Housing Market Archives - Page 16 of 23

February Knoxville Area Housing Market Snapshot

March 8, 2019 By Troy Stavros

Here’s how the current real estate market is doing all around Knoxville. Remember, real estate is hyper local, meaning your county may show one thing but your specific subdivision or home may be doing something completely different. Hit me up for an analysis!

Here is what is happening in the West Knoxville/Farragut real estate market. Home sales are down in Farragut compared to the same time last year, median sales price is up slightly, and we’ve seen a nice uptick in the amount of available inventory. This is good if you are looking to buy in Farragut!

The 37922 zip code in West Knoxville saw a nice jump in price, but home sales are down, most likely because of the decline in available inventory. Interested in what your personal home analysis would look like? Call or text me at 865-999-0925!

Why an Economic Slowdown Will NOT Crush Real Estate this Time

March 7, 2019 By Troy Stavros

Last week, the National Association for Business Economics released their February 2019 Economic Policy Survey. The survey revealed that a majority of the panel believe an economic slowdown is in the near future:

“While only 10% of panelists expect a recession in 2019, 42% say a recession will happen in 2020, and 25% expect one in 2021.”

Their findings coincide with three previous surveys calling for a slowdown sometime in the next two years:

That raises the question: Will the Knoxville real estate market be impacted like it was during the last recession?

A recession does not equal a housing crisis. According to the dictionary definition, a recession is:

“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”

During the last recession, prices fell dramatically because the housing collapse caused the recession. However, if we look at the previous four recessions, we can see that home values weren’t negatively impacted:

January 1980 to July 1980: Home values rose 4.5%
July 1981 to November 1982: Home values rose 1.9%
July 1990 to March 1991: Home values fell less than 1%
March 2001 to November 2001: Home values rose 4.8%

Most experts agree with Ralph McLaughlin, CoreLogic’s Deputy Chief Economist, who recently explained:

“There’s no reason to panic right now, even if we may be headed for a recession. We’re seeing a cooling of the housing market, but nothing that indicates a crash.”

The housing market is just “normalizing”. Inventory is starting to increase and home prices are finally stabilizing. This is a good thing for both buyers and sellers as we move forward.

Bottom Line

If there is an economic slowdown in our near future, there is no need for fear to set in. As renowned financial analyst, Morgan Housel, recently tweeted:

“An interesting thing is the widespread assumption that the next recession will be as bad as 2008. Natural to think that way, but, statistically, highly unlikely. Could be over before you realized it began.”

The Knoxville Housing Market Will “Spring Forward” This Year!

March 5, 2019 By Troy Stavros

Just like our clocks this weekend, in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in Knoxville has been holding back the market.

Many potential sellers believe that waiting until Spring is in their best interest. Traditionally, they would have been right.

Buyer demand has seasonality to it. Usually, this falls off in the winter months, especially in areas of the country impacted by arctic conditions.

That hasn’t happened this year.

Demand for housing in Knoxville has remained strong as mortgage rates have remained near historic lows. Even with an increase in rates forecasted for 2019, buyers are still able to lock in an affordable monthly payment. Knoxville home buyers are increasingly jumping off the fence and into the market to secure a lower rate.

The National Association of Realtors (NAR) recently reported that in 2018 the top 10 dates sellers listed their homes all fell in April, May, or June.

Those who act quickly and list now, before a flood of increased competition, will benefit from additional exposure to buyers.

Bottom Line

If you are planning on selling your home in 2019, meet with a local real estate professional to evaluate the opportunities in your market. If you are anywhere between Knoxville and Nashville, contact me, Troy Stavros with CornerStone Realty Associates and let’s sit down and formulate a plan for your specific situation. Call or text 865-999-0925 today!

No Need To Worry.. Home Prices Coming in for a SOFT Landing

March 4, 2019 By Troy Stavros

Home prices have appreciated considerably over the last five years. This has some concerned that we may be in for another dramatic correction. However, recent statistics suggest home values will not crash as they did a decade ago. Instead, this time they will come in for a soft landing.

The previous housing market was fueled by an artificial demand created by mortgage standards that were far too lenient. When this demand was shut off, a flood of inventory came to market. This included heavily discounted distressed properties (foreclosures and short sales).

