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Nestled in the state of Tennessee, Knoxville has always been a city of interest to potential homebuyers. But with the constant ebb and flow of real estate dynamics, where does the Knoxville housing market stand in 2023? This article unpacks the current state of affairs.
Knoxville’s Seller’s Dominance: An Overview
The word on the street is clear: Knoxville is predominantly a seller’s market. But what does this mean for potential homebuyers and sellers?
In a seller’s market, demand outpaces supply. Homes not only tend to sell faster but often at higher prices. This trend isn’t new for Knoxville. In fact, since September 2022, the city has remained consistently favorable to sellers.
Unpacking the Numbers: Housing Prices
One of the most telling metrics of any real estate market is its median sold price. For Knoxville, the median as of September 2023 stood at a commendable $343,448, with a rate of $203 per sqft. This reflects a significant jump of 25.7% or $70,111 from the previous year.
Breaking it down further by bedroom count:
- 1 Bedroom Homes: Witnessed a 7.9% hike, selling at an average of $188.7K.
- 2 Bedrooms: These homes saw a 17.5% rise, with a new average price of $235K.
- 3 Bedrooms: Priced at an average of $330.7K, marking an 18.6% increment.
- 4 Bedrooms: Experienced a notable 26.2% surge to $499.4K.
- 5+ Bedrooms: Rounded off the list with a 21.1% increase, selling at an average of $650.7K.
For those considering relocation or investment, it’s worth noting how Knoxville stacks up against neighboring cities. For instance, Alcoa observed a 23.2% price increment, while Strawberry Plains and Farragut recorded 11.5% and 9.5% hikes, respectively. Powell experienced a more modest growth of 5.5%.
Housing Supply: What’s on the Market?
In September 2023, Knoxville boasted 1,704 homes for sale, slightly up by 0.3% from the previous month. But the numbers vary when classified by bedroom count:
- 1 Bedroom: 3.7% increase
- 2 Bedrooms: 2.4% decrease
- 3 Bedrooms: 0.9% increase
- 4 Bedrooms: 0.6% decrease
- 5+ Bedrooms: 4.3% increase
Sales and Negotiation Dynamics
September saw 398 homes changing hands, marking a 20.9% dip from August. Here’s a silver lining for buyers, though: a considerable 45% of homes sold under their asking price. Meanwhile, 22% met their asking price, and 34% surpassed it.
Patience Pays: Days on Market
One metric that caught our eye is the average time a house spends on the market before being sold. In September 2023, homes lingered for an average of 131 days, marking a staggering 445.8% hike from 2022. This could imply a growing reluctance among buyers or a potential mismatch between asking prices and what buyers are willing to pay.
Conclusion:
Knoxville’s real estate landscape in 2023 is an intriguing mix of traditional seller’s market characteristics interspersed with hints of buyer leverage. While sellers enjoy higher prices and quick sales, the extended days on market suggest there’s room for negotiation.
Whether you’re a homebuyer seeking a good deal or a homeowner contemplating selling, understanding the nuances of Knoxville’s housing market can position you for optimal success.
