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East Tennessee Real Estate & Neighborhood Source

Why This Summer Is the 2020 Real Estate Season in Knoxville

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With stay-at-home orders starting to gradually lift throughout parts of the country, data indicates homebuyers are jumping back into the market. After many families put their plans on hold due to the COVID-19 pandemic, what we once called the busy spring real estate season is shifting into the summer. In 2020, summer is the new spring for real estate.

Joel Kan, Economist at The Mortgage Bankers Association (MBA) notes:

“Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”

Additionally, according to Google Trends, which scores search terms online, searches for real estate increased from 68 points the week of March 15th to 92 points last week. As we can see, more potential homebuyers are looking for homes virtually.

What’s the Opportunity for Home Buyers in Knoxville?

Another reason buyers are coming back to the market, even with forced unemployment and stay-at-home orders, is historically low mortgage rates. Sam Khater, Chief Economist at Freddie Mac indicates:

“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”

With mortgage rates at such low levels and states gradually beginning to reopen, there’s more incentive than ever to buy a home this summer.

What’s the Opportunity for Home Sellers in Knoxville?

Finding a home to buy, however, is still a challenge, as this spring sellers removed many listings from the market. Though more people are now putting their houses up for sale this month as compared to last month, current inventory is still well below last year’s level.

According to last week’s Weekly Economic and Housing Market Update from realtor.com:

“Weekly Housing Inventory showed continued tightening. New Listings declined 28% compared with a year ago, as sellers grappled with uncertainty and hesitated bringing homes to market. Total Listings dropped 20% YoY, a faster rate than in prior weeks, leaving very few homes available for sale. As Time on Market was 15 days slower YoY, asking prices moved up 1.5% YoY.”

If you’re thinking of selling your house this summer, now may be your best opportunity. With so few homes on the market for buyers to purchase, this season may be the time for your house to stand out from the crowd. Trusted real estate professionals can help you list safely and effectively, keeping your family’s needs top of mind. Buyers are looking, and your house may be at the top of their list.

Bottom Line

If you’re thinking of selling, many buyers may be eager to find a home just like yours. Let’s connect today to make sure you can get your house in on the action this summer.

Call/Text me, Troy Stavros with CornerStone Realty Associates today with any questions!

Interest Rates Hover Near Historic All-Time Lows [INFOGRAPHIC]

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Interest Rates Hover Near Historic All-Time Lows [INFOGRAPHIC] | Simplifying The Market

Some Highlights

  • Mortgage interest rates have dropped considerably this spring and are hovering at a historically low level.
  • Locking in at a low rate today could save you thousands of dollars over the lifetime of your home loan.
  • Let’s connect to determine the best way to position yourself for a move in today’s market.

Call/Text me, Troy Stavros with CornerStone Realty Associates today!

LIVE VIDEO: Why Buying A Home Right Now in Knoxville Might Not Be Easy, But It’s Smart!

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Through all the volatility in the economy right now, some have put their search for a home on hold, yet others have not. Today I talk about why it’s probably a good move to move!

Why Home Office Space Is More Desirable Than Ever in Knoxville

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For years, we’ve all heard about the most desirable home features Knoxville buyers are looking for, from upgraded kitchens to remodeled bathrooms, master suites, and more. The latest on the hotlist, however, might surprise you: home offices.

In a recent article by George Ratiu, Senior Economist with realtor.com, he notes how listings with an office are selling quickly:

“As more companies have been embracing remote work, buyers are driving demand for houses with home offices higher. Homes featuring the term ‘office’ are selling 9 days faster than the overall housing inventory.”

Today, more and more people in Knoxville are working remotely, and that’s not just because the current pandemic is prompting businesses to operate virtually. According to the same piece and the most recent data available, the number of employees working at home was fairly steady from 1997 – 2004 but has been climbing ever since (see graph below):Why Home Office Space Is More Desirable Than Ever | Simplifying The MarketClearly, the work-from-home population in Knoxville is growing, and technology is making it possible. Just last month, according to an article on Think Google, searches for telecommuting hit an all-time high, and that’s certainly no surprise given our current situation.

People all over the U.S. are looking for answers on how to be most effective at home, and it’s making the ideal workspace more and more desirable. In fact, best practices from seasoned work-from-home professionals, like Chris Anderson, Senior Account Executive at HousingWire, tout that having a dedicated space is a must for productivity.

With today’s increasing demand for home offices, it’s a great feature to highlight within your listing if you’re selling a house that may meet this growing need. From bright natural light with large windows to built-in bookshelves or a quiet and secluded atmosphere, whatever makes your office space shine is worth mentioning to buyers when you’re ready to list your house.

Ratiu concludes:

“For housing, the continued increase in the share of remote workers implies that demand for homes with offices or dedicated work spaces will continue to increase. The current coronavirus pandemic offers a dramatic indication of the fact that companies and employees will have to develop plans and clearer policies for remote work beyond the current crisis.”

Bottom Line

Remote work may become more widely accepted as this current crisis teaches businesses throughout the country what it takes to function virtually. So, what seems like a business challenge today may be more of the norm tomorrow. With that in mind, if you have a home office, your house may be more desirable to buyers than you think.

