As we enter the summer months and work through the challenges associated with the current health crisis, many are wondering what impact the economic slowdown will have on home prices. Looking at the big picture, supply and demand will give us the clearest idea of what’s to come.
What is Really Happening with Knoxville Home Prices?
Home values have softened over the last twelve months. We are no longer seeing 6-7% annual appreciation levels for the national housing market. The current numbers are closer to 4%. Some have suggested that year-over-year appreciation levels could fall to 3% or less this year.
However, a stronger-than-expected economy and a good spring housing market have changed some opinions. Some analysts are now predicting that home value appreciation may begin to increase as we move forward.
Here are three examples:
Mark Fleming, Chief Economist of First American
“Data on the movement of unadjusted house prices during the early spring home-buying season won’t be available for a few more months, but it’s quite likely that price appreciation will accelerate again.”
CoreLogic’s April “Home Price Insights”
“Home prices nationwide, including distressed sales, increased year over year by 3.7% in March 2019 compared with March 2018…The CoreLogic HPI Forecast indicates that home prices will increase by 4.8% on a year-over-year basis from March 2019 to March 2020.”
Pulsenomics’ Quarterly “Home Price Expectation Survey”
- The 2018 4th Quarter survey called for 3.8% appreciation for 2019.
- The 2019 1st Quarter survey raised the appreciation projection for this year to 4.3%.
Bottom Line
Price appreciation has slowed over the past year. However, a strong economy and a good housing market have many experts thinking that home values might re-accelerate moderately throughout the rest of this year. Interested in what the value is of your specific property? Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 and I’d be happy to do the research for you.
Knoxville and Farragut TN Real Estate Market Snapshot – March
Here are the most recent (March) statistics for the Knoxville and Farragut TN real estate markets.
Here are the Knoxville TN real estate market stats for March. The highlighted stats are:
- Median sold price of Knoxville homes in March = $153,000
- Median list price of Knoxville homes in March = $159,900
- Median days on the Market for Knoxville homes = 74 days
- Homes sold in Knoxville in March = 1097
- Homes listed in Knoxville in March = 2569
- Absorption Rate in March for Knoxville = 8.55 months
- Year to Date Knoxville home sales are up 4.4% through March compared to last year.
- Year to Date Knoxville home prices are up 10.74% through March compared to last year.
Here are the Farragut TN real estate market stats for March:
- Median sold price of Farragut homes in March = $308,750
- Median list price of Farragut homes in March = $409,000
- Median days on the market for Farragut homes in March= 42 days
- Homes sold in Farragut in March = 40
- Homes listed in Farragut in March = 74
- Absorption Rate in March for Farragut = 4.23 months
- Year to Date Farragut home sales are up 24.7% through March compared to last year.
- Year to Date Farragut home prices are up 14.35% through March compared to last year.
Have questions about the market or anything Knoxville or Farragut real estate related? Contact me, Troy Stavros with Gables & Gates, REALTORS and I’d be happy to answer any questions you have!
Knoxville and Farragut TN Real Estate Market Snapshot – February
Here are the most recent (February) statistics for the Knoxville and Farragut TN real estate markets.
Here is a quick Knoxville TN real estate market snapshot for February. The highlighted stats are:
- Median sold price = $150,000
- Median list price = $155,000
- Average days on the Market = 114 days
- Sold Listings = 878
- New Listings = 1723
- Absorption Rate = 8.65 months
- Homes sales are up 5.3% compared to last year.
- Home prices are up 13.08% compared to last year.
Here are the Farragut TN real estate market stats for February:
- Median sold price = $315,750
- Median list price = $409,900
- Average days on the market = 107 days
- Sold listings = 26
- New Listings = 46
- Absorption Rate = 4.23 months
- Year to Date home sales are up 25% compared to last year.
- Year to Date home prices are up 5.97% compared to last year.
Have questions about the market or anything Knoxville or Farragut real estate related? Contact me, Troy Stavros with Gables & Gates, REALTORS and I’d be happy to answer any questions you have!
Are Home Prices Going Up in Knoxville and Farragut?
Whether you are thinking about selling your home in Knoxville or buying a home in Knoxville you will want to ask, “are home prices going up in Knoxville?”. Knowing whether home prices are going up can determine whether it is a good time to buy or sell a home, at what price you should buy or sell a home, and whether it makes financial sense for you to buy or sell home.
Last week the National Association of Realtors® released their quarterly Metropolitan Media Area Prices and Affordability report. The report showed that the majority of metropolitan areas experienced steady to slightly stronger price growth in the fourth quarter of 2014. The reasons for this price growth is a combination of a decline in housing supply coupled with an increase in demand caused by lower interest rates and a stronger job market.
So where do Knoxville are Farragut stand as far as their home prices?
The median home price of a home in Farragut, TN came in at $312,900. Farragut saw a whopping 12.55% increase in the median sales price when comparing December of 2013 to December of 2014 and a 15.53% increase year over year. Why? Let’s go back to the basic principles we learned in our high school economics class. Supply and demand. The supply is low. Inventory levels are down 7.2% from this same time last year and demand is higher because of the reasons stated above.
Knoxville as a whole saw a 4.2% increase in the median sales price over the 4th quarter of 2014. The median home price came in at $150,800, and the inventory of available homes was down 6% from 2013.
So, to answer our question… Are home prices going up in Farragut and Knoxville? YES! How does knowing this information help us if we are thinking about selling or buying a home in either Farragut or the Knoxville area in general? It screams, now is the time! Prices are rising and interest rates are near historical lows. If you are selling it means that your home is probably worth more now that it has ever been, and if you wait for it to increase even more, the home you will be buying will be increasing at the same rate. If you are looking to buy a home, the time is now as well. Prices should continue to rise and interest rates are expected to rise as well throughout the year. Rising prices and rising rates means less affordability for you as a buyer, so the longer you wait, the less you can afford (this holds true for sellers who will turn into buyers as well). Everyone’s goals and reasons for selling and buying are different, so contact me, Troy Stavros with Gables & Gates, Realtors® today to sit down and discuss how I can help you achieve those goals. Are you interested in seeing what your Farragut or Knoxville area home might sell for? CLICK HERE. I look forward to serving you in any way that I can! Talk with you soon!
Interested in how other parts of the country are fairing? Check out the interactive map below.
How Are Knoxville Home Prices Up and Affordability as well?
How are Knoxville home prices up and affordability as well? Recently released data from the July Existing Home Sales release published in late August states that median priced existing homes have increased in price by 9.4% from one year ago. With that being said, you as a Knoxville home buyer might ask yourself, have I missed the best time to buy? The answer is no. Why, do you ask. Because while prices are up from one year ago, mortgage interest rates are down nearly a full percentage point and according to recent economic data, incomes are modestly up.
All of these factors are used to calculate the “Housing Affordability Index”.
Are you ready to take advantage of this incredible time of affordability? Call or text us today at 865-999-0925.
SOURCE: http://economistsoutlook.blogs.realtor.org/2012/09/07/latest-housing-affordability-index/