home prices Archives - 865 Real Estate

Is Now A Good Time To Sell A Home in East Tennessee?

April 7, 2023 By Troy Stavros

Looking to sell your home in Knoxville or East Tennessee?

Despite a slowdown in the housing market from a year ago, it’s still a sellers’ market due to the low supply of homes for sale. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), there is currently only a 2.6-month supply of homes available for sale, which is historically low.

The situation is even more dramatic in East Tennessee, Knoxville, Farragut, and the surrounding areas, where there is only a 1.77-month supply of inventory through the end of March, and Knox County has less than one month worth of inventory. With so few homes available, buyers are facing increased competition, which is keeping upward pressure on prices. As a result, sellers are in a prime position to negotiate deals on their ideal terms.

However, even in this competitive market, there are still many buyers who are ready, willing, and able to purchase a home. So, if you’re thinking about selling your home in Knoxville or East Tennessee, now is an ideal time to do it. By listing your house in good condition and at the right price, you can attract attention from competitive buyers.

Overall, today’s sellers’ market holds great opportunities for homeowners looking to make a move in Knoxville and East Tennessee. If you’re ready to sell your home, let’s connect to discuss how to jumpstart the selling process and maximize your exposure to serious buyers.

Have questions? Wondering what your home might be worth in today’s competitive market? Want to talk about selling your home or buying a new one? Contact the Troy Stavros TEAM today at CornerStone Realty Associates at 865-999-0925. We look forward to serving you!

2023 National Housing Market Forecast

December 20, 2022 By Troy Stavros

2023 Housing Market Forecast [INFOGRAPHIC] | MyKCM

Some Highlights

From home sales to prices, the 2023 housing market will be defined by mortgage rates. And where rates go depends on what happens with inflation.
If you’re thinking of buying or selling a home this year, let’s connect so you understand where the housing market is headed in 2023.

Contact the Troy Stavros TEAM at CornerStone Realty Associates at 865-999-0925 today.

The Average Homeowner in Tennessee Gained $53,000 in Equity over the Past Year

December 22, 2021 By Troy Stavros

When you think of homeownership, what’s the first thing that comes to mind? Chances are you might focus on the non-financial benefits, like the security or stability that a home provides. But what about equity? While it can be overlooked, a homeowner’s equity helps build long-term wealth over time. Here’s a look at what equity is and why it matters.

For a homeowner, your equity is the current value of your home minus what you owe on the loan. So, as home values climb, your home equity does too. That’s exactly what’s happening today. There aren’t enough homes on the market to meet buyer demand, so bidding wars and multiple offers are driving prices up. That’s because people are willing to pay more to buy a home. Right now, this low supply and high demand are giving current homeowners a significant equity boost.

Dr. Frank Nothaft, Chief Economist at CoreLogic, explains it like this:

“Home price growth is the principal driver of home equity creation. The CoreLogic Home Price Index reported home prices were up 17.7% for the past 12 months ending September, spurring the record gains in home equity wealth.”

To find out just how much rising home values have impacted equity, we turn to the latest Homeowner Equity Insights from CoreLogic. According to that report, the average homeowner’s equity has grown by $56,700 over the last 12 months.

The Average Homeowner Gained over $56,700 in Equity over the Past Year | MyKCM

Curious how your Tennessee stacks up? Check out the map above and you’ll see our average is $53,000 in equity gained.

How Rising Equity Impacts You

If you’re already a homeowner in East Tennessee, equity not only builds your wealth, it also opens doors for you to achieve your goals. It works like this: when you sell your house, the equity you built up comes back to you in the sale. You can use those proceeds to fuel your next move, especially if you’ve decided your needs have changed and you’re looking for something new.

If you’re thinking about becoming a homeowner in East Tennessee, understanding the importance of equity can help you realize why homeownership is a worthwhile goal. It builds your wealth and gives you peace of mind that your investment is a wise one, not just from a lifestyle perspective, but from a financial one too.

Bottom Line

Whether you’re a current homeowner in East Tennessee or you’re ready to become one, it’s important to know how equity works and why it matters. If this inspires you to make a move, let’s connect to explore your options and find out what steps you need to take next.

Contact the Troy Stavros TEAM at CornerStone Realty Associates today at 865-999-0925.

Will Home Prices Drop in East Tennessee in 2022?

December 15, 2021 By Troy Stavros

If you’re thinking of buying a home in East Tennessee in today’s housing market, you may be wondering how strong your investment will be. You might be asking yourself: if I buy a home now, will it lose value? Or will it continue to appreciate going forward? The good news is, according to the experts, home prices are not projected to decline. Here’s why.

