Five Steps to Making an Excellent Buying Decision

This week we partnered with Fairway Independent Mortgage in Knoxville, TN to answer the question “How do I make an excellent buying decision in this market?”

Branch Manager, Corey Freels shares his opinion with us:

According to a recent Gallup poll , only 30% of Americans believe it’s a “good time” to buy a home, while 69% of Americans believe it’s a “bad time”.  What’s perhaps more interesting is 7 in 10 Americans believe home prices will rise in their local areas… and as a whole, Americans believe real estate is the best long-term investment.

If 70% of us believe prices will continue to rise, and as a whole we believe housing to be the best long-term investment, then why do we also believe it’s a bad time to buy? 

Does something feel amiss here to you, too?

Well, if you work in the real estate industry OR you’ve waded into the treacherous waters of homebuying over the past two years, this might not surprise you all that much.  Interest rates are at their highest level in 13 years. 

Home prices are up 20% year over year nationally. Goodness, one study reports that half of Americans physically cried  at one point or more during the process. 

 

So, why in the world would we dip our toe into the housing market right now?? 

What was my greatest fear during the last two years of cheap mortgage rates, crippling supply, and a buying frenzy?  It was that we were subsequently pricing an entire generation (or more) out of owning their own home. 

I could write an entire article on the importance of the housing industry to the entire American economy, and its impact on net worth and social mobility.  Perhaps I will, but for now take my word for it: it’s crucial, non-negotiable, essential. 

You can make a great long-term buying decision in this market, and those that do will have taken advantage of what might be a generational buying opportunity. 

Housing is a basic human need (food, shelter, water) and there is no alternative.  You will participate in the housing market one way or another.  You can pay your own mortgage or cover your landlord’s.  The choice is yours. 

Whether or not you should buy a home, trade up, or sell your current home is far more about you individually than it is about market conditions. 

What volatile markets ARE good for, however, is making us stop and think so that we make a really good decision.  This is something we should be doing all of the time. 

 

Five Steps to Making an Excellent Buying Decision 

  1. Know your numbers – know what monthly payment you are comfortable with, how much cash you will need at closing, and how much you will have left over for a rainy day.  This is impossible without first meeting with a trusted mortgage advisor.  Put a lot of work and thought into this; it’s important. When you get comfortable with these numbers, do not waver.
  2. Manage your expectations – this is a deep concept, and you need a trusted real estate agent to walk you through it.  Maybe the home that was personally decorated by Joanna Gaines and has a pool with a waterfall in the back yard is out of reach, and that’s okay.  Think long term, which brings us to the next point.
  3. Think LONG term – some advice I got early on that has stuck and holds true: don’t buy a home you couldn’t OWN for 10 years. And I’m not talking about utopia here, I mean worse case, the world falls apart, will this house work for 10 years? 
  4. Fear scape – this is something you won’t read often as given advice.  Let your mind play out your fears.  A job loss, an illness, the market turns, etc.  Let your mind chase down those scenarios to their end, and then realistically see how prepared you are for those scenarios.  You’ll often find that the worst case isn’t all that bad, and that you could make things work. And then, LET IT GO.
  5. LET IT GO – there, we’ve given our mind time to be afraid, to think this through.  Now, we make decision on what we KNOW.  We know WHY we want our own home.  We know WHAT we’re looking for.  We also know WHAT we can afford.  Now, you’re ready. 

 

With the right counsel in a great mortgage lender and a great agent, you can absolutely make a great buying decision in this market.  And this market, unlike the past two years, will present opportunities for the majority of buyers who were left out of the frenzy. 

For two years, buyers with seemingly unlimited resources have dominated the market.  Now, they’re either all bought out or they’re afraid.  It’s your opportunity to participate in one of the greatest wealth building vehicles available to everyone. 

Feeling some fear about buying a home is completely normal.  I know I did.  But letting fear prevent you from making a wise decision is not productive, and we need to let logic lead us to the right conclusions. 

