September 2024 Sevier County Real Estate Market Update

Posted by Jason White on

Average Price during October was $665,091, down from $768,663 in October of 2024.

Days on the market during the month of October was 82 days, a 24% increase from October of 2023 which sat at 66 days on the market.

Price per square foot during October was $391, up just $5 per square foot from October of 2023 at $386 per square foot.

 

Single Family Home sales saw a decrease of 57% during the month of October 2024, when compared to October 2023.

Average price of SFH during October was $685,393, a decrease of 12% compared to October 2023.

Days on Market saw a large increase to 97 days, an increase of 47% compared to October 2023.

 

Condos saw an increase in sales price from an average of $324,000 in October 2023 to $375,000 in October 2024.

Although we saw an increase in price, that was paired with a sizable increase of Days on Market, at 173 days on market for sales in October 2024, compared to 63 days in October 2023.

 

Lots/land saw a large increase in Average Price at $268,203 up 200% compared to October 2023 at $89,380.

Days on market increased by 12% to 119 days, compared to 106 days on market in October 2023.

Gatlinburg Short-Term Rental Laws: What You Need to Know

Posted by Jason White on

If you’re considering investing in a short-term rental property in Gatlinburg, understanding the local laws and regulations is crucial for your success. As experts in the Smoky Mountain real estate market since 1996, we’ve helped countless investors navigate these requirements, and we’re here to share our knowledge about the Gatlinburg short term rental laws with you.

 

Current Short-Term Rental Regulations in Gatlinburg

For all short-term rentals within Gatlinburg’s city limits, owners must obtain and maintain a Tourist Residency (TR) permit. These properties are subject to annual fire and safety inspections to ensure guest safety and compliance with local regulations. If you’re unsure whether your property falls within city limits, you can contact the city directly at (865) 436-1400 for clarification.

 

Zoning Requirements

Gatlinburg zoning regulations prohibit short term rentals from operation in both R1A (Low-Density Residential) and R2A (Medium Density Residential) zones. 

The R2A zone is specifically designated for single and multi-family dwellings, with the intent to preserve the residential character of these areas by prohibiting business-oriented uses. 

Before purchasing a property for short-term rental use, it’s crucial to verify its zoning designation with the city planning department.

 

Permits

To operate a legal short-term rental in Gatlinburg, you’ll need a valid tourist residency permit.

In order to receive a tourist residency permit in the City of Gatlinburg, you’ll need to:

  • Submit an application
  • Pay the appropriate fee – Application fee is $200 for a 2 or less bedroom unit. Each bedroom over two is an additional $75 per bedroom.
  • Pass a fire and building inspection 

 

Taxation

A county spokesperson confirmed that this decision affirms a state law that went into effect in 2021 and subsequent guidance from the state Comptroller’s office. 

The law stipulates that properties used as short-term rentals are classified as commercial properties unless certain exemptions are met. 

Essentially, properties with a business license that are a short-term rental and not the owner’s principal residence will be subject to the change in classification – from a 25% residential classification to a 40% commercial classification. 

 

Safety and Compliance

In order to qualify for a Tourist Residency Permit your home must pass a safety inspection. 

Inspections can cover a variety of items, but aren’t limited to the below:

  • Fire Safety
  • Smoke Alarms
  • Escape routes
  • Carbon Monoxide Detectors
  • Electrical Safety


There are a few things you can do to prepare for your short-term rental unit inspection:

  • Make sure all smoke detectors and carbon monoxide detectors are working properly.
  • Install a 2A10BC Fire Extinguisher on each level
  • Clear all escape routes of any obstructions.
  • Check all electrical wiring and outlets.
  • Make sure all heating and cooling systems are in good working order.
  • Make any necessary repairs and improvements.

All tourist residences more than three (3) stories, more than five thousand (5,000) gross square feet, or more than twelve (12) occupants must have an approved sprinkler system. 

 

Success in Gatlinburg’s short-term rental market requires careful attention to local regulations, from proper zoning and permits to safety requirements and tax obligations. 

Looking for more information about investing in the Smoky Mountains? Check out our other blog posts about property management, amenity upgrades, and maximizing your rental’s potential.

