Sevier County, TN Real Estate Market Statistics June 2024

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 

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

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

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

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.

 

April 2024 Sevier County Real Estate Market Report

We saw average price come back down, from the high we saw in March at $926,103, to $693,604 in April. Which is much closer to what we’ve seen this year, and what we saw last April at $654,004.

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

Days on market during the month of April sat at 80 days. Which is within the range we have seen this year, from 46 t to 82 day.

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

Price per square foot saw a slight reduction to $382 from $386.

 

We had a large increase in Days on Market for Condos, at 130 days, compared to 68 in March 2024, and 22 in April 2023.

 

The average price for land/lots during saw an increase to $133,517, from $86,410 in March 2023. 

Lots that sold in April spent an average for 179 days on market, up 23% from April 2023 at 146 days. 

Vacation Rental Occupancy Rates: What They Are and Why They Matter

Maximizing your vacation rental occupancy rate is important for maintaining the highest return on your investment property, and that’s something we all want, isn’t it? 

This blog post will walk you through what occupancy rate is, how to calculate it, and a few practical tips to increase yours. 

How to Calculate your Vacation Rental Property Occupancy Rate?

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. 

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, and one week in the fall – for a total of 35 days. 

Which means that your short term vacation rental is available for a total of 330 days. 

Formula: (total days booked/total available days) * 100

If you home is booked for 175 of those days, your occupancy rate is 53%
If you home is booked for 225 of those days, your occupancy rate is 68%

 

What Occupancy Rate Should I Be Looking to Hit for My STR?

Average Airbnb occupancy rates vary from market to market and year to year. You can see how the national average occucancy rate has fluctuate, per AirDNA

  • Trailing twelve months (TTM), March 2023 to February 2024: 55.1%
  • 2023: 55.4%
  • 2022: 58.6%
  • 2021: 60.3%

There are numerous ways you can improve your vacation rental occupancy rates!

 

Optimize Your Price to Increase Your Short Term Rental Occupancy Rate

Pricing is one of the most straightforward ways you can impact your occupancy rates. Utilizing dynamic pricing allows you to adjust your nightly rates based on the demand patterns.  

This gives you the ability to 

  • Offer discounts for longer stays 
  • Incentivize last minute bookings 
  • Lower your rates during slower periods. 

 

Elevate Your Amenities to Improve Your Vacation Rental Occupancy Rate

Set your home apart from the pack by elevating the amenities you offer. That can be done in a number of ways – a more comfortable space, items not found in most rentals, or personal touches upon check in. 

Spend just a bit of time thinking about the things that matter to you when you go on vacation, and decide how you can improve them in your rental! 

Is it important to you that the vacation rental you stay in feels like home? In what ways can you bring a bit of “home” to your rental? (We don’t know anyone that doesn’t like comfy couch blankets…)

Is it important that the short term rental you stay in be unique? What items can you provide in your rental that aren’t found in most others?

Do you feel extra special when you find a personal touch left by the host when you check in? In what ways can you provide those for your guests?

 

Expand your Sleeping Areas to Increase Your Occupancy Rates 

Expanding your sleeping areas allows you to cater to larger groups of people. 

We all know how fun (for the most part) going on vacation with people you love is – why not do your best to make sure everyone is comfortable? 

There are so many ways you can expand your sleeping areas 

  • Could you make one of your rooms a double queen room – hotel style?
  • Could you add bunk beds to the game/recreational room?
  • Could you switch your couches to sleeper sofas?

Not sure how to best expand your sleeping areas? This blog offers practical tips to transform tight spaces into cozy sleeping areas

 

Hire a Professional Property Manager so That You Can Increase Your Occupancy Rates

You might be managing your rental from afar right now, which sometimes makes things hard to react to quickly. 

It’s important to run your numbers before you decide to hire a professional property manager, but you might find that the lift in occupancy rate is worth the cost! 

There are multiple types of property management options you can choose from! 

 

There are tons of other ways you can increase your vacation rental occupancy rates! 

