Homes in Sevier County, Tennessee

Average price saw the highest price saw a large drop from $794,087 in December 2023 to $685,047 in January 2024, which is close

Days on market 82 days in January 2024, which is on the higher end of the range that we saw during 2023 of 55 days to 83 days. 

Price per square foot saw a decrease to $361 from $378 in December 2023. 

Land in Sevier County, Tennessee

The average price for land/lots in January 2024 was $266,503 which was a sizable increase from January 2023 at $158,542.

Lots that sold in January 2024 spend an average of 146 days on the market, which was an 11% increase over days on market in January 2023 at 132 days. 

As we move into 2024, let’s take a peek at national trends that might shape the short term rental market.

Things like interest rates, inflation, and travel trends. 

 

Macroeconomic Factors Influencing the STR Market

 

Inman.com provides an interesting take on  2023’s occupancy rates.

“In 2023, the short-term rental space was defined by its ups and downs, with the supply of available nights increasing 12.6 percent year over year, compared to a more subdued 6.5 percent annual growth in demand, according to AirDNA’s 2023 U.S. Market Review.

Last year also marked the end of the incredibly high occupancy rates hosts and investors have enjoyed since 2021. Occupancy dipped 5.8 percent year over year to 49.9 percent —  below pre-pandemic levels — as supply increased considerably. The increase in supply also brought average daily rates down 2.4 percent to $311.09.”

 

We can’t overlook that the Federal Reserve’s rate adjustments impacted both property prices and how much people spent on vacations, which had an impact on occupancy rates. 

While travel trends might have more folks opting for staycations, or exploring new areas. 

 

The Smoky Mountains Market: A Case Study in Resilience

The Smoky Mountains have always been a gem for vacation rentals, and 2023 was no exception. 

Despite the economic ups and downs, this region proved resilient. Its natural beauty and diversity of attractions kept it high on the list for travelers! 

This stability is key for investors. It means that, even in uncertain times, the Smoky Mountains remain a solid bet. 

The Great Smoky Mountains National Park has seen over 10 Million visitors each year since 2015. There has been a 37% increase in visitation over the last decade.

 

“Tennessee ranks 11th in the nation for travel spending, the highest rank ever and the fastest-growing state in the top 40 since 2018.”

 

Smoky Mountains STR Market: Opportunities in 2024

As 2024 unfolds, the vacation rental market is gearing up for what looks like an eventful year. 

“Based on early data, 2024 is already looking to be a promising year for vacation rentals. Demand in January is 8 percent higher than it was at the same point in 2022, and demand for the succeeding months is already between 13 and 21 percent higher for every month through June, reflecting the improved economic outlook for 2024 versus the start of 2023 when fears of a recession hung over many consumers.”

 

The general economic outlook for 2024 seems more stable and positive compared to the start of 2023. This shift plays a crucial role in shaping consumer confidence and travel spending. With more people likely to plan vacations and trips, popular destinations like the Smoky Mountains stand to benefit significantly.

 

The Smoky Mountains region stands out as a promising area for investment in 2024. With its proven track record of resilience and its ongoing appeal to tourists, the area is equipped to capitalize on the positive trends forecasted for 2024.

 

Below you will find year end market statistics that compare 2023 to 2022.

 

 

This week we’ll take a look at 2023 year end real estate market statistics for Sevier County, TN

Average Price per Month

Average Days on Market

Average reporting income

 

 

We’ve segmented Gatlinburg and Pigeon Forge by property type, condo and single family home, and provided average price, average price per square foot, and average days on market for each.

 

Gatlinburg – Condos

Average price ranged from $240,860 to $446,250.

Average price per square foot ranged from $314 to $414.

Average days on market ranged from 57 to 96.

 

Gatlinburg – Single Family Home

Average price ranged from $495,071 to $1,710,000.

Average price per square foot ranged from $305 to $441.

Average days on market ranged from 50 to 108.

 

Pigeon Forge – Condos

Average price ranged from $317,625 to $424,500.

Average price per square foot ranged from $310 to $408.

Average days on market ranged from 21 to 52.

 

Pigeon Forge – Single Family Homes

Average price ranged from $428,981 to $1,858,901.

Average price per square foot ranged from $317 to $443.

Average days on market ranged from 2 to 105.

Homes in Sevier County, Tennessee

Average price saw the highest price we’ve seen all year at $794,087. Days on market held steady at 6571days during the month of December, falling within the range we’ve seen throughout the year from 55 days to 83 days.

Price per square foot saw an decrease to $378. Still landing within the range of $358.72 to $401.65 that we’ve seen this year.

