Realtor Calls Knoxville Housing Market ‘Wild, Wild West’ | WJHL
KNOXVILLE, Tennessee (WATE) – After slowing slightly in July, the Knoxville area housing market is heating up this holiday season. A record was set last month for the most November home sales in history, according to the Knoxville Area Association of Realtors. Home sales increased 9.9% from October to November and 11.2% from 2020.
Hancen Sale, the association’s director of government affairs and policy, said homes are still coming onto the market, but are being sold at a higher rate. In fact, half of the homes sold in November were under contract in six days or less.
“It really looks like this is going to be an ongoing issue because no matter how many new listings are in the market, it looks like they’re always being absorbed by people willing to buy,” Sale said.
This demand continues to boost home values. The median price of home sales was $ 295,000 last month, up $ 10,000 from October and 21.6% from 2020. Despite this, 38% of homes sold for a price. higher than the asking price in November. Over 20% closed for at least $ 10,000 above and 7.1% were sold for at least $ 25,000 above asking price.
Lacy Mellon, real estate agent at Re / Max Tri Star, said now is the perfect time for those who own or sell a home; However, she said it depends on who is hoping to buy.
For example, those who are leaving an area with a higher cost of living, such as Southern California, probably come to Knoxville with a lot of fairness.
“Your money is going to be nice here,” Mellon said. “You will have an advantage over most buyers. “
The National Association of Realtors found that nearly 10,000 people moved to the Knoxville metro area in 2020. Growing demand, coupled with already low inventory, places homes, especially those listed for $ 250,000 or less, in a very competitive pool of interested buyers.
“All of your buyers who need financing, especially FHA loans, THDA loans, things like that… they’re losing out to a lot of cash buyers,” Mellon said.
All the competition has led some of his clients to debate waiving their right to collect a deposit if they walk away from a deal, skipping home inspections, not asking a seller for certain repairs, and pay cash for amounts that exceed appraised value.
December could be another record month, as active listings have fallen 25% since September, demand is still high and prices continue to climb.
“It’s a bit of the wild Wild West out there in real estate right now,” Mellon said. “Every time I get a contract I read the special stipulations trying to understand what this buyer is doing to try to give myself an extra edge over the next buyer.”
Mellon has even heard from some clients who have decided to take a break from their research.
“After losing so many offers, they’re now like, ‘You know what, we’ll call you in a year. “… We’re going to sit there for a year, see what the market is doing and we’ll call you back,” Mellon said.
A native of Knoxville, Mellon is flattered that so many people love her town; however, it feels for those who are losing out in the hotter than hot housing market.
“This is the price of a lot of people who grew up here who can’t compete with a lot of other people who move here and bring their equity with them by selling wherever they are from,” he said. she declared.
While mortgage rates are likely to start climbing slowly, Sale believes the lack of inventory in the Knoxville area will cause home prices to rise 5-8% through 2022.