Real Estate market update for April
Although all real estate markets are local, we can get a feel for what to expect in the Knoxville real estate market when looking at the national numbers. Existing home sales, that is homes that actually closed, were up 3.7% in March which is a pace of 5.10 million homes. These numbers show an increase over February, but are lower than last year (however last years numbers were fueled by the home buyer tax credit). National inventory increased slightly with an 8.4 month supply. Homes sales activity is highest in the lowest price ranges, modestly higher in the upper bracket, but down in the median price range from $150,000-$500,000. Single family homes are stabilizing where the condo market is struggling. Distressed properties accounted for 40% of sales in March with investors swooping in to buy lower priced homes. All cash transactions accounted for 35% of the buying activity which also points to the investor market (this could very well be the highest percentage of all cash buying ever). The market data shows a recovery in the real estate market, as the numbers are slightly below one year ago even with the lack of the home buyer tax credit, but are lining up to be better overall for the year. The factors that will add to this are the improving market conditions such as an improving job market, higher rents pushing renters towards home buying, and the great affordability conditions with consistently low interest rates.