I was interviewed by WATE recently about the present and future state of the Knoxville area housing market.

Here’s a link to that interview and video below.

So far this year Knoxville area sales are oddly resisting their typical seasonal downturn as we approach the colder months and the holiday season.

Usually we see a downturn in sales around July-August when school starts but so far this year that is not happening. I believe a significant portion of those sales are being driven by buyers trying to beat the deadline for the $8,000 tax credit for homebuyers which is set to expire at the end of November this year.

There are several bills in Congress to extend it but whether they will pass or not is is anybody’s guess. Here’s what past years sales have historically looked like compared to this year so far.

Knoxville, TN year to date home sales

Knoxville, TN year to date home sales

As the red line which represents 2009 sales shows, sales are holding up at least 1 month past the points in the past where they have traditionally started dipping down.

The graph below shows the median price for a typical 3 bedroom home in the greater Knoxville area. The median price means “middle” and 50% of sales were above this price and 50% were below.

Knoxville area 3rd quarter median price comparisons

Knoxville area 3rd quarter median price comparisons

As the chart above shows, we’re selling more lower priced homes this year compared to years past. Hopefully Congress will see the wisdom of continuing the homebuyers tax credit and we can continue to see increases in the numbers of home sales in the Knoxville area.

Now is a great time to buy a house if you’ve been thinking of becoming a homeowner. You may not have enough time to qualify for the tax credit but there is a huge selection of homes for sale in the Knoxville area in all price ranges, interest rates are at historic lows which translates to payments maybe less than you’re paying right now in rent, and motivated sellers are willing to deal to entice you to buy their house over another.

www.KnoxvilleHomeCenter.com is a great place to start your search.

For Knoxville home sellers that need to sell; don’t dispair or give up. Knoxville area homes are still selling but you need to keep these three critical things in mind to make your home sell.

  1. Aggressive pricing. Realize you’re probably not going to net as much for your house now and you could have a year or so ago. Be prepared and willing to offer potential buyers a price concession and/or help with their closing costs. Most lenders will let a seller ‘contribute’ as much a 3% of the purchase price to help your buyer.
  2. Showroom condition. Start from the front door and pretend you’re the homebuyer for your house. Would you pay top dollar for it in the present condition? If the answer is no you need to make some changes. Start with a thorough cleaning of things you might not clean on a weekly basis such as ceiling fan blades, ceiling corners, garage, and other areas. Paint any needed area with a neutral paint color
  3. Broad based marketing. Over 80% of today’s buyers are looking on the Internet for houses these days. You have to have your house exposed to as many potential buyers as possible and once they find it you need lots of photos to encourage them to visit in person to look and buy. Your selection of an Internet savvy Realtor is more critical now than ever before (maybe a Realtor local news outlets talk to about Knoxville’s housing market) 😉

Please feel free to comment or ask any housing or mortgage questions you may have.

Knoxville, Tennessee real estate

Knoxville, Tennessee real estate

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