The Knoxville housing market is showcasing a range of dynamic changes as we move deeper into the spring of 2024. This latest update from Troy Stavros of Cornerstone Realty Associates provides a comprehensive overview of the current market trends that are shaping the local real estate landscape.
Positive Trends in Knoxville Median Home Prices and Sales Velocity
As of late April 2024, the median listing price in Knoxville continues to trend upwards, a positive signal for sellers who are seeing their property values increase. This rise in median prices, observed from April 19th to 26th, indicates a robust demand in the market. Additionally, the median days on the market are decreasing, further evidencing that properties are selling faster and that buyer interest remains high.
Price Reductions and Inventory Changes in Knoxville
Despite the positive direction in median prices, the market has experienced a significant percentage of active homes undergoing price reductions—41.28% as of the last recorded week. However, this is a decrease from earlier in the year, suggesting a gradual stabilization. Moreover, inventory levels are on the rise, typical for this time of year, providing more options for buyers and balancing the scales slightly less in the seller’s favor.
Knoxville Market Action Index: A Seller’s Market
The Market Action Index (MAI), which indicates whether the market favors buyers or sellers, remains firmly in the ‘seller’s market’ territory with a score of 56. This index uses 30 as a breakeven point between a buyer’s and seller’s market, underscoring the strong position for sellers despite a slight softening due to rising interest rates.
Impact of Interest Rates in the Knoxville Market
Interest rates have climbed from 7% at the beginning of April to 7.43% by the end of the month, influencing buyer affordability and the overall market dynamics. Higher rates typically soften demand as borrowing costs increase, yet the Knoxville market continues to absorb available inventory efficiently.
A Closer Look at Knoxville Market Segments
The Knoxville market is segmented by price points, each showing different dynamics:
- The lowest segment ($299,900 median price) is particularly vibrant, with properties moving quickly—more homes were absorbed than listed last week, with an average of 28 days on the market.
- The mid-range segment ($420,000 median price) also shows strong activity, with the fastest sales happening at an average of 21 days on the market.
- Higher-priced segments ($590,000 and $900,000) have slower absorption rates but are still performing well, indicating sustained interest across all market tiers.
Conclusion
Overall, the Knoxville housing market remains active and largely favorable for sellers, with adequate demand to match the rising inventory. Buyers, while facing higher interest rates, can benefit from the increased choices available. As the market continues to evolve, both buyers and sellers should stay informed of the weekly changes to make strategic decisions.
For more personalized advice or specific inquiries about your property or neighborhood, contacting a local real estate expert like Troy Stavros can provide tailored insights and guidance. Stay tuned to the market and ensure your real estate decisions are well-informed in this fluctuating landscape.