August 2024 Sevier County, TN Real Estate Market Trends

Posted by Jason White on

Average Price during August was $692,156, up from $688,062 during August 2023.

January 2024 – $685,047
February 2024 – $689,422
March 2024 – $926,103
April 2024 – $693,604
May 2024 – $679,333
June 2024 – $653,433
July 2024 – $585,159
August 2024 – $692,156

 

Days on market during the month of August were 61 days, this is very close to the average days on market in July, at 59 days, and up a bit from August 2023 at 54 days.

January 2024 – 82
February 2024 – 64
March 2024 – 46
April 2024 – 80
May 2024 – 100
June 2024 – 51
July 2024 – 59
August 2024 – 61

 

Price per square foot during August was $352, up a bit from $347 during the month of July, and down 6% from August 2023.

 

 

 

The average price for land/lots during August was $81,775 down 33% compared to average price in August 2023 at $123,140.

Lots that sold in August spent an average of 120 days on the market, down from 145 days on market in August of 2023.

The Impact of Pending Home Sales Decline in the Southern U.S. during Summer 2024

Posted by Jason White on

Pending home sales dropped 5.5% nationwide, contrary to the expectations of a modest 0.4% increase. In this post, we explore the specifics of the South’s housing market performance and its implications for buyers and sellers in the region.

The decline in the South outpaced the nation at 6.5%. The Pending Home Sales Index (PHSI) for the South fell to 83.5, signaling a significant slowdown in market activity. 

Pending home sales in the South declined by 11.5% compared to July 2023, a more significant drop than the national average of 8.5%. This stark contrast highlights the region-specific challenges faced by the Southern housing market.

 

“A sales recovery did not occur in midsummer,” said NAR Chief Economist Lawrence Yun. “The positive impact of job growth and higher inventory could not overcome affordability challenges and some degree of wait-and-see related to the upcoming U.S. presidential election”.

 

Several factors contributed to the sharp decline in pending home sales in the South

  • Affordability – the rising home prices is making it difficult for potential buyers to enter the market.

  • Economic Conditions – The U.S. job growth hasn’t been sufficient enough to counteract other negative factors affecting home sales.

  • Interest Rates – Interest rates remain higher than in recent years, impacting buyer purchasing power.

  • Housing Supply – The Real Estate market in Sevier County, Tennessee is experiencing high inventory levels, despite the low inventory issues faced in other regions.

  • Political Uncertainty – The upcoming U.S. presidential election has introduced a “wait-and-see” attitude among some potential buyers, as noted by NAR Chief Economist Lawrence Yun.

 

Implications for Southern Home Buyers and Sellers

For potential buyers in the Southern U.S., the current market conditions present both challenges and opportunities:

 

Opportunities 

  • With high inventory levels, buyers have more options, potentially giving them more negotiating power.
  • Falling mortgage rates could make home purchases more affordable, despite ongoing affordability challenges.

Challenges

  • With high inventory and declining sales in Sevier County, Tennessee, sellers may need to adjust their price expectations to attract buyers.
  • Patience may be key, as the market works through its current challenges.

 

Looking ahead, the falling mortgage rates, high inventory levels, and broader economic factors will likely shape the market’s performance. 

While the current situation presents obstacles, it also offers opportunities for both buyers and sellers who are well-informed and prepared to navigate these complex conditions.

 

5 Factors to Consider When Buying a Cabin in Gatlinburg, TN

Posted by Jason White on

Do you dream of owning your very own retreat right in the heart of the Great Smoky Mountains? Is buying a cabin in Gatlinburg, TN one of the things you think about when you have white space in your calendar? We get it! There is nothing like the Great Smoky Mountains and owning property here is special! Before you purchase there are a few important factors to consider. In this blog post we’ll a few of those to light, so that you are aware and can begin to make educated decisions about whether buying a cabin in Gatlinburg, TN is right for you! 

 

Location & Accessibility

You’ve heard it before – location, location, location! 

It’s true for the areas surrounding the Great Smoky Mountains as well. Location can affect your investment – particularly if you are planning to use it as a vacation rental. There are a few things you might want to consider when deciding where to buy a cabin in Gatlinburg, TN

 

  • Proximity to attractions 

There are so many exciting things to do in Gatlinburg, TN, and depending on the use case you dream of for your home you might want to consider the proximity to a few of our area’s most visited attractions 

The Great Smoky Mountains National Park – The most visited National Park in the United States. 

