July 2022 Sevier County Real Estate Market Report

 

Average price saw a slight increase from $745,000 to $750,000.
Days on market saw an increase from 42 days on market to 50 days on market.
Price per square foot saw a decline from $416 to $388 

 

 

 

 

We saw a dip in lots sold this month, coupled with an increase of average price. Days on market saw quite a large jump, from 135 days to 201 days. 

 

 

What’s going to happen to home prices?

 

What we learned this week:

  • Mortgage purchase applications are down 18% 
  • New home sales declined 17%
  • Introduction of single family homes declined by 16%

What’s that mean?

Even though we saw declines, we are still not in a balance market. 

Brian Neeley with BusinessNews says, “Inventory levels remain 49% below July 2019 levels, giving most sellers enough leverage – at least for now – to hold off on a bottom-market selloff earlier this year.”

Every quarter, Moody’s Analytics calculates an “overvalued” or “undervalued” figure for approximately 400 markets. The firm aims to find out whether fundamentals, including local income levels, can support local home prices. 

In the first quarter of 2022, Moody’s estimated that the average regional housing market was “overvalued” by 23%.

 

 

Moody’s Chief Economist Mark Zandi said Good luck The housing market being “overvalued” by more than 25% is likely to see a 5% to 10% drop in home prices. If a recession occurs, prices in those markets could fall by as much as 15% to 20%.

Click here to read more about Zandi’s predictions! 

 

June 2022 Sevier County Real Estate Market Update

Residential Real Estate Market Update for Sevier County, Tennessee – June 2022

Average price held steady during the month of June at $745,000. 

During quarter 2 we saw a reduction in overall days on market:
April: 61
May: 58
June: 42 

Price per square foot saw a slight drop from May to June – from $425 to $416 

 

Lots and Land Real Estate Market Update for Sevier County, Tennessee – June 2022

Average price of land saw a reduction from $140,475 in May to $121,634 in June. 

Days on market stayed relatively the same at 135 days, compared to 130 days in May. 

 

Click here to see all of our past market updates! 

Tennessee housing market analysis: State experiencing positive economic outcomes in wake of pandemic!

In a new economic report from Middle Tennessee State University, the state’s housing market continues to show signs of a continued recovery from the impact of COVID-19.

The MTSU Business and Economic Research Center’s statewide analysis for the second quarter showed mostly positive outcomes, with home sales increasing overall from the previous quarter and home prices up from the previous year across the state.

Housing prices for the U.S. and Tennessee seem to follow a pattern of exponential growth, while mortgage delinquencies inch closer to pre-pandemic levels, and foreclosures remain slightly above zero percent. Here are some takeaways from the report.

  • Among the major metropolitan statistical areas in Tennessee, all saw increases in home prices
  • Single-family and total home permits for Tennessee were more mixed. Single-family permits slightly fell by .2%, and total permits rose by 12% since Q1 2021. Both categories of permits saw significant increases since the second quarter of 2020. Single-family permits rose by 36% and total family permits rose by 44%.
  • Real estate transfer tax collections sharply increased from the first quarter by 24.5% and 68.5% over the year. Real estate transfer tax collections averaged $24 million
  • Mortgage tax collections increased from the previous quarter by 15%, while the yearly increase was 36.25%

Read the full article from the Nashville Business Journal here.

See the MTSU Jones College of Business Quarterly Housing Rep

Vacation Home Sales Skyrocket!

The National Association of Realtors released a 2021 Vacation Home Counties Report.
“In 2020, the share of vacation home sales to total existing-home sales increased to 5.5% (5% in 2019). Vacation home sales rose by 16.4%, outpacing the overall growth in existing-home sales of 5.6%. From January to April 2021, the share of vacation home sales to total existing-home sales rose to 6.7%. Vacation home sales jumped 57.2% year-over-year compared to the 20% year-over-year growth in total existing-home sales.

“Vacation homes are a hot commodity at the moment,” said Lawrence Yun, NAR’s chief economist. “With many businesses and employers still extending an option to work remotely to workers, vacation housing and second homes will remain a popular choice among buyers.”

 

 

*Note Y/Y percent change of +14% in median sales price in a vacation home county compared to our previous market statistics that show a percent change of +86% in median sales price for homes in short term rental specific areas in Sevier County.

Click here to read more from Lawrence Yun, Chief Economist and Senior Vice President of Research at the National Association of Realtors.

2020 Year-End Real Estate Market Statistics

Residential

Have a look at the year-end 2020 graphs below. It’s very interesting to look at the average price and days on market correlation over the last 4 years. Days on market is flat from 2019 to 2020, after a 20% decrease in both 2017 and 2018. While the average price continues to increase by 23% from 2019 to 2020, after an increase of 11% from 2018 to 2019, and a 10% increase from 2017-2018.

