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East Tennessee Real Estate & Neighborhood Source

Knoxville and East Tennessee Real Estate Market Update Through FEBRUARY 2024

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The real estate landscape in Knoxville and the broader East Tennessee region has been a roller coaster of highs and lows, with significant shifts in home sales, prices, and rental growth rates. As we delve into the intricacies of these changes, potential buyers, sellers, and local homeowners will find valuable insights to navigate the market in 2024.

A Look Back at 2023: Declines and Growth in Knoxville

The past year witnessed a notable 15.2% decline in total home sales across East Tennessee, marking one of the most significant annual downturns on record. Despite this reduction in sales activity, home prices bucked the trend, growing by 5.3% from the previous year. This dichotomy underscores a resilient market that, despite challenges, continues to grow in value.

The Knoxville metro area, in particular, saw its home prices surge by 11.7% in the fourth quarter of 2023, securing the No. 8 spot in the U.S. for price growth, according to the FHFA House Price Index. This growth is reflective of Knoxville’s enduring appeal and the substantial role newcomers play in the local housing market, further evidenced by the city’s ranking as No. 17 on U-Haul’s list of top growth cities in 2023.

Knoxville Rental Market Adjustments

January brought a slowdown in apartment rent growth, with the Knoxville metro area experiencing a 3.7% increase from the previous year, compared to a mere 0.25% national uptick. This moderation in rent increases might offer some relief to renters, although the market remains competitive.

Forecasting 2024: A Rebound in Sales and Stable Price Growth in Knoxville

Looking ahead, the East Tennessee region is poised for a rebound, with home sales expected to rise by 11.1% in 2024, while home prices are forecasted to grow at a more modest rate of 3.6%. This anticipated upturn in sales, alongside stable price growth, presents a promising landscape for both buyers and sellers.

Knoxville Market Dynamics: Inventory and Affordability

The current subdued nature of the housing market is largely attributed to a lack of resale inventory and ongoing affordability issues. However, there’s a silver lining as inventory levels are expected to improve with the arrival of the spring selling season, alongside fairly stable affordability conditions. These factors are set to inject more certainty into the market, benefiting both buyers and sellers.

Innovative Solutions: Knoxville’s “Missing Middle Housing” Plan

In a bold move to tackle the housing shortage, Knoxville has embraced the “Missing Middle Housing” plan, allowing for denser housing on smaller lots while preserving neighborhood aesthetics. This initiative is crucial for creating more affordable housing options without sacrificing the charm and uniqueness of Knoxville’s neighborhoods.

Knoxville Home Seller Profits: A Record High

Knoxville homeowners have seen their equity soar, with the city ranking among the top U.S. metro areas for return-on-investment in home sales. The typical Knoxville home seller in 2023 enjoyed a staggering profit margin of 98.1%, showcasing the financial benefits of homeownership in the region.

Mortgage Rates and Economic Outlook

The economic landscape, particularly in terms of mortgage rates and inflation, plays a significant role in the real estate market. With mortgage rates experiencing fluctuations and the Federal Reserve’s cautious stance on interest rates, potential buyers and sellers must stay informed to make strategic decisions.

Conclusion

The Knoxville and East Tennessee real estate market is complex, with various factors influencing its trajectory. However, the region’s resilience, innovative housing solutions, and promising forecasts for 2024 offer a beacon of hope for those looking to navigate this market. Whether you’re buying, selling, or simply keeping an eye on home values, staying informed will be key to making the most of the opportunities that lie ahead.

Ready to Navigate the Knoxville and East Tennessee Real Estate Market?

Whether you’re contemplating buying a new home, selling your current property, or just have questions about the ever-changing real estate landscape in Knoxville and East Tennessee, Troy Stavros with CornerStone Realty Associates is here to guide you every step of the way.

With an in-depth understanding of the local market trends and a commitment to providing exceptional service, Troy and the team at CornerStone Realty Associates are your go-to experts for all things real estate in the region.

