865 Real Estate

East Tennessee Real Estate & Neighborhood Source

Expert Forecasts on Mortgage Rates for 2022 and 2023

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If you’ve been thinking of buying a home in East Tennessee, you may have been watching what’s happened with mortgage rates over the past year. It’s true they’ve risen dramatically, but where will they go from here, especially as the market continues to slow?

As you think about your homeownership goals and decide if now’s the time to make your move, the best place to turn to for that information is the professionals. Here’s a summary of the latest mortgage rate forecasts from housing market experts.

Experts Project Mortgage Rates Will Stabilize

While mortgage rates continue to fluctuate due to ongoing inflationary pressures and economic uncertainty, experts project they’ll start to stabilize in the months ahead. According to the latest projections, mortgage rates are expected to hover in the low to mid 5% range initially, and then potentially dip into the high 4% range by later next year (see chart below):

Expert Forecasts on Mortgage Rates | MyKCM

That could bring you some welcome relief. So far this year, mortgage rates have climbed over two percentage points due to the Federal Reserve’s response to inflation, and that’s made it more expensive to buy a home. And wondering if the rise in rates will continue is keeping some prospective buyers on the sidelines.

But now that experts say mortgage rates should stabilize, this gives you a bit more certainty about what they think the future holds, and that may help you feel more confident about your decision to buy a home.

Bottom Line

Whether you’re looking to buy your first home in East Tennessee, move up to a larger home, or even downsize, you need to know what’s happening in the East Tennessee housing market so you can make the most informed decision possible. Let’s connect to discuss your goals and determine the best plan for your move.

Have questions or want to talk about buying or selling a property in East Tennessee? Contact the Troy Stavros TEAM today at 865-999-0925. We look forward to serving you!

East Tennessee home for sale on acreage with Monster Man Cave

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Unique custom-built contemporary home situated on 7 acres of complete privacy with a monster man cave but only 1 mile from HWY441 in Seymour. Bring your horses, RV, and all of your toys.

The main house features 2 bedrooms on the main level. Upstairs you’ll find the oversized owner’s suite with an 18’ cathedral ceiling, fireplace insert, and its own private office with a wall of windows overlooking the wooded backyard. One more additional room with a private bath upstairs.

Natural light streams into the great room with a fireplace focal point with 20’ ceilings and large windows. The space flows into the attached sunroom and out onto the nearly 800SF multi-level deck where you can relax and watch the abundance of wildlife. As it backs to the woods this space creates a very quiet, shaded, and private personal space for morning coffee or outdoor dining. Entertaining comes naturally to this home.

The kitchen with an island features an abundance of custom Alderwood cabinetry with a matching built-in L-shaped booth and table plus a step-in pantry. Unfinished basement plus encapsulated crawlspace.

Now the moment you’ve been waiting for.. 4000SF detached garage/barn. 1500SF finished garage space with 2 roll-up doors (220V wired). 1000SF stable area with 2 stalls, tack, or storage office with doors on both ends and 30’ tall (attention RV owners) and storage lofts. 1500SF upstairs with 2 large finished rooms set for HVAC. 

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Property Taxes in Tennessee – Help My Tennessee Property Appraisal Went Up!

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Here is how our Tennessee property taxes work here in case you are concerned your Tennessee property taxes are going up due to higher appraised value.

First and foremost, higher Tennessee property values during a reappraisal do not necessarily mean higher property taxes in Tennessee.

According to Tennessee state law, the amount of total tax revenue collected by a county (via property tax) must remain the same after a reappraisal, even if the combined value of all property in the Tennessee county increased following the reappraisal. This means that when the appraised value of a Tennessee property goes up, Tennessee state law requires the Tennessee county to lower its tax rate so it cannot generate additional tax revenue simply due to reappraisal. However, while the Tennessee county cannot generate any more tax revenue due to this process, reappraisal can and does affect the total amount of taxes owed by individual Tennessee property owners.

Per the Knox County, Tennessee property assessor’s office, the average appraisal value rose 40% – thus the tax rate will be decreased by 40% to conform with Tennessee state law.

There are basically three scenarios for how this process could impact the dollar amount of taxes owed by an individual Tennessee property owner:

If your individual Knox County, Tennessee property value increased by exactly 40%, the total dollar amount of taxes you pay will be able the same.

If your individual Knox County, Tennessee property value increased by less than 40%, the total dollar amount of taxes you pay will slightly decrease.

If your individual Knox County, Tennessee property value increased by more than 40%, the total dollar amount of taxes you pay slightly increases.

It is also important to note that the changes in the total dollar amount of taxes you must pay as a result of reappraisal are generally marginal. For example, even if your individual Tennessee property doubles (+100%) in appraised value, your taxes will not double since the tax rate will be adjusted down.

