865 Real Estate

East Tennessee Real Estate & Neighborhood Source

What Are The Recent Price Trends For Homes In Farragut?

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The graphs knoxville home price trendsbelow show the recent trends in average prices of homes in Farragut, Tennessee.  By looking at the trends of active and sold homes in Farragut we can get an idea of whether prices are trending up or down.

This first graph looks at the active homes for sale in Farragut and how their average prices are trending.  We can see that prices of homes for sale in Farragut are most definitely trending upwards at a fairly steady pace with the average list price rising significantly over the last year.

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This second graph looks at the homes sold in Farragut and how their average prices are trending.  Sold prices of homes in Farragut are also up from one year ago, but stayed fairly steady between July and November.  The drop in the winter months is typical of the winter months but you can see that prices are gaining fast on the highs from the last year and will most likely surpass them with the hot Spring selling season upon us.

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What does this tell us?  For sellers, this is good news, as prices are rising. Therefore, it’s a good time to be selling your Farragut home for top dollar.  If you are looking to buy a home in Farragut, the time is now, as continuing to wait will most likely have you paying higher prices.  Couple this with what economists say will also be rising interest rates and that spells less affordability in the near future. To discuss your goals for selling a home in Farragut or buying a home in Farragut, contact me, Troy Stavros to set an appointment to sit down and plan a strategy.

Nice Gains for National and Knoxville Housing Market

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According to CoreLogic’s latest housing report, national home prices made double-digit gains in 2013, increasing with the highest annual rate since 2005. While the Knoxville housing market didn’t see as dramatic an increase on average, we did move in the right direction with an overall 5% increase in the median sales price.

CoreLogic’s chief economist stated, “We expect the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014.”  I am hoping that the part about unlocking pent-up supply holds true, as we are still struggling with lower inventory levels here in Knoxville, with many buyers sitting on the sidelines waiting for houses to pop on the market.

The report showed that nationally, the median sales price for all of 2013 was $197,100, 11.5 percent above the 2012 median price.  In Knoxville the median home price came in at $144,900.  This goes right along with what we’ve known all along, which is that the Knoxville housing market is quite affordable compared to other parts of the country.

Let’s compare some 2012 to 2013 numbers for the Knoxville housing market:

  • Home Sales UP 15%
  • Inventory UP 3%
  • Average Sales Price UP 5%
  • Dollar Volume Sold UP 18%

All signs are currently showing that this momentum should carry over into 2014.   If you are looking to buy or sell a home, contact me, Troy Stavros, today to discuss your real estate goals and how I can best serve you.

 

What are the experts saying about the latest housing market data?

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housing market economistsWhile we know from being directly in the Knoxville housing market that things are on the upswing, let’s take a look at what the leading economic experts are saying regarding the latest housing market data.

Paul Diggle, property economist, Capital Economics

“March’s decline in existing home sales probably reflects the normal month by month volatility rather than renewed underlying weakness. The increase in households’ confidence in the outlook for the housing market, coupled with a gradual improvement in the pace of the economic recovery, should drive a rise in home sales later this year….It is possible that the pattern within the quarter has been driven by the weather, with falls in the most recent two months reflecting a degree of payback after January’s gain.” 

Doug Duncan, chief economist, Fannie Mae

“Conditions are coming together to encourage people to want to buy homes. Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”

Celia Chen, senior director of housing economics, Moody’s

“The residential property market is recovering, as the factors underlying demand and supply strengthen. Even after accounting for unusual seasonal patterns brought on by the unusually warm winter, conditions have not been this strong since the government ended homebuyer tax credits in 2010.”

Mark Vitner, senior economist, Wells Fargo

“Existing home sales dropped 2.6 percent, but are up 5.2 percent from a year ago. While existing sales are down for the second consecutive month, we are likely continuing to see payback from increases earlier this year. That said, we could see one more month of disappointing data, but we still contend the recent declines are not indicative of the trend. Stabilization will become more apparent once we return to normal weather.”

Mark Fleming, chief economist, CoreLogic

“Since the peak in home prices, mortgages rates have declined and affordability has risen dramatically. Housing affordability is at levels not seen since prior to the early 1990s …While real estate professionals often say that “now is a good time to buy,” it is clear today that April 2006 was probably not a good time to buy, while now may well be the time.”

National Housing Market Update: April 2012

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knoxville_real_estate-market-updateNational housing market update: Existing-home sales decreased in March, but continued to outperform last year’s levels. Inventory tightened and home prices showed further signs of stabilizing, according to the National Association of REALTORS®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, declined 2.6% but are still 5.2% above the pace in March 2011.

Lawrence Yun, NAR chief economist, said the national housing market recovery is in the process of settling into a higher level of home sales.  “The recovery is happening though not at a breakout pace, but we have seen nine consecutive months of year-over-year sales increases,” he said.  “Existing-home sales are moving up and down in a fairly narrow range that is well above the level of activity during the first half of last year.  With job growth, low interest rates, bargain home prices and an improving economy, the pent-up demand is coming to market and we expect housing to be notably better this year.”

Total housing inventory at the end of March declined 1.3 percent to 2.37 million existing homes available for sale, which represents a 6.3-month supply at the current sales pace, the same as in February.  Listed inventory is 21.8% below a year ago and well below the record of 4.04 million in July 2007.

“We were expecting a seasonal increase in home listings, but a lack of inventory has suddenly become an issue in several markets with not enough homes for sale in relation to buyer interest,” Yun said.  “Home sales could be held back because of supply factors and not by demand.”

The national median existing-home price for all housing types was $163,800 in March, up 2.5 percent from March 2011.  Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 29% of March sales (18% were foreclosures and 11% were short sales), compared with 34% in February and 40% in March 2011.

Foreclosures typically sold for an average 19% below market price in March, while short sales were discounted 16%.

NAR President Moe Veissi, said buyer traffic is up.  “Our members are reporting an increase in foot traffic from a year ago, but more importantly, home shoppers this year are much more serious about finding the right home and making an offer,” he said.  “Stabilizing home prices and historically favorable affordability conditions are giving buyers more confidence, and REALTORS® have become more optimistic since the beginning of the year from the positive shift in buyer patterns.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.95% in March, up from a record low 3.89% in February; the rate was 4.84% in March 2011; record keeping began in 1971.

 

Source: NAR