Fortune favors the bold, and this market will prove to be opportune for those that are bold. 

 

Fairway Independent Mortgage in Knoxville, TN can help with any of your mortgages needs!  

 

May 2022 Sevier County, Tennessee Real Estate Market Report

Have you been wondering how the real estate market is doing in Sevier County, Tennessee? This data includes Sevierville, Gatlinburg, Pigeon Forge, and the surrounding areas.

The total (both single family and condo) average price lift stayed consistently consistent from this month to last, both up 28% 

Days on market saw a large reduction, from 76 days in May of 2021 to 58 days on market during May of this year. 

We saw a large drop in days on market for condos this month, from 72 days on market in May of 2021 to 2 days on market in May of 2022.

Sevier County Tennessee Real Estate Market Statistics

 

Average days on market for land saw another decrease, from 143 days in April to 130 days in May of 2022. 

Average price saw a lift. Average price was $126,934 in April compared to $140,475 in May. 

 

Whats happening with the Sevier County Tennessee real estate market?

 

Check out our blogs on the Sevier County, TN real estate marketing statistics and national housing market statistics!

 

 

April 2022 Sevier County, Tennessee Real Estate Market Statistics

April 2022 Sevier County, Tennessee Real Estate Market Statistics

Homes – April Market Report

  • Price per square foot saw a increase back to just above $380 at $384 per square foot for the Month of April, compared to $364 in March. 
  • Average price is $666,328 (compared to $669,725 in January, $753,664 in February, $686,324 in March)
  • Homes spent an average of 61 days on the market, down 12 days, from March at 73 days 
  • 21% more homes sold during April 2022 than in April 2021. 

 

 

Land – April Market Report

  • 73 parcels of land sold during April.
  • Average price for land in April was $126,934, up from $104,694 in March. 

March 2022 Sevier County, Tennessee Real Estate Market Statistics

Sevier County, Tennessee Real Estate Market Statistics for homes and land below.

Homes – March Market Report

  • Price per square foot saw a decrease from $385 in February to March $364.
  • 12 less homes sold during March 2022 than in March 2021.
  • Homes sold for an average of $686,324. (compared to $753,664 in February and $669,725 in January.)
  • Homes spent an average of 73 days on market – flat to March of last year.

Homes - Sevier County real estate market statistics

 

 

Land – March Market Report

  • 101 pieces of land sold during February.
  • Average price for land was $104,694.

 

Land Sevier County Market Report

 

See past month’s market reports here!

Sevier County Tennessee Real Estate Market: Predictions from the Pros

In 2021, home prices skyrocketed nearly 19%, according to the S&P CoreLogic Case-Shiller home price index. And pros say we’re in for another year of price growth — but as for how much, pros diverge

Some predict double digit growth.

  • Indeed, a report in January from Zillow noted that home values were expected to grow 16.4% between December 2021 and December 2022.
  • Goldman Sachs, in October, forecast that home prices would rise 16% through 2022.
  • Fannie Mae says home prices will climb 11.2% throughout this year, followed by a more modest increase in 2023.

 

 

Others have more modest predictions:

  • The National Association of Realtors, which surveyed more than 20 top economic and housing experts, predicts housing prices are expected to climb 5.7%  through the end of 2022.
  • Realtor.com predicts a 2.9% increase in 2022. “I believe home price appreciation will normalize in 2022 and home price growth will begin to more closely track inflation,” says Bill Dallas, president of Finance of America Mortgage.
  • As of February 2022, Redfin predicted home-price growth to slow at an annual rate of 7% by the end of 2022.

 

 

Holden Lewis, mortgage expert from NerdWallet, says, “One of the reasons home prices will continue to push upward in the short-term is because mortgage rates are falling temporarily.”

Click to read more predictions from Bill Dallas, president of Finance of America Mortgage, Jeff Ostrowski, analyst at Bankrate and Zillow economist Nicole Bachaud. 

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Search active listings in Sevier County Tennessee here.