Click here to search active real estate listings in Gatlinburg, TN!

 

September 2024 Sevier County Market Report

Posted by Jason White on

Average Price during September was $671,895, down from $677,890 in September of 2023.

Days on market during the month of September was 62 days, this is very close to the days on market of September 2023 at 63 days.

Price per square foot during September was $333, which is a significant drop from $395 in September 2023.

*Condo statistitics are skewed due to sales at the Highlands of the Smokies.

 

The average price for land/lots during September was $169,595 up 78% from the average price in September 2023 at $94,800.

Lots that sold in September spent an average of 66 days on the market, down from 139 days on market in September of 2023.

 

 

1031 Exchanges: Key Information and Hurricane Helene Extensions

Posted by Jason White on

 

For real estate investors, 1031 exchanges can be a powerful tool for deferring taxes on capital gains when swapping investment properties. Recent events like Hurricane Helene have brought additional tax relief to affected areas, including extensions for 1031 exchange deadlines.

In this post, we’ll provide a quick overview of what a 1031 exchange is, answer common questions, and dive into the critical extensions offered in the wake of Hurricane Helene.

 

What is a 1031 Exchange?

A 1031 exchange—named after Section 1031 of the Internal Revenue Code—allows you to defer paying capital gains taxes when you sell an investment property, provided you reinvest the proceeds into another “like-kind” property. This tax-deferral strategy can help investors build wealth over time by continually rolling gains into new properties, without taking an immediate tax hit.

Key points:

  • Like-kind refers to real estate property of the same nature, such as swapping a rental property for a commercial building.
  • Since the Tax Cuts and Jobs Act in 2017, 1031 exchanges only apply to real property (i.e., real estate) and no longer include personal property like equipment or vehicles .

 

What Are the Key Deadlines for a 1031 Exchange?

A 1031 exchange has specific timing requirements:

  • You must identify a replacement property within 45 days of selling your original property.
  • You have 180 days to complete the purchase of the replacement property.

These deadlines are strict—unless there’s a natural disaster, like Hurricane Helene.

 

What Happens to 1031 Exchange Deadlines After Hurricane Helene?

The IRS has provided significant relief to taxpayers impacted by Hurricane Helene, extending key tax deadlines, including those for 1031 exchanges. If you’re in an area affected by the hurricane, here’s what you need to know:

  1. Extension for 1031 Exchange Deadlines:
  • Investors impacted by Hurricane Helene now have until May 1, 2025 to complete actions related to their exchanges, including identifying and closing on replacement properties.
  • This extension applies to all individuals and businesses located in the disaster areas, which include Alabama, Georgia, North Carolina, South Carolina, and parts of Florida, Tennessee, and Virginia  .

 

  1. Who Qualifies for the Extension?:
  • Any taxpayer residing or operating a business in areas covered by the FEMA disaster declaration qualifies for these extended deadlines. The links above to each state provide details for counties included in the relief. 
  • This includes properties located in affected regions, as well as taxpayers whose records or tax professionals are in the impacted areas, even if the taxpayer themselves is not .

 

How Does This Impact My 1031 Exchange?

If your exchange transaction is affected by Hurricane Helene, these extensions give you additional time to:

  • Identify replacement properties beyond the typical 45-day window.
  • Complete the exchange within the extended timeframe of May 1, 2025, rather than adhering to the original 180-day rule.

For instance, if your 1031 exchange process started before or during the hurricane, your deadlines for both identifying and closing on replacement properties will now be extended. This can provide crucial breathing room for investors navigating logistical challenges caused by the disaster.

If you believe you qualify for these extensions, be aware that they’re automatically applied to those with an IRS address in the disaster area. However, if you receive a late filing notice, we recommend contacting the IRS to resolve any discrepancies.

 

The Hurricane Helene relief measures offer much-needed flexibility for real estate investors engaging in 1031 exchanges in disaster-affected areas. Understanding these extensions can help you navigate the process smoothly and ensure you make the most of the tax benefits available.

For more details on 1031 exchanges or to determine if you qualify for the Hurricane Helene extensions, consult the IRS disaster assistance page and speak with qualified tax and legal professionals.

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.