Knoxville real estate market shows slight slowdown

KNOXVILLE, Tennessee (WATE) – The Knoxville metropolitan area ranked 12th among largest metropolitan areas in the United States for net migration gains in the first half of 2021, according to National Association of Realtors analysis of data change of address from the US Postal Service. .

With that in mind, it’s no wonder the housing market in East Tennessee has been so hot. The big question, when will it cool down? The time to buy could be on the horizon.

“In fact you always see the prices going up and that’s something we had expected, it’s just that home sales have fallen below where they were in 2020,” explained Hancen Sale, director. Government Affairs and Policy of the Knoxville Area Association. real estate agents.

Sale said that even if prices remain high, buyers can expect homes to stay on the market longer and compete with fewer offers. “Earlier in the year we would see about 15 deals,” Sale said. “I think we’re down to three or four. “

He also said that while housing market trends may change, he doesn’t see the influx of people migrating to Tennessee slowing down anytime soon. “People saw that we are an affordable place to live, that there is no state income tax and that it is a beautiful area,” he said. “We continue to see people coming here from all over the country. “

LeConte Realty broker and owner Lane Shuler agreed. Shuler said this cool-down period was expected. “They put the search for a home on hold, they put it on the back burner,” Shuler began. “They focus more on getting the kids back to school. Nothing will ever be like spring. I don’t care what the market is.

Shuler also explained why more homes are being put back on the market than in the past. “People feel like they’re paying too much in the bidding process, they win the house, and then when they go to the inspection, they kind of feel like they need to. get everything they asked for because they felt they paid too much, ”he said. .

Shuler also said the biggest problem was not just the movement of people here, but also the lack of stocks and skilled workers. “A global and societal shortage of people working in the workforce and trades,” he said of the lack of people to build houses.

Shuler and Sale also agreed that the sooner Knoxville’s inventory problem is resolved, the better. “We need to diversify our building stock,” Sale said. “We need townhouses, we need triplexes, we need mid-size multi-family housing. “

“I think it’s a crisis and I think the sooner we deal with it as a crisis, the better prepared we will be for it in the future,” added Shuler.

Seasonally adjusted home sales in Knoxville area was down 0.8% from the previous month, falling below last year’s sales figures but still well above 2015-2019 figures. The typical house sold in July was 1,824 m². Ft with 3 bedrooms and 2 bathrooms.

Highlights:

  • Knoxville area door-to-door sale decreased in July – down 0.8% from June and 7.4% from a year ago
  • Median home sales the price was $ 285,000 in July – up 21.1% from a year ago
  • Total housing inventory has decreased slightly and remains down over 37% from a year ago and enough to last 1 month at the current pace of sales.
  • Half of the homes sold in July were under contract in 4 days or less.
  • 68% of homes sold for no more asking price with 30% sale for at least $ 10,000 more than requested and 11% sale for at least $ 25,000 more than requested.
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