Don’t let the complexities of the market hold you back. Contact Troy Stavros today at 865-999-0925 for personalized assistance, whether you’re looking to buy your dream home, sell for the best possible price, or simply need expert advice on your real estate journey in Knoxville or anywhere in East Tennessee.

Take the first step towards realizing your real estate goals. Call now and let Troy Stavros help you make informed decisions in this vibrant market.

March 4th Knoxville Real Estate Market Weekly Update: Opportunities for Buyers and Sellers

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Exploring the Knoxville Real Estate Market: Opportunities for Buyers and Sellers

In the vibrant heart of Tennessee, the Knoxville real estate market is flourishing, presenting unique opportunities for both buyers and sellers. As we delve into the latest market trends with the week ending on Friday, March 1st, Knoxville’s landscape showcases a promising arena for those looking to embark on their real estate journey.

A Knoxville Seller’s Paradise

Knoxville’s current real estate dynamics favor sellers, with a Market Action Index (MAI) of 55.81 indicating strong demand. This figure not only surpasses last year’s metrics but also highlights the competitive edge sellers hold in today’s market. With an active inventory of 561 homes, there are a few more options available for prospective buyers, yet the demand remains robust. This balance underscores the seller’s advantage in negotiating favorable deals.

An Array of Choices for Knoxville Home Buyers

Despite the seller’s market, buyers are not left behind. The addition of 97 new listings in the past week alone has injected more variety into the market, ensuring that buyers have more choices. Knoxville homes in the lowest two price segments, with median prices of $289,000 and $399,900, are where the competition heats up, offering both challenges and opportunities for buyers.

The Knoxville Market Dynamics

The Knoxville real estate market is characterized by rapid sales and the swift absorption of new listings, particularly in the lower to mid-range price segments mentioned above. This page indicates a healthy, active market that benefits from both seller enthusiasm and buyer interest.

For sellers, this is the time to leverage the high demand to achieve optimal outcomes for their properties. For buyers, the expanded inventory and the nuanced market conditions mean that with the right strategy, securing a home in Knoxville is within reach.

Conclusion

Whether you’re aiming to buy or sell, Knoxville’s real estate market is ripe with potential. Sellers can capitalize on the strong demand, while buyers, guided by insight and persistence, can find the right home amidst more variety. In this lively market, opportunities abound for all parties to achieve their real estate goals.

Have questions? Ready to navigate Knoxville’s vibrant real estate market with an expert by your side? Contact Troy Stavros with CornerStone Realty Associates at 865-999-0925 today. Whether you’re buying, selling, or just exploring your options, Troy’s deep market knowledge and personalized approach will guide you every step of the way. Don’t miss out on your opportunity to thrive in Knoxville’s dynamic housing landscape. Call now!

Navigating the Knoxville Real Estate Market: Insights for Buyers and Sellers – Monday February 19th

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The Knoxville real estate market is bustling with opportunities and challenges for both buyers and sellers. As we delve into the latest market update, it’s clear that understanding the current trends is crucial for anyone looking to make a move in this vibrant city.

For Buyers: Seizing Opportunities

Knoxville’s real estate landscape offers a diverse range of properties, from charming historic homes to modern new constructions. Despite the competitive market, buyers have opportunities to find their dream home with the right strategy. Key insights suggest:

  • Navigating Competitive Waters: With demand outpacing supply in many areas, preparation is key. Buyers should secure financing ahead of time and be ready to act quickly when they find the right property.
  • The Importance of Local Expertise: Partnering with a local real estate professional can provide buyers with the inside track on new listings and neighborhoods that best meet their needs and budget.

For Sellers: Maximizing Returns

Sellers in Knoxville are in a favorable position, with high demand leading to competitive offers and often, quick sales. To capitalize on this market, sellers should consider:

  • Strategic Pricing: Setting the right price from the start can attract serious buyers and potentially lead to multiple offers.
  • Preparing Your Home for Sale: Small improvements and staging can make a significant difference in how quickly a home sells and for how much.

