Is It the Right Time to Buy or Sell a Home in Knoxville?
One of the considerations that all home buyers and sellers must remember is the current condition of the real estate market. Is Knoxville a buyer’s or seller’s market?
This is a factor that is largely out of your control, and you simply need to be aware of it in order to make the right choices. The real estate market tends to favor either home buyers or home sellers, even when it is a fairly neutral market. It will still lean one way or the other.
In recent years, the real estate market throughout the country has been in favor of home sellers. Because inventory has been remarkably low and demand for homes high, houses have been selling very quickly and home buyers were required to ask fast in order to make the winning offer. However, things have slowly begun to change in the last few months.
According to the National Association of Realtors, their most recent report shows that pending home sales around the country dropped. It is important for you to find this out and know how this can affect your real estate transactions in the future. Our team can fill you in on all of the details.
What’s the Difference between a Home Buyer’s and Seller’s Market?
The first thing that you need to know and understand is the difference between a buyer’s market and a seller’s market. It all comes down to a basic concept of economics: supply and demand. Depending on the circumstances of the area in which you live, supply and demand can vary, and this will be the determining factor when it comes to your ability to buy or sell a home successfully.
Home Buyer’s Market
When the real estate market is in favor of home buyers, the primary factor that determines this is the supply of homes in the area. If it is a home buyer’s market, that means the supply of homes outweighs the demand for them. With a surplus of homes, buyers will have their choice of what they consider the perfect house for their families and can usually get a great deal without going over their budgets or paying the full asking price of the home sellers.
Home Seller’s Market
Conversely, the opposite is true for a home seller’s market. In this case, the supply of homes is low but the demand for them is very high. This gives sellers the advantage, and they will often end up with multiple offers for their homes, all over the asking price.
Knowing the current state of the real estate market is critical for anyone thinking about buying or selling a home in Knoxville, TN. You will need to know if you will be at an advantage when it comes to making an offer, negotiating, and closing the deal. So, is Knoxville a buyer’s or seller’s market?
Is Knoxville a Buyer’s or Seller’s Market?
Now that you are well-aware of the differences between a home buyer’s market and a home seller’s market, we can discuss the more specific real estate market of your area. According to Rocket Homes as of October 2022, the market continues to favor home sellers as it had in October 2021. In fact, homes in Knoxville have been selling for 20.2% more than they did at the same time last year. The number of homes that are available for sale have also decreased by 9.9% from September to October 2022.
Fortunately for home buyers, there is hope because the real estate market is not firmly planted in the favor of sellers. Specifically, the number of homes sold from September to October 2022 dropped 26.2%, and 50% of homes sold below the seller’s asking price. So, even though the market is currently in favor of home sellers, the trend is beginning to lean more toward home buyers.
What may be causing this change? One of the most likely reasons is the rising interest rates and the Fed’s hike in mortgage rates. They have, in fact, pushed mortgage rates over 7% in the recent months as a way of combating the rising inflation. With the interest rates being so high and inflation causing financial distress, it has become difficult for home buyers to afford the higher than normal mortgage payments each month.
With our realtors at Your Home Sold Guaranteed Realty – Kings of Real Estate Team by your side, you can guarantee that you will be able to buy or sell your home for the best possible price, no matter the real estate market. Give us a call to discuss the state of the market in Knoxville and to find out how it affects you and your family.
Ready to Buy or Sell a Home in Knoxville, Tennessee?
As a home seller or home buyer, it is important that you make sure the current real estate market is in your favor before you list your home or make an offer. With the current trends in the industry, right now is a great time for home sellers to maximize the profit on their investments but home buyers should also be paying close attention to those changes.
If you are ready to buy or sell a home in Knoxville, TN, be sure to contact Your Home Sold Guaranteed Realty – Kings of Real Estate Team to get all of the details you need to start your real estate journey. Our realtors are here to make sure you are able to sell your home fast and get the highest possible price, and we can also ensure that home buyers are able to get the best price on the home of their dreams.
We are waiting to hear from you and are excited to assist you with everything that needs to be done to finish your real estate transaction. Call us at 865-830-3908 to get started!