865 Real Estate

East Tennessee Real Estate & Neighborhood Source

Affordability May Not Be This Good For Too Long. It’s Time To Buy!

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Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates have stayed near historic lows.

Sellers should realize that waiting to make the move when mortgage rates are projected to increase probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs. 

Here is a chart detailing this point:

Don’t Wait! Move Up To Your Dream Home Now! | Simplifying The Market

According to Freddie Mac, the current 30-year fixed rate is currently around 3.75%. With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, by $10,000).

Freddie Mac predicts that mortgage rates will be closer to 4.7% by this time next year.

Act now to get the most house for your hard-earned money.

Existing Home Sales Jump in December

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The National Association of Realtors (NAR) just released their latest Existing Home Sales Report on Friday. Sales of existing homes rose by the largest increase ever recorded as they rebounded 14.7% over November’s numbers and now stand at 7.7% higher than a year ago.

While this is great news for the housing market, there is one big reason for such a large increase in sales.  As I explained last month, the implementation of the “Know Before You Owe” (TRID) initiative delayed some closings, pushing a portion of November’s scheduled transactions into December.

“December’s rebound in sales is reason for cautious optimism that the work to prepare for ‘Know Before You Owe’ is paying off,” says NAR PresidentTom Salomone.

Lawrence Yun, NAR’s Chief Economist, had this to say about the surge in December sales:

“While the carryover of November’s delayed transactions into December contributed greatly to the sharp increase, the overall pace taken together indicates sales these last two months maintained the healthy level of activity seen in most of 2015. Additionally, the prospect of higher mortgage rates in coming months and warm November and December weather allowed more homes to close before the end of the year.”

The most important information to come out of the report is the fact that national inventory of existing homes for sale dropped dramatically from a 5.1-month supply in November to the lowest figure since January 2005, at a 3.9-month supply.

A normal market, where prices rise with inflation, is defined as having a 6-7-month supply of homes for sale. As you can see in the chart below, inventory levels in 2015 were at or below a 5.2-month supply for the entire year.

2015 Months Inventory of Homes For Sale | Keeping Current Matters

If inventory levels do not recover, this could be a challenge for sales moving forward, as buyer demand remains strong and competition for the homes that are on the market continues to rise.

Bottom Line

If you are considering listing your home for sale in 2016, now is the time! With inventory levels at their lowest mark in over 10 years, listing your home for sale now will give you the most exposure to buyers and allow you to get the best price for your home.

To discuss listing your home for sale or if you just want an idea of the current market value of your home contact me, Troy Stavros with Gables & Gates, REALTORS at 865-999-0925 via phone or text message.  For an instant estimate on what your Knoxville area home is worth CLICK HERE.

INFOGRAPHIC: Current National Housing Market News

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The INFOGRAPHIC below gives you a visual picture of the current national housing market news as reported in the recent Existing Home Sales Report.

Existing Home Sales Data-APRIL National Housing Market

Have questions about the national or local Knoxville and Farragut real estate markets?  Contact me, Troy Stavros with Gables & Gates, REALTORS today at 865-999-0925 and I’d be happy to discuss what is happening from first hand experience.

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Troy Stavros
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Knoxville and Farragut TN Real Estate Market Update – April

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Here are the most recent (April) statistics for the Knoxville and Farragut TN real estate markets.

drawing arrow up graphs on touch screen.

 

Here are the Knoxville TN real estate market stats through April.  The highlighted stats are:

  • Median sold price of Knoxville homes in April = $150,000
  • Median list price of Knoxville homes in April = $179,900
  • Median days on the Market for Knoxville homes =  61 days
  • Homes sold in Knoxville in April = 1181
  • Homes listed in Knoxville in April = 3024
  • Absorption Rate in April for Knoxville = 8.95 months
  • Year to Date Knoxville home sales are up 6.9% through April compared to last year.
  • Year to Date Knoxville home prices are up 8.86% through April compared to last year.

Here are the Farragut TN real estate market stats for April:

  • Median sold price of Farragut homes in April = $268,000
  • Median list price of Farragut homes in April = $419,000
  • Median days on the market for Farragut homes in April= 19 days
  • Homes sold in Farragut in April = 47
  • Homes listed in Farragut in April = 70
  • Absorption Rate in April for Farragut = 4.05 months
  • Year to Date Farragut home sales are up 17.4% through April compared to last year.
  • Year to Date Farragut home prices are up 3.56% through April compared to last year.

What does this mean for you?

The Knoxville and Farragut TN real estate markets are humming along and now in full swing as we enter the Spring selling season.  Home sales and home prices in both Farragut and Knoxville keep trending upward, and while inventory levels in Knoxville as a whole have bumped up a few percentage points, Farragut is still struggling with a low supply of homes for sale (decreasing to only a 4.05 month supply when a healthy market is 6 months).

For Sellers

Homeowners considering selling a home in Farragut or Knoxville should know that there is no better time to be on the market then right now.  Between the seller’s market being created by the low inventory situation and the fact that we are entering the highest demand time of the year for buyers (May, June, July, August), if you are thinking of selling, do it now!   Watch my recent video here explaining this in more detail.  Also sellers become buyers so read below for more important information.

