MARKET STATS May 2020
1,307 homes were listed “For Sale” in the Knoxville real estate market. 678 homes sold during May.
That’s a 2.3 month supply of homes if no other homes come on the market. 937 additional homes came on the market, increasing inventory by 259 homes.
Knoxville Real Estate -Luxury Homes
201 of those homes were priced $600,000+.
31 of these homes sold during May.
That’s a 6.5 month supply if no other homes come on the market.
58 additional homes came on the market, increasing inventory by 27 homes.
Upper End Homes
196 of these homes were priced $400,000-$600,000.
75 of these homes sold during May.
That’s a 2.6 month supply if no other homes come on the market.
89 additional homes came on the market, increasing inventory by 14 homes.
Biggest Demand For Knoxville Homes
622 of these homes were priced $200,000-$400,000.
323 of these homes sold during May.
That’s a 1.9 month supply if no other homes come on the market.
488 additional homes came on the market, increasing inventory by 165 homes.
288 of these homes were priced less than $200,000.
249 of these homes sold during May.
That’s a 1.1 month supply if no other homes come on the market.
302 additional homes came on the market, increasing inventory by 53 homes.
Past Knoxville Housing Stats 2019
- In 2019, there were 739 residential homes in Knox County that expired on the Knoxville multiple listing service. An expired listing is when the home does not sell within the contract date.
- There were 922 residential homes in Knox County that canceled on the Knoxville multiple listing service. A canceled listing is when the Realtor agrees to release the homeowner out of the listing agreement before the contract expires.
- According to the Knoxville multiple listing service just over 7,750 residential homes closed in Knox County.
- A total of 6 homes sold over $2 million dollars in Knox County. 2 of the homes sold for over $3 million. The highest home sale was $3.75 million in Bridgemore subdivision.
- 52 homes sold over $1 million dollars in Knox County. These homes were on the market for an average of 161 days and got an average of 87.9% of the original list price.
Future of Knoxville Real Estate
Will home prices continue to climb? In 2019 the average sales price was $213,000. This year the average sales price is $229,000. This is over a 7.5% increase in home values. With mortgage rates at record lows right now people are going to continue buying homes and investment properties that will cash flow. The coronavirus has not negatively affected home values. In fact the virus has sent home prices soaring at record highs. Home showings and home sales have gone about normal protocol during the pandemic. Will this continue if there is a second wave of the pandemic? Meanwhile, there are several talks about a “second wave” coming, however, our economy will be more prepared this time. The city of Knoxville is a conservative town with a majority of the homeowners having a large amount of equity in their homes. As long as people are able to pay their mortgage and do not get desperate to sell, the real estate market should remain strong. Obviously, if people get behind on their house payments, the real estate market could be in deep trouble again just like in 2008 and 2009.
Stock Market or Real Estate Investing
Both the stock market and real estate investing have the same goal. Buy low and sell high. Having a long term mixed portfolio is most likely the most conservative way to go. One major pro stocks have over real estate is that they have no required maintenance. However, one major pro real estate has over stocks is that cash flow on your property is not taxed. Quite frankly, the list can go on and on whether you should invest in the stock market or the real estate if you had to choose one. Considering that real estate prices have increased consistently in Knoxville, it is not a bad idea to buy an investment property. Keep in mind there is always a risk in investing and no one truly knows when the market will crash. There are “experts” every year that say the market is going to crash. One year those experts will be correct if they predict a crash every year. In conclusion, don’t invest in any asset or company if you do not feel comfortable.
When Selling a home in Knoxville
Pricing is the most critical factor when you are selling a home. Your home can sell to if you are willing to price it competitively and list with a very proactive real estate agent. The real estate brokerage sells at least 90% of all homes sold in North America each year. If you are wanting to sell a home remember the three Ps. Pricing, Promotion, and photography. As stated above pricing is the most important. Promotion is the second most because thousands of buyers and investors are searching the internet daily for new listings that come on the market. Since buyers are always looking on the internet, professional photography is essential to display some of your homes features and benefits. Visit Buy & Sell to learn more about selling a property. If you are wanting to search for a home in the Knoxville area visit Properties. In conclusion, be sure to follow The Goswitz Team facebook page.