  • Encourage your guests to leave reviews 
  • Offer your guests an incentive to book another stay with you 
  • Optimize your listing – titles, descriptions, and photos
  • Run promotions
  • Consider upgrades

 

Improving your vacation rental occupancy rate isn’t a one and done issue. It requires your continued attention. 

By monitoring your results, evaluating your data, reviewing guest feedback, and taking action on those items you can be sure to see improvements in your occupancy rates. 

 

Spring Home Maintenance Checklist for Your Short Term Rental in the Smokies

 

The weather is clearing, flowers are blooming, birds are chirping and now is a great time to go through a Spring Maintenance Checklist for your Short Term Rental in the Smokies. 

This blog post will walk you through 7 areas that could use your attention this spring. 

Performing regular maintenance on your short term rental helps you maintain the value of your home and to prevent costly repairs as your home ages. 

 

#1 Inspect the Exterior of Your Home 

Winter can be rough on your home’s exterior! Spring is a fantastic time to take a good look to evaluate if your home might need repairs.

Begin your visual inspection by looking for cracks, peeling paint, warped boards, or loose siding. 

If your home’s exterior is looking a bit dated, Spring is a great time to schedule a fresh stain, or siding replacement. 

 

#2 Clean Your Gutters and Downspouts 

Proper gutter and downspout maintenance may seem like a small task, but it can save you from costly headaches in the long run! 

Clogged gutters and downspouts can lead to water damage, foundation issues, and roof leaks if not attended to. 

It’s important to remove obstructions and ensure water is being directed away from your home’s foundation. 

 

#3 Inspect and Clean Your HVAC System

Spring is here, which means that summer is well on its way! And summer in the Smokies is no joke – it’s important that you prepare your HVAC system to function optimally for the busy summer season. 

An HVAC inspection can extend the lifespan of your system and ensure it’s operating optimally! 

Your HVAC inspection may include: 

  • Replacement of filters
  • Inspection of ducts for dust, mold and debris
  • Testing of fan motor
  • Check the HVAC cabinet for leaks
  • And More 

Completing regular maintenance on your HVAC system is an excellent way to prevent costly and untimely repairs. 

 

#4 Inspect Your Doors and Windows

Now is the time to check your door and windows for any air leaks, gaps, or cracks that might need to be repaired. 

In order to maintain a tight seal you may need to replace weatherstripping around your doors, or caulking around your windows. 

If your doors and windows are aging you might consider a replacement to more energy efficient materials. 

 

#5 Inspect Your Deck or Patio 

It’s officially porch season! It’s time to give your space a good clean – remove debris, dirt, or mildew buildup. 

Once clean, you’ll want to inspect your decking for any signs of water damage, loose boards, railings, pest damage, or any other damage. 

You might consider adding a fresh coat or stain or sealant. 

Taking care of small issues on your deck can help prevent costly repairs in the future. 

 

#6 Inspect Your Roof 

Your roof is your home’s first line of defense against the elements. 

Take a close look at your roof as part of your spring maintenance routine. 

You’ll want to look for missing, cracked, or loose shingles, as well as any water stains or leaks in your attic or ceiling which could be a sign of something more serious.

If you notice any serious issues or are unsure about the condition of your roof – call in a professional roofing contractor so that they can compete an inspection for you. 

 

#7 Pest Inspections and Prevention

Pests like porch season too! Now that the weather is warmer, household pests are coming out to play.

Completing some of the other items on the Spring Maintenance Checklist like inspecting your doors, windows, deck, and roof will help you keep pests at bay. 

You may also want to 

  • Take a look around your foundation for any cracks 
  • Make note of any area where you see droppings, chewed materials, or nesting areas

If you have any infestations or disturbances due to pest it’s best to call in a professional pest control service.

Learn more about common pests and how to prevent them here! 

 

As a short-term rental owner in the Smoky Mountains, completing preventative maintenance on your rental property allows you to keep your home in tip-top share, which provides a steady stream of bookings and repeat guests! 

