Knoxville Tennessee Real Estate Blog

This delightful duplex is near UT and has 1 two BR and 1 1 BR units, will cash flow.

Happy New Years fellow Knoxvillians; it’s now officially 2010.

Following is the latest report from the Knox County Register of Deeds office for real estate transfers (sales) completed last week (January 3, 2010).

I counted 88 property transfers in the past week. That’s a low number compared to the 150 we have been averaging for all of 2009 but I believe the holidays had more to do with that than other factors.

Are you like me and wondering what the new year will bring for the Knoxville real estate market?

Here’s what I think is likely to happen:

• Interest rates are going to rise a little. I believe we will be looking at 6% or so at some point in 2010.
• It’s anyone’s guess what will happen when the tax credit expires at the end of April 2010. That credit has been driving the low end of our market for several months now so it can’t help but have a negative impact when it’s gone.
• The Knoxville Area Association of Realtors 2009 sales report for the year will be out around the 15th of this month so we will be able to compare 2009 to past years. However we already know the numbers for the last 11 months of 2009 so I’m not expecting any surprises in December sales.
• There are currently 3,332 active residential listings in Knox County.
• There is also 521 “sale pending” listings in Knox County. I’m wondering how many of those are for real and how many are listings where the sale has fallen through and the status was never changed. I know I have one lease purchase set to close next month that has been there since July of 2009.
• I think the volume of sales will rise in 2010; how much is anyone’s guess. 10-20% sounds realistic to me.
• I think the price appreciation will remain flat with maybe a slight rise but very slight if it happens.
• One in seven households with mortgages was either in foreclosure or delinquent on payments at the end of September, the most recent data available from the Mortgage Bankers Association. Some owners are defaulting because they have lost their jobs. Expect more foreclosures in 2010.
• The biggest factor missing from the real estate market (and other markets as well) is confidence. Investors and most everyone else are just unsure about what the short term future brings. Nervous investors tend to set on their assets and not invest them.

It will be interesting to revisit this post in about 6 months and compare my predictions to what has actually happened.

Nothing to do with real estate and just for fun, here’s a list of people and things with roots in Knoxville, Tennessee.

There are lots of awesome homes for sale if your in the market. If you’re thinking of selling houses are selling, 88 sold just this past week and that’s a low number compared to the 150 average we’ve had for all of 2009.

Visit www.KnoxvilleHomeCenter.com to see all of the Knoxville area homes for sale, find great tips to make your home sell faster and for more money, and of course, contact me to buy or sell.

Best wishes to all for a very happy and prosperous 2010!