Knoxville Tennessee Real Estate Blog

One of the tough things about making predictions of any sort is that it’s pretty easy to be wrong. I seem to have been wrong once again on my prediction in total 2010 Knoxville, TN area home sales.

If you will recall on November 15, 2010 I predicted a year end total of 9,500 total homes and condos sold in the greater Knoxville area but the final total turned out to be 10,133 for the year. That’s about 600 more than I thought would sell making my guess off by about 6%; not too bad for a guess. It appears the 4th quarter sales of 2010 were far stronger than I thought they would be.

Here’s how 2010 ended up in Knoxville compared to the past 9 years:

You’ll notice that 2010 ended up about 400 homes below 2009. In analyzing the sales data for the past few years I believe the 2009 and some of the 2010 data was artificially inflated by the $8,000 tax credit that expired on April 30th of 2010.

That tax credit may have been driving Knoxville area sales by as much as 20% or more. In addition to driving sales it also seems to have encouraged the sale of more lower priced homes (first time buyers) driving the average sales prices down along with the median prices.

So now we’re in January of 2011 and what’s the Knoxville housing market like so far?

We’re only 2 weeks into the year so very little hard data is available but I’m hearing a lot of anecdotal positive stories from my fellow Realtors about increased traffic at open houses, more inquiries on listings for sale, and lenders fielding questions about interest rate and mortgage loans.

If all that positive activity continues, then 2011 should be a good year for Knoxville sellers and buyers with both increased numbers of sales and higher average prices since the market will be more balanced with the demise of the tax credit.

Interest rates remain at historic lows and inventory of homes in all prices ranges is plentiful.

Head on over to KnoxvilleHomeCenter.com to see all the Knoxville, TN area homes for sale and please email or call me with any homebuying or selling questions.

knoxville tn real estate word cloud

This past Thursday night I had the opportunity to go on a harbor tour/cruise of Portsmouth, New Hampshire along the harbor out to where it runs into the Atlantic Ocean.

Portsmouth New Hampshire harbor view

Portsmouth is a beautiful coastal city on the northern end of the New Hampshire seacoast. In the harbor view above you can see a new, waterfront condo project under construction and the white steeple of the Old North Church to the far right.

At only 17 miles long, the New Hampshire coastline is shorter than any other state that borders an ocean.

Memorial Bridge over the Piscataqua River connects Portsmouth to Kittery, Maine

Because Portsmouth is a working harbor with lots of large ship traffic in and out, two of the bridges over the river are drawbridges which raise every 30 minutes from 7:00 AM until 7:00 PM to accommodate harbor ship traffic. In this photo the middle section of the bridge is starting to lift.

Moran Tugboat & towing company tugboats

The Piscataqua River is the third-fastest tidal river in North America and also very narrow by modern shipping standards. Local river pilots take the helm of in and outbound commercial vessels and guide them safely through the channel. These two large tugboats are operated by Moran Towing & Tugboats. Because the Piscataqua flows so fast these tugs only operate at “slack tide”, roughly four hours a day.when the incoming tides temporarily balance the outgoing river currents. Check out this Portsmouth harbor cam to watch river traffic live. The images refreshes every 10 seconds.

The Portsmouth Naval Shipyard was established in 1800

The Shipyard’s primary mission today is the overhaul, repair and modernization of Los Angeles-class submarines. The dry-docks have recently been enlarged and upgraded to accommodate the new and larger Virginia class submarine with the first due in for a tune up later this month.

USCG Cutter Campbell based at Portsmouth Naval Shipyard

The Campbell regularly patrols the Atlantic Ocean from the Gulf of Maine south to the Caribbean Sea.

Portsmouth Naval Prison

This is Portsmouth Naval Prison which is curiously actually located in Kittery, Maine just across the Piscataqua River from Portsmouth. The prison has been closed and abandoned since the 1970s as too expensive to rebuild or to tear down. Scenes from the movie “The Last Detail,” starring Jack Nicholson were filmed there.

New Castle, New Hampshire the smallest city in NH

This is some of the waterfront of New Castle, the smallest city in New Hampshire and the only one located entirely on islands. New Castle is also home to a US Coast Guard station and the historic Wentworth by the Sea hotel.