Dollywood – An amusement park with something for everyone. Dollywood offers thrilling rides, handmade crafts, food and music of the Smoky Mountains. 

The Island – The Island in Pigeon Forge offers families affordable fun for all ages – eating, drinking, shopping and adventurous attractions. 

 

  • Accessibility

After you’ve decided which locations in Gatlinburg, TN suit your needs the best and you begin to look at individual properties, you’ll want to keep in mind how accessible each home is. 

You might consider the ease in which you can develop an emergency preparedness plan for each individual property. 

Questions to ask yourself, as you consider properties:

How easy is this home to access if there were to be snow or ice? Does this matter to me, or will I primarily be using this home when weather conditions aren’t relevant?

Is there more than one way in and out? Do I know and understand if that makes sense for the use case of my home.


How close is this home to major roads or medical services? Is that important to me, or am I looking for a secluded retreat?

 

Property Condition & Maintenance

When assessing individual cabins in Gatlinburg, TN you’ll want to take note of a few pieces of information to help inform your buying decisions 

  • How has the cabin been maintained? 
  • What is the structural integrity of the cabin?
  • Will you need any large, or major repairs in the next few years? Is that a monetary or time investment you are willing to make?
  • How old is the cabin?
  • Roof?
  • Plumbing?
  • Electrical systems?
  • HVAC?
  • Hot water heater?

One of the most important aspects of owning a short-term rental property is maintaining it properly. A well-maintained cabin can provide a positive experience for your guests and increase the property’s value. 

 

Homeowner Association (HOA) Rules & Fees

 

Many cabin communities in Gatlinburg are governed by Homeowner Associations, which come with their own set of rules. It’s important to understand what might be addressed when considering your purchase. 

Things like 

  • Fees association with membership
  • Property use restrictions 
  • Appearance of the exterior and landscaping 
  • Pet Policies 

 

Zoning & Permitting

Before you make your final selection, you’ll want to be sure to review the local zoning laws and comply with any permit requirements, especially if you are hoping to use your cabin as a short term rental. 

 

You’ll want to be sure 

  • The cabin is zoned in an area with short term rental use eligibility 
  • That you meet all the requirements to be eligible to receive a tourist residency permit 
  • That you stay abreast to any changes that might be happening with zoning or permitting in the area you plan to buy in. 

 

Rental Income Potential

If you are looking to use the cabin you purchase as a short term investment property it’s imperative to assess the income potential before you make a purchase! 

You can do that by answerings a few questions: 

 

Conclusion

Considering these factors can help you make the most informed decision when buying a cabin in Gatlinburg, TN. 

 

If you have questions about buying a cabin in Gatlinburg, TN we’re here to help! Give us a call at 877.678.2121 or send us an email at info@jasonwhiteteam.com! 

If you are looking for cabins available for purchase in Gatlinburg, TN you can find them here!

July 2024 Sevier County, TN Real Estate Market Trends

Posted by Jason White on

Homes

We saw a sizable drop in Average Price this month, to $585,159, down from $653,433.

This is a large change from July 2023, where average price sat at $711,659.

January 2024 – $685,047
February 2024 – $689,422
March 2024 – $926,103
April 2024 – $693,604
May 2024 – $679,333
June 2024 – $653,433
July 2024 – $585,159

Days on market during the month of July were 59 days, this is very close to the average days on market in June, at 51 days.

January 2024 – 82
February 2024 – 64
March 2024 – 46
April 2024 – 80
May 2024 – 100
June 2024 – 51
July 2024 – 59

Price per square foot saw a decrease to $347 during the month of July, down $391 in June 2024.

 

Land

he average price for land/lots during July was $269, 906, which is a large increase from June at $135,543.
*This may be due to the 4 parcels that sold during July over $900,000.

Lots that sold in June spent an average of 120 days on the market, up from 99 days on market in June.

 

Sevier County Real Estate Trends 2020 until now:

This graph shows the months of inventory. Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.

 

This graph shows the number of listings — new, active, and sold.

 

This graph shows the average days on market.

Why Short-Term Rentals Are Thriving This Summer

Posted by Jason White on

The short term rental market in the United States is on the upswing in 2024. 

June saw a nearly 10% increase in demand compared to last year, and for the first time since the pandemic, occupancy levels exceeded those of 2019. 

This means more people are choosing short term rentals for their vacations! 

 

What’s Driving the Upswing?

