865 Real Estate

East Tennessee Real Estate & Neighborhood Source

Almost Half of the Homes Sold in Farragut in March were CASH or At or Above List Price!

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Almost 1/2 (45%) of the homes sold so far in March in Farragut have been for cash or at/above their listing price (some both). We saw some sell for over $100K above their list price! I go over these sales in the video along with the breakdown of the sold prices and subdivisions. Lack of inventory and consistent demand is still pushing prices higher both in Farragut and most of East Tennessee. Don’t believe what you are hearing on the national news. For example, the national news reported that data through the end of February showed the first Year over Year reduction in the median sales price of homes nationally. However, in Knoxville, we saw a $30,000 increase in the median sales price compared to the end of February last year. Always remember, real estate is LOCAL and sometimes HYPER-LOCAL.

Have questions? Wondering what your home might be worth in today’s market? Contact the Troy Stavros TEAM with CornerStone Realty Associates today at 865-999-0925. We look forward to serving you!

Homes for sale in East Tennessee : MARCH 2022 Housing Market Update

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In today’s video, we dive into the East Tennessee real estate data for the month of March 2022 to see how the East Tennessee housing market is doing compared to one year ago.

We will look at the inventory of active homes for sale in East Tennessee. Homes for sale in Knoxville TN, homes for sale in Farragut TN, homes for sale in Knox County TN, homes for sale in Loudon County TN, homes for sale in Anderson County TN, homes for sale in Roane County TN, homes for sale in Blount County TN, and homes for sale in Sevier County TN. We will also look at what has happened to the median sales price of homes over the last year in those areas of East Tennessee. We will discuss the real estate data and how it affects buyers and sellers in today’s East Tennessee housing market. We discuss the extremely hot market for real estate investing in Sevier County and the areas of Gatlinburg, Pigeon Forge and the Smoky Mountains.

Here is some basic real estate data and news in regards to the East Tennessee housing market not covered in the video that covers the housing market ending in 2021 and the last few months:

Seasonally adjusted home sales in the Knoxville TN Area declined 6.1% in March despite continued year-over-year gains.

Key Highlights:

-Knoxville, TN area home sales were strong in March — up from the prior month and 13% from a year ago.

-Median home sales price in East Tennessee was $301,880 in March — up 21% from a year ago.

-Total housing inventory in Knoxville TN declined for the sixth consecutive month — down considerably from a year ago and enough to last less than one month at the current sales pace.

-Half of the homes sold in Knoxville TN in March were on the market for less than 4 days.

Bottom Line: Seasonally adjusted home sales in East Tennessee declined for the fourth consecutive month, a clear sign that lack of supply is constraining the market and hampering further gains. Rising sale prices in Knoxville TN combined with further median DOM decreases suggest demand remains high — and likely to remain elevated throughout the year. At this point, there are no indications that supply will rise in the short term.

A scientific poll commissioned by KAAR (Knoxville Area Association of REALTORS) in March shows more than 1 in 3 registered voters — 34 percent — indicated housing affordability in the Knoxville TN area was a very or fairly big problem. 28 percent said the same about housing availability. That being said, Urban Land Institute’s Terwilliger Center Home Attainability Index for 2021 ranks Knoxville, TN as the 5th most affordable region in the United States.

In their latest migration trends report comparing cities across the country, U-Haul ranked Knoxville No. 7 on its list of top 25 U.S. growth cities.

Have questions or need help in today’s crazy East Tennessee housing market? Contact the Troy Stavros team at CornerStone Realty Associates at 865-999-0925 today. We are here to serve you! #chimein #888388DOOR

How Much Should I Offer on a House in Knoxville in 2021?

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For generations, the homebuying process never really changed. The seller would try to estimate the market value of the home and tack on a little extra to give themselves some negotiating room. That figure would become the listing price of the house. Buyers would then try to determine how much less than the full price they could offer and still get the home. The asking price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than the list price. It was unthinkable to pay more than what the seller was asking.

Today is different.

The record-low supply of homes for sale in Knoxville coupled with very strong buyer demand is leading to a rise in bidding wars on most homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.

According to the Home Buyers and Sellers Generational Trends report just released by the National Association of Realtors (NAR), 45% of buyers paid full price or more.

You may need to change the way you look at the asking price of a home.

In this market, you likely can’t shop for a home with the old-school mentality of refusing to pay full price or more for a house.

Because of the shortage of inventory of houses for sale in Knoxville, many homes are actually being offered in an auction-like atmosphere in which the highest bidder wins the home. In an actual auction, the seller of an item agrees to take the highest bid, and many sellers set a reserve price on the item they’re selling. A reserve price is the minimum amount a seller will accept as the winning bid.

When navigating the competitive Knoxville housing market, think of the list price of the house as the reserve price at an auction. It’s the minimum the seller will accept in many cases. Today, the asking price is often becoming the floor of the negotiation rather than the ceiling. Therefore, if you really love a home in Knoxville, know that it may ultimately sell for more than the sellers are asking. So, as you’re navigating the homebuying process, make sure you know your budget, know what you can afford, and work with a trusted advisor who can help you make all the right moves as you buy a home.

