These factors have not only increased the value of Knoxville real estate but have turned what was a buyer's market no so long ago, into a seller's market.
Knoxville, TN (PRWEB) February 14, 2013
The Holloway Group, the leading Knoxville real estate team at Gables & Gates, REALTORS has posted a new article on their website titled, "Higher Home Prices, Lower Inventory, What's causing it?"
According to the National Association of REALTORS, the national median home price saw the strongest year-over-year increase in seven years as a growing number of metropolitan areas posted higher median values in the fourth quarter of 2012.
What are the factors causing the price increases of today's real estate in Knoxville and beyond?
1) Attractive affordability conditions:
-Mortgage interest rates are hovering near record lows.
-Quoting NAR President Gary Thomas, "In reality, home prices overcorrected on the downside and homes in most of the country were selling for less than replacement construction costs, which means they were undervalued."
- Lawrence Yun, Chief Ecomomist for NAR stated, "The housing affordability index shows that the national median income of families was almost double the income needed to buy a median-priced home in 2012, so most buyers are able to stay well within their means."
2) Decreasing rent affordability (rising rent prices)
3) Demand for housing:
- The population has been growing faster than overall inventory of Knoxville homes for sale.
- Unsold inventory, nationally, is at the lowest level in 12 years.
4) Job creation:
- Steady job creation leads to more buyers in the real estate market.
Troy Stavros, Broker and Partner with the Holloway Group at Gables & Gates, REALTORS says, "These factors have not only increased the value of Knoxville real estate but have turned what was a buyer's market no so long ago, into a seller's market."
About the Holloway Group at Gables & Gates, REALTORS
The Holloway Group is committed to bringing the best possible experience to fruition for buyers and sellers of Knoxville real estate. At the Holloway Group we don't believe average is good enough for our clients. At the forefront of the Holloway Group is experience. Our team was created to serve our clients even better with specialization and expertise. We know that individually we cannot be everything to everyone so we have come together as a group, bringing all of our different strengths, so you always work with the best. We pride ourselves on being ahead of the curve on technology and how it can serve our clients. When you are a client of the Holloway Group, you can expect to have our entire team of professionals working to fulfill your individual real estate goal. As a member of Leading Real Estate Companies of the World the Holloway Group and Gables & Gates, REALTORS can assist you with finding the most qualified real estate professional to suit your needs, anywhere in the world! Visit our website to search ALL Knoxville homes for sale. Contact us today for assistance.