 

March 2023 Sevier County, Tennessee Real Estate Market Update

Homes

Average price saw a 33% jump from last year at $926,103, compared to $693,727 in March of 2023.

There were 30 homes that sold during the month of March at over $1 Million. This is a sizeable lift from the 10 homes sold over $1 Million in February and 12 homes sold over $1 Million in January.

Days on market saw a yet another sizeable reduction to 46 days, down from 64 days on the market in February. This is a 15% reduction when compared to March of 2023 at 54 days on the market.

Price per square foot saw another bump during march at $386, up from $373 in February.

 

 

Lots/Land

 

The average price for land/lots during saw a dip to $86,410 when compared to February at $102,283. This is a 39% reduction when compared to March of 2023, when the average price of land/lots was $141,814.

Lots that sold in March spent an average of 247 days on the market, which is a 52% increase when compared to March of 2023 at 163 days on the market.

 

3 Amenities to Maximize Your Short Term Rental Income

In this blog post, we’re diving deep into three amenities that can help you maximize your rental income: pools, gyms, and hot tubs.

AirDNA provides a few stats related to the availability of these amenities 

  • Pools are found in 44% of luxury properties, versus 25% of budget properties.
  • Hot tubs are featured in about 33% of luxury listings, while only 5% of budget properties include them.
  • Gyms appear in approximately 24% of luxury properties, compared to 16% in budget listings.

 

 

Pools 

There are so many different ways you can provide pool access for your short term rental – resort pool, inground outdoor pool, above ground outdoor pool, stock tank pool, swim spa, or inground indoor pool, and probably many more creative ideas we haven’t listed. 

Most often we see these three types of pools at short term rentals in the Smokes 

  • Resort access 
  • Inground indoor 
  • Swim spa 

Why a pool at your short term rental?

Providing a way for your renters to create memories with the group they are traveling with without leaving your property is a huge benefit! 

Not only is this a benefit to your guest, but can be a benefit to you as a property owner through increased desirability and the ability for higher nightly rates. 

 

Maintenance considerations for the pool at your short term rental

You’ll want to consider ongoing maintenance when deciding if a pool is right for you as a short term property owner, such as 

  • Regular cleaning and chemical treatment.
  • Safety measures (fencing, pool rules, etc.).
  • Potential liability concerns and insurance coverage.

“Specifically, luxury listings with pools see a Revenue Per Available Rental (RevPAR) increase of around 38% compared to those without pools.”

 

Hot tubs 

Your guests have most likely packed their schedules full of fun things to do while they are in town, whether that be a full day out on the town or hiking in the Smokies. 

Providing a way for them to wind down and relax after a long day is such a benefit! 

Not only does a hot tub provide a relaxing experience for your guests, it can also be a benefit to you as property owner by complementing your outdoor space and allowing you to command a premium nightly rate. 

You’ll want to consider ongoing maintenance when deciding if a hot tub is right for you as a short term property owner such as regular cleaning, chemical treatment. As well as, potential liability concerns and required insurance coverage. 

“With a reported RevPAR increase of around 33% for luxury properties with hot tubs.”

 

Gyms 

Maintaining your health is extremely important – what a benefit to provide the ability to do so without having to take additional time out of their well deserved vacations to find the opportunity to do so. 

Adding a gym, whether big or small, to your vacation rental allows you to meet the needs of health conscious individuals conveniently

You’ll want to consider potential liability concerns and required insurance coverage when deciding if adding a gym to your short term rental property is advantageous for you. 

“While the inclusion of pools and hot tubs offers the largest RevPAR and occupancy boosts for higher-tier properties, the inclusion of gyms actually benefits lower-tier properties more. They experience a larger boost in RevPAR and occupancy rates.”

 

*It’s important to note that the information provided in this blog post is for general informational purposes only and should not be construed as legal advice. While we have made every effort to provide accurate and up-to-date information, we cannot guarantee the accuracy or completeness of the information provided.