Knoxville Tennessee Real Estate Blog

This beautiful home is delightful clear through, 4 BR, 3.5 baths, and over 3,300 square feet. $249,500. A “Featured Home” on www.KnoxvilleHomeCenter.com

It’s now May the 9th and the ‘first time’ home buyer $8,000 tax credit has expired. Those that had an accepted real estate contract dated before April 30th still have 60 days to get their transaction closed and still be able to apply for the credit so I believe we’ll see residual benefits for the next couple of months before it runs its course (some military personnel may also qualify for up to a 1 year extension; call or write for more information).

The question in the minds of Realtors, mortgage bankers, homesellers, and others now becomes what’s going to happen to the market now?

I personally believe the tax credit was driving as much as 20 to 30% of the lower price range market. If that proves true we should see a dip in sales in those price ranges.

Here’s today’s figures from the Knox County Register of Deeds on local real estate transfers that were recorded last week.

I count a record high 219 transactions with the $100,000 to $150,000 price range being about 25% of that total. That price range is where the bulk of the tax credit driven buyers have been.

Right now in the Knoxville Area Association of Realtors MLS there are 884 homes in Knox County for sale between 100K to 150K. You can probably add another 10% or so for the For Sale By Owner and auction market so in round numbers that would be about 970 homes for sale. 54 sold and closed last week leaving about another 920 still for sale in addition to new listings that come on the market every day. I’m going to be watching this price range very closely in the coming weeks to see what happens.

Current Knox County Realtor Listings