  • Improved Economic Conditions

More people are willing to spend money on travel because the economy is stabilizing and inflation is cooling down. 

The Federal Reserve is even considering cutting interest rates, which could make mortgages cheaper, potentially lowering costs for property owners.

 

  • Fewer New Rentals

Fewer rental properties are entering the market, which is good news for existing owners, because it means current rentals are in higher demand and can charge more per night.

 

  • Seasonal Trends

The summer travel season is particularly strong this year. 

The Labor Day Holiday dates might shift some travel from September, making August especially busy.

 

What does the Short Term Rental Property Market Heating Up Mean for you?

– For Travelers: The sooner you book your rental, the better! Demand is high, which means prices could go up. 

– For Property Owners: There is more demand for your home, so you could potentially raise your rates. 

 

Looking Forward: 2024 and Beyond

Even with current high mortgage rates, the demand for short-term rentals is set to grow. 

By the end of 2024:

  • Demand could increase by around 5.9%, and even more in 2025. This is driven by a combination of stable economic conditions, more people feeling comfortable traveling, and a balanced supply of available rentals.
  • Occupancy rates are stabilizing! This means more properties are being rented out, which is good news for owners.
  • Average Daily Rates (ADRs), or the average price paid for a rental per night, have gone up by 2.8%, and it looks like we’ll see a 2.0% increase for the entire year. The increase in ADRs reflects a healthier market where people are willing to pay more for quality rentals.

 

Challenges and Considerations

The Short Term Rental is looking good, but there are a few things to be aware of:

  • High mortgage rates continue to make it expensive for new investors to enter the market. This could limit the growth of new properties, keeping supply tight. However, for current owners, this means less competition and a stronger market position.
  • While the Federal Reserve may cut interest rates, these changes take time. So, while a soft landing is possible, it’s not guaranteed. It’s important to remain cautious.

 

The U.S. short-term rental market is thriving in 2024, with strong demand, limited new supply, and increasing rates. 

This creates a favorable environment for both travelers and property owners!

For more detailed insights and data, you can explore AirDNA’s June 2024 review and AirDNA’s Mid-Year Outlook 2024-2025

 

Sevier County, TN Real Estate Market Statistics June 2024

Posted by Jason White on

Homes

Average price was $653,433 during the month of June, with is slightly lower than May 2024 which sat at $679,333. This is fairly close to the average price in May 2023, which was $669,547.

January 2024 – $685,047
February 2024 – $689,422
March 2024 – $926,103
April 2024 – $693,604
May 2024 – $679,333
June 2024 – $653,433

Days on market during the month of June was 51 days. Day on the market saw a sizeable reduction in Sevier County, TN from May 2024, which was 100 days on the market. We’ve seen a range from 46 days on market to 100 days on market during 2024

January 2024 – 82
February 2024 – 64
March 2024 – 46
April 2024 – 80
May 2024 – 100
June 2024 – 51

Price per square foot saw a slight increase to $391, up from $380 in May.

 

 

Land

The average price for land/lots during June was $135,543, down drastically from June 2023 where average price sat at $243,495. Lots that sold in June spent an average of 99 days on market, down slightly from May at 126 days on market, and up up 19% from June 2023 at 83 days.

 

2024 Mid-year Short Term Rental Occupancy Rates Review 

Posted by Jason White on

We’ve reached the midpoint of the year. It’s a great time to review your short term rental property’s performance. To ask yourself, and answer, questions like:

  • How is my revenue compared to last year?
  • What went well for my short term rental so far this year?
  • What areas could be improved on?

One major factor related to your short term rental revenue and results is your occupancy rates. 

In this blog post, we’ll explore what occupancy rates are, how to calculate them, and strategies to increase them, along with an outlook for the remainder of 2024. 

 

What Are Occupancy Rates?

Occupancy rates are calculated by taking the percentage of time a vacation rental property is booked and comparing it to its total time available for bookings. 

A higher number generally indicates a healthier rental market. 

 

How to Calculate Your Occupancy Rates

To calculate the occupancy rate, you divide the number of occupied nights by the total number of available nights and multiply by 100 to get a percentage. 

The formula for occupancy Rate is = ({Occupied Nights} / {Available Nights}) x 100

Let’s walk through an example:

You own a STR in the Smokies and you like to use it for 2 weeks at Christmas, two weeks in the summer, one week in the fall, and one week in the summer – for a total of 323 days. 

Which means that your short term vacation rental is available for a total of 323 days. 

