Numbers, numbers, numbers…what do they mean for Knoxville’s Real Estate Market?
As you can see from the graph above, the market has improved significantly from 2011, and has home sellers smiling again. In fact, with closed units increasing 27% in May 2012 and June 2012 showing another double digit increase, it looks like we are ticking right along toward a much better year. Other real estate markers, such as days on market. would indicate that as well. During the second quarter of 2012, the average days on market hit 113 days versus 125 days on market. This was a 10% decrease from the second quarter of 2011. The average price for a 3 bedroom single family home also rose 20% in the second quarter of 2012 versus 2011.
With this bit of sunshine, in what has been a rather overcast Real Estate market for many years, I still believe a bit of cautionary optimism is warranted. As you can see, our trend is very closley mirroring the first half of 2010. You can expect to see real estate home sales slump in July and August, and most likely continue to trail off slowly in the latter part of the third quarter and into the fourth quarter. Of course, we can hope that we will not see as sharp a decline in the summer months as we did in 2010, but then hope is not a strategy. Interestingly enough, 2011 closed unit sales under-performed compared to 2010 in the first half of the year, and then the roles reversed with 2011 pulling out stronger overall in the back half. I think it is best to be conservative, and not anticipate further sustained large sales increases over 2011 for third and fourth quarters, as we have seen in the first half of the year. And, while we might continue to trend up to 2010 and 2011, a third of ALL houses that sold in the second quarter of 2012 stayed on the market for more than 121 days and the $500,000 and over price point is still sluggish at best. At the end of the day, I would suggest that the absorption rate of sales by specific neighborhoods is important to consider alongside traditional comparative market analysis (CMA) as sellers plan to position their houses competitively in the current market.
My professional opinion:
- Price is king– price aggressively and with absorption rate and your CMA in mind.
- Marketing is key– videos, great internet exposure, and a unique sales proposition keep you up front.
- Condition– You still need to be the best of the best looking to get the action- upgrades may not gain you more profit, but help you sell faster than the next guy.
- Know the competition– get the WOW factor with price, condition and terms, or you will get lost in the sea of mediocrity.
That’s it for the Knoxville Real Estate Second Quarter Sales Market Update (say that three times fast)!
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Have a minute? Check out some current homes on the Knoxville market:
[idx-listings city=”Knoxville” minprice=”150000″ maxprice=”300000″ propertytypes=”1262″ orderby=”DateAdded” orderdir=”DESC” count=”10″]
Disclaimer: All data is taken from the Knoxville Area Association of Realtors reports. The author is not responsible for any errors or omissions.
Post by Shannon Foster-Boline