Average Price 2017 - 2020
Average Price 2017 – 2020

 

Days on Market 2017-2020
Days on Market 2017-2020

 

Single Family Homes – 2020

Single Family Homes Average Sales Price vs Average List Price
Single Family Homes Average Sales Price vs Average List Price
Single Family Homes - Days on Market
Single Family Homes – Days on Market
Single Family Home - Average Price Per Square Foot
Single Family Home – Average Price Per Square Foot

 

Condos – 2020

Condo - Average Sale vs Average List Price
Condo – Average Sale vs Average List Price
Condo - Days on Market
Condo – Days on Market

 

Condo - Average Price per Square Foot
Condo – Average Price per Square Foot

 

Land

Average land prices increased year over year from 2017 – 2020; 15% 2017 – 2018, 17% 2018 – 2019, and 16% 2019 – 2020.

Land - Average Price 2017 -2020
Land – Average Price 2017 -2020

 

Land - Sales Price vs Listing Price
Land – Sales Price vs Listing Price

 

Land - Days on Market
Land – Days on Market

 

A look forward

“Many experts are predicting another strong housing market in 2021. They are forecasting increased demand from buyers who delayed purchasing homes because of the pandemic; from existing homeowners who need larger spaces to accommodate parents working from home and children attending school virtually; and from condo owners who are seeking to escape multifamily buildings for single-family houses to mitigate exposure to the virus. The ability to tour homes and close on purchases virtually will make buying a home simpler in 2021.”

You can read the full Washington Post article here.

Check back with us here on the first Saturday of each month to get the latest Smoky Mountain Real Estate stats. 

*Note: statistics collected using the Bluff Mountain, Chalet Village, Cobbly Nob, Douglas Lake, Gatlinburg, Jones Cove, Kodak, New Center, Pigeon Forge, Pittman Center, Sevierville, Seymour, and Wears Valley areas.

Tennessee’s No. 2 Industry – Tourism

We think its nice to see the data that supports the growth we see in our community. We’ll share information from the state below. We are working diligently with local government entities to provide more granular information specific to each city.

The Tennessee Vacation Industry produces an annual report  detailing the Department of Tourism Developments initiatives. This report runs from July to June, the most up to date report is from July 2018 to June 2019. Fiscal 2020 will be release sometime in September, per the previous years release.

“As Tennessee’s No. 2 industry, tourism has had another exceptional year, continuing to break visitation records and exceed economic impact numbers year over year. Tennessee’s skyrocketing growth is due in great part to key tourism partners throughout the state who invest in new attractions, groundbreaking expansions and important improvements.”

 

Tourism: Tennessee’s Economic Growth Engine , states “The results are undeniable:tourism is working in Tennessee. As the state’s leading service industry, tourism generated a record $1.81B in state and local tax revenues in 2018.”

 

We look forward to providing local data as it becomes available to us!

Two of the forty-five most beautiful places in the U.S, as named by Country Living Magazine, in the Great Smoky Mountains!

Cades Cove falls at number 28 on the list.

Country Living Magazine says this, “When you visit this isolated valley in the Great Smoky Mountains it feels like you’ve stepped back in time.”

 

The Blue Ridge Parkway falls at number 42 on the list.

Country Living Magazine says, “This stretch of road that meanders 469 miles through the Appalachian Mountains is the most visited place in the U.S. National Park Service.”

You can find the entire Country Living article here.

Sevier County Market Statistics for March 2019

March 2019 Residential Market Statistics for Sevier County, TN

 

Sevier County Homes

464 homes sold in Sevier County from January to March of 2019.
486 homes sold from January to March of 2018.
Sales are down 5%.
Average price has increased by 15% and is up by $36,000.
Average price is $274,582.
Available Inventory is down 12%, and Volume up by 10%.

 

Gatlinburg

65 homes sold in Gatlinburg from January to March of 2019.
87 homes sold from January to March of 2018.
Sales are down by 25%.
Average price has increased by 23% and is up by $50,000.
Average price is $274,277.
Available Inventory is down 25%, and Volume is down 8%.

 

Pigeon Forge

90 homes sold in Pigeon Forge from January to March of 2019.
100 homes sold from January to March of 2018.
Sales are down by 10%.
Average price has increased by 26% and is up by $70,000.
Average price is $341,226.
Available Inventory is down 19%, and Volume up by 13%.

 

Sevierville

147 homes sold in Sevierville from January to March of 2019.
150 homes sold from January to March of 2018.
Sales are down by 2%.
Average price is flat.
Average price is $240,738.
Available Inventory is down 9%,  and Volume down by 2%.

 

Wears Valley

26 homes sold in Wears Valley from January to March of 2019.
27 homes sold from January to March of 2018.
Sales are down by 4%.
Average price has increased by 32% and is up by $88,000.
Average price is $365,242.
Available Inventory is down 18%, and Volume is up by 27%.