Today’s market is totally different. Mortgage standards are tighter now than they were prior to the last boom and bust. There is no fear that a rush of foreclosures will hit the market. The Mortgage Bankers’ Association just announced that foreclosures are lower today than at any time since 1996.

Case Shiller looks at the percentage of appreciation as compared to the same month the year prior. Here is a graph of their findings over the last ten months:

As we can see, home price appreciation is softening, as more inventory comes to the market. This shows that real estate prices are not crashing, but merely returning toward historic appreciation numbers, of 3.6% annually.

Bottom Line

Knoxville home prices are leveling off. Long term, that is a good thing for the housing market. Have questions about what your home’s value might be? Want to talk about what buying or selling a home might look like for your specific situation? Call me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today and let’s set up a time to sit down and talk.

Why A Normal Real Estate Market is Just What We Need

February 22, 2019 By Troy Stavros

The housing market in Knoxville has been hot for a while now. Homes in certain price ranges have been flying off the shelves as fast as they have been listed. Buyers have been competing in bidding wars just to find a home to buy, let alone find their dream home.

This ‘seller’s market’ has driven Knoxville home prices to new heights. Home price appreciation averaged over 6% across the country.

However, home price growth has recently started to cool down. The latest report from CoreLogic shows that home prices have only risen by 4.7% over the last 12 months.

Many buyers and sellers planning to enter the housing market this year have started to wonder if we are headed towards another housing crash. Ralph McLaughlin, Deputy Chief Economist at CoreLogic, recently stated in an interview,

“There’s no reason to panic right now, even if we may be headed for a recession. We’re seeing a cooling of the housing market, but nothing that indicates a crash.

The real elephant in the room here is housing supply.”

The simple answer is we are returning to a ‘normal’ market. The inventory of homes for sale more closely matches the demand in the market. The added supply means fewer buyers are outbidding each other. Therefore, prices are experiencing less upward pressure. McLaughlin went on to explain,

“If there are a lot of homes on the market and suddenly no one wants to buy them, you’ll get into a downward spiral of price competition. Right now, however, we’re in the opposite situation, there isn’t an over-abundance of homes on the market.”

As many of those renting in Knoxville begin looking for their piece of the American Dream and enter the housing market, demand for housing will continue to grow. The Joint Center for Housing Studies at Harvard University estimates over 30 million new households will enter the market from now through 2040.

“There’s the natural life cycle of young people getting older and starting to do adult life things which include … buying a house and that’s a lot of potential inertia that could last indefinitely.”

Bottom Line

National and Knoxville home prices will start to appreciate by historical norms as we continue to head towards a more ‘normal’ market, rather than the over 6% seen over the course of the last couple of years. This is great news! Homeowners in Knoxville looking to sell their home will have buyers, as more buyers will be able to afford them!

Year End Housing Snapshot: Sales Declining Nationally, Knoxville Still Strong

February 1, 2019 By Troy Stavros

Nationally, at the end of 2018, pending home sales fell, possibly due to concerns about the economy and rising home prices, according to a recently released housing index from the National Association of REALTORS®.

Chief economist for NAR, Lawrence Yun said, “The stock market correction hurt consumer confidence, record high home prices cut into affordability, and mortgage rates were higher in October and November for consumers signing contracts in December.”

Compared to a year ago, all four major regions of the U.S. posted declines, with the South posting the largest decrease (the South also had the highest level of sales going in.)

Yun also said, ““The longer-term growth potential is high. The Federal Reserve announced a change in its stance on monetary policy. Rather than four rate hikes, there will likely be only one increase or even no increase at all. This has already spurred a noticeable fall in the 30-year, fixed-rate mortgages. As a result, the forecast for home transactions has greatly improved.”

That being said, one thing we know for certain is that while it’s good to look at what is happening nationally, real estate is local. Knoxville has fared better than what the information above would have you think. While the South showed the biggest decrease, that isn’t true everywhere as witnessed in the images below.

This first image relates to the national numbers:

This next image looks at the same timeline of December, comparing LOCAL Pending Sales and Median Sales Price by County (December 2018 vs. December 2017):

This last image looks at the year to date numbers comparing single family home sales and median sales price, locally by county 2018 vs 2017:

Wondering how your specific subdivision, neighborhood, or your personal home has fared? Just contact me, Troy Stavros with CornerStone Realty Associates and I’d be happy to go over those with you!