February 2022 Sevier County Real Estate Market Report

Homes

  • Price per square foot saw another increase from $329.83 in December 2021 to $364.29 in January 2022, to $385.03 in February.
  • 26 less homes sold during February 2022 than in January 2022.
  • Average Price saw another sizeable increase – Homes sold for an average of  $753,664 compared to $669,725 in January.

 

Land

  • 34 pieces of land sold during February.
  • Average price saw another increase from $144,892 in January to $289,715 in February.

 

January 2022 Sevier County Real Estate Market Report

Homes

  • We saw a slight decrease in Average days on Market, from 112 days to 101 days.
  • Price per square foot saw an increase from $329.83 in December 2021 to $364.29 in January 2022.
  • 73 less homes sold during January than in December 2021.
  • Average Price saw another increase – Homes sold for an average of $669,725 in January compared to $643,420.

 

 

Land

  • 79 pieces of land sold during January.
  • Average price saw another increase from $116,425 during the month of December, to $144,892 in January
  • Days on market saw a slight increase from 133 days in December to 171 days in January.

2021 Real Estate Market Statistics – Gatlinburg, Pigeon Forge, Sevierville

2021 Real Estate Market Statistics – Gatlinburg, Pigeon Forge, Sevierville

Below you will find statistics for Gatlinburg, Pigeon Forge, and Sevierville separated by bedroom!

 

2021 Real Estate Market Statistics – Gatlinburg

One Bedroom

We began the year with an average sales price of $311,558 and ended the year at an average price of $408,171.00. For a total increase of $96,613.

We began the year at $317.80 a square foot and ended the year at $452.17 a square foot. For a total increase of $134.37 per square foot.

 

We began the year at 46 days on market and ended the year at 70 days on market. For a total increase of 24 days.


Two Bedroom

We began the year with an average sales price of $405,956.00 and ended the year at an average price of $491,147. For a total increase of $85,191.

 

We began the year at $278.43 a square foot and ended the year at $351.29 a square foot. For a total increase of $72.86 per square foot.

 

We began the year at 31 days on market and ended the year at 31 days on market. For a total increase of 53 days.


Three Bedroom

We began the year with an average sales price of $516,184 and ended the year at an average price of $679,552. For a total increase of $163,368.

 

We began the year at $260 a square foot and ended the year at $310 a square foot. For a total increase of $51 per square foot.

 

We began the year at 80 days on market and ended the year at 103 days on market. For a total increase of 23 days.


Four Bedroom

We began the year with an average sales price of $849,567 and ended the year at an average price of $762,303. For a total increase of $87,264.

 

We began the year at $284 a square foot and ended the year at $289 a square foot. For a total increase of $5 per square foot.

 

We began the year at 74 days on market and ended the year at 154 days on market. For a total increase of 80 days.

 


Five+ Bedroom

We began the year with an average sales price of  $932,164 and ended the year at an average price of $1,339,262. For a total increase of $407,098.

 

We began the year at $237 a square foot and ended the year at $334 a square foot. For a total increase of $97 per square foot.

 

We began the year at 41 days on market and ended the year at 113 days on market. For a total increase of 72 days.

 

2021 Real Estate Market Statistics – Pigeon Forge

One Bedroom

We began the year with an average sales price of $350,973 and ended the year at an average price of $439,286. For a total increase of $88,313.

We began the year at $346 a square foot and ended the year at $431 a square foot. For a total increase of $84 per square foot.

We began the year at 42days on market and ended the year at 64 days on market. For a total increase of 22 days.


Two Bedroom

We began the year with an average sales price of $393,243 and ended the year at an average price of $527,686 For a total increase of $134,443.

We began the year at $278 a square foot and ended the year at $346 a square foot. For a total increase of $68 per square foot.

 

We began the year at 46 days on market and ended the year at 86 days on market. For a total increase of 40 days.


Three Bedroom

We began the year with an average sales price of $510,142 and ended the year at an average price of $734,256. For a total increase of $224,114.

