Smoky Mountains Residential Real Estate- August 2009 vs. August 2008

In this article I am analyzing Smoky Mountains residential real estate data for August 2009 vs. the same data for August of 2008.  In getting started with our comparison, let me give you the parameters.  The numbers we have are for residential properties and they cover the residences within the Great Smoky Mountains Association of Realtors.  The calendar dates for this evaluation include transactions on 8/1/2009 and go through transactions for 8/31/2009 and the same dates for 2008 as well.

For August of this year there were 117 residences sold and last year showed 128 sold.  That leaves us 11 lower, or a 9% decrease on total residences sold. For total dollar volume sold, August 2009 was $19,941,339 vs. August 2008 of $22,955,170. The difference in total volume sold was $3,013,831 or 13% lower.  The average sale per residence sold was $170,439 in August 2009.  The same sale average in August 2008 was $179,337.  The difference was $8,898 per residence higher in 2008 or 5% higher The last figures I want to look at are the number of active listings.  Current year shows $4,431 active against $3,730 active last year.   Year 2009 has 701 more or 10% higher active listings than in 2008. 

This is interesting, but what is it’s significance?  First of all one month does not show a trend.  It gives us clues, but must be factored into a larger framework to know where it is going.  From my perspective, the market is showing some resilience.  Numbers for August are lower but not radically.  Some of this data must be tempered with current as well as on going market conditions.  For instance, there are a large number of foreclosed properties being added into the mix.  This distressed element is adding to an already high inventory of properties for sale.  These foreclosures are entering the existing market with bargain pricing which hurts values elsewhere due to the price competition.  However, here is my silver lining perspective on the current real estate market in the Smokies.  The real estate market is showing some strength and could be nearing a bottom.  High inventories are coming down and distressed properties seem to be getting absorbed.  August 2009 homes and other properties are still selling with more listed properties going on the market than in 2008.  Factors like low mortgage rates and “first time home buyer credit” favor purchasing homes at this time.  Assess your own circumstances and if buying or selling real estate in the Smokies seems like a priority, contact us.  The Jason White Team has the professional expertise and the knowledge of the area’s properties to make your plans in real estate become a reality.  Call me today!