Knoxville renters and homebuyers continue to see rising prices
We just can't catch a break.
The monthly “Market Pulse” report for November from the Knoxville Area Association of Realtors (KAAR) has been released, and it shows that while home sales are down, home prices and rental rates are up.
According to the report, Knoxville’s rental market continues to outperform the U.S. overall. Effective rents were up 15.8 percent year-over-year in October, compared to 7.6 percent nationally.
While fewer homes were sold last month, homebuyers are paying more than before, and significantly over what the houses are worth. In October, the Federal Housing Finance Agency (FHFA) published a new dataset containing nearly 47.3 million home appraisal records compiled by government-sponsored entities since 2013. This is the nation’s first publicly available dataset of aggregate statistics on appraisal records.
It shows that low appraisals nearly doubled in Knox County last year, meaning 13.4 percent of appraisals were lower than the price the home was under contract for.
Here are more takeaways from the November “Market Pulse” report in regard to the housing market:
- Knoxville area home sales decreased in October — down 15.7 percent from the previous month and 21.4 percent from a year ago.
- The median home sale price was $315,000 in October — up 10.5 percent from the previous year.
- Total housing inventory continued trending upward – up 54 percent from a year ago but still more than 40 percent below pre-pandemic levels.
- Half of the homes sold were under contract in 14 days or less.
- Twenty-three percent of homes sold for over the asking price, compared to 27 percent the previous month, with 10 percent selling for at least $10,000 over asking and 4 percent selling for at least $25,000 over asking.
- New construction represented 10.5 percent of total home sales.
- Mortgage rates are beginning to stabilize. As of the week ending November 17, the average 30-year fixed mortgage rate was 6.61 percent.
KAAR will release its 2023 local housing market forecast next month.