865 Real Estate

East Tennessee Real Estate & Neighborhood Source

How Buying A Home Now = Saving $100’s Of Dollars Month

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save money buying a home in knoxville nowBuying a home now may save you $100’s of dollars per month. This holds true for any buyer, but especially those who are not paying cash. The reason it effects those financing their new home, is that there are two factors that impact the amount of home you can afford. Those two factors are home prices and mortgage rates. Let’s take a look at what the experts are predicting over the next year for those two important factors:

Home Prices

100+ economists along with investment strategists, market strategists, and real estate experts were recently polled for the “Home Price Expectation Survey”. The goal of the survey was to find out where home prices are headed over the next year. The results of the survey showed that the average home price appreciation projected over the next 12 months is approximately 4.4%.

Mortgage Interest Rates

Freddie Mac’s latest “Economic & Housing Market Outlook” predicted that the 30 year fixed mortgage rate, one year from now, will be at 4.7%. Last week this same rate was at 3.69%.

What does this mean for you?

Let’s look at a couple scenarios. If you are buying a home in Knoxville priced at $250,000, the chart below shows you how much more you could be paying on a monthly basis, if you choose to wait until next year to buy a home:

Cost-Of-Waiting-To-Buy-Home-Knoxville-Spring-250K copy

 

Let’s say you are moving up to a higher priced home.  What does it look like if you are buying a home in Knoxville for $500,000.  How would it change your monthly payment?

Cost-Of-Waiting-To-Buy-Home-Knoxville-Spring-500K

Hopefully this helps you see how waiting to buy a home can not only make a big impact on how much home you can afford, but also what a direct impact it can have on your monthly finances. Have questions? Comments? Want to talk about getting started in searching for your next home in Farragut or Knoxville?  Need to get your current home sold first?  Contact me, Troy Stavros with Gables & Gates, REALTORS and I’d love to sit down and talk about the process and how to help you reach your goals.  I’m here to serve you!

Home Price Trends in Farragut, Knoxville & Beyond

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home prices in Farragut Knoxville and BeyondI recently wrote an article that talked about why homeownership far outweighs renting when it comes to building net worth and also posted another article about why a billionaire says buying a home to live it is the single best investment. One of the most important factors when seeing if owning a home is a good investment, is to look at the quality of that investment over time.  We can do that by looking at the home price trends in Farragut, Knoxville, and beyond.  We all know from looking at the stock market that investments fluctuate.  Some years they go up, other times they go down, but most experts say it’s important to buy and hold an investment to allow it to really be fruitful.  That’s what we typically do with owner occupied real estate.  We buy it to live in for years to come.  Let’s see how our investment would have done if we bought over the last few years.

Farragut TN Home Price Trends

  • From 2013 to 2014 median home price went up by 15.72%
  • From 2012 to 2013 median home prices went down by -4.07%
  • From 2011 to 2012 median home prices went down by -2.64%
  • From 2010 to 2011 median home prices went up by 2.71%
  • From 2009 to 2010 median home prices went up by 2.52%
  • From 2008 to 2009 median home prices went down by -12.24%
  • From 2007 to 2008 median home prices went up by 10.55%
  • From 2006 to 2007 median home prices went down by -3.42%
  • From 2005 to 2006 median home prices went up by 6.26%
  • Today’s median sale price in Farragut is $315,750 compared to $265,000 in 2006.

So, these numbers show us that over the last 10 years, even going through the real estate downturn, the average home in Farragut saw a price appreciation of 15.39%.

Knoxville TN Home Price Trends

  • From 2013 to 2014 median home price went up by 2.66%
  • From 2012 to 2013 median home prices went up by 4.72%
  • From 2011 to 2012 median home prices went down by -1.36%
  • From 2010 to 2011 median home prices stayed flat at 0.00%
  • From 2009 to 2010 median home prices went down by -0.07%
  • From 2008 to 2009 median home prices went down by -5.41%
  • From 2007 to 2008 median home prices went down by -4.52%
  • From 2006 to 2007 median home prices went up by 3.74%
  • From 2005 to 2006 median home prices went up by 6.80%
  • Today’s median sales price in Knoxville is $149,900 compared to $145,000 in 2006.

This shows us that Knoxville as a whole over the last 10 years, even after the housing downturn, the Greater Knoxville area saw a price appreciation of 6.56%.

