housing market knox county tn Archives

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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SO WHERE DO WE GO FROM HERE?

2023 has come to a close, and as expected, we did not see a real estate market crash. Home prices are still up around 9% from the end of 2022.

While some appreciation is projected for 2024 (especially in the lower price points) home prices, as a whole, appear to have plateaued in Knox County. The median home price in our area has been relatively flat since September. With interest rates declining, this is a welcomed sight for those looking to buy a home.

Homebuyers should also enjoy more homes to choose from in 2024 as the inventory of homes for sale is projected to rise throughout the year.

As a result of rising inventory, home sellers should expect to experience a longer amount of time on the market. With buyers having more homes to choose from, pricing one’s home correctly will be crucial to getting it sold quickly.

HOWEVER, if interest rates continue to drop into the low-to-mid 5% range, another tsunami of homebuyers could enter the market. This scenario could potentially put Knox County back into a red-hot real estate market status with multiple offers and very short amounts of time on the market for listings that are properly listed.

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