Well, 2008 and has come and gone, leaving memories and fear of a downward turning economy. Everywhere you go all you see and hear is talks about the gloom and doom of American Economic Issues. However, the majority of this news is referring to the National “Economic Crisis”. Here is TN we have seen no rise in taxes, a fairly stable unemployment rate, and still healthy real estate market. As a whole Knoxville has seen a very slight decrease in the average home price, however this is nothing compared to what other states have encountered.
So why have not as many houses sold this year then? I feel simply psychology is at play, Buyers still want to buy but are either afraid to make the move or are waiting for prices to drop even more.
Buyers, now IS the time to buy and here are two major reasons:
1) There is a good amount of inventory and Sellers who are serious about selling their homes have done the improvements and have their home is ship shape move in ready condition. This gives you as a Buyer a much better opportunity to get into a great home that is move-in ready!
2) Interest rates are low! My family moved to Knoxville, TN in 1985 and our interest rate was 20%!
Well what if prices drop even more? Shouldn’t I wait a bit longer?
This is a risky gamble; right now prices are lower than last year in many areas and so are the interest rates. Let say that you wait a few more months, you are taking a serious gamble that interest rates will drop, or even stay the same. Interest rates have a huge impact on the real monthly costs of owning a home. For example, even a decrease in price as much as 10% is null by just a simple 1% increase in interest rates on a 30 year mortgage.
Let’s put this into perspective a $200,000 at 5.5% interest rate over 30 years would have about the same monthly cost as an $180,000 home at a 6.5% interest rate over 30 years. $20,000 can make quite a difference in the type of house you can get!
Ready to start your home search and take advantage of this unique real estate opportunity in the Greater Knoxville, TN area?
- Don’t let this opportunity slip away, make 2009 the “Year of Great Opportunity”, not the “Year of Regret and Missed Boats”.
- Contact Christine and Jennifer directly at (865) 237-5289 or by e-mail at Christine@HomesForSaleKnoxville.com- we will sent you a short and easy Buyer want/need questionnaire and immediately get you set up to receive free Listing Notifiers/Best Buy List sent directly to your e-mail. Your contact information will never be sold/shared with anyone and you can stop receiving listings at any time.
If you need a list of local recommended lender’s let us know- talk to them about getting set up with an interest rate notifier so you can be notified of low rates to get locked in at.
Thought of the day: If 2009 is such a great time to buy, why should I sell?
Answer: tune in tomorrow….until then…Happy New Year!