No housing "bubbles" in Knoxville, Tennessee

By
Real Estate Agent with RE/MAX Shoreline New Hampshire & Maine

After looking at our latests available sales sales statistics, the 3rd quarter, it appears as if the greater Knoxville, Tennessee area is not experiencing any sort of bubble or price declines.

  • 3rd Qtr. 2004  3 BR Solds  2,390  Avg. Price  $145,000  Days to Sold  80
  • 3rd Qtr. 2005  3 BR Solds  2,747  Avg. Price  $157,400  Days to Sold  65
  • 3rd Qtr. 2006  3 BR Solds  2,491  Avg. Price  $169,300  Days to Sold  78

For about 6 months in 2005 I believe we were in a fairly brief seller's market which accounts for the spike in units sold; that tide has since turned and we're back into a buyer's market with a good supply of inventory but no fire sales in sight.

The new home market in the area is off right now; I got an e mail from one builder last week offering a $5,000 cash bonus to any selling agent who brought a buyer that would close before the end of this year.

Generally 2 conditions are necessary for home prices to soften or decline.

  1. An oversupply of homes for sale
  2. and/or a weak local economy

I think we currently have a modest oversupply of new homes but resale homes inventory is not up that much.

Knoxville has always enjoyed a good economy because of our diverse economy; Oak Ridge National Labs, Tennessee Valley Authority, ALCOA Aluminum, and the University of Tennessee are 4 of the area's larger employers.

Oak Ridge is bringing a 5 billion dollar, ultra high tech particle accelerator online this year in addition to completing their superfast supercomputer code named Jaguar. Jaguar now runs at 100 Teraflops per second and they're speeding it up to 250 teraflops in 2007. One teraflop is 1,000 trillion calculations per second! Faster than your average Dell. ;-)

The University of Tennessee is planning to up its Knoxville campus student population from 28,000 to 35,000 which is a big shot in the arm of our local economy.

Posted by

Jim Lee , REALTOR®, Certified Residential Specialist (CRS)

http://JimLee.com  RE/MAX Shoreline

100 Market St., Suite #200, , Portsmouth, NH 03801 Phone: (603) 431-1111 x3801

Visit New Hampshire Maine Real Estate.com to search homes, get Seacoast area information, and find out how great living on the New Hampshire and southern Maine Seacoast really is.

 

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Rainmaker
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Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904

Floridians primarily retirees are migrating to Tennessee in record numbers.  There are two reasons for this primarily.

1) Availability of land at reasonable prices

2) Lower taxes.

It is NOT surprising to hear your market is healthy it could continue to grow with the influx of Floridians.

Dec 04, 2006 12:25 AM #1
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Rainmaker
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Jim Lee

Portsmouth NH Realtor, Portsmouth, NH
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