 

 

Land in Sevier County, Tennessee

The average price for land/lots saw an increase to $128,599, which is within the range we’ve seen for most of the year between $73,123 – $161,225, except for the outlier we saw in June at $243,763.

Lots that sold in December spent 267 days on the market. We’re experienced a large range of days on market this year, from 85-292 days.

 

 

 

 

Homes in Sevier County, Tennessee

Average price saw a drop back into the range we’ve seen this year at $712,525.

Days on market held steady at 65 days during the month of November, falling within the range we’ve seen throughout the year from 55 days to 83 days.

Price per square foot saw an increase to $395. Still landing within the range of $358.72 to $401.65 we’ve seen this year.

 

Land in Sevier County, Tennessee

The average price for land/lots saw an increase to $112,161, which is within the range we’ve seen for most of the year between $73,123 – $161,225, except for the outlier we saw in June.

Lots that sold in November spent 169 days on the market. We’re experienced a large range of days on market this year, from 85-292 days.

 

 

Homes in Sevier County, Tennessee

Average price was the highest we’ve seen this year at $774,086.

Days on market held steady at 66 days during the month of October, compared to September’s 65 days, and still falling within the range we’ve seen throughout the year from 55 days to 83 days.

Price per square foot saw an slight decrease from Sepember at $387, to $376 during the month of October. We’ve seen a range of $358.72 to $401.65 this year.

 

Lots/Land in Sevier County, Tennessee

The average price for land/lots during the month of October was the lowest we’ve seen all year at $73,123.

Lots that sold in October spent less time on the market at 108 days, than they did in Septmber at 145 days. We’re experienced a large range of days on market this year, from 85-292 days.

Homes in Sevier County, Tennessee

Average price saw a decrease to $690,994 during the month of August, which is a slight dip from July, but within the range we’ve seen through the year from $641,000 to $750,000.

Average home price in Gatlinburg, TN Year to date 2023 – $742,604
Average home price in Sevierville, TN Year to date 2023 – $666,828
Average home price in Pigeon Forge, TN Year to date 2023 – $601,402

Days on the market saw an fairly large decrease to 58 days on market, which falls within the range we’ve seen throughout the year from 55 days to 83 days.

Price per square foot saw an slight decrease to $371 from $378. We’ve seen a range of $358.72 to $401.65 this year.

 

Land in Sevier County, Tennessee

The average price for land/lots during the month of August was $134,661.

Lots that sold in August spent an average of 145 days on the market.

 

AirDNA released an article this week, which reviews their data on the Short Term Rental Market.

The most notable data point was July’s stays. 

“July 2023 broke the record for the most short-term rental (STR) stays in one month, with 35.4 million nights stayed, beating the previous high recorded in July 2022 by 9.4%.”

 

Even with  challenges like a heatwave and inflation-cautious consumers, the demand for short term rentals was strong!

“Data from the Bureau of Labor Statistics revealed that July saw the addition of 187,000 jobs, keeping unemployment at one of its lowest rates in half a century. Even as inflation looms above the Federal Reserve’s 2% target, our economy seems stable, as wages grow and inflation remains relatively controlled.”

 

Looking forward

“August appears to be seeing a somewhat slower pace than current demand trends would indicate. Lead times have shortened since last year, so while August pacing is currently only 4% ahead of this time last year, last-minute bookings should still push the final realized demand for August higher.”

 

Check out the AirDNA article  for a few projections through the end of the year. 

Interesting to note, AirDNA’a data shows that the occupancy levels are much closer to 2022 levels, than 2019 levels. 

Maybe you are wondering what does this mean for prospective property investors or those interested in securing their dream Smoky Mountain retreat?

The steady economy and potential pause in interest rate hikes by the Federal Reserve could keep the real estate market buoyant for some time!

For those considering a dive into the STR market, now is still a good time! If you dream of owning a slice of the Smoky Mountains or wish to invest in a thriving STR market, reach out. 

 

Homes in Sevier County, Tennessee

Average price saw a increase from $672,791 in June 2023 to $708,860 in July of 2023, which falls within the range of $640,000 and $750,000 we’ve seen throughout the year.

Days on the market saw an increase from 55 days in June 2023 to 83 days in July 2023, which is a bit higher than the range we’ve seen throughout the year at 60-77 days on the market.

Price per square foot saw an slight decrease to $378 from $383

 

 

Homes in Sevier County, Tennessee Year to Date Market Statistics

 

 

Land in Sevier County, Tennessee

The average price for land/lots during the month of July was $128.829.

Lots that sold in July spent an average of 111 days on the market.

Both Average Price was elevated in June and Days on Market saw a decrease. There have returned to metrics, much closer to what we’ve seen the rest of the year

 

Land in Sevier County, Tennessee Year to Date Market Statistics