Included is an informational video from the Tennessee Comptroller explaining the re-appraisal process in regards to Property Taxes in Tennessee.

Have questions? Need help? Contact the Troy Stavros TEAM at CornerStone Realty Associates at 865-999-0925 today!

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

Knoxville, Tennessee ranks in the Top 10 Housing Market “Hidden Gems” in 2022

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The National Association of REALTORS identified 10 housing markets as “hidden gems” that are expected to experience stronger price appreciation relative to other markets in 2022. In alphabetical order, the markets are as follows:

– Dallas-Fort Worth, Texas
– Daphne-Fairhope-Farley, Alabama
– Fayetteville-Springdale-Rogers, Arkansas-Missouri
– Huntsville, Alabama
– Knoxville, Tennessee
– Palm Bay-Melbourne-Titusville, Florida
– Pensacola-Ferry Pass-Brent, Florida
– San Antonio-New Braunfels, Texas
– Spartanburg, South Carolina
– Tucson, Arizona     

“The housing sector performed spectacularly in 2021 in many markets, with huge gains achieved in places like Austin, Boise and Naples,” Yun said. “Several markets did reasonably well in 2021, but not as strong as the underlying fundamentals suggested. Therefore, in 2022, these ‘hidden gem’ markets have more room for growth.”     NAR considered a market a hidden gem based on two categories:

1) If the market’s ratio of median home price to median family income is in the lower half of the 379 metro areas analyzed.

2) If the following seven indicators reflecting the strength of housing demand for that market are in the upper half of metro areas:

1. Wage growth
2. Job growth
3. Ratio of the change in population to the sum of housing permits
4. Population growth
5. Net domestic migration
6. Percentage of the population ages 25 to 44
7. Percentage of households with broadband service

NAR’s top 10 list only includes metro areas with populations of at least 200,000.

Will Home Prices Drop in East Tennessee in 2022?

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If you’re thinking of buying a home in East Tennessee in today’s housing market, you may be wondering how strong your investment will be. You might be asking yourself: if I buy a home now, will it lose value? Or will it continue to appreciate going forward? The good news is, according to the experts, home prices are not projected to decline. Here’s why.

With buyers in East Tennessee still outweighing sellers, home prices are forecast to continue climbing in 2022, just at a slower or more moderate pace. Why the continued increase? It’s the simple law of supply and demand. When there are fewer items on the market than there are buyers, the competition for that item makes prices naturally rise. Want another example of this right now… used cars!

And while the number of homes for sale in East Tennessee is expected to improve with more sellers getting ready to list their houses this winter and spring, we’re certainly not out of the inventory woods yet. Thus, the projections show continued appreciation, but at a more moderate rate than what we’ve seen over the past year.

What Everyone Wants To Know: Will Home Prices Decline in 2022? | MyKCM

Here’s a look at the latest 2022 expert forecasts on home price appreciation: What’s the biggest takeaway from this graph? NONE of the major experts are projecting depreciation in 2022. They’re all showing an increase in home prices next year.

And here’s what some of the industry’s experts say about how that will play out in the housing market next year:

Brad Hunter of Hunter Housing Economics explains:

“. . . the recent unsustainable rate of home price appreciation will slow sharply. . . . home prices will not decline. . . but they will simply rise at a more sustainable pace.”

Danielle Hale from realtor.com agrees:

“Price growth is expected to move back toward a normal range, but this is on top of recent high prices, . . . So prices will [still] hit new highs. . . . The pace of price growth is going to slow notably . . . ”

What Does This Mean for the East Tennessee Housing Market?

While home price appreciation in East Tennesee is expected to continue, it isn’t projected to be the record-breaking 18 to almost 20% increase the market saw over the past 12 months. Overall, it’s important to note that price increases won’t be as monumental as they were in 2021 – but they certainly won’t decline anytime soon.

What Does That Mean for You?

With motivated buyers in the East Tennessee market and so few homes available to purchase, the imbalance of supply and demand will continue to put upward pressure on home prices in 2022. And when home price appreciation is in the forecast, that’s a clear indication your investment in homeownership is a sound one.

Bottom Line

It’s important to know that home prices in East Tennessee are not projected to decline in the new year. Instead, they’re forecast to rise, just at more moderate pace. Let’s connect to make sure you’re up to date on what’s happening with home price appreciation in East Tennessee, so you can make an informed decision about your next move.

Have questions or want to get the process started? Contact (call or text) the Troy Stavros TEAM at CornerStone Realty Associates at 865-999-0925 today. We look forward to serving you in all of your East Tennessee real estate needs.