Formula: (total days booked/total available days) * 100
If you home is booked for 175 of those days, your occupancy rate is 54%
If you home is booked for 225 of those days, your occupancy rate is 69%

 

How to Increase Your Occupancy Rates?

Turno has tons of great ideas for how to increase your property’s occupancy rates. 

Some effective tactics include:

  • List on multiple sites 
  • Use high quality photos 
  • Write an intriguing and accurate property description
  • Enable instant booking 
  • Use dynamic pricing 
  • Improve your marketing strategy 
  • Incentivize positive reviews from guests

 

We have a few other ideas for how you can increase your occupancy rates

  • Elevate your amenities 
  • Expand your sleeping areas 
  • Hire a property manager for improved marketing strategies and client experience
  • Consider upgrades 

 

Market Trends in 2024

AirDNA completed a midyear market review. Here are their key takeaways from the article:

  • May saw an 11.4% increase in demand and a 3.1% rise in occupancy, signaling strong recovery and growth in the short-term rental market.
  • Coastal and rural locations are thriving with high demand, while urban areas face declines due to high interest rates and stricter regulations.
  • Summer bookings, particularly beach reservations for July 4th, are seeing substantial growth.

 

“The surge in post-pandemic demand pushed short-term rental (STR) occupancy to record levels in 2021 and 2022. However, monthly occupancy has been declining ever since. Although occupancy year-to-date is still down by about 1.5%, May saw a growth rate of 3.1%—the highest monthly increase since early 2022. This was just before new supply, taking advantage of pandemic-level occupancy, started to impact individual unit performance.”

 

 

 

Demand for rentals is up, and supply is slowing down. The last time demand growth in May was this high was during the peak of 2022. 

The market appears to be at a turning point for occupancy rates. As demand outpaces supply, occupancy rates have shown signs of recovery, which is promising for property owners who experienced declines in previous years.

“Although year-to-date occupancy is still down about 1.5%, the strong summer performance expected ahead suggests that May marked a significant turning point for occupancy growth.”

 

 

While the average daily rate (ADR) for rentals is growing, it’s at a slower pace compared to past years, this is largely due to inflation. 

 

 

Pacing, which tracks future reservations compared to previous periods, shows that bookings for the second half of 2024 are trending positively. This forward-looking data indicates that occupancy rates are likely to remain strong, providing a positive outlook for rental owners.

As we look ahead to the rest of 2024, the short-term rental market shows promising signs of recovery and growth. 

By adapting your strategies accordingly, you can ensure your short-term rental remains competitive and profitable throughout the year! 

 

Summer Readiness for Vacation Rentals

Posted by Jason White on

Do you hear it? 

The mountains are calling! As the summer vacation rental season starts to heat up, you want to be sure your vacation rental is in tip-top shape. In this blog post, we’ll cover summer readiness tips for your short term vacation rental. 

 

Ensure your Air Conditioning Unit is in Excellent Operating Condition 

Because we live in a temperate rainforest a reliable cooling system is a necessity. Maintaining your air conditioning unit allows your guest to be comfortable during their stay. This is a crucial factor for positive reviews and repeat bookings. 

Scheduling routine maintenance by professionals can ensure your system operates in the most efficient and effective way. 

Be sure to educate your guest on the proper use of the thermostat, if you do not have a programmable thermostat. 

Don’t forget to verify that your property manager is replacing your air filters regularly and completing regular visual inspections so that you can call a professional if there are any leaks or unusual noises. 

Neglecting AC maintenance can lead to unexpected breakdowns, costly repairs, and unhappy guests.

 

Complete Preventative Pest Control

Pests can quickly turn a dream vacation into a nightmare. 

Preventive measures are your first line of defense. Start by sealing any cracks and openings around windows, doors, and foundations to keep pests out. 

Installing screens on windows and seals on doors can also be a simple yet effective way to prevent insects from entering the property.

Scheduling seasonal treatments with a professional pest control company allows you to ensure the safety of your guests, and your home. These treatments can create a barrier around your property, deterring pests from entering.

It’s a good idea to schedule ongoing maintenance treatments to keep pests at bay throughout the summer. 

Don’t forget to verify that your property manager is regularly checking for signs of pests so that you can address any issues immediately, as well as removing standing water and keeping the property clean and free of debris.

Be sure to educate your guests about how they can prevent pests – by keeping doors closed and disposing of trash properly. 

