East Tennessee Real Estate & Neighborhood Source
More and more Millennials in Knoxville are choosing homeownership. In fact, they have quickly become the #1 generation for purchasing homes, as far as volume. The following infographic explains why homeownership is so important to them:
![5 Reasons Why Millennials Buy a Home [INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2019/04/09071341/Millennials-Choose-to-Buy-ENG-MEM1-1046x1354.jpg)
Ready to start the process of getting into your own home or ready to move to something different? Call me, Troy Stavros with CornerStone Realty Associates today at 865-999-0925 and let’s start formulating a plan.
Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even belief we might experience a housing crash like the one that occurred during the last decade.
However, according to two separate reports*, buyer demand dramatically increased over the last three months, leading into this spring buyers’ market (the March data is not yet available).
Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show that buyer demand has increased in each of the last three months.
According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.
“Due to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixed rate mortgage decreased from $60,425 in June 2018 to $53,783 as of February 2019, and the difference of $6,642 represents a gain in buying power because one can afford a home purchase at a lower level of income.”
It appears the spring buyers’ market in Knoxville is going to be much stronger than many had projected. Whether you are selling or buying a home in Knoxville, this is important news. Contact me, Troy Stavros with CornerStone Realty Associates today, to sit down and form a game plan to achieve your real estate goals.
*The methodology behind the indices:
“The ShowingTime Showing Index® tracks the average number of buyer showings on active residential properties on a monthly basis, a highly reliable leading indicator of current and future demand trends.”
“In a monthly survey of REALTORS®, NAR asks respondents ‘Compared to the same month last year, how would you rate the past month’s traffic in neighborhood(s) or area(s) where you make most of your sales?’ NAR compiles the responses into an index, where an index above 50 indicates that more respondents reported “stronger” traffic than “weaker” traffic.”
Interest rates for a 30-year fixed rate mortgage have been on the decline since November, now reaching lows last seen in January 2018. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates came in at 4.12% last week!
This is great news for anyone who is planning on buying a home in Knoxville this spring! Freddie Mac had this to say,
“Mortgage interest rates have been steadily declining since the start of 2019. These lower mortgage interest rates combined with a strong labor market should attract prospective homebuyers this spring and could help the housing sector regain its momentum later in the year.”
To put the low rates in perspective, the average for 2018 was 4.6%! The chart below shows the recent drop, and also shows where the experts at Freddie Mac believe rates will be by the end of 2019.
If you plan on buying a home in Knoxville this year, let’s get together to start your home search to ensure you can lock in these historically low rates today! Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 via call or text.
Every month, the National Association of Realtors (NAR) releases their Seller Traffic Index as a part of their Realtors Confidence Index. In the latest release, NAR reported that homeowners have been reluctant to sell their houses. This is reflected when broken down by state. Only 11 states have a stable level of seller traffic compared to the remainder of the country, which came in with a weak rating.
As we can see in the following table, the number of people who moved last year is half of what the rate was in the 1980s.
This does not come as a surprise, as tenure length (the number of years someone owns a home before moving again) among existing homeowners has increased. It has risen from an average of 6 years from 1985 to 2008, up to 9.5 years over the last few years. This is shown in the graph below:
What led to this change in behavior? Falling prices during the housing crisis led to many homeowners having negative equity in their home, meaning they owed more on their mortgage than the home was worth. Others were able to secure a low interest rate on their mortgage and have not been quick to obtain a new mortgage with a higher rate.
Recently NAR reported that “69% of people believe now is a good time to sell a home.”
With a strong economy, low interest rates, and wages continuing to rise, some homeowners will be ready to put their house on the market and move up to the home of their dreams!
There is a great opportunity for sellers to take advantage of the current real estate market before new inventory comes to market. If you are considering selling your house or would like to know your options, let’s get together today to help you understand the possibilities available to you! Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925.
![Slaying the Largest Homebuying Myths Today [INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2019/04/03102557/Slaying-Myths-ENG-MEM-1046x1477.jpg)
Have questions or want to get the home buying process started? Contact me, Troy Stavros with CornerStone Realty Associates today at 865-999-0925.
![Your Homeâs Spring Maintenance Checklist [INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2019/04/22103725/20190405-ENG-MEM-1046x1354.jpg)
Thinking about buying or selling? Let’s get together and formulate a plan for your specific situation. Contact me, Troy Stavros with CornerStone Realty Associates at 865-235-1333 today!
Here’s how the current real estate market is doing through the end of March, all around Knoxville, compared to last year. Remember, real estate is hyper local, meaning your county may show one thing but your specific subdivision or home may be doing something completely different. Contact me for a personal analysis!
Here is what is happening in the West Knoxville/Farragut real estate market compared to last year. Home sales are down fairly considerably in Farragut, compared to the same time last year. Median sales price is also down, and we’ve seen a small uptick in the amount of available inventory. This is good if you are looking to buy in Farragut!
The 37922 zip code in West Knoxville saw a nice jump in price, but home sales are down, most likely because of the decline in available inventory.
Not seeing your particular zip code referenced above? View the stats for your specific zip code by clicking HERE.
Interested in what your personal home analysis would look like? Call or text me at 865-999-0925!
