865 Real Estate

East Tennessee Real Estate & Neighborhood Source

What’s Happening with Home Prices in Knoxville?

By

Many people have questions about home prices right now. How much have prices risen over the past 12 months? What’s happening with home values right now? What’s projected for next year? Here’s a look at the answers to all three of these questions.

How much have home values appreciated over the last 12 months?

What’s Happening with Home Prices? | MyKCM

According to the latest Home Price Index from CoreLogic, home values have increased by 18.1% compared to this time last year. The average sales price in Knoxville increased by 18.74%. Additionally, prices have gone up at an accelerated pace for each of the last eight months (see graph below): The increase in the rate of appreciation that’s shown by CoreLogic coincides with data from the other two main home price indices: the FHFA Home Price Index and the S&P Case Shiller Index.

The last year has shown tremendous home price appreciation, which is resulting in a major gain in wealth for homeowners through rising equity.

What’s happening with home prices right now?

What’s Happening with Home Prices? | MyKCM

All three indices mentioned above also show that while appreciation is in the high double digits right now, that price acceleration is beginning to level off (see graph below):Year-over-year appreciation is still close to 20%, but it’s clearly plateauing at that rate. Many experts believe it will drop below 15% by the end of the year.

Keep in mind, that doesn’t mean home values will depreciate. It means the rate of appreciation will slow, yet stay well above the 25-year average of 5.1%.

What about next year?

The recent surge in prices is the result of heavy buyer demand and a shortage of homes available for sale. Most experts believe that as more housing inventory comes to market (both new construction and existing homes), the supply and demand for housing will come more into balance. That balance will bring a lower rate of appreciation in 2022. Here’s a look at home price forecasts from six major entities, and they all project future appreciation:

  1. Fannie Mae
  2. Freddie Mac
  3. Mortgage Bankers Association
  4. Home Price Expectation Survey
  5. Zelman & Associates
  6. National Association of Realtors
What’s Happening with Home Prices? | MyKCM

While the projected rate of appreciation varies among the experts, due to things like supply chain challenges, virus variants, and more, it’s clear that home values will continue to appreciate next year.

Bottom Line

There have been historic levels of home price appreciation over the last year. That pace will slow as we finish 2021 and enter into 2022. Prices will still rise in value, just at a much more moderate pace, which is good news for the housing market.

Have questions? Thinking about buying or selling a home? Contact the Troy Stavros TEAM at CornerStone Realty Associates at 865-999-0925 and let’s talk about formulating a plan to reach your real estate goals.

Beautifully Renovated Fox Den Golf Course Home For Sale in Farragut, Tennessee – (445 E Fox Den Dr)

By

Better than new, impeccably renovated, golf course home located on the 17th tee box and overlooking the lake of the signature 16th hole of the Fox Den Country Club Golf Course in Farragut, TN. Don’t settle for a new home on a postage stamp lot stacked on top of another, when you can take advantage of a like-new home renovated from top to bottom in a spectacular setting. New custom kitchen, new baths with glass-enclosed showers, new flooring featuring engineered hardwoods and custom tile, new electrical including a new panel box, updated roof, all new lighting with LED fixtures, updated plumbing, upgraded ceiling/wall insulation, all new windows, and doors, custom closets, and even a new epoxy floor for the garage! Farragut inspected/approved. The only thing left to add are your memories!

445 E Fox Den Drive, Knoxville, TN 37934

$740,000
Property Type: Single Family Bedrooms: 4 Square Footage: 3,288 Lot Size (sq. ft.): 19,166 Status: Closed
Current Price: $740,000 List Date: 11/07/2021 Last Modified: 12/21/2023

Description

Better than new, impeccably renovated, golf course home located on the 17th tee box and overlooking the lake of the signature 16th hole of the Fox Den Country Club Golf Course in Farragut, TN. Don't settle for a new home on a postage stamp lot stacked on top of another, when you can take advantage of a like-new home renovated from top to bottom in a spectacular setting. New custom kitchen, new baths with glass-enclosed showers, new flooring featuring engineered hardwoods and custom tile, new electrical including a new panel box, updated roof, all new lighting with LED fixtures, updated plumbing, upgraded ceiling/wall insulation, all new windows, and doors, custom closets, and even a new epoxy floor for the garage! Farragut inspected/approved. The only thing left to add are your memories!

