES FOR SALE IN FARRAGUT, TENNESSEE

The Farragut, Tennessee, real estate market has presented a mixed bag of trends as of February 2024, offering unique opportunities and challenges for both buyers and sellers. Troy Stavros from Cornerstone Realty Associates brings us an in-depth analysis of the market dynamics, revealing essential insights that can guide your real estate decisions in this picturesque locale.

Farragut Home Sales and Prices on the Rise

Despite a slight 3.8% decrease in home sales compared to last year, the Farragut market has shown signs of heating up with a 33.3% increase in pending sales. This indicates a growing interest among buyers as we edge closer to the spring selling season. Notably, the median sales price has surged by 33.81% to $679,150, accompanied by an average sold price per square foot of $238. This upward trend in pricing is reflective of a strong demand, underscored by the significantly low inventory levels with an absorption rate of 1.85 months.

Inventory and Listings

A Seller’s Advantage The inventory of homes has seen a 22.2% increase, coupled with a 30.6% rise in new listings. This expanded inventory, while still low, presents a favorable scenario for sellers, offering them leverage due to the persistent demand. The market remains in a slight seller’s domain with the market action index at 42, signaling that prices are continuing to climb.

What’s Selling in Farragut?

The diversity in the Farragut market is evident from the sales distribution across various price ranges. The most sales were recorded in the $400,000 to $450,000 and $750,000 to $800,000 brackets, each with four sales. Pending sales were notably active in the $450,000 to $500,000, $350,000 to $400,000, and $650,000 to $700,000 price ranges. The highest inventory available falls in the $650,000 to $700,000 range, with 12 homes for sale, indicating a broader selection for buyers in this segment.

Insights for Buyers in Farragut

For buyers, the current market conditions suggest a competitive landscape, especially in the lower price segments, which are moving quickly with the lowest days on the market. With median days on market at 42 days, down from 77 at the beginning of February, buyers must act swiftly to secure properties in this fast-paced market. The varied inventory and new listings across different price points offer opportunities for buyers to find homes that meet their preferences and budget.

Tips for Sellers in Farragut

Sellers in Farragut are in a favorable position, thanks to the low inventory and high demand, especially in the lower price segments. To capitalize on this market, sellers should consider pricing their homes competitively, particularly if they are in the high-demand price ranges. Highlighting the unique features and value of their properties can also attract more buyers, especially as the market action index suggests a slight seller’s market.

Conclusion

The Farragut, Tennessee, real estate market is vibrant and evolving, with significant opportunities for both buyers and sellers. Whether you’re looking to purchase your dream home or sell your property at a premium, understanding the current market trends and dynamics is crucial. For personalized advice and the latest market updates, consider reaching out to a local real estate expert like Troy Stavros at Cornerstone Realty Associates. Call or text Troy at 865-999-0925.

CLICK HERE FOR ACCESS TO MY WEEKLY FARRAGUT MARKET REPORT. (Never miss a beat, search for ANY city and/or zip of interest, and click “Subscribe” to receive an update each week.)

Remember, whether buying or selling, staying informed about the latest market trends in Farragut is key to making well-informed real estate decisions. For more insights and updates, keep an eye on the market and consult with professionals who can guide you through the intricacies of the Farragut real estate landscape.

Gorgeous Farragut Home located in Sweet Briar Subdivision

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SOLD! The Farragut home you’ve been looking for. 11447 Bancroft Lane, Knoxville, TN 37934. Incredibly convenient location in the Sweet Briar Subdivision has you minutes from the library, all Farragut Schools, Turkey Creek shopping, movies, and the interstate. You will be surprised with the extremely generous room sizes (room for beds and toys!). Main level features an open concept eat-in kitchen with granite counters galore that overlooks the family room with fireplace, along with a large office and dining room flanking the sun filled foyer. A short trip up the centrally located wood staircase gives you access to the 4 large bedrooms, one being a massive owner’s suite with bay window perfect for reading a book. Were not done yet! Up one more set of stairs in the hall and surprise.. a 3rd level bonus room perfect for a playroom, teen hangout, or man cave. In the back there is a patio for grilling and enjoying that great weather that is just around the corner, backed by an oversized, flat yard that is fenced on 3 sides. Add the 3 car garage and that makes this home everything that you need! Contact Troy Stavros with Gables & Gates, REALTORS at 865-999-0925 for more information.

