You may wonder what the Pizza Palace has to do with the spring Real Estate market in Knoxville? Well nothing actually, but the Pizza Palace is a legendary Knoxville pizza place, and the sign is definitely a classic- I thought it might get your attention!
At any rate, on to Knoxville home sales information! We have all been hearing a lot about the Real Estate market turning around in other areas of the country. However, as many of you are aware each market has it’s own fluctuations, which means it may be one way in California, and something very different here in Tennessee. As you can see from the graph below, the Knoxville Real Estate market has improved significantly in 2013 and has some sellers smiling again. In fact, we had 876 closed units (that includes condos and single family homes) in February 2013, which is the highest number of sold homes since 2008. Here are a few other facts that show we are turning the tide from a buyers market, to one that is more balanced for both buyers and sellers.
- Months of supply are down to 15%, which is the lowest our housing inventory has been since 2007 (in 2011 & 2009 we were at a whopping 24.50%).
- A 15% increase in closed housing units over February 2012 and a 35% increase over February 2011.
- The average days a house was on the market for February 2013 was 122 days versus 124, a slight decrease from February 2012, and down 8% from February 2011.
- The average price for a 3 bedroom single family home also rose 4% in the February 2013. The average prices went from $136,900 in February 2012 to $142,300 in 2013.
What the numbers mean to you:
- Prices are beginning to rise– While sellers still need to be competitive, homes are beginning to appreciate again. Take a look at my article to better understand your buying power, How Much House for $150,000 in Knoxville Today.
- Financing– Interest rates are slowly heading north, if you have been on the fence about buying, it is time to jump.
- Availability– With lower inventory there may be less selection in your price range. Have your agent take a look at units on hand in your price range and average prices, chances are the options are not too plentiful.
- Negotiating– Multiple offers are no longer a thing of the past. As values have stabilized and homes have begun to appreciate, don’t expect sellers to knock the price down a bunch on a fairly priced listing. If you see something you like, then don’t wait too long to decide whether you are going to buy it, because it is probably going to sell.
So in short, houses are starting to sell faster and at a higher price, there are fewer homes on the market than before, and interest rates are creeping up. I would seriously consider taking advantage of the current market and purchase a home before we begin to start seeing higher rates and prices. The good news for sellers is that their Real Estate investment is starting to gain value again in what was a very tough market place. If you wondering what is involved in buying a home take a look at my Home Buyer’s Guide Book. You can download a copy instantly. In this e-book I discuss the process of buying a home from start to finish in an easy to understand manner, regardless of whether it is your first, or forty first home purchase.
Now about that pizza! All this Real Estate talk has gotten me hungry- I guess you know where I will be tonight (wink).
Post by Shannon Foster-Boline