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Knox County Housing Market Snapshot | December 2024

COOLING DOWN…

Despite home prices being up over 7% from last year, several indicators reveal that the Knoxville housing market is slowing down as we close out 2024.

Our average “days-on-market” for homes listed shot up to its highest level in years (54 days). Our list price-to-sales price ratio also continued its downward trend and fell to its lowest level in 2024.

A year ago, many predicted that mortgage rates would be in the 5% range at the end of 2024 and the housing market would be booming. What actually happened was that 30-year mortgage rates finished the year above 7% and 2024 was one of the slowest housing markets in terms of transactions our country has seen almost 30 years.

Experts, once again, predict that interest rates will decline in 2025, but not by much. And those waiting for a market crash will likely need to be very patient because there is no indication of any massive home price depreciation coming to our fast-growing area any time soon…

Our advice? Don’t try and time the real estate market. Go ahead and buy or sell a home if it helps improve your lifestyle and/or financial situation. Nobody is predicting that homes will get cheaper over the next 5 years…

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Selling Knoxville | Episode 9

Selling Knoxville is a lifestyle show that highlights some of the cool and interesting things going on in the Greater Knoxville area! It is currently streaming on Amazon Fire, Apple TV, and Roku.

In this episode, Holli meets with Harper Jones, a Knoxville-based insurance advisor specializing in Infinite Banking. He works with people to use whole life insurance policies to not only build wealth but also create easy access to capital so they never need to borrow money from a bank ever again.

To learn more about Harper and Infinite Banking, visit https://lifewithleverage.com/ Continue reading…

Knox County Housing Market Snapshot | November 2024

Home prices in Knoxville remain higher than at this time last year (just over 7% higher to be exact). That said, the total housing inventory in our area is almost 40% higher year-over-year. This should help keep local home prices relatively steady, despite the demand for housing continuing to remain strong.

It is also good news for home buyers as they have more homes to choose from than at any point since early 2020. Home buyers also have a little more leverage when it comes to making offers and negotiating contracts.

Interest rates ticked down a bit from earlier in the month. As of now, the consensus from credible sources such as Fannie Mae and the Mortgage Bankers Association is that rates should remain in the mid-to-low 6% range throughout 2025. Some outliers say rates could drop below 5% in 2025, but all sources agree that rates will continue a downward trend next year.

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Knox County Housing Market Snapshot | October 2024

SLOW & STEADY…

adequately explains the Knoxville real estate market right now… Despite the inventory of homes on the market being up over 30% compared to the summer and the overall number of homes sold declining for the 3rd straight month, home prices remain fairly consistent.

The limited supply of homes relative to the housing demand in the Knoxville area is a major factor in why home prices remain slightly higher than last year. This demand is fueled by a strong local economy with a relatively low unemployment rate.

On the surface, the ongoing trend of more list price reductions (year-over-year) would suggest that home prices are declining. However, that is not really what is happening…

More home sellers have been listing their homes at “above-market” prices. While this was an effective strategy to get top-dollar for one’s home in 2021, and most of 2022, it is not nearly as effective in today’s market. As a result, more home sellers are reducing the prices of their homes in order to sell them at current market prices.

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Knox County Housing Market Snapshot | September 2024

More Homes to Choose From…

The total housing inventory in the Greater Knoxville area is up over 42% from last year. This is good news for home buyers who were frustrated due to the lack of available homes on the market. For most home sellers, you can likely expect longer days on the market and fewer multiple-offer scenarios.

That said, home prices and the rate of home sales are both up slightly from last year. Overall demand for homes in our area does not appear to be slowing anytime soon. Many factors account for this trend, but the 2 most prevelant are related to declining mortgage interest rates and access to higher-paying jobs in the Knoxville area.

The Knoxville housing market remains strong with a positive outlook heading into 2025. Based on the current numbers, those expecting a major market crash in our area may be waiting a long time…

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Knox County Housing Market Snapshot | August 2024

HOME AFFORDABILITY FINALLY IMPROVING…

Lower interest rates and stabilized home prices are having a positive impact on housing affordability.

The overall outlook on mortgage interest rates remains pretty encouraging. Rates are hovering in the low 6% range, with some lenders offering loans with rates well below 6%. And with the Federal Reserve expected to lower the fed funds rate this month, mortgage rates could drop even further.

The combination of the available listing inventory at its highest level in four years and lower interest rates could make this fall a great time to purchase a home…

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Selling Knoxville | Episode 8

Selling Knoxville is a lifestyle show centered around cool and interesting things happening in the Greater Knoxville area!

In this episode, Holli meets with local contractor and mentor, John Chandler, to talk about how he is helping to give a second chance to those in our community who need it.

John uses his Christian faith and skills as a contractor to establish positive chapters in the lives of those in his program. His ultimate goal for them is to have the tools to provide a prosperous life for themselves and their families.

Knox County Housing Market Snapshot | July 2024

HOW ‘BOUT THOSE INTEREST RATES?!

Over the past month or so, we experienced a slow and steady decline in mortgage interest rates, but nothing substantial. That changed when the higher-than-expected unemployment numbers came out on Friday, August 2nd, sending rates on a sharper downward trajectory.

Also, there is growing sentiment that the Federal Reserve will lower the fed funds rate by 50 basis points in September. While this drop won’t have a direct impact on mortgage rates, the effect should continue to put downward pressure on rates.

Median home prices in the Greater Knoxville area remain higher than last year, despite a growing supply of homes on the market. The number of active listings in Knox County is at its highest point since late 2020.

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Knox County Housing Market Snapshot | June 2024

Overall, June was a relatively uneventful month for the local housing market. That said, there are signs of changes coming…

Mortgage interest rates jumped up in the middle of June but regressed back down to around 7%. The expectations from Fannie Mae, the Mortgage Banker’s Association, and the National Association of Realtors are that rates should continue to move downward to around 6.8% by the end of this year. Lower interest rates could provide some much-needed improvement to housing affordability and potentially lead to more home buyers entering the market.

The most notable trend is the continued rise in housing inventory. The number of active/unsold listings in Knox County is 30% higher than it was a year ago. Higher housing inventory should continue to put downward pressure on home prices, but for now, the high demand for homes in our area continues to push home prices slightly higher.

Interested in what your Knoxville area house is worth right now? Get an online home value report in just minutes

Selling Knoxville | Episode 7

Episode 7 – Eagle Cliffs

Selling Knoxville is a lifestyle show centered around cool and interesting things going on in the Greater Knoxville area!

In this episode, Holli meets with local builder and developer, Dan Mitchell, to discuss his new luxury home neighborhood in Blount County called Eagle Cliffs.

For more information about Eagle Cliffs, visit https://liveineaglecliffs.com Continue reading…