Quick Update on the East Tennessee and Knoxville Real Estate Market OCTOBER 11, 2024

Are you considering buying or selling a home in Knoxville, Tennessee? Understanding the current real estate trends is crucial for making informed decisions. Here's a quick update on the East Tennessee and Knoxville housing market as of October 2024.

Interest Rates: A Buyer’s Perspective
In 2023, the 30-year mortgage interest rates hovered around 7.5%. Fast forward to 2024, and rates have dropped to about 6.5%. This one percentage point decrease significantly improves affordability, potentially drawing more buyers into the market. Lower interest rates mean lower monthly payments, making this an opportune time to consider purchasing a home.

Inventory Levels: More Options for Buyers
Inventory has seen a substantial increase, up by 40% compared to last year. Certain areas, like Sevierville, are experiencing even larger boosts. This rise in available homes provides buyers with more choices, potentially leading to a more balanced market or even a buyer’s market, where supply exceeds demand.

Home Sales: A Slight Decline
Despite the favorable interest rates, home sales have decreased by about 5% compared to 2023. This decline may indicate buyer hesitation due to economic concerns or high property prices. It's essential for buyers and sellers to understand these dynamics when navigating the market.

Median Sales Price: A Surge in Value
The median sales price in Knoxville has risen by 9% over the past year. This increase suggests strong demand or limited supply in certain areas. With only about two months' worth of inventory, competition for desirable properties remains fierce. Buyers need to strategize effectively when making offers.

Understanding Market Complexities
The Knoxville real estate market is complex, with affordability and economic conditions playing significant roles. While increased inventory offers more choices, the decrease in sales could lead to future downward pressure on prices. However, the rising median price indicates that homes in desirable locations continue to hold or increase their value.

Key Takeaways
Interest Rates: Lower rates enhance affordability.
Inventory: More options, potentially leading to a balanced market.
Home Sales: Slight drop due to economic and pricing factors.
Median Prices: Increased demand for desirable properties.
Whether you're buying or selling, it's vital to work with a knowledgeable real estate professional who can guide you through these market intricacies. At Cornerstone Realty Associates, we stay updated on weekly trends and are ready to assist you with your real estate needs in Knoxville.

Feel free to reach out to me, Troy Stavros at Cornerstone Realty Associates for expert advice and personalized support. Your dream home in Knoxville awaits! Call/Text 865-999-0925 today.