 

Prepare Outdoor Spaces for Max Relaxation 

The outdoor spaces of your vacation rental are often the first impression guests will have of your property and one of the spaces they will spend the most time in, especially if the weather is nice and you have amenities, like a hot tub! 

Most often guests to the Smokies are looking to enjoy the ambiance of nature – your outdoor spaces allow your guests to do just that.

Be sure to regularly inspect your outdoor furniture and amenities, like grills, firepits and hot tubs, for damage or wear so that you can replace or repair any items that don’t meet the standards of your short term rental. 

Scheduling regular maintenance and landscaping allows you to create a welcoming environment and enhance your property’s curb appeal.

Don’t forget to verify that your property manager is ensuring walkways are clear and safe for guests by removing any obstacles or hazards that could cause accidents. 

 

As short term rental property owners it’s so important to capitalize on the busy summer season! 

Put your best foot forward by maintaining your HVAC system, completing preventative pest control, and ensuring your outdoor spaces are as comfortable and safe as they can be!

 

May 2024 Real Estate Market Statistics

Posted by Jason White on

Homes

 

Average price was $679,333 during the month of May, which is a slight reduction from April at $693,604.

This is quite a bit lower than May of 2023, where average price sat at $748,216.

January 2024 – $685,047
February 2024 – $689,422
March 2024 – $926,103
April 2024 – $693,604

Days on market during the month of May was 100, which is an increase from April at 80 days on the market.

This month had the highest days on market that we’ve seen this year.

January 2024 – 82
February 2024 – 64
March 2024 – 46
April 2024 – 80

Price per square foot saw a slight reduction again to $380, from $382 in April and $386 in March.

 

 

Land

 

The average price for land/lots during May was $125,017, up slightly drom $113,316 in May 2023.

Lots that sold in May spent an average for 126 days on market, up 45% from May 2023 at 87 days.

Keys to Long Term Appreciation in Newly Constructed Condos

Posted by Jason White on

The long-term appreciation of a condo’s value is heavily influenced by various factors, such as location, economic and area growth, amenities, market conditions, and quality of construction. 

In this blog post we’ll explore how each of these factors affect the appreciation of newly constructed condos, and how you can make an informed decision in order to maximize your investment! 

 

Location, Location, Location 

The location of a condo plays a massive role in long term appreciation. Investing in a condo in a popular destination can bring a significant appreciation as the area continues to develop. The proximity to amenities and area attractions develop a higher demand and appreciation of value. Condos located in prime urban locations, near employment hubs, or in popular vacation destinations tend to experience sustainable appreciation, due to their convenience and demand. 

 

Economic Growth 

The overall economic growth of the location the condo complex is in impacts its value. Areas that have strong economic conditions, job growth, and commercial developments often see increased property values. 

A local economy that is thriving attracts residents and businesses, which drive demand for housing and increase appreciation. 

 

Supply and Demand 

Supply and demand is a factor in condo value appreciation. When demand for condos exceeds the available supply, prices tend to rise. 

Factors that can drive condo values over time:  

  • Population growth 
  • Migration patterns (or travel patterns, in the case of our area)
  • Land availability 
  • Limited new construction opportunities

 

Upgraded Features

Complexes with well maintained common area and access to amenities then to experience higher appreciation. Functional and attractive shared spaces, such as landscaped gardens, community rooms, and recreational facilities tend to enhance the overall experience of condo complexes. 

Features that can improve desirability:

  • Swimming pools
  • Fitness centers
  • Security systems
  • Parking facilities
  • Well maintained landscaping 
  • Upgrades to individual units 
  • Smart home technology

 

Market Conditions and Interest Rates  

General market conditions, including interest rates and  overall real estate market trends can impact condo values. 

Low interest rates can make financing more accessible which can drive demands and increase prices. Limited inventory or high demand can also contribute to appreciation.

It’s important to consider that market conditions can fluctuate, and past performance does not guarantee future appreciation.

 

Quality of Construction

The quality of construction and ongoing maintenance of the condo complex play a significant role in its long-term value. Condos built with solid construction and attention to detail in mind tend to retain their value better. 

Effective management and proactive maintenance of the common areas goes a long way to contribute to the desirability of the condo complex. 

New condos adhere to the latest building codes and energy efficiency standards, which can help command higher prices. 

 

Investing in newly constructed condos offers numerous benefits, like lower purchase prices, appreciation, modern amenities, potential rental income, newer building standards, and warranties.