Setting sun over Portsmouth Naval Shipyard

The green light at right is Portsmouth Light on the New Castle Coast Guard Station grounds.

Portsmouth light was originally established before the Revolutionary War when American was still a British Colony.

In 1946 the current lighthouse keeper’s wife Connie wrote a book titled not surprisingly “The Lighthouse Keeper’s Wife” and described the view from the top of Portsmouth Light. “I looked down forty feet to the little white scallops of incoming tide washing over the rocks, caressing each one lovingly. …We could look up the Piscataqua River to Portsmouth, with its gleaming white belfry of North Church, a landmark for sailors, silhouetted against the sky. …At the center of the harbor was Whaleback Lighthouse, and ten miles out to sea from that was the lighthouse on White Island, part of the Isles of Shoals. Both sent their beams across the water.”

Lighthouse keepers were or often became, a little ‘different’ from the rest of us. Imagine your job was taking care of Whaleback Lighthouse on an uninhabited, rocky small island day in and day out.

One lighthouse keeper was reported to use the top of his light to shoot passing ducks. He also had a small dingy that he used to row to shore occasionally where he would borrow a resident’s car to visit the local grocery store.

Whaleback Island lighthouse marks the entrance to Portsmouth Harbor

Whaleback Island is actually part of  a  jagged ledge known as Whaleback. This ledge is completely underwater at high tide and is a continuation of the southern portion of Gerrish Island in Maine.  The little dots you see in the water are buoys for lobster traps.

Whaleback Island at twilight as a light fog starts rolling in.

By the way, this is a working light house; the reason it appears dark in the photos is that the light only flashes on and off every few seconds but trust me, you do not have any problem seeing it when its light flashes. Whaleback light gives 2 white flashes every 10 seconds and during foggy weather, 2 blasts on its foghorn every 10 seconds. Click here to hear the Whaleback Light fog horn. It’s not too loud so it won’t blast you out of your seat. 😉

Portsmouth Harbor at night is a beautiful sight too.

We got back to the dock around 10:00 PM after a great tour of Portsmouth Harbor. If you ever in the area I recommend a harbor tour as a ‘must do’ part of your visit.

This is an amazing story about a guy that lives in an 89 SQUARE FOOT house!

Yep, that’s 89 square feet.

To give you some perspective a 10 X 10 room is 100 square feet.

Even more amazing is the fact that he’s turned this into a business. Seems the demand for tiny houses is larger than you would think.

To find more ‘normal’ sized houses in the greater Knoxville area visit KnoxvilleHomeCenter.com

For questions or advice on buying or selling a home in the greater Knoxville area Jim Lee is the ‘go to’ Realtor in town.

The highest professional designation awarded to all Realtors is the CRS or “Certified Residential Specialist”

It’s also tougher to earn a CRS designation than any of the others I’ve done, in fact less than 4% of all the 1,000,000 plus current membership are CRS designees.

First there are production requirements; you must meet:

Participate in 75 transaction sides within any 5 year period of do a gross volume of $25,000,000 during any five year periord.

Successfuly complete any two Residential Sales Council RS core courses (business planning & marketing, listings, sales, wealth building, technology, or referrals.

AND complete a total of 4 more elective units such as 2 additional core courses, attend a CRS “Sell-a-bration”, or any 4 more electives from a list available at http://www.crs.com/

There an alternative course that requires 1 more core course also available on the CRS website.

If you’re asking yourself why you would want to become a CRS besides the obvious reasons (learn more, become more knowledgable & professional, and do a better job for your clients) there are 2 great reasons that immediately come to mind.

According to a survey of CRS designees the RS council conducted in 2005, designees earned an average income of $160,500 which is 4 times the average income of a residential sales agents.

Additionally holding a current, active CRS designation also puts you in the council’s referral roster. I received anywhere from 2-6 referrals a year from fellow CRSers all over the country.