Are you planning on buying a home in the Knoxville area this year? Show homeowners that you are serious about buying by getting pre-approved for a mortgage! Let’s get together to help you take the first step in making your dream of buying a home a reality! Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 or 888-388-DOOR xt.707 today!
SOLD IN 1 DAY WITH MULTIPLE OFFERS! Immaculate South Knoxville home just minutes from Downtown and UT located at 4900 Creek Bank Drive, Knoxville, TN 37920 in the Woodson Trail Subdivision. Perfect for commuters to both Knoxville and Maryville.
The inviting front porch is just one element of the great curb appeal. Save on your electric bill, as natural light just streams into the home through the large windows. Total of 3 bedrooms, 2.5 baths plus a large bonus room. This home has been exceptionally cared for. Open plan allows the eat-in kitchen to look into the family room. Formal dining and small office/multi-purpose room finish off the main level. Master bedroom is spacious and features a master bath with dual sinks, corner tub, and separate shower plus a walk-in closet. Maintenance free deck looks over a large flat backyard which takes full advantage of the corner lot.
Have questions or want to schedule a showing? Contact Troy Stavros with CornerStone Realty Associates at 865-999-0925 or 888-388-DOOR xt. 707.
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The spring housing market is off to the races here in Knoxville! The inventory of homes for sale is increasing, buyers are out in force, and interest rates are the lowest we’ve seen in well over a year, piquing the interest of buyers and sellers previously on the fence about making a move.
New research from realtor.com shows that the first week of April is actually the best time to list your house for sale! The report used “trends in median listing prices, views per property on realtor.com, home price drops, median days on market, and number of listings on the market over the last three years,” to determine a ranking for every week of the year.
Listing your home in the first week of April contributes 14x more property views, 5% less competition from other home sellers, and results in the home being sold 6 days faster!
Below is a graph indicating the average score for each month of the year.
It should come as no surprise that April and May dominate as the top months to sell in Knoxville. The second quarter of the year (April, May, June) is referred to as the Spring Buyers Season, when competition is fierce to find a dream home, often leading to bidding wars.
However, there is one caveat worth mentioning. When broken down by metro, realtor.comnoticed that while warmer climates share an overall trend, they have different top sales months. The best month to get the most exposure in Miami, FL, for instance, is August, while in Phoenix, AZ, June leads the charge.
If you’re thinking of selling your home in Knoxville this year, the time to list is NOW! According to the National Association of Realtors, 41% of homes sold last month were on the market for less than 30 days! If you list now, you’ll have a really good chance to sell in April or May, setting yourself up for the most exposure!
Let’s get together to discuss the local Knoxville market conditions, and those specific to where you live in our area, to get you the most exposure to the buyers ready and willing to make a move! Contact me, Troy Stavros with CornerStone Realty Associates today at 865-999-0925!
According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $3,143 this year when filing their taxes. This is down slightly from the average refund of $3,436 last year.
Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals. For anyone looking to buy a home in 2019, this can be a great jump start toward a down payment!
The map below shows the average tax refund Americans received last year by state. $3016 in Tennessee:
Many first-time buyers in Knoxville and all over the country, believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae all allow for down payments as low as 3%. Veterans Affairs Loans allow many veterans to purchase a home with 0% down.
The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.
The darker the blue, the closer your tax refund gets you to homeownership! For those in Tennessee looking to purchase their first homes, their tax refund could potentially get them 61% closer to that dream!
Saving for a down payment can seem like a daunting task. But the more you know about what’s required, the more prepared you can be to make the best decision for you and your family! This tax season, your refund could be your key to homeownership!
Want more information or to talk about getting the process started? Contact Troy Stavros with CornerStone Realty Associates today at 865-999-0925!
Much has been written about the millennial generation and whether or not they, as a whole, believe in homeownership as part of attaining the American Dream.
Millennials have taken longer to obtain traditional milestones than the generations before them, such as getting married, having kids, and buying a home. (Partially because this generation has been hampered by more student loan debt than the generations before them.) However, that does not mean that they do not still aspire to achieve those things.
History shows that people tend to buy their first home around age 30. Nearly 5 million millennials will turn 30 in the next two years. This will continue to fuel demand for housing.
This is also one of the many reasons why the millennial homeownership rate has continued to grow over the past few years. 48.4% of Americans between the ages of 30-34 now own a home.
There are currently over 46 million millennials (33% of the generation) who are considered “Mortgage Ready”, meaning they meet the qualifications to be approved for a mortgage today!
Rob Chrane, CEO of Down Payment Resource, commented on the findings of the report,
“We now know there are millions of buyers with the income & credit necessary to qualify to buy a home. The biggest question is:
Do they know it? …Unfortunately, many renters don’t investigate homeownership simply because they don’t believe it’s an option.”
The good news is that more and more millennials are realizing that they can afford a home in Knoxville, now. Even so, more can be done to increase awareness of low down payment programs to attract even more of this generation.
New data from realtor.com shows that in December, millennials accounted for 42% of all new home loans originated in the month. This is more than any other generation.
If you are one of the many millennials who may be “Mortgage Ready” but are unsure what your next steps should be, let’s get together to help guide you on your path to homeownership! Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925.