Quoted below is the recent report from the Knoxville Area Association of Realtors on local area October home sales. While the market sales have decreased there is still high demand and strong pricing. With stable mortgage rates, it looks like the remainder of the year will trend the same as the fall.
|Seasonally adjusted home sales in the Knoxville Area increased 1.2% from September to October but fell 2.6% from one year ago.|
The typical home sold in October was 1,820 Sq Ft with 3 bedrooms and 2 bathrooms.
Knoxville area home sales increased in October — up 1.2% from September but down 2.6% from one year ago. The median home sales price was $285,000 in October — up 14% from one year ago. Total housing inventory declined substantially in October and remains down around 30% from a year ago and 46% from pre-pandemic levels. Half of the homes sold in October were under contract in 6 days or less, down from 9 days in October 2020.39% of homes sold for over asking price with 19.7% selling for at least $10,000 over asking and 6.9% selling for at least $25,000 over asking — all lower shares than in the previous month.
KAAR reports home sales patterns using a seasonally adjusted annualized rate (SAAR), an adjusted rate that takes into account typical seasonal fluctuations in data and is expressed as an annual total. Comparing month-over-month housing market data using this method provides a more accurate depiction of home sales.
|Bottom Line: Knoxville’s housing market has eased this Fall when compared to the first half of the year. However, had we not experienced an all-out pandemic frenzy, we’d still be calling today’s housing market one of (if not) the strongest on record. Robust demand, aided by yet another dip in mortgage rates, continues to quickly absorb a limited number of new listings. Somewhat surprisingly, prices continue to be relatively stable in the face of stiff competition — another sign of a return to more typical seasonal patterns. Overall, inventory remains the largest constraint on home sales with interest rates coming in as a close second.|