Buying a home in Knoxville? Price vs. Cost. What’s the Difference?

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When selling a home in Knoxville, you will be most concerned about ‘short term price’ – where are home values headed over the next six months. When buying a home in Knoxville, you must be concerned less about price but instead about the ‘long term cost’ of the home.

The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac all projected that mortgage interest rates will increase by about three-quarters of a percentage point over the next twelve months.

According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 5.2% over the next 12 months.

What Does This Mean as a Buyer?

Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 today if home prices appreciate by the 5.2% predicted by CoreLogic over the next twelve months:

Cost of Waiting | Simplifying The Market

Call me, Troy Stavros with Gables & Gates, REALTORS today to get your home search process started!

Waiting One Year To Buy Could Cost You $100’s Per Month

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Recent research shows that first-time homebuyers are buying homes in greater numbers than any time in the last few years. Also, renters in Knoxville are now realizing that they are also able to buy a home. If you are tired of seeing your friends and family diving head first into the real estate market, and wondering if now is the time for you to do the same, keep reading!

The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home, if prices and interest rates were to increase over a period of time.

Let’s see what that would look like for you by looking at an example of what the experts are predicting for the upcoming year. Let’s say you’re 30 years old and your dream house in Knoxville costs $250,000 today. Right now mortgage interest rates are at or around 4%.

Your monthly mortgage payment (principal & interest only) would be $1,193.54.

But you’re busy, you like your apartment, and moving is such a hassle. You decide to wait until next year to buy your Knoxville home. CoreLogic predicts that home prices will appreciate by 5.1% in the next 12 months; this means that same house you loved now costs, $262,750.

In turn, Freddie Mac predicts that over this same period of time, interest rates will be a full point higher at 5.0%. Your new payment per month is now $1,410.50.

The difference in payment is $216.96 PER MONTH!

That’s basically like taking $8 and tossing it out the window EVERY DAY!

Or you could look at it this way:

  • Need a new car? You could get a brand new car for $217 a month.

Let’s look at that number annually. Over the course of your new mortgage at 5.0%, your annual additional cost would be $2,603.52!

Had your eye on a vacation in the Caribbean? How about a 2-week trip through Europe? Or maybe your new house could really use a bathroom update. I could come up with 100’s of ways to spend $2,603, and I’m sure you could too!

Over the course of your 30 year loan, now at age 61, hopefully you are ready to retire soon, you would have spent an additional $78,105.60, all because when you were 30 you thought moving in 2015 was such a hassle or loved your apartment too much to leave yet.  Yeah, that’s pretty dramatic, but it’s true!

Or maybe there wasn’t an agent out there who educated you on the true cost of waiting a year. Maybe they thought you wouldn’t be ready. But if they showed you that you could save $78,000 you’d at least listen to what they had to say.

They say hindsight is 20/20, I’d like to think that 30 years from now when you are 60, looking back, you would say to buy now…

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troy@gablesandgates.com

3 Questions To Ask Yourself Before Buying A Home in Farragut

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Have you been kicking around the idea of buying a home in Farragut or Knoxville?  If you are, I’m sure you are getting lots of advice. Friends and family, who no doubt have your best interests in mind, can be a great resource to bounce ideas off of, but they might not be fully aware of the current state of the Farragut real estate market.  There are many factors that go into buying a home, but let’s take a look at whether now is a good time as far as current market conditions.

If you are thinking of buying a home in Farragut or Knoxville, here are 3 questions to ask yourself before buying a home in today’s market:

Question #1: What is the reason that I’m buying a home for in the first place?

Of all the questions, this is really the most important. Finances aside, what is the reason you want to buy? Because usually the reason has nothing to do with finances.   The Joint Center for Housing Studies at Harvard University recently conducted a study which revealed that there are 4 reasons why people buy a home, and none of them have to do with money. Here are the reasons:

  • Looking for a good place to raise children and for them to get a good education
  • Looking for a place where you and your family can feel safe
  • Looking for more space for you and your family
  • Looking to control the space you live in

Now don’t get me wrong, Harvard is great, but the real reason I know the points above are true is because it’s what I hear from my buyers.  In fact, I just heard it again today over lunch with a client I have relocating from California.

So what benefits (non-financial) will you and your family get from owning a home in Farragut? This question is important, because it should be the top reason you decide whether to buy or not.