With buyers in East Tennessee still outweighing sellers, home prices are forecast to continue climbing in 2022, just at a slower or more moderate pace. Why the continued increase? It’s the simple law of supply and demand. When there are fewer items on the market than there are buyers, the competition for that item makes prices naturally rise. Want another example of this right now… used cars!

And while the number of homes for sale in East Tennessee is expected to improve with more sellers getting ready to list their houses this winter and spring, we’re certainly not out of the inventory woods yet. Thus, the projections show continued appreciation, but at a more moderate rate than what we’ve seen over the past year.

What Everyone Wants To Know: Will Home Prices Decline in 2022? | MyKCM

Here’s a look at the latest 2022 expert forecasts on home price appreciation: What’s the biggest takeaway from this graph? NONE of the major experts are projecting depreciation in 2022. They’re all showing an increase in home prices next year.

And here’s what some of the industry’s experts say about how that will play out in the housing market next year:

Brad Hunter of Hunter Housing Economics explains:

“. . . the recent unsustainable rate of home price appreciation will slow sharply. . . . home prices will not decline. . . but they will simply rise at a more sustainable pace.”

Danielle Hale from realtor.com agrees:

“Price growth is expected to move back toward a normal range, but this is on top of recent high prices, . . . So prices will [still] hit new highs. . . . The pace of price growth is going to slow notably . . . ”

What Does This Mean for the East Tennessee Housing Market?

While home price appreciation in East Tennesee is expected to continue, it isn’t projected to be the record-breaking 18 to almost 20% increase the market saw over the past 12 months. Overall, it’s important to note that price increases won’t be as monumental as they were in 2021 – but they certainly won’t decline anytime soon.

What Does That Mean for You?

With motivated buyers in the East Tennessee market and so few homes available to purchase, the imbalance of supply and demand will continue to put upward pressure on home prices in 2022. And when home price appreciation is in the forecast, that’s a clear indication your investment in homeownership is a sound one.

Bottom Line

It’s important to know that home prices in East Tennessee are not projected to decline in the new year. Instead, they’re forecast to rise, just at more moderate pace. Let’s connect to make sure you’re up to date on what’s happening with home price appreciation in East Tennessee, so you can make an informed decision about your next move.

Have questions or want to get the process started? Contact (call or text) the Troy Stavros TEAM at CornerStone Realty Associates at 865-999-0925 today. We look forward to serving you in all of your East Tennessee real estate needs.

If You Think the East Tennessee Housing Market Will Slow This Winter, Think Again

December 13, 2021 By Troy Stavros

From the opportunity to take advantage of today’s low mortgage rates to changing homeowner needs, Americans have more motivation than ever to buy a home in East Tennessee. According to the experts, buyers are making moves right now, creating an unseasonably strong housing market for this time of year.

As we wrap up the fall season and move into the winter months, here’s a look at what several industry leaders have to say about the continued momentum in the current market, and what it means as we head into the early part of next year.

Lawrence Yun, Chief Economist, National Association of Realtors (NAR)

“This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low. The notable gain in October assures that total existing-home sales in 2021 will exceed 6 million, which will shape up to be the best performance in 15 years.”

Odeta Kushi, Deputy Chief Economist, First American

“So far in November, purchase applications point to another strong month in sales. Still low rates and demographic demand support this strength, even as affordability and inventory headwinds remain.”

The M Report

“The demand for housing in the United States has reached a fever pitch, a trend that opposes the norm of this time of the year when the market cools as the winter months set in.”

Mark Fleming, Chief Economist, First American

“Strong demographic demand will continue to act as the wind in the housing market’s sails.”

What does this mean for the winter housing market in East Tennessee?

Buyers are actively in the market, and they’re still competing for homes to purchase. With the momentum coming out of this fall, all signs point to the winter housing market picking up steam, making it much busier than in a more typical year. And as we’ve seen in so many ways, 2020 and 2021 were anything but typical in East Tennessee real estate. It looks like 2022 may be joining that list before we know it.

Bottom Line

If you think the East Tennessee housing market will slow down this winter, think again. Whether you’re thinking of buying a home, selling your house, or both – let’s connect to determine if this winter is your best time to make a move too.

Contact the Troy Stavros TEAM at CornerStone Realty Associates today at 865-999-0925 and let’s set up a time to talk.

What’s Happening with Home Prices in Knoxville?

November 17, 2021 By Troy Stavros

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?

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:

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.