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If you’re selling or thinking of selling a house in the Knoxville and Farragut, Tennessee area one important fact you must know is what is the current absorption rate in those areas for your price point.

Absorption rate is simply the time it will take a house to sell based on the number of current listings and the monthly number of sales in those price points.

A “normal” Knoxville real estate market usually has an absorption rate of 6 months and neither the Seller nor the Buyer is thought to have the advantage. A Seller’s market usually has an absorption rate of less than 6 months, and a Buyer’s market normally is thought to have an absorption rate of more than 6 months.

The 6 month number in this definition means it would take about 6 months to sell the entire amount of available Knox County inventory in the market if this were a so-called normal real estate market.

Currently in the greater Knoxville area it’s pretty long for the higher end of the market and getting closer to average in the lower end.

Remember:

Sellers market equals less than a 6 month supply of homes for sale

‘Normal’ market has a 6 month supply, give or take 2 weeks each way

Buyers market has more than a 6 month supply of homes currently for sale.

Knox County absorption rates (months to sell)

Knox County absorption rates (months to sell)

Spun any way you want, almost all of Knox County is still in a pretty strong buyers market with the upper end price points being a VERY strong buyers market, i.e. there is a 42 months supply currently for sale of homes priced at over 1 million dollars, and a 35 months supply priced between $300,000 to $500,000.

The figures above are why the $200,000 and below price points continue to dominate the sales charts and have all of this year.

Buyers, it’s still a great time to buy. Lots of Knoxville area homes for sale, low interest rates, and you can still get in on that $8,000 federal tax credit if you qualify. Call or mail me with any questions about how you can very easily become a homeowner in 2009.

Sellers, homes in Knox County are selling but they need to be priced very aggressively, in tip top condition, and you need to be willing to negotiate with buyers if you want to sell.

Visit KnoxvilleHomeCenter.com to see all of Knox County and the surrounding areas homes for sale.


word cloud knoxville tn real estate listings for knox county knoxville farragut and other knoxvillea area communities by jim lee realtors

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