Market Update – April 2011
Welcome to my East Tennessee Real Estate Blog for April 2011 which looks at and reports on