More Information MLS# 1171967

Location Tax Legal Info

House #: 445 St Dir: E Street Name: Fox Den St Suffix: Drive State/Province: TN Zip Code: 37934 Property Sub-Type: Residential PIN #: 142JC021 Subdivision: Fox Den Geo Lat: 35.881179 Geo Lon: -84.184302

Contract Info

Auction Y/N: No Listing Price: 799000 Current Price: $740,000 Status: Closed Listing Date: 2021-10-28

General Property Description

Type: 2 Story Acres: 0.44 Acre Source: Tax Records Site Built: Yes Restrictions: Yes SqFt - Total (Aprox): 3288 SqFt - Main Lvl: 1818 SqFt - 2nd Flr Lvl: 1470 # Bedrooms: 4 Baths - Full: 2 Baths - 1/2: 1 # of Rooms: 9 Fireplace: Yes # Fireplace: 1 Property Status: N/A HOA: Mandatory HOA Fee: 235 HOA Freq: Yearly HOA Contact: 865-558-3030 Year Built: 1982 Bonus Room: Yes

Status Change Info

Status Change Date: 2022-01-29 Under Contract Date: 2021-11-24 Sold Date: 2022-01-28 Sold Price: $740,000

Property Features

Style: Traditional Construction: Brick Siding: Brick Basement: Crawl Space Lot Description: Golf Community; Golf Course Front; Level View: Golf Course; Lake View Fireplace: Brick; Gas Log Floors: Carpet; Hardwood; Tile Fuel: Electric; Gas (Natural) Heat: Heat Pump Cooling: Ceiling Fan(s); Central Cooling Appliances: Dishwasher; Disposal; Microwave; Range; Refrigerator; Self Cleaning Oven; Smoke Detector Sewer: Public Sewer Water: Public Other Rooms: Bedroom Main Level; Den/Study; Extra Storage; Family Room; Great Room; Laundry/Utility; Split Bedroom Misc Features: Internet Available; Island in Kitchen; Pantry; Walk-in Closets; Walk-in Shower; Washer/Dryer Connect; Wired for Internet Exterior Features: Deck; Patio; Porch - Covered; Prof Landscaped; Windows - Insulated Dining Area: Eat-in Kitchen; Formal Dining Area Community Amenities: Architect Restricted; Club House; Exercise Room; Golf Course; Putting Greens; Swimming Pool; Tennis Courts Association Fee Incl: Other Showing: See Agent Instructns New Financing: Cash; Conventional; New Loan
Listing Office: Doorbell Real Estate
Office Phone: 888-388-3667
Last Updated: December - 21 - 2023
445 E Fox Den Drive, Knoxville, TN 37934- MLS# 1171967
The data relating to real estate for sale on this Web Site comes from the IDX Program of the Knoxville Area Association of REALTORS® Multiple Listing Service. © Copyright 2020 All rights reserved. IDX information is provided exclusively for consumers' personal, non-commercial use, it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that the data is deemed reliable but is not guaranteed accurate by the MLS. This information is updated weekly, however, some of these properties may subsequently have sold and may no longer be available. The Real Estate Broker providing this data believes it to be correct, but advises interested parties to confirm the data before relying on it in a purchase decision.
Search powered by FBS Products

Knoxville Home Sellers Are in a Sweet Spot [INFOGRAPHIC]

By

Sellers Are in a Sweet Spot [INFOGRAPHIC] | MyKCM

Some Highlights

  • In today’s sellers’ market, you’re set up to win big when you list your house in Knoxville.
  • That’s because Knoxville homes are selling fast, receiving 4.4 offers on average and often selling above the asking price. Then, when you buy your next home, you’ll also win by addressing your changing needs and taking advantage of near historic-low mortgage rates.
  • If you’re ready to make a move, let’s connect so you can capitalize on today’s market and find your next dream home. Contact me, Troy Stavros with CornerStone Realty Associates today at 865-999-0925. My team and I look forward to serving you!

Home Price Appreciation and What It Means for Sellers in Knoxville

By

A Look at Home Price Appreciation and What It Means for Sellers | MyKCM

When you hear the phrase home price appreciation, what does it mean to you? Through context clues alone, chances are you know it has to do with rising home prices. And as a seller in Knoxville, you know rising home prices are good news for your potential sale. But let’s look past the dollar signs and dive deeper into the concept. To truly understand home price appreciation, you need to know how it works and why it matters to you.

Investopedia defines appreciation like this:

“Appreciation, in general terms, is an increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease in value over time.”