Bottom Line

Someone who’s more familiar with the housing market of the past than that of today may think offering more for a home than the listing price is foolish. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions. Let’s connect so you have the best advice on how to make a competitive offer on a home in our local market.

Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-999-0925. My team and I look forward to serving you!

Cheap houses for sale in Knoxville TN: 2017 Harris Road, Knoxville, TN 37924

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WATCH THE WALK-THRU VIDEO ABOVE OR TAKE A 360 TOUR OF THE PROPERTY BELOW (best results are FULL SCREEN on a desktop!)

Looking for cheap houses for sale in Knoxville TN? That's a tall order, but I'm serving you up a great one right now! How about 2 lots in 1? This super cute home is located on .75 acre with a completely open space fronting the street of approximately .33 acre. Build another large garage or subdivide and build another house! The home features a rocking chair front porch for sipping that morning coffee. Inside there's a big, updated eat-in kitchen with an island and expansive solid surface countertops, new stainless steel appliances, and cabinets galore. Plus an updated bathroom with a custom tile shower. Original hardwood floors, and updated tile. HUGE laundry, utility room that could possibly make a 2nd bedroom with a private entrance and an extra-large sunroom and deck overlooking the expansive yard. Circular driveway and extra large detached 1 car garage plus a separate storage shed. Convenient to all areas of Knoxville because it's just minutes to the interstate. Need help finding cheap OUR OF THE PROPERTY BELOW!
(this works best on a desktop computer where you can go full screen)
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The differences between FHA, VA, and USDA mortgages

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When you get a mortgage in Knoxville, there are several options you can choose from, including FHA, VA, USDA, and conventional mortgages. And the one you pick will determine how big of a down payment you’ll need, what credit score you should have, and all the other requirements you’ll need to meet, as well.

But choosing the right type of mortgage can be difficult — especially if you’ve never bought a home before.

Are you confused about your mortgage options? Maybe need dome help deciding which program is the best fit for your upcoming home purchase? Here are your choices:

FHA mortgages

FHA mortgages are insured by the Federal Housing Administration. They allow for lower credit scores than most other loans. In fact, with some lenders, you may be able to get approved with a credit score as low as 500 (as long as you make at least a 10% down payment).

The one caveat with FHA loans is that they require a Mortgage Insurance Premium both at closing and as part of your monthly payment. The exact cost of this varies based on your loan balance and down payment.

Minimum down payment: 3.5%

Minimum credit score: 500 to 580, depending on down payment size

Who they’re best for: First-time homebuyers, low-credit score buyers

VA loans

VA loans are mortgage loans that are guaranteed by the Department of Veterans Affairs. Only homebuyers who are military veterans, current military members or their spouses can qualify for a VA loan. Applicants also need to meet certain service requirements, as well as obtain a Certificate of Eligibility from the VA.

VA loans come with some of the lowest interest rates around, and there are also no minimum credit score or down payment requirements.

Minimum down payment: Zero

Minimum credit score: None

Who they’re best for: Veterans, military members, spouses of veterans and military members

USDA loans

USDA loans are mortgages backed by the U.S. Department of Agriculture. They’re reserved for buyers in more rural parts of the country, and they’re only available in certain areas. Borrowers also need to fall under the set income threshold for their community. Like VA loans, USDA loans require no down payment. You can search for the eligibility of a particular address here: https://eligibility.sc.egov.usda.gov/eligibility/ If you don’t want to go through the hassle of searching every home we can set you up on a search that shows you only homes in areas that are eligible for USDA loans.

Minimum down payment: Zero

Minimum credit score: Typically 640, though it varies by lender

Who they’re best for: Rural homebuyers, low-income buyers, buyers who have no down payment savings

Conventional mortgages

Conventional mortgages are loans issued without any government insurance or backing, like those mentioned above. Because of this, lenders tend to be more strict about which borrowers they’ll approve for these loans.

Typically, conventional mortgages require higher credit scores than other mortgage options, though it varies by lender. The minimum down payment is just 3%, but if you go that low — or make any down payment under 20% — you’ll typically have to pay for Private Mortgage Insurance. Unlike the mortgage insurance on FHA loans, PMI is cancellable after you’ve paid off enough of your loan.

Minimum down payment: 3%

Minimum credit score: Typically 620, though it varies by lender

Who they’re best for: Buyers with good credit

Which will you choose, an FHA, VA, USDA, or conventional mortgage?

If you’re still not sure whether an FHA, VA, USDA, or conventional mortgage is the best fit for your home purchase in Knoxville, talk to a loan officer or mortgage broker in your area. They can help point you toward the best option for your budget and goals. We’re happy to recommend some excellent mortgage professionals so just give us a shout!

Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!