2012 Real Estate Trends: Comparing Knoxville to the rest of Tennessee

By guest author Emma Crawford

With 2012 getting in full swing this February, a number of real estate markets around Tennessee are analyzing their original goals to see where they are stacking up. A number of cities such as Memphis and Nashville are looking to seek improvements in the market in 2012. With one month underway, a look at the Knoxville real estate market’s place in comparison to the rest of the state and nearby cities is a great way to measure early success.

For the entire state of Tennessee, median prices are sitting at $129,000 right now. Knoxville’s average listing price of $240,000 in February is certainly superior to the statewide average, which is a great positive for area sellers. In comparison, Memphis’s current median prices are sitting at $145,000. When it comes to median prices, Knoxville is certainly holding an advantage over other the rest of Tennessee right now.

Mortgage rates are certainly an important part of real estate these days. As they’ve hit record lows in 2011, buyers have been able to take advantage of rates lower than a lot of rent prices. Compared to the state’s two biggest cities, Memphis and Nashville, Knoxville is currently home to the lowest 30 year fixed rate mortgages of the three. Knoxville’s current APR of 3.88 is highly comparable to Memphis and Nashville, which are both sitting at 3.977 APR

Just as mortgage rates have gone down, apartment rental rates continue to go up throughout the country. While this is one area where Knoxville is similar to the state’s other big cities, the trends could be positive for area sellers. Knoxville’s rentals are up almost four percent over the past three months, while Nashville apartments have gone up nearly eight percent in the same time frame. With apartment rentals going up all over the state, it’s possible that those who are on the fence between renting and buying could decide to pull the trigger on the purchase of a home in 2012.

Right now, Knoxville has comparable inventory to Nashville near 3050, although it’s short of Memphis, who has 3095 homes on the market. However, even though Memphis has a better inventory right now, homes are staying on the market for a lot shorter time in the Knoxville area. Right now, the average Memphis-area home is on the market for 121 days, compared to just 100 on average for a home in the Knoxville area.

Certainly there are some gives and takes when it comes to Knoxville’s current status compared to other large real estate markets in Tennessee. One huge positive is the clear advantage in listing price that Knoxville currently holds, which will be a boon for area sellers. Hopefully the record low mortgage rates in the state, combined with rising rental rates can help continue to drive a strong 2012 in the Tennessee real estate markets.

Visit KnoxvilleHomeCenter.com for all your Knoxville area and east Tennessee real estate needs.