The State of the Real Estate Market in Knoxville in 2019
It’s hard to believe it has been ten years since the Great Recession and the collapse of the real estate market. However, in Knoxville, Tennessee it seems surreal that it ever happened. Take a stroll through Market Square or run errands through Turkey Creek shopping center, and it is easy to see the economy in Knoxville is doing well and the result – a strong a real estate market. Forbes recently named Knoxville as a Recession-Resistant City for real estate, along with neighboring city, Nashville, Tennessee. Forbes isn’t the only organization recognizing the southern city. CNBC recently named Knoxville as a top 10 Slump-Proof City, and Livability.com listed it as one of the Top Best Places to Live.
‘After the recession hit, it was a really rough time in real estate. I witnessed people who lost it all, however, the dynamic has changed significantly since then,’ said Knoxville real estate agent, Dustin Weaver. ‘When I first started, foreclosures and short sales were enough to keep anyone busy full time, but now those are few and far between due to the robust economy.’
Dustin is right: The Knoxville housing market is booming. According to the US Department of Housing and Urban Development Comprehensive Housing Market Analysis of Knoxville, TN, the average price for new and existing homes sold was $172,800. Zillow reported a ten percent increase in the home value forecast over the past year and shows an upward trend of 6.5 percent over the next year.
Even though Zillow lists the Knoxville seller’s housing market as ‘very hot,’ it’s affordable. Livability also gave Knoxville a number eight ranking in Top 100 Best Affordable Places to Live. With the median home sales price of $172,800, the estimated monthly mortgage payment in Knoxville would be roughly less than $900. This figure doesn’t include taxes, insurance, or private mortgage insurance (PMI), but is subjected to the down payment along with other variables. Even with those variables, Knoxville’s monthly mortgage payment is less than the national average. (Zillow.com has a great Mortgage Calculator based on national interest rates. Input all mortgage variables to calculate an estimated monthly payment at www.zillow.com/mortgage-calculator.)
In 2017, the United States Census Bureau listed Knox County’s population as 461,860. Knoxville’s ability to provide job security to its residents plays an equally important role in the housing market. The Knoxville area is home to multiple successful, well-established corporations including the US Department of Energy, University of Tennessee, Covenant Health, McGhee Tyson Air National Guard Base, DENSO Manufacturing Tennessee, Inc., and Alcoa Inc. According to the US Bureau of Labor and Statistics, the Knox County unemployment rate was at 2.7 percent in May 2018, down 7.2 percent from 2010. The vitality of the Knoxville real estate market is in large part due to job security and the increasing ability to work remotely.
Dustin went on to say,
‘I have listed many houses that have gone pending within hours of listing or have gone multiple offers and sold well over the asking price. While no city is completely recession proof, it is easy to see why the Knoxville area real estate market has flourished. It is a great area and it has a lot to offer people of all ages.’
Simply put – the Knoxville real estate market is thriving and affordable.
Dustin Weaver is a licensed real estate agent with The Real Estate Firm® in Knoxville, Tennessee. Dustin has been working in real estate for several years and services Knox, Blount, Sevier and surrounding counties. He sold approximately 6 million dollars in real estate in 2018 and has started 2019 off with a bang! Along with his passion for real estate, Dustin loves his family and is an advocate for foster care and adoption. Follow Dustin’s real estate journey and ‘dadisms’ at www.Facebook.com/Realdadrealtor.
Written by Jessica Winspear of New Again Houses® Knoxville