How to decide if you should buy or sell in the current real estate market
Real estate markets across the country have been moving fast lately. The whole economy is volatile, in fact. This makes it tough to know whether you should buy or sell a house now or wait for better conditions. So, is Knoxville a buyers or sellers market and what should you do?
In the last few years, booming markets drew lots of attention to the market. Nearly every state had low supply across the country and sellers were making profits. Those conditions can quickly change, however. The last 12 months have shown this to newcomers in the real estate market.
Just a year ago, interest rates were also at record lows. But today, mortgage rates are jumping and pushing people out of the market. In addition, the National Association of Realtors showed that pending home sales around the country dropped in the last few months.
All of these crosscurrents can make it confusing to know what real estate decisions you need to make today.
What’s a buyers market versus a sellers market?
To help you understand your real real estate options, here’s the difference between a buyers and sellers market.
A buyer’s market is when conditions move in favor of buyers. This can mean a lot of things, but a huge indicator is supply. When the supply for homes is greater than demand, it’s a buyers market.
On the other hand, a sellers market shows conditions that favor sellers. This often means low supply and high demand. When sellers have many offers, they’re in the advantage for negotiations.
Before you make any real estate transactions, you want to know if you’ll be at an advantage. So, is Knoxville a buyers or sellers market?
Is Knoxville a buyers or sellers market?
Like much of the country, supply in Knoxville is growing and demand is decreasing. But the scales haven’t completely tipped yet. Knoxville is a popular place to live and even with increasing supply, demand is keeping up.
In addition, the whole economy is currently quite volatile. Market conditions have changed quickly in just the last few months.
Part of the shift from a sellers market to a buyers market is rising interest rates. Rate hikes from the Fed have pushed mortgage rates as high as 7%. These changes in the larger economy are making it more difficult for buyers to afford a home.
So, even though supply is up, there are also fewer buyers in the market. This, on top of everyone wanting to live in Knoxville in 2022, reveals a strong sellers market. Realtor.com shows demand still outpacing supply, indicating a sellers market. Rocket Mortgage also shows a sellers market.
However, most experts agree that Knoxville may begin to move in favor of buyers in the near future. Especially if the entire real estate market continues to soften.
Buying a house in Knoxville
If you want to buy a house in Knoxville, this is a pretty good time to start house hunting. Everyone wants to live there and supply is currently starting to free up.
Plus, if you’re looking for exclusive, off-market deals you won’t find on the MLS, you have options.