National Home Price Trends

The infographic below shows the history of appreciation in the national housing market:

Home-Prices-Farragut-Knoxville

 

What does this mean for you?

While the numbers above might not look like a home run investment as far as percentage increases go, ask yourself, what other investments can you live in and enjoy with your family? What other investments can you pay down and build equity in?  What other investments can you sell after two years and keep all of the profit that you’ve made, tax free!  I don’t know of any others. Plus, have you seen what your money earns in the bank lately?

The following graphic shows what experts predict as far as home price trends over the next 5 years:

home price trends next 5 years

Keep in mind that all of the numbers above are median averages, and always remember that real estate is local.  Local, down to the side of the street you live on sometimes.  Your neighborhood might be appreciating significantly more or less when compared to one across town for various reasons. This is why it’s important to find a trusted real estate advisor, who knows the local Farragut real estate or Knoxville real estate markets.  If you have questions about the market in your neighborhood, or want to know how much your home could sell for today, feel free to contact me, Troy Stavros with Gables & Gates, REALTORS and I would love to help.  I am here to serve you!

Knoxville Home Sales – Winter Housing Market Update

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businessman hand touch virtual graph,chart, diagramYou may have read some national headlines lately regarding the housing market, but how have Knoxville home sales fared? The National Association of REALTORS® recently released their Existing Home Sales report and like most typical news sources, many headlines are blowing January’s decline in home sales out of proportion to grab attention, without really looking at the numbers.  Headlines such as, “Existing home sales collapse in January despite low mortgage rates”.

Anyone in real estate can share with you the common knowledge that there is a slowdown in the winter months.  Many markets share this seasonality and January is where it often hits. This can be seen by the graph below.  But what the news media doesn’t share is that nationally, existing home sales increased by 200,000.   Knoxville home sales, in January of 2015 saw a 10.1% increase over January of 2014 and Farragut home sales saw a 33.3% increase!  Over the last year, Knoxville also saw the median sales price increase by 11.62%, Farragut saw a 3.32% increase.  A big reason Knoxville home sales are down in January of this year, is that the inventory of homes for sale in Knoxville and Farragut have decreased, Knoxville by 8.7% from January of last year and Farragut down 12.5%. On a month to month basis, inventory in Knoxville has decreased by 7% from December of 2014 with Farragut down 6%.  You might be asking yourself, where has the inventory gone?  Much of it is now under contract, as the number of homes “pending sale” increased from December of 2014 to January of 2015 by 25% in Knoxville and 27% in Farragut!  This screams that buyers are in the market and that equals demand.

Knoxville Home Sales Report

So demand is there, as witnessed by the graphic below showing that buyer demand is actually 3x greater than last year.

Demand of homes for sale in Farragut

The chief economist of the National Association of REALTORS®, Lawrence Yun, mentioned what he feels is the real cause of the January slowdown: “Realtors® are reporting that low rates are attracting potential buyers, but the lack of new and affordable listings is leading some to delay decisions.”

The buyer demand is there, buyers are out looking, but they are having trouble finding their dream home amongst the low inventory.

What does this mean for you?

If your plan was to wait until Spring to sell your home in Knoxville or Farragut, that plan may not help you get the most money for your home with the fastest sale.  The information above points to right now being the optimum time to go to market.   If you have any questions about selling or you would like to sit down and discuss your plans, contact me, Troy Stavros with Gables & Gates, REALTORS® to schedule a time that works best for you.   Interested in finding out how much you could sell your Knoxville or Farragut house for?  CLICK HERE TO FIND OUT. 

3 Reasons Why The Current Housing Market Will Improve in 2015

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Word on the street, and by the street I mean housing economists, is that 2015 is going to see an improvement on the current housing market.  While many are citing encouraging market trends which no doubt are good indicators, there have been some significant government actions of late that could have a meaningful effect on home buyers this year.  Three actions in particular are worth noting.  House Icon Showing House Price Going Up

Here are 3 reasons why the current housing market will improve this year:

  1. The FHA (Federal Housing Administration) recently announced that it will lower mortgage insurance premiums to .85% annually.  Lowering the premiums should make it easier for first time homebuyers to qualify for a loan and also afford more home as it directly effects the amount of their monthly mortgage payment.
  2. The Federal Housing Finance Agency in December announced that Fannie Mae and Freddie Mac, the two largest lending entities, will offer loans with down payments as low as 3% to qualified homebuyers.  This will open up the ability to purchase a home to a much larger buyer pool who didn’t have the ability to save 20% for a downpayment.
  3. We’ve seen fuel prices cut nearly in half of late.  This decline in gas prices will leave many people with more disposable income.  For those worried about commuting it could expand their home options not only from a standpoint of distance to work, but monthly payment as well.