For Buyers

Yes, the low inventory situation can make it a bit harder to find a home, and competition may be fierce, but now is the time to buy.  Why?  Recent reports have shown us that both prices and mortgage rates are on the rise.  These two factors will decrease your buying power, the longer you wait.  If you find a home to buy now, you will be getting more for your money than if you wait.  Watch my recent video that explains this in more detail here. 

Have questions about the market or anything Knoxville or Farragut TN real estate related? Want to sit down over a cup of coffee and discuss?  Contact me, Troy Stavros with Gables & Gates, REALTORS and I’d be happy to get together with you and answer any questions you might have.  I look forward to serving you!  If you are interested in a free, no obligation analysis of how much your Knoxville or Farragut TN home is worth CLICK HERE.

 
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troy@gablesandgates.com

Thinking of Selling A Home in Farragut in 2015? Opportunity Knocks!

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Everyone selling a home in Farragut or Knoxville wants to get the best price for their house. Way back in high school we learned in Econ, that the best price for any item will be determined by the demand for that item relative to the supply of that item.

If you’ve read my previous articles you know that the inventory of houses for sale in Farragut is well below normal numbers.

There is also historical evidence which shows us that the demand for housing is about to increase dramatically. Every year, more homes sell in May, June, July and August than any other four months of the year. Here is a graph of home sales last year by month:

home sales per month 2014

What does this mean for you?

If you are selling a home in Farragut and want to get the highest price and you want to sell it in the fastest time possible, it’s important to be on the market when the largest buyer pool is available.  We know from the graph above, that historically this happens in the next few months.  The combination of low inventory levels and the increased demand in the coming months make this the perfect time to get your Farragut home on the market.  Waiting too long could cost you time and money.  Call me, Troy Stavros with Gables & Gates, REALTORS at 865-999-0925 today to discuss your goals, and so we can begin formulating a plan.  I can have my free home staging specialist meeting with you within days and we can have you on the market shortly after. Don’t miss this great opportunity!

 
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Troy Stavros
Gables & Gates REALTORS
865-999-0925
troy@gablesandgates.com

3 Questions To Ask Yourself Before Buying A Home in Farragut

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Have you been kicking around the idea of buying a home in Farragut or Knoxville?  If you are, I’m sure you are getting lots of advice. Friends and family, who no doubt have your best interests in mind, can be a great resource to bounce ideas off of, but they might not be fully aware of the current state of the Farragut real estate market.  There are many factors that go into buying a home, but let’s take a look at whether now is a good time as far as current market conditions.

If you are thinking of buying a home in Farragut or Knoxville, here are 3 questions to ask yourself before buying a home in today’s market:

Question #1: What is the reason that I’m buying a home for in the first place?

Of all the questions, this is really the most important. Finances aside, what is the reason you want to buy? Because usually the reason has nothing to do with finances.   The Joint Center for Housing Studies at Harvard University recently conducted a study which revealed that there are 4 reasons why people buy a home, and none of them have to do with money. Here are the reasons:

  • Looking for a good place to raise children and for them to get a good education
  • Looking for a place where you and your family can feel safe
  • Looking for more space for you and your family
  • Looking to control the space you live in

Now don’t get me wrong, Harvard is great, but the real reason I know the points above are true is because it’s what I hear from my buyers.  In fact, I just heard it again today over lunch with a client I have relocating from California.

So what benefits (non-financial) will you and your family get from owning a home in Farragut? This question is important, because it should be the top reason you decide whether to buy or not.

Question #2: Where are the home prices headed?

I don’t have a crystal ball, but I do have some very smart experts that I follow.  These experts put out the “Home Price Expectation Survey.” Every 3 months, a nationwide panel of over 100 economists, real estate experts, and investment and market strategists are surveyed as to where they feel prices are headed over the next 5 years. The report then takes those 100+ expert projections and averages them into a single number.

Here are the expert projections from the latest survey:

  • Home values will appreciate by 4.4% in 2015.
  • By 2019 the cumulative appreciation will be 19.3%.
  • Even the most conservative of the experts are still projecting a cumulative appreciation of over 11.9% by 2019.

Question #3: Where are mortgage rates headed?

When buying a home, unless you are paying cash, you need to be equally concerned about mortgage rates and where they are headed.  Why? Because your mortgage rate directly effects how much money you are paying out every month as well as how much extra interest you pay over the life of the loan.

The National Association of REALTORS®, Mortgage Bankers Association, and Freddie Mac all project that mortgage interest rates will increase by approximately one whole percentage point over the next year.

What does this mean for you?

Only you really know when it’s the right time to buy your next home, or your first home, but answering the questions above might help you make an educated decision.  Hopefully sooner than later because we know if prices and interest rates are expected to rise, either you will spend more money to afford the same house a year from now, or you will pay the same amount of money and be forced to buy something less expensive.  Numbers are very important, but even more important is the real reason why you want to move. Is it time? If you have any questions about buying a home in Farragut or Knoxville or are looking for expert assistance, don’t hesitate to call or text me, Troy Stavros with Gables & Gates, REALTORS at 865-999-0925. I’d love to help. I’m here to serve you!

SEARCH Farragut Homes For Sale
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Farragut Homes HOT LIST
Homes Close to Where You Work
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Troy Stavros
Gables & Gates REALTORS
865-999-0925
troy@gablesandgates.com