So if making more money, being more professional, and becoming one of an outstanding group within the Realtor family appeals to to you, consider starting down the path to earning your CRS designation today.

http://www.crs.com/ has all the info and an application

Jim Lee, Realtor®, CRS

See all Knoxville, TN homes for sale @ KnoxvilleHomeSearcher.com

These 40 Free or inexpensive tips can make your home show better, sell faster, and put more money in your pocket at closing.

Outdoors

1. Be sure your lawn and shrubbery is kept trimmed at all times. Consider
removing overgrown trees and shrubs that  hide the house from the street.

2. Keep the garage doors down at all times.

3. For a touch of color, have seasonal flowers growing in beds and containers.

4. Make sure your driveway is in good repair. Pressure wash concrete drives
and walks to remove stains and car drippings, and put a fresh coat of
sealer on asphalt drives.

5. Make sure patios and decks are clean and in good repair.  Replace any
rotten wood and nail down loose boards on decking or steps; pressure wash
if needed.

6. Garage sale time! Clear out everything you don’t intend to keep and tidy
up what’s staying.  Make sure garage doors and openers are in proper
working order.

7.Check all railings and fencing to make sure it’s in good repair and
freshly painted.

8. Pay special attention to the area around your front door; make sure your
doorbell works, clean all cobwebs, leaves, and other debris that may have
accumulated there. Give the front door a fresh coat of paint if needed;
paint is one of the most cost effective fix up items you can do.

9. Check for broken windows or leaking seals on thermo pane windows;
replace if necessary.

10. Clean all the cobwebs from around the front door.  Make sure all
outdoor lighting (especially front porch) is clean and shiny; replace if
necessary. It is especially important that the entrance to your home make a
good first impression on prospective buyers.  This sets the tone for the
whole showing.

11. Check your mailbox. Is it straight and upright? Neatly trimmed around?

12. Before you start indoors walk across the street in front of your house
and look back (like a buyer will see it).  Does it present an appealing
appearance?

Indoors

13. Start by walking through the house and making a list. Do your carpets
need shampooing? Floors need a fresh coat of wax? Dust all ceiling fans
especially the blades and wash light
fixtures.
14. You’re going to have to pack when you move anyway, so go through all
your closets and pack up everything you don’t need for the next couple of
months. A closet with only a few neatly arranged items creates an
impression of abundant storage space.

15. Thin out overcrowded rooms. Ever notice the model homes sparse
furnishings?  They make the rooms look larger. Consider renting a storage
facility to store excess lamps, tables, and large items that eat up space
in a room.

16.Go through and pack up most of your family pictures and collections of
model ships, stamps, quilts, or anything that might cause a buyer to stop
and look at your collections of stuff instead of your house.

17.Check all light fixtures to make sure all the bulbs burn.  Use the
largest wattage bulb that you safely can to give off more light.

18. Wash all your windows and make sure window treatments are clean and in
good repair. Keep the window coverings open whenever possible to let in
more light.

19. With a good degreaser, wipe down everything in the kitchen so it feels
clean to the touch. Clean your stove and oven; replace stove eye pans if needed

20. Go through your kitchen cabinets and pantry to make sure they’re neat
and tidy; give any food that you don’t plan to use right away to the local
food pantry.

21.Make sure your sinks are clean at all times and free of dirty dishes and
utensils.

22. Remove all excess items from your counters to give the impression of
lots of work surface.

23. Pleasing aromas add to the appealing atmosphere we’re trying to
establish for your buyers; consider keeping a saucepan of potpourri on the
stove to give off an appealing scent.

24.Clean all light switch places by taking them off and washing with soap
and water; replace if necessary.

25.Make sure the bathrooms are spotless at all times with fresh towels,
decorative soaps, and all fixtures are shiny, scrubbed, and in good repair.

26. Check all faucets and shower heads to make sure they’re spotless and
free of leaks and drips.

27. Repaint interior rooms if needed with neutral colors.

28.Don’t forget your ceilings too; years of living in a home with cooking,
smoking, and other everyday activities can stain ceilings.  Paint ages;
repaint if needed.

29. Don’t have large, space eating house plants sitting around; give them
away or ask a neighbor to store them until you move.

