Homes for sale in Knoxville won’t drop in price in this real estate market
Over the past 24 months, there have been many conversations about how “hot” the real estate market is, not just in Knoxville, but nationally.
Now the conversation is changing and we are starting to hear things we hoped would never hear again like the “housing bubble” and the “stock market crash”.
Fortunately, there are major differences between the current market and that of 2008 that would indicate that we are not in a real estate bubble, but perhaps in a bubble that will slowly correct itself.
Over the past two years, we have seen a 34% increase in home values. New construction projects continue to flourish and there are far more buyers than houses for sale.
While not everyone in the real estate and finance world can agree on a potential real estate “bubble”, one thing they can agree on is that it’s still a fantastic time to sell. real estate. Because inventory remains low, we literally have buyers waiting for homes to become available for purchase, and many sales in our area are still experiencing multiple offers; reduced contingencies and inspections; and, in fact, an overall decrease in buyer expectations.
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Negotiations are more complicated these days, and seasoned agents are actually able to be creative enough to close a good deal.
In many situations, we find that the buyers who win the deal in a multiple offer situation are those who have waived financing, appraisal and inspection contingencies and are willing to deposit a large sum of money. serious.
As a listing agent, these are great terms because I can present sellers with a high price and a contract with very low risk terms. As a buyer’s representative, it is more difficult to advise your client because often the winning bid involves fewer contingencies – and because of this there can be major risks for the buying client.
Like all markets, real estate is always on the move. In some parts of the country, visits are down, trading days are starting to slowly increase, and prices are starting to level off.
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Fortunately, Knoxville does not yet experience this type of change. We always see listings leaving the market in record time and closing with strong numbers. Part of that is still fueled by a surge of out-of-state buyers.
The best way to navigate an ever-changing real estate market is to simply rely on your real estate agent, make sure they’re informed about the market, and be able to react quickly.
Rapidly rising interest rates will sideline some for a brief period, but the reality is that we still have a significant housing shortage and huge demand in our area, so sales or values are dropping rapidly anytime soon.
Lucas Haun is a luxury agent for Keller Williams Realty and Knoxville News Sentinel’s ASK THE EXPERT. He can be reached at 865-588-9300.