Nashville Archives - Page 4 of 13

2 Giant Myths in the Homebuying Process

March 17, 2020 By Troy Stavros

The 2020 Millennial Home Buyer Report shows how this generation is not really any different from previous ones when it comes to homeownership goals:

“The majority of millennials not only want to own a home, but 84% of millennials in 2019 considered it a major part of the American Dream.”

Unfortunately, the myths surrounding the barriers to homeownership – especially those related to down payments and FICO® scores – might be keeping many buyers out of the arena. The piece also reveals:

“Millennials have to navigate a lot of obstacles to be able to own a home. According to our 2020 survey, saving for a down payment is the biggest barrier for 50% of millennials.”

Millennial or not, unpacking two of the biggest myths that may be standing in the way of homeownership among all generations is a great place to start the debunking process.

Myth #1: “I Need a 20% Down Payment”

Many buyers often overestimate what they need to qualify for a home loan. According to the same article:

“A down payment of 20% for a home of that price [$210,000] would be about $42,000; only about 30% of the millennials in our survey have enough in savings to cover that, not to mention the additional closing costs.”

While many potential buyers still think they need to put at least 20% down for the home of their dreams, they often don’t realize how many assistance programs are available with as little as 3% down. With a bit of research, many renters may be able to enter the housing market sooner than they ever imagined.

Myth #2: “I Need a 780 FICO® Score or Higher”

In addition to down payments, buyers are also often confused about the FICO® score it takes to qualify for a mortgage, believing they need a credit score of 780 or higher.

Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans, shows the truth is, over 50% of approved loans were granted with a FICO® score below 750 (see graph below):Even today, many of the myths of the homebuying process are unfortunately keeping plenty of motivated buyers on the sidelines. In reality, it really doesn’t have to be that way.

Bottom Line

If you’re thinking of buying a home, you may have more options than you think. Let’s connect to answer your questions and help you determine your next steps.

Continued Home Price Appreciation Forecasted for 2020

December 26, 2019 By Troy Stavros

Questions continue to rise around where home prices will head in 2020. The latest forecast from CoreLogic shows continued appreciation at 5.4% over the next year:

Additionally, ARCH Mortgage Insurance Company in their current Housing and Mortgage Market Review revealed their latest ARCH Risk Index, which estimates the probability of home prices being lower in two years. Based on the most recent results, 32 of the 50 U.S. states (plus D.C.) had a minimal probability of lowering by 2021.

Bottom Line

Experts forecast home price appreciation to continue at a moderate rate as we move through 2020 and beyond. With appreciation growing, let’s get together and plan for your next move. Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-205-6899 today!

Thinking of Selling Your Home? Waiting Might Be The Hardest Part

October 29, 2019 By Troy Stavros

Tom Petty famously penned the words, “the waiting is the hardest part” in his early 80’s hit song The Waiting, and his thought process can surprisingly also be applied to individuals considering selling their homes today. Traditional thinking would suggest it may be best to wait until the spring to sell when there is a flood of buyers in the market, but right now may, in fact, be an even better time to list your home.

We can see the overall economy is good: wages are rising, there are near-record-low unemployment rates, and mortgage interest rates are still very low too. Over the past 10+ years, the housing market has stabilized, so what (if anything) is the biggest challenge in the housing market today?

The answer is simple: it’s inventory.

According to the Existing Home Sales Report by the National Association of Realtors,

“Total housing inventory at the end of September sat at 1.83 million, approximately equal to the amount of existing-homes available for sale in August, but a 2.7% decrease from 1.88 million one year ago. Unsold inventory is at a 4.1-month supply at the current sales pace, up from 4.0 months in August and down from the 4.4-month figure recorded in September 2018.”

What does this mean?

While homes are coming to the market, they aren’t coming fast enough! Right now, across the country there are less than 6 months of overall inventory of homes for sale, putting us in a seller’s market. The challenge is that there are not enough homes for sale to increase the supply needed for the number of people who want to buy, especially in the starter and middle-level markets.

To be in a balanced market (meaning we have enough inventory for the number of buyers in the market), we need to have 6 months of inventory available. Today we are nowhere near that number, and as a matter of fact, the last time we reached that height was August 2012 (as shown in the graph below):

When we look at the inventory challenge today, we can see that now is a great time to sell your house. Truthfully, waiting may end up being the hardest part in the long run. This landscape is a great place for sellers who own homes in the starter and middle-level markets to take the opportunity to sell in a sellers’ market before inventory catches up with demand. Serious buyers are actively in the market and ready to make a move at this time of year. When inventory is limited at the lower end, like it is today, selling before more homes are listed could mean a significant seller’s advantage to those who are ready to move up. The upper level of the market has much more inventory available to move into, so it’s a win across the board.

Bottom Line

If you’re considering selling your home, don’t wait – now is the time to make your move! Take advantage of the high housing demand and the low inventory of homes for sale at the lower end of the market and use your purchasing power while mortgage rates are low to go after the move-up home of your dreams. Let’s get together to decide if now is the right time for you.

Have questions or ready to get the process started? Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-205-6899 today!

NEW KITCHEN UPDATE! 2104 River Sound Drive, Knoxville, TN 37922

October 2, 2019 By Troy Stavros

NEW KITCHEN UPDATE! Seller’s JUST updated the kitchen and DIDN’T raise the price! New countertops, new tile backsplash, 3 new under-mount sinks, 3 new faucets, and a new Bosch cooktop!