5 Powerful Reasons to Own Your Home Instead of Renting

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5 Powerful Reasons to Own Instead of Rent | MyKCM

Owning a home has great financial benefits.

In a recent research paper, Homeownership and the American Dream, Laurie S. Goodman and Christopher Mayer of the Urban Land Institute explained:

“Homeownership appears to help borrowers accumulate housing and nonhousing wealth in a variety of ways, with tax advantages, greater financial flexibility due to secured borrowing, built-in ‘default’ savings with mortgage amortization and nominally fixed payments, and the potential to lower home maintenance costs through sweat equity.”

Let’s breakdown 5 major financial benefits of homeownership:

1. Housing is typically the one leveraged investment available

Homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. A 20% down payment results in a leverage factor of five, meaning every percentage point rise in the value of your home is a 5% return on your equity. If you put down 10%, your leverage factor is 10.

Example: Let’s assume you purchased a $300,000 home and put down $60,000 (20%). If the house appreciates by $30,000, that is only a 10% increase in value but a 50% increase in equity.

2. You’re paying for housing whether you own or rent

Some argue that renting eliminates the cost of property taxes and home repairs. Every potential renter must realize that all the expenses the landlord incurs (property taxes, repairs, insurance, etc.) are baked into the rent payment already – along with a profit margin!!

3. Owning is usually a form of “forced savings”

Studies have shown that homeowners have a net worth that is 44X greater than that of a renter. As a matter of fact, it was recently estimated that a family buying an average priced home this past January could build more than $42,000 in family wealth over the next five years.

4. Owning is a hedge against inflation

House values and rents in Knoxville tend to go up at or higher than the rate of inflation. When you own, your home’s value will protect you from that inflation.

5. There are still substantial tax benefits to owning

We know that the new tax reform bill puts limits on some deductions on certain homes. However, in the research paper referenced above, the authors explain:

“…the mortgage interest deduction is not the main source of these gains; even if it were removed, homeowners would continue to benefit from a lack of taxation of imputed rent and capital gains.”

Bottom Line

From a financial standpoint, owning a home in Knoxville has always been and will always be better than renting. Have questions or want to game plan on how you can buy a home? Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!

How To Get The Best Deal When Buying A Home In Knoxville

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best deal on buying a knoxville homeA recent article on the Wall Street Journal’s MarketWatch website discussed housing affordability and how home buyers can get the best deal when buying a new home.  The article’s summary of the national market conditions showed that home prices will continue trending higher this year, but not as fast as 2013.  Mortgage rates are also expected to rise, but estimates say they will do so gradually.  Because of these two factors, home’s will be somewhat less affordable.

It is with these facts in mind that I echo these 6 pieces of advice for getting a better deal when buying a home in Knoxville.

  1. The sooner you buy the better.  Simple logic tells us that if both Knoxville home prices and mortgage interest rates are rising, then it’s better to buy sooner rather than later to take advantage of lower prices and lower interest rates.
  2. Find yourself an expert and work with them.  The last thing I want to do is bash other real estate agents, but just like in all professions, not everyone is created equal.  Find an agent who is intimately familiar with the area where you want to buy your next home, who is on top of market trends, and who has proven themselves as a good negotiator.
  3. Know the local home market.  Continuing off the advice in #2, a good agent will be able to look at a home’s price and tell you if it’s priced above, below, or at market value.  This is key in knowing not only what to offer, but how fast you need to offer.  Homes in the current Knoxville home market that are priced below market value are selling very fast, so if you delay in making an offer, chances are pretty good you will lose out to another interested party.  If your agent isn’t armed with the information to educate you, then you may lose out on a home you love.
  4. Get your financing in order.  As a Knoxville home buyer or a buyer anywhere for that matter, it is super important to understand how much house you can afford.  This dollar amount may or may not be what the mortgage broker says you can qualify for.  Think seriously about how much you are comfortable paying a month (they key term there is comfortable, don’t stretch yourself too thin).  Having a ceiling price can really help when you start getting emotional during negotiations and are tempted to offer more than you should.
  5. Make yourself attractive to sellers.  First and foremost a seller wants to know that you can afford to buy their home, so getting pre-approved by a lender and including a pre-approval letter with your offer is key.  Also keeping the number of contingencies in your offer to a minimum is important.  Oftentimes the highest price isn’t the most important thing to a seller.  When wearing my listing agent hat, I tell me sellers to take into account which offer has the highest probability of closing, as well as which has an attractive offer price. If an offer can’t close, it doesn’t matter how good the offer price is.
  6. Expand your geographic search area.  Depending on where you are looking for your home, sometimes you can get more for your money if you expand your search area a bit.  I’m not talking about moving to a different county (although that is an option), but a subtle zipcode change can make a big difference in pricing.  If you are trying to stay within a certain school district, there may be different pockets within that search area which may offer more house for the money.  Being flexible on location can not only save you money, but can open up additional options and perhaps get you a better overall home.

I’d love to sit down and talk to you about the Knoxville home market.  Contact me, Troy Stavros to discuss your goals in buying a home in Knoxville.

CLICK HERE to read the complete source article at MarketWatch.com.