ARE WE AT THE TOP?!
Housing inventory is not only rising in the Knoxville area but all over the country. More homes hit the market last March than in any other March over the past 3 years. The higher supply of homes has helped to stabilize home prices after the wild ride we’ve experienced over the past 3 years. However, the number of available homes on the market is still way below historical averages from before the pandemic.
The question is now, are we finally at the top of the market? Going forward, the answer to this question will largely depend on where you live. For Knoxville, it’s unlikely that we see any drop in average home prices in the foreseeable future.
While a higher supply of homes is a welcomed trend for home buyers, the demand for housing in our area is still quite substantial, despite the higher interest rates we’ve experienced over the past 18 months. Most homes are still selling at or very close to their asking prices. That said, the number of homes selling over the asking is significantly less than it was a few years ago. Homes are staying on the market longer with relatively few of them in multiple offer scenarios.
If mortgage interest rates drop into the 5% to low 6% range that many expect later this year, this could spark an even higher demand for homes. If our housing inventory remains at historic lows, this could fuel another housing market frenzy driven by multiple offers and homes selling well over the asking prices.
