7412 Harvest Creek Lane, Powell, TN 37849

7412 Harvest Creek Lane, Powell, TN 37849

It appears the malaise in the Knoxville area real estate market continues this week as it has for the past weeks in 2009.

The Knox County Register of Deeds office reports 170 real estate transfers for the past week, a touch above the average 150 per week we’ve had all year but well below the 200 mark only reached three times in 2009.

Knoxville area real estate transfers for the past week.

Knoxville area real estate transfers for the past week.

John Walsh, the President of Data Quick had this to say about the ‘national’ real estate market: “This market may be closer to normal than it was a a half year ago, but it’s still out of kilter, fueled in large part by incentives and the processing of distressed properties. The sales mix is still lopsided, tilting toward the low end, and lending institutions are only making really safe mortgage loans. For those who can buy, there are some very attractive opportunities. But it still looks like a lot of normal supply-and-demand activity has been put on hold until the economy comes back.”

And Mr. Walsh’s conclusions support what the Knoxville area area has been doing all this year. The majority of sales have been in the $100,000 to $150,000 week in and week out while the higher end ($500,000 and up) has been largely stagnant. Knoxville’s current median price for a 3 bedroom home is $139,900 which is down from $159,900 a couple of years ago.

Based on the most current sales data available from the Knoxville Area Association of Realtors here’s a recap of the local market for the past 5 years.

Year to date Knoxville TN area sales compared to past years

Year to date Knoxville TN area sales compared to past years

I’m going to be very interested to see if that 60 home ‘spike’ this past September continues on into October when those figures come out. Historically the Knoxville real estate market has been in a seasonal decline by now but as the chart shows, 2009 is holding up past the downturn points. I believe most, if not all of this modest strength is due to the $8,000 tax credit buyers that have not owned a home in the past 3 years can qualify for if they buy a new or resale home.

It’s almost a sure thing now that Congress is not only going to extend the $8,000 tax credit for new home buyers who meet the income restrictions but also make it applicable to existing home buyers in some fashion.

The most likely bill to pass calls for the inclusion of a $6,500 credit for current homeowners who sell their existing home they have occupied for at least the past 5 years and then buy a new one. This pending bill is set to expire next April and sales contracts signed by that date would then have an additional 60 days to close. Final action should happen sometime this month. I’ll be following these bills closely as they make their way through Congress and keep you posted.

Buyers should visit www.KnoxvilleHomecenter.com to see all of the Knoxville and Farragut Tennessee area Realtor listings and contact me to see your favorites.

knoxville tn real estate listings

knoxville tn real estate listings

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