31.The more light you can get into a room the bigger and more spacious the
room will appear. When you leave for a showing, turn on lights in rooms
that are normally darker than you would like and make sure the window
coverings are open to admit outside light.

32. An old decorator trick to bring in more light as well as make rooms
appear larger are mirrors; either hanging on a wall or on a stand.

33. Pack away and store out of season clothes. Get rid of extra hangars.
Straighten up your shoes (consider some inexpensive shoe racks from a
discount store like K-Mart or Wal-Mart).

34. When painting don’t forget the interiors of closets and the closets
doors; make sure all closet and interior doors open and close correctly.

35. Check where ceilings meet wall and clean all cobwebs, this is a
commonly overlooked area when cleaning, along with tops of tall furniture
items such as hutches, entertainment centers, etc.

36. If you have a pet make sure there are no odors. You may not notice
odors since you live with your pet every day, have a neutral third party
give your home a “sniff” test for objectionable odors that may turn buyers off.

37. Also, when buyers come to visit, keep your pet under control, or better
yet, get a friend or neighbor to “pet sit” for you while the buyers are
looking.

38. It’s important that you leave the house for all showings. Buyers feel
less inhibited if you’re not around and will usually take a closer look in
closets and in kitchen cabinets, as well as voice any objections that your
agent can then deal with. If the buyers won’t make comments because you’re
following them around pointing things out then your agent can’t deal with
any potential problems that may hinder making an offer.

39. If you have several vehicles make sure the spot closest to the door
buyers enter through is empty for them.

40. Freshly baked or even store bought cookies & little snacks along with
an appropriate beverage (hot in winter, cold in summer) along with a sign
saying “Please Sit Down and Enjoy a Treat While You’re Here” will make your
home more memorable even if they don’t take anything. Remember little
things can go a long way towards getting your home sold quickly for the
best price.

Visit www.KnoxvilleHomeCenter.com for more selling tips, staging, finance information, and much more including all greater Knoxville area real estate Realtor listings.

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

Have a question about real estate in the greater Knoxville, TN area? Please ask; there are no dumb questions, just ones you need answers to. Please feel free to call or email any questions to: [email protected] or call 865-693-3232

Time for an update since the first quarter statistics for 2010 are now available. Let’s see how we did and which direction Knoxville area sales and home prices are headed.

First of all April is almost over now and that is the end of the $8,000 tax credit for lots of homebuyers. I believe this incentive has been driving between 30-40% of our market for the past several months. It will be very interesting to see what the trend is for the 2nd quarter of this year after it expires.

Local weekly sales dropped a little this week compared to last week. The Knox County Register of Deeds reported 159 transactions for the week of April 18th compared to 188 the past week of April 11th.

Week of April 11th, 2010

Week of April 18th, 2010

As both graphs indicate, the lower price ranges remain where the action is; from $100,000 to $200,000 with sharp dropoffs once you pass the $300,000 threshold.

And here’s the first quarter of 2010 compared to past first quarter figures. Still nowhere close to where we were a few years ago but a modest increase from last year’s first quarter.

1st quarter of 2010 compared to past 1st quarters

260 more homes sold in the first quarter of 2010 versus 2009 but still a whopping 43.3% lower than the peak year of 2006.

Lack of jobs growth remains an issue for the house market. According to the US Department of Labor’s latest stats,  in March the number of unemployed was little changed at 15 million and the unemployment rate remained at 9.7%.

Economists want to believe the economy has turned the corner but housing remains the bellweather indicator to confirm that belief and it isn’t showing broad and/or sustained growth just yet.

“Federal Reserve Board Chairman Ben Bernanke called housing a “critical” challenge to the economy. “We have yet to see evidence of a sustained recovery in the housing market,” Bernanke said in a speech on April 7.”

It will be an interesting next few weeks and whichever direction we head is likely an indicator of the the housing market direction for the remainder of this year.

On the plus side for buyers there remains a large supply of homes to choose from. Currently in the greater Knoxville, Tennessee area you can view 11,763 great houses and condos for sale at www.KnoxvilleHomeSearcher.com and I will be happy to help you become the owner of one.

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