Embarking on the journey to homeownership in Knoxville, Tennessee, particularly against the backdrop of the East Tennessee housing market’s potential freeze in 2024, requires a strategic approach. In this blog post, we draw inspiration from insights shared on the renowned local radio show, “Real Estate with Ryan,” hosted by Ryan Coleman, Broker/Owner of Hometown Realty. While acknowledging the cooling of the housing market, the content highlights reasons why a real estate downturn may not be imminent. Factors such as low inventories, a measured response from builders, demographic shifts, strict lending standards, and muted foreclosure activity contribute to the market’s resilience. As we explore the challenges and opportunities within the real estate landscape, we aim to provide prospective homebuyers with valuable information to navigate the dynamic market conditions of 2024.
The East Tennessee housing market is currently experiencing a notable surge in property prices, with the latest home price index indicating a 4.8 percent jump, marking the ninth consecutive month of gains. Despite concerns about the highest mortgage rates in nearly 23 years, the National Association of Realtors (NAR) reports a 4 percent year-over-year increase in median home prices as of November 2023.
The national median existing-home price for all housing types reached $387,600 in November, up 4.0% from a year ago.
Regionally, in November, all four regions showed price growth from a year ago. The West had the largest gain of 5.3%, followed by the Midwest with an increase of 4.9%.
Five Reasons East Tennessee’s Housing Market Won’t Freeze
A balanced market typically has a 5- or 6-month supply of housing inventory. The NAR states in “December 2023, sales slipped in the Midwest and South, rose in the West and were unchanged in the Northeast. All four regions experienced year-over-year sales decreases. The latest month’s sales look to be the bottom before inevitably turning higher in the new year, according to NAR Chief Economist Lawrence Yun.”
Slow Builder Response
Homebuilders, having pulled back after the last crash, never fully ramped up to pre-2007 levels. As builders gradually bring more homes to the market, supply and demand may come back into balance.
Strong demand for homes persists due to various factors, including the need for larger spaces. Millennials, in their prime buying years, and a growing Hispanic demographic are keen on homeownership.
Strict Lending Standards
Unlike before around 2007, today’s lenders are pickier about who gets a mortgage. They mostly give loans to people with really good credit. This change is all about making sure that homebuyers are financially stable and trustworthy. It’s a way to keep the housing market more secure and reliable.
Muted Foreclosure Activity
Unlike the years after the housing crash, foreclosure activity is currently muted. Most homeowners have substantial equity in their homes, preventing a flood of foreclosures.
In the competitive Knoxville housing market, prospective homebuyers are encouraged to work with an experienced real estate agent. With over two decades of experience as the Broker/Owner of Hometown Realty, Ryan Coleman serves as a knowledgeable guide. To navigate the challenges and opportunities posed by the potential freeze in the East Tennessee housing market in 2024, individuals can benefit from the strategic reasons outlined in the blog post. For additional insights, tune in to “Real Estate with Ryan” to stay informed about the latest developments in Knoxville’s real estate landscape.
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Explore on a real estate journey with Ryan Coleman, Broker/Owner of Hometown Realty, as he delves into the East Tennessee Housing Market in 2024. Discover the reasons why the East Tennessee Housing Market won’t freeze in 2024. Ryan Coleman offers expert insights to keep you well-informed. Don’t miss out on this episode in the real estate opportunities in Knoxville – subscribe now for Ryan Coleman’s timely updates and expert guidance on making the most of the East Tennessee Real Estate update.
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