Knoxville Tennessee Real Estate Market Analysis
2020… What an unpredictable year! As the sun sets on 2020 and we enter the new year, it’s only normal to wonder whether or not now is the right time to buy or sell your Knoxville home. Let’s break it down to an elementary concept of supply and demand. As you probably know, when there is low supply, there is higher demand. When there is a higher supply, there is lower demand. This concept applies perfectly to real estate!
According to the National Association of Realtors, the inventory of houses for sale in Knoxville around this time last year is down over 20%, a significant decrease in supply. What does that mean for someone looking to sell their home in Knoxville? Less competition! Buyers are more likely to sacrifice some of their lower-level desires in a home, and may even end up watching a bidding war over your home or receiving offers above asking price.
In 2021, many Americans are expecting to spend more time working from home. With all of this time spent at home, space has become an extremely important asset. This has resulted in masses of Americans looking for housing in suburban areas. Luckily, Knoxville has the perfect mix of suburban and city areas, the perfect spot for anyone looking to relocate to Knoxville. Because of this, Knoxville real estate is seeing a surge in out of town buyers. Many people from other cities are looking to move to Knoxville and searching for homes for sale in Knoxville and surrounding areas. What does that mean for people who are considering selling their home in Knoxville? Now is a great time! People are literally waiting for new homes to become available.
“But what about COVID-19? Couldn’t the virus cause the housing market to crash?”
Experts believe that 2021 will be a hot year for the housing market with homes trading quickly and for top dollar. As a Knoxville real estate agent, I have seen this within our own real estate market. While the initial impact of the virus shocked our nation and seemingly put a brief pause on the trading of real estate, the housing market has steadily adapted to a new normal. In fact, 2020 has provided record low mortgage rates, high turnover rates, eager home buyers and sellers, and extremely low interest rates. According to realtor.com, there are 2,222 homes for sale in the city of Knoxville ranging in price from as low as $5.8K to $9.8M.
Beyond this, the average time a Knoxville home stays on the market is only 48 days! Homes that are for sale in Knoxville are getting multiple offers and securing top dollar.
The rush of Americans to suburban areas has been significant. The city of Knoxville is surrounded by gorgeous (sometimes lake-front) suburbs. The following suburbs were ranked the best areas in Knoxville to move to in 2021: Farragut, Maryville, Louisville, Alcoa, Clinton, Oak Ridge, Blaine, Jacksboro, and Dandridge. What does a suburb offer that makes it such a desirable location? Space (indoor and outdoor), escape from the city stresses (crowds, expensive parking), and a slower-paced lifestyle. No wonder these suburbs are thriving.
The fact of the matter is that even though times are unprecedented, the housing market is flourishing. Knoxville real estate is booming. Interest and mortgage rates are expected to stay low throughout the new year, and suburban housing is in high demand. The value of a Knoxville home has increased roughly 7% in the past year, and this number is expected to increase another 3% in 2021. The buying and selling of real estate will continue to play a key role in the economic recovery of our country this year.
Want more information on the current market in Knoxville? Let’s talk!