Market Trends to Watch

  • Inventory Levels: Understanding the current supply of homes for sale can help both buyers and sellers make informed decisions.
  • Interest Rates: Fluctuations in interest rates can impact buying power and market dynamics, making it a critical factor to watch.

Conclusion & Next Steps

The Knoxville real estate market is vibrant and full of potential. Whether you’re looking to buy your dream home or sell your property in this dynamic environment, expert guidance is invaluable. For personalized advice and insights tailored to your unique real estate goals, consider reaching out to Troy Stavros with CornerStone Realty Associates. With a deep understanding of the Knoxville market and a commitment to exceptional service, Troy and his team are ready to assist you. Contact Troy Stavros at 865-999-0925 to embark on your real estate journey with confidence.

East Tennessee & Knoxville Real Estate Market Update JAN 2024: Opportunities for Buyers and Sellers

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The real estate market in East Tennessee, including the vibrant Knoxville area, is poised for a significant upturn after a challenging couple of years. With mortgage rates expected to improve and housing becoming more affordable in the latter half of 2024, we’re on the brink of a dynamic shift. This anticipated change is set to welcome a new wave of eager buyers, driving up home sales and gradually increasing property values—a positive outlook for the East Tennessee housing landscape.

Essential Insights for East Tennessee and Knoxville Home Buyers and Sellers:

Recovery in Home Sales and Prices:

Following notable declines in 2022 and 2023, the East Tennessee real estate market is set for a robust recovery. Predictions indicate an 11.1% surge in home sales for 2024, with property prices also expected to rise by 3.6%—a trend fuelled by the ongoing housing supply shortage. For those looking to buy or sell in Knoxville, Tennessee, this recovery signals a ripe market.

Improving Housing Affordability:

The easing of mortgage rates in the second half of 2024 aims to make the market more accessible, especially for those previously sidelined. In Knoxville, property prices saw a 10.58% year-on-year increase by the end of 2023, underscoring the area’s demand and investment potential.

Adjustments in the Rental Market:

Knoxville’s rental sector is experiencing a slowdown in rent increases, with a forecasted average growth of 3.1% in 2024. Despite a slight decline in occupancy rates, the rental market remains strong, reflecting sustained demand.

Market Dynamics Favor Sellers and Buyers:

The pace of home sales is accelerating, with properties moving to contract in 18 days or less. A considerable number of homes are selling at or above list price, indicating a competitive market environment. This scenario is especially advantageous for sellers in the Knoxville area, while buyers must act swiftly to secure desirable properties.

Affordability Concerns:

The East Tennessee REALTORS® Housing Affordability Index points to ongoing challenges, with a widening income gap for median-priced homes. This index highlights the most significant affordability drop since 1985, emphasizing the need for market adjustments.

2024 Outlook for East Tennessee and Knoxville Real Estate:

The coming year promises a vibrant rebound for the East Tennessee and Knoxville real estate markets, offering substantial opportunities for both buyers and sellers. Despite ongoing affordability challenges, the anticipated dip in mortgage rates and improving market conditions suggest a more welcoming environment for homebuyers. Long-term trends and demographic shifts remain key drivers, ensuring the region’s real estate market remains an attractive prospect.

For those aiming to navigate the East Tennessee and Knoxville real estate markets, staying informed about these trends is crucial. Whether you’re buying your first home, searching for investment properties, or considering selling, 2024 holds potential for significant returns and successful transactions.

Ready to Make Your Move in the East Tennessee or Knoxville Real Estate Market?

Don’t navigate this dynamic market alone! Whether you’re buying, selling, or just exploring your options, Troy Stavros with CornerStone Realty Associates is here to guide you every step of the way. With expert insights into the East Tennessee and Knoxville markets, Troy can help you make informed decisions and seize the best opportunities.

Contact Troy Stavros at CornerStone Realty Associates today at 865-999-0925 to start your real estate journey with confidence. Let’s turn your real estate goals into reality!