The old adage of supply and demand is at it again. Home prices are on the rise because the number of Knoxville homes for sale continues to dwindle.
Knoxville, TN (PRWEB) January 31, 2013
The Holloway Group, the leading Knoxville real estate team at Gables & Gates, REALTORS has posted a new article to their website titled, "Where Are All The Houses? The Reasons Behind Shrinking Inventory".
Troy Stavros, Broker and Partner with the Holloway Group states, "The old adage of supply and demand is at it again. Home prices are on the rise because the number of Knoxville homes for sale continues to dwindle." According to the latest research numbers from the National Association of Realtors, the inventory of homes for sale dropped 8.5% from November, 21.6% from one year earlier, and is at the lowest level since January of 2001.
So why are we seeing inventory of Knoxville homes for sale drop? Here are the reasons:
- Many homeowners still owe more on homes than the current market value and are not willing to bring money to the closing table.
- Many homeowners who might typically be looking to "trade up" have lost the equity necessary to do so (home equity in a primary residence, built over time, is usually the main source of down payment funds in a trade up situation).
- Sellers, feeling the market and prices are still close to bottom levels, are waiting in hopes of selling at a higher price in the future.
- Investors (individual and institutional) are buying homes in bulk and renting them, instead of putting them back on the market for sale.
- Banks are approving more short sales and loan modifications, leading to smaller numbers of foreclosed homes hitting the market for sale.
- Tight lending guidelines for builders have limited the number of new homes hitting the market for sale.
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.