It seems as though the past year has had a dark cloud looming over our economy. With all of the negativity in the media (unemployment rates, foreclosures, etc), it’s no wonder that the use of antidepressants is up 75% (according to Psychcentral.com)! Now I’m no doctor, but it doesn’t take a doctor to figure out that if you surround yourself with negativity in every aspect of your life, you WILL end up needing some form of medication to help you cope! With that being said, I have been watching our local market here in Knoxville and I must say, things are looking up!
Here’s an example: the Downtown area of Knoxville was in a “dormant” stage for many years. However, in the past 3-5 years, several real estate developers began to see how the “old commercial buildings” could be renovated into becoming luxurious condos for many professionals. The average sales price in the downtown went from $135,398 in 2005 to an average sales price of $375,878 today! That’s an increase of just over 277% in 5 years! Now to me, that’s positive news worth talking about!
Another example of things looking up is this: In the Knoxville area, the median sales price is now $127,798, which is a bit less than what it was in 2005 ($128,900)! Since homes in our area have become more affordable, we have seen a 34.9% increase in sales for the last quarter compared to 1 year ago!
The bottom line is this…..do we have foreclosures in our area? Yes! Do we have unemployment? Yes! Does that have to be our focus? NO!! Knoxville is showing signs of improvement so I think we need to spread the word! There are currently 892 single family homes under contract right now. That means 892 more families will be closing on a home within the next month or two. There have been 675 single family homes that have already closed this year. We are beginning to see multiple bids on homes under $150,000 again, so to me, that means THINGS ARE LOOKING UP!!
I gathered these statistics to give potential buyers and sellers a realistic idea of what is going on in our market. For sellers, the good news is that there are buyers out there who can get loans and who are writing up offers on properties daily. If you look at these statistics and price your home within the current market range, then you will be one of the lucky ones to find a buyer for your home. For buyers, it means that you can now purchase a home that maybe you couldn’t afford a few years ago. And with the current interest rates still very low, I don’t know why you wouldn’t want to purchase a home.
Do I foresee a great deal of appreciation in the near future? Who really know? If you keep an eye on your local market trend then you can better predict what might happen over the next few months. Whether buying or selling, always look at your local statistics to see what the trend is around you. Ask your local realtor to help you gather this information. The market around us is continually changing and it is important to stay up-to-date with the latest statistics and trends for your area. Remember…..Real Estate is local!
I specialize in selling single family homes in Knoxville and surrounding areas. If you have any questions regarding our local market, you can visit me at www.SmartChoiceTN.com or call me at (865) 249-6823.
Michele Webb
Principal Broker/Owner
Assist-2-Sell Discount Realty
5610 N Broadway St.
Knoxville, TN 37918
(865) 249-6823 Office
(865) 249-6824 Fax
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