Douglas Lake

12 homes sold on Douglas Lake from January to March of 2019.
11 homes sold from January to March of 2018.
Sales are up 9%.
Average price has increased by 82% and is up by $139,000.
Average price is $310,241.
Available Inventory is flat, and Volume up 99%

 

 

March 2019 - Land Real Estate Market Statistics for Sevier County, TN
March 2019 – Land Real Estate Market Statistics for Sevier County, TN

 

Sevier County Lots

139 lots sold in Sevier County from January to March of 2019.
137 lots sold from January to March of 2018.
Sales are up by 1%.
Average price has increased by 16% and is up by $8,000.
Average price is $59,851.
Available Inventory is down 10%, but Volume up by 18%.

Gatlinburg

40 lots sold in Gatlinburg from January to March of 2019.
21 lots sold from January to March of 2018.
Sales are up by 90%.
Average price has increased by 35% and is up by $14,000.
Average price is $56,565.
Available Inventory is up by 1%, and Volume up by 157%.

 

Chalet Village

13 lots sold in Chalet Village from January to March of 2019.
13 lots sold from January to March of 2018.
Sales are flat.
Average price is down by 12% and is down by $5,000.
Average price is $44,573.
Available Inventory is down 26%, and Volume is down 12%.

 

Pigeon Forge

17 lots sold in Pigeon Forge from January to March of 2019.
11 lots sold from January to March of 2018.
Sales are up 55%.
Average price has decreased by 44% and down by $20,000.
Average price is $25,494.
Available Inventory is down 18%, and Volume down by 14%.

Home Inspection FAQ

After choosing your new home it is now time to take a look at the inner workings.

Insight Home Inspection Services, LLC

 

What is a home inspection?
A home inspection is an objective visual examination of the physical structure and systems of a house, from the roof to the foundation.

What does a home inspection include?
The standard home inspection report will cover the condition of the home’s heating system, central air conditioning system, interior plumbing and electrical systems, the roof, attic and visible insulation, walls, ceilings, floors, windows and doors, the foundation, basement / crawlspace and structural components.

The American Society of Home Inspectors (ASHI) publishes a Standards of Practice and Code of Ethics that outlines what you should expect to be covered in your home inspection report.

Why do I need a home inspection?
Buying a home could be the largest single investment you will ever make. To minimize unpleasant surprises and unexpected difficulties, you’ll want to learn as much as you can about the newly constructed or existing house before you buy it. A home inspection may identify the need for major repairs or builder oversights, as well as the need for maintenance to keep it in good shape. After the inspection, you will know more about the house, which will allow you to make decisions with confidence.

If you already are a homeowner, a home inspection can identify problems in the making and suggest preventive measures that might help you avoid costly future repairs.

If you are planning to sell your home, a home inspection can give you the opportunity to make repairs that will put the house in better selling condition.


Below are a few examples of common issues to beware of:

 

Foundation Cracks

 

 

 

 

 

 

Foundations cracks are generally a result of soil conditions. Some soils are affected differently  by moisture and or dry conditions which cause expansion or shrinking that will create an uplifting or lowering of the foundation footing and walls. Some obvious results of these factors are: crooked doorways, cracked or bowing walls, uneven floors and believe it or not even unusual smells and humidity. These smells are due to air passing through cracks from under the earth and the humidity is elevated due to soil moisture.

 

 

 

 

 

Termites when not detected and eliminated cause billions of dollars in damage every year. Termites can cause major structural damage that cannot be seen without proper training. In our area (Tennessee) we are battling subterranean termites. These termites travel through shelter / mud tubes which consist of soil and wood cemented together with saliva and feces. Subterranean termites cause more damage to homes in the U.S. than storms and fire combined.

 

Leaks/Mold

 

 

 

 

 

Leaks and moisture entry at any location can cause wood rot and mold. Mold when not detected can grow to the point of a severe health hazard. There are several different types of mold but the worst is Stachybotrys (black mold). Symptoms of black mold can be: coughing, itchy skin, sore throat, nosebleeds and much more. An in-depth inspection uses state of the art infrared cameras and moisture detecting devices that assist in locating temperature differentials and state of the art air quality testing machines that will gather air samples into a cartridge that is sent to a third party lab for evaluation. An air quality report can assist your doctor in determining possible health issues derived from mold related conditions.

 

Electrical Panel

 

 

 

 

 

 

It is important to have a properly wired house to prevent electrical shock and make sure we have power to plug in all of our electronics. But, did you know that an improper ground can damage our new phones, tablets, game consoles and much more? An in-depth inspection will bring these issues to light by way of removing the breaker panel cover, evaluating main and branch wiring, testing receptacles and ensuring that a proper sized supply is in place.

Thank you, Mark for providing this valuable information for us!
Follow Mark on Facebook here.