Beautiful luxury home for sale in West Knoxville’s sought after River Sound neighborhood, located at 2104 River Sound Drive, Knoxville, TN 37922.

Let’s talk location! It’s amazing for so many reasons. If you travel, you are a mere 17 minutes to the McGee Tyson Airport. You are a short ride up I140 to Oak Ridge. Choose 3 different routes to downtown Knoxville. Grocery stores, banks, restaurants, and schools are just minutes away.

Let’s talk neighborhood! The only neighborhood in the metropolitan Knoxville area with a year-round indoor saltwater swimming pool. Additionally, there is a clubhouse, outdoor pool and tennis courts to enjoy. There is a private Marina that is restricted to River Sound property owners. Though there are only 38 slips, Slip B-2 is available to purchase with this home. Free outdoor storage area where you can keep your boat trailers or the like. People are friendly, properties are well kept, and when you say you live in River Sound, everyone will know you have been blessed and have chosen wisely.

Let’s talk house! Open floor plan! Enjoy the grandeur of the two-story entry and the curved staircase. Relax in the open family area with a cathedral ceiling adjacent to the kitchen. Functionally, this house is equipped with a 400+ sq ft dream kitchen. Starting with the Bosch 5 burner gas cook-top stove and double convection oven that is programmable from your phone. There is plenty of surrounding prep space for all elements of cooking. Within the 12-foot tile island is a vegetable sink with its own disposal and an instant hot water faucet. The best gourmet cooks will marvel at the setup and space utilization of this room and would love cooking in it given the opportunity. Have a cup of coffee by one of the 4 fireplaces or outback on the lighted Timber Tech deck that spans the length of the house and looks out over a private backyard. Between the outside decks, the big yard perfect for games of all kinds, a driveway meant for a basketball hoop, and a basement designed for fun, there’s a space for everyone. The owners can escape to a luxurious Master Suite with a spa-like bath, inclusive of a Jacuzzi tub and walk-in shower. The unfinished portion of the basement (846SF) has a workshop area and phenomenal storage. This area could be finished with relative ease. As great as the storage space is in the basement, there is also a walk-up attic (800+SF). It has easy access to tie in heating, air conditioning, water and electric. It is framed and ready to build should you want additional space. What else does this house have? It has two hot water heaters, 3 HVAC units, a three-car garage, four gas fireplaces, four full baths, two half baths, and two hoses for the Beam in-wall vacuum system.

For more information about this home or to schedule a private showing, contact Troy Stavros with CornerStone Realty Associates at 865-235-1333 or at the office at 888-388-DOOR xt. 707.

This listing is no longer available.

Home Value Appreciation Is Strong: It Might Be Time to Sell

August 9, 2019 By Troy Stavros

There’s no doubt that today’s housing market is changing, and everything we see right now indicates it is time to sell. Here’s a look at why selling your home in Knoxville now is likely to drive the greatest return on your largest investment.

Home values in Knoxville have been appreciating for several years now, growing at a strong, steady, and impressive pace. In fact, the average annual appreciation rate since 2012 has nearly doubled the average rate from the more normal market of the 1990s (think: pre-bubble).

Appreciation, however, is projected to shift back toward normal, meaning home prices in Knoxville will likely keep climbing over the next few years, but they are not projected to continue to increase at such a high rate.

Here’s What That Means for Homeowners:

As noted in the latest Home Price Expectation Survey (HPES) powered by Pulsenomics, experts forecast an average annual appreciation rate closer to 3.2% over the next five years, which is more in line with a historically normal market (3.6%). The good news is, there’s still time to take advantage of the current strength of home prices by selling your house now.

Looking at the projections as they stand today, 2019 is slated to drive the strongest appreciation as compared to the upcoming few years. With average home prices still on the rise, the pace at which they are predicted to continue increasing will likely soften by 2020.

Bottom Line

If you’re thinking about selling your house, now is a great time to make your move. Don’t get stuck waiting until projected home price appreciation rates potentially re-accelerate again in 2023. You’ll likely earn the greatest return on your investment by selling now before the prices start to normalize next year.

Have questions or are you ready to get your home on the market to take advantage of the increased value? Call me, Troy Stavros today at 865-999-0925 and let’s set up a time to talk!

How to Increase Your Home Equity Over the Next 5 Years

August 1, 2019 By Troy Stavros

How to Increase Your Equity Over the Next 5 Years | MyKCM

Many of the questions currently surrounding the real estate industry focus on home prices and where they are heading. The most recent Home Price Expectation Survey (HPES) helps target these projected answers.

Here are the results from the Q2 2019 Survey:

Home values will appreciate by 4.1% in 2019
The average annual appreciation will be 3.2% over the next 5 years
The cumulative appreciation will be 16.8% by 2023
Even experts representing the most “bearish” quartile of the survey project a cumulative appreciation of over 6.7% by 2023

What does this mean for you?

A substantial portion of family wealth comes from home equity. As the value of a family’s home in Knoxville (an asset) increases, so does their equity.

Using the projections from the HPES, here is a look at the potential equity a family could earn over the next five years if they purchased a $250,000 home in January of 2019:

Based on gains in home equity, their family wealth could increase by $42,000 over that five-year period.

Bottom Line

If you don’t yet own a home, now may be the time to purchase. Owning or moving up to your dream home could allow you to ride the increase in equity of a growing asset. Ready to get started? Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!

Home Price Expectation survey – Every quarter, Pulsenomics surveys a distinguished panel of over 100 economists, investment strategists, and housing market analysts regarding their 5-year expectations for future home prices in the United States.