Have any questions about the market?  Interested in learning more about buying or selling a home in Knoxville?  Contact me, Troy Stavros with Gables & Gates, REALTORS today.  I look forward to sitting down and talking with you!

Knoxville Real Estate Market Update Through August

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knoxville real estate market updateThe Knoxville real estate market is continuing along on a steady pace, while other parts of the country continue to slow.

August data shows that the average sales price of homes in Knoxville increased 3.49% from one year ago to $189,916, with a year to date improvement of 4.53%.  What does this mean?  Home prices are still trending in a positive direction.

Average days on the market of Knoxville homes for sale saw a small improvement over last month as it dropped to 99 days from 102.

Inventory levels are down in all price points under $300,000 compared to this time last year, with total inventory of active listings down 6.8% overall.  Homes under $120,000 have seen the biggest drop in inventory.

The price point showing the largest improvement by far, are homes above $400,000 and especially above $500,000.  Homes over $500,000 have seen a 32.1% increase in sales over this time last year (homes between $400,000-$499,999 saw a 9.7% increase).

Year to date existing home sales are nearly the same as last year (down only 10 homes), but August sales are down 7.7% from 2013 most likely due to constrained inventory.

Have more questions about the Knoxville real estate market or buying or selling a home in Knoxville? Don’t hesitate to contact me, Troy Stavros with Gables & Gates, REALTORS, today!

Knoxville August Home Market Update

 

Knoxville Real Estate Market Update Through June

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It’s always good to see how the Knoxville real estate market is trending when you are thinking about selling or buying a home in Knoxville. Let’s take a look at the interesting trends I’ve found in the Knoxville real estate market, by studying the home sale data through the month of June.

  • Compared to the month of June of last year, the luxury price point over $500,000 has seen a 72.2% increase in sales.  Year to date the same price point has seen a 37.9% increase in homes sold.
  • Homes price between $400,000-$499,999 saw a 35.1% increase since the same month last year and a 18.1% year to date increase in homes sold.
  • Coinciding with the sold numbers, homes pending sale are also trending in the luxury sector with a 48.5% increase from June of last year and 50.3% increase year to date for homes over $500,000.  Homes pending a sale in the $400,000-$499,999 range have seen a 26.5% increase from last June and 36.4% year to date increase.
  • Trends are showing us that stricter lending standards are limiting the sales in the price points under $100,000, with multiple pricing categories under $100K being down quite a bit both year over year and year to date.
  • Total inventory is down 12% compared to last June and is also down 5.6% year to date with the thinnest inventory being $140,000 and below.
  • Typically one of the best selling price points, $250,000-$299,999 is showing sluggish sales most likely from a lack of inventory.  Home sales in this price point are down 2.9% from June last year and 7.9% year to date, with inventory being down 9.5% from last year and 4.8% year to date.
  • The reduced inventory levels are putting the law of supply and demand in effect as witnessed by a 13.99% year over year increase in the average sales price and a 5.24% increase in the average sales price year to date.  Another factor showing demand is the amount of time it is taking for homes to sell.  Average days on the market has decreased 32.87% year over year and 28.57% year to date.  Average days on the market in June across all pricing categories was 96 days and the average for 2014 is 105 days.

June Knoxville Real Estate Market Stats

What does this information mean for you, as someone possibly looking to sell your home in Knoxville or buy a home in Knoxville?  As a seller, low inventory levels mean that this is a great time to put your home on the market, as there is less competition.  Also the law of supply and demand tells us that less inventory is pushing prices higher.  As a buyer, buying a home in a low inventory home market means, you need to be less aggressive with your offers as there is increased competition in the marketplace.  Making low offers or hesitating too long in deciding to make an offer will most likely cause you to lose out on desirable homes, as they will be snapped up by competing buyers.

Thinking about selling and wondering how much your Knoxville home might be worth?  CLICK HERE for an instant estimate.

For more information or to discuss your personal goals in selling or buying a home in Knoxville, contact me, Troy Stavros with Gables & Gates, REALTORS today.

Farragut Homes by Price