"Even Though Buying a Home in Knoxville Isn't as Cheap as It Was 6 Months Ago, There Are Reasons Why Now Is the Time To Buy" - New Article by Holloway-Westerling Group
Knoxville, TN (PRWEB) July 17, 2013 -- Was buying a home in Knoxville cheaper six months ago? Yes. Is it still a great time for buying a home in Knoxville? Yes.
Limited inventory and rising prices have created a seller’s market in Knoxville and buyers are competing fiercely for homes, even to the point of bidding wars, but that doesn’t mean that it’s still not a great time for buying a home in Knoxville.
Here is why:
Home Prices Are Still Rising. Because the housing market bottomed, reaching its lowest point in March of 2012, the price gains seen recently still leave plenty of room for the home values to climb. What is causing the rising prices? Lack of supply, which is the result of slower homebuilding activity, diminishing foreclosures, and sellers slow to come to market while waiting for prices to increase further (much of this is because sellers who purchased during the height of the market owe more on homes than the current value).
Rates Are Low By Historical Standards. Mortgage rates, currently hovering around 4.6 percent, have increased by a full percentage point since May – but are still lower than just two years ago and far lower than the long-term average of about 8 percent.
Getting A Home Loan Is Somewhat Easier. Because of the rising interest rates, less people will be refinancing, making banks more willing to work with homebuyers. Don’t get me wrong, the days of the “no-documentation”, “no down payment” days are long gone, but credit is available for borrowers who are qualified.
Owning A Home Is Still Cheaper Than Renting. Even taking the recent price and rate increases into account, it is cheaper to buy than to rent in all 100 of the largest real estate markets, according to an analysis by Trulia.com. Nationwide, assuming a buyer stays in a home for at least 7 years, it is 37 percent cheaper to buy than to rent. Actually, studies show that in 78 of the largest 100 markets, rates would have to more than double to over 10 percent for markets to tilt in favor of renting.
Investor Competition Is Decreasing. Many of the factors stated above are driving investors out of the market. The reduced amount of foreclosures coupled with rising prices are making investors lose interest. Chief Economist with the National Association of Realtors, Lawrence Yun stated, “Investors are recalculating their numbers, because it might make less sense for them to buy in order to flip or rent now. That’s an opportunity for primary owner-buyers to have less competition and still a historically favorable environment, even if affordability is weaker.”
Troy Stavros, Broker with the Holloway-Westerling Group at Gables & Gates, REALTORS stated, "As you can see, it’s still a great time for buying a home in Knoxville. But make no mistake, prices are still increasing and rates may as well. The sooner you can buy the better."
About the Holloway-westerling Group at Gables & Gates, Realtors
The Holloway-Westerling Group is committed to bringing the best possible experience to fruition for buyers and sellers of Knoxville real estate. At the Holloway-Westerling 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-Westerling 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-Westerling 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.
Troy Stavros, HOLLOWAY GROUP, http://www.hometeamknoxville.com, 865-236-1333, [email protected]
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