We began the year at $239 a square foot and ended the year at $313 a square foot. For a total increase of $74 per square foot.

We began the year at 90 days on market and ended the year at 104 days on market. For a total increase of 14 days.


Four Bedroom

We began the year with an average sales price of $677,152 and ended the year at an average price of $935,960. For a total increase of $258,808.

We began the year at $244 a square foot and ended the year at $331 a square foot. For a total increase of $87 per square foot.

We began the year at 89 days on market and ended the year at 198 days on market. For a total increase of 109 days.


Five+ Bedroom

We began the year with an average sales price of $770,025 and ended the year at an average price of $1,303,848. For a total increase of $533,823.

We began the year at $211 a square foot and ended the year at $321 a square foot. For a total increase of $110 per square foot.

We began the year at 129 days on market and ended the year at 139 days on market. For a total increase of 10 days.


2021 Real Estate Market Statistics – Sevierville

One Bedroom

We began the year with an average sales price of $303,200 and ended the year at an average price of $375,837. For a total increase of $72,637.

 

We began the year at $293 a square foot and ended the year at $400 a square foot. For a total increase of $108per square foot.

 

We began the year at 27 days on market and ended the year at 82 days on market. For a total increase of 55 days.


Two Bedroom

We began the year with an average sales price of $380,764 and ended the year at an average price of $468,094. For a total increase of $87,330.

 

We began the year at $249.84 a square foot and ended the year at $329.54 a square foot. For a total increase of $80 per square foot.

 

We began the year at 69 days on market and ended the year at 81 days on market. For a total increase of 12 days.

 


Three Bedroom

We began the year with an average sales price of $376,368 and ended the year at an average price of $471,751. For a total increase of $95,383.

 

We began the year at $173 a square foot and ended the year at $223 a square foot. For a total increase of $50 per square foot.

We began the year at 81 days on market and ended the year at 87 days on market. For a total increase of 6 days.


Four Bedroom

We began the year with an average sales price of $581,324 and ended the year at an average price of$663,543. For a total increase of $82,219.

We began the year at $198 a square foot and ended the year at $236 a square foot. For a total increase of $38 per square foot.

We began the year at 134 days on market and ended the year at 90 days on market. For a total decrease of 44 days.


Five+ Bedroom

We began the year with an average sales price of $1,092,500 and ended the year at an average price of $1,410,662. For a total increase of $318,162.

We began the year at $229 a square foot and ended the year at $305 a square foot. For a total increase of $76 per square foot.

 

We began the year at 112 days on market and ended the year at 151 days on market. We saw a dip during the second and third quarters, but ended the year with an increase of 39 days.

2021 Real Estate Market Statistics

Average list to Sale Price

We began the year with an average sales price of $465,516 and ended the year at an average price of $648,794. 

For a total increase of $183,278. 

 

 

Price per Square Foot 

We began the year at $227.78 a square foot and ended the year at $328.44 a square foot. 

For a total increase of $100 per square foot. 

We saw a consistent increase each month, except for the dip in October. 

 

 

Average Days on Market 

We began the year at 83 days on market and ended the year at 112 days on market. 

For a total increase of 29 days. 

We saw days on market dip under 80 days February through May, then we saw an uptick to 90+ days from September through November. Homes spend a considerable longer time on the market in December.

December 2021 Sevier County Market Report

Homes

  • We saw an increase in Average days on Market, up from 91 days to 112 days.
  • Price per square foot saw a small increase from $320.44 in November 2021 to $329.83 in December 2021.
  • 27 more homes sold in December than in November.
  • Average Price rebounded with a punch – Homes sold for an average of $643,420 this month, up from $578,046 in November and $608,798 in October.

 

Land

  • 90 pieces of land sold during December
  • Average price saw another slight increase from $100,247 to $116,425 during the month of December.
  • Days on market saw a large reduction from 203 days in November to 133 days in December.