A Look at Home Price Appreciation and What It Means for Sellers | MyKCM

When we consider this definition and how it applies to real estate, a few words stick out: supply and demand. In today’s Knoxville real estate market, we’re experiencing high buyer demand and very few sellers listing their homes for sale (see maps below): No matter the industry, anytime there’s more demand than supply, prices naturally rise. It happens because buyers are willing to pay more to secure the scarce product or service they’re looking for. That’s exactly what’s happening in today’s Knoxville real estate market. Buyers are competing with one another to purchase a home, leading to bidding wars that drive prices up. For sellers, the rising prices mean that opportunity is knocking.

A Look at Home Price Appreciation and What It Means for Sellers | MyKCM

According to Quicken Loans, the national average home price appreciation rate is between 3-5% in a typical year. Today, home prices are appreciating well beyond the norm thanks to high demand. Here are the latest expert projections on the rate of home price appreciation for this year (see chart below):

Compared to the normal pace of 3-5% appreciation per year, the current average forecast of nearly 11.5% is significant.

A Look at Home Price Appreciation and What It Means for Sellers | MyKCM

For Knoxville home sellers, this means that with the current rise in prices, your house may be worth more than you realize. That price appreciation helps give your equity a boost. Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. It works like this (see chart below): You can use your built-up equity to power a move into your dream home, or you can put it toward life-changing goals like funding an education or opening a business.

But don’t wait. While price appreciation in Knoxville is strong now, those same experts say it’ll start to appreciate at a more normalized pace next year. If you list your house in Knoxville sooner rather than later, you’ll be in a better position to capitalize on the higher-than-average home price appreciation we’re seeing today.

Bottom Line

If you’re thinking of selling your house in Knoxville, there really is no time like the present. Let’s connect so you can get an expert market analysis of your home and its potential. Contact me, Troy Stavros with CornerStone Realty Associates today at 865-999-0925. My team looks forward to serving you!

Experts Agree Home Prices Will Continue to Appreciate

By

Experts Say Home Prices Will Continue to Appreciate | MyKCM

It’s clear that consumers in Knoxville and beyond are concerned about how quickly home values are rising. Many people fear the speed of appreciation may lead to a crash in prices later this year. In fact, Google reports that the search for “When is the housing market going to crash?” has actually spiked 2450% over the past month.

In addition, Jim Dalrymple II of Inman News notes:

“One of the most noteworthy things that came up in Inman’s conversations with agents was that every single one said they’ve had conversations with clients about whether or not the market is heading into a bubble.”

To alleviate some of these concerns, let’s look at what several financial analysts are saying about the current residential real estate market. Within the last thirty days, four of the major financial services giants came to the same conclusion: the housing market is strong, and price appreciation will continue. Here are their statements on the issue:

Goldman Sachs’ Research Note on Housing:

“Strong demand for housing looks sustainable. Even before the pandemic, demographic tailwinds and historically-low mortgage rates had pushed demand to high levels. … consumer surveys indicate that household buying intentions are now the highest in 20 years. … As a result, the model projects double-digit price gains both this year and next.”

Joe Seydl, Senior Markets Economist, J.P.Morgan:

“Homebuyers—interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six-to-nine months, but we don’t expect them to fall soon, and we believe they are more likely to keep rising. If you are looking to purchase a new home, conditions now may be better than 12 months hence.”

Morgan Stanley, Thoughts on the Market Podcast:

“Unlike 15 years ago, the euphoria in today’s home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation . . . . This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.”

Merrill Lynch’s Capital Market Outlook:

“There are reasons to believe that this is likely to be an unusually long and strong housing expansion. Demand is very strong because the biggest demographic cohort in history is moving through the household-formation and peak home-buying stages of its life cycle. Coronavirus-related preference changes have also sharply boosted home buying demand. At the same time, supply is unusually tight, with available homes for sale at record-low levels. Double-digit price gains are rationing the supply.”

Bottom Line

If you’re concerned about making the decision to buy or sell right now, let’s connect to discuss what’s happening in our local market. Call or text me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today. My team is ready to serve you.

This Isn’t a Housing Bubble. It’s Simply Lack of Supply. [INFOGRAPHIC]

By

This Isn’t a Bubble. It’s Simply Lack of Supply. [INFOGRAPHIC] | Simplifying The Market

Some Highlights

  • In a recent article, Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), discussed the state of today’s housing market.
  • When addressing whether or not today’s high buyer competition and rising home prices are evidence of a housing bubble, Yun said that this “is not a bubble. It is simply lack of supply.”
  • Today’s Knoxville housing market is healthy, and the rising prices of Knoxville homes are driven by real buyer demand. Let’s connect to talk about the best ways to navigate such an energetic market.

Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today! My team and I would love to serve you!

Farragut Homes by Price