HERE’S WHERE WE ARE AT…
The average sales price of homes in Knoxville remained well above what it was at this time last year. That said, we’ve noticed some signs that prices may be starting to stabilize.
When comparing our sales price-to-listing price ratio on a month-to-month basis, it dropped for the first time since January. Also, the absorption rate of homes in our area (how fast homes are selling) also continued its upward trend to a 2.2 months supply. While this number still represents a strong seller’s market, the upward trend indicates that we are moving closer to the 4-month benchmark that many housing experts use to determine whether or not we are in the “buyer’s market” or “seller’s market”.
Typically, when you have a rising absorption rate, a declining sales price-to-listing price ratio, and a higher average days-on-market (compared to this time last year), you also see housing inventory increase. That’s really not the case in Knoxville right now! Our overall housing inventory has remained relatively flat throughout 2023 and is still about 13% below what it was at this time last year.
So, what does this mean? It could be that the demand for housing is starting to soften just a little bit. This is likely due to the rate at which home prices have risen over the past few years and not because there are fewer people who want to buy a home. Potential home buyers could be “waiting things out” to see what happens with interest rates (expected to start coming down at the end of 2023 and into 2024). Others could be waiting to buy because they just can’t afford the ideal home for the lifestyle they would prefer to have.
If you have questions about our housing market or whether or not now is the time to make a move, feel free to contact us.