Question #2: Where are the home prices headed?

I don’t have a crystal ball, but I do have some very smart experts that I follow.  These experts put out the “Home Price Expectation Survey.” Every 3 months, a nationwide panel of over 100 economists, real estate experts, and investment and market strategists are surveyed as to where they feel prices are headed over the next 5 years. The report then takes those 100+ expert projections and averages them into a single number.

Here are the expert projections from the latest survey:

  • Home values will appreciate by 4.4% in 2015.
  • By 2019 the cumulative appreciation will be 19.3%.
  • Even the most conservative of the experts are still projecting a cumulative appreciation of over 11.9% by 2019.

Question #3: Where are mortgage rates headed?

When buying a home, unless you are paying cash, you need to be equally concerned about mortgage rates and where they are headed.  Why? Because your mortgage rate directly effects how much money you are paying out every month as well as how much extra interest you pay over the life of the loan.

The National Association of REALTORS®, Mortgage Bankers Association, and Freddie Mac all project that mortgage interest rates will increase by approximately one whole percentage point over the next year.

What does this mean for you?

Only you really know when it’s the right time to buy your next home, or your first home, but answering the questions above might help you make an educated decision.  Hopefully sooner than later because we know if prices and interest rates are expected to rise, either you will spend more money to afford the same house a year from now, or you will pay the same amount of money and be forced to buy something less expensive.  Numbers are very important, but even more important is the real reason why you want to move. Is it time? If you have any questions about buying a home in Farragut or Knoxville or are looking for expert assistance, don’t hesitate to call or text me, Troy Stavros with Gables & Gates, REALTORS at 865-999-0925. I’d love to help. I’m here to serve you!

SEARCH Farragut Homes For Sale
SEARCH ALL Knoxville Homes
Farragut Homes HOT LIST
Homes Close to Where You Work
Mortgage & Refinance
Troy Stavros
Gables & Gates REALTORS
865-999-0925
troy@gablesandgates.com

Thinking of Buying a Home Soon? Don’t Run Out Of Luck!

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Buying a home in Farragut Don't Run Out of luckAre you thinking of buying a home in Farragut or Knoxville soon? Don’t let your luck run out! With the 30 year fixed mortgage rates still below 4%, you might be on the fence about buying now or waiting, because you think you still have plenty of time to lock in a low interest rate. However, you might change your mind when you see what the experts predict will happen to rates over the next year.

Predictions for 2016 (2nd Quarter)

  • Fannie Mae Predicts 4.2%
  • Freddie Mac Predicts 4.7%
  • Mortgage Bankers Association Predicts 4.9%
  • National Association of REALTORS® Predicts 5.3%

Let’s take a look at what even a small, .5% increase in the rate could do to the net worth of your family.

Today, on a $250,000 home, with an interest rate of 3.86%, your monthly payment (principal and interest only) would be $1,173.

The Home Price Expectation Survey projects home prices will rise approximately 4.4% in the next year.  So in a year, the home above would cost $11,000 more and now be $261,000.  If we add on top of that the mortgage rate increase projection of Freddie Mac (about an average of all the projections) at 4.7%, the monthly mortgage payment on the same home rises to $1,354.

That is an increase of $181 per month.  And if you think that’s a big chunk of change, let’s multiply it over the course of a 30 year mortgage.  Ready?  You pay $65,160 more, just because you waited a year to buy.

What does this mean for you?

Well, it’s pretty obvious what it means for you as a buyer.  Waiting is going to cost you quite a bit of money.  It’s going to shrink your buying power and affordability.  That means you will be able to afford more house now, than you will in a year from now (if your income level stays the same).

What does it mean for sellers?  Well, what do sellers become after they sell?  Buyers!  So the same holds true for you.  If you are waiting to sell your home because you think it will be worth more in a year, guess what, so will the house you will be eventually buying.  Then add the higher interest rate on top of that.

So what this means for you is that there is no better time to buy and sell than right now.  If you are interested in talking more about any of the information above or want to discuss buying a home, or selling a home in Farragut or Knoxville, as always, don’t hesitate to contact me, Troy Stavros with Gables & Gates, REALTORS.  We’ll find a time that is convenient for you to sit down and discuss your plans and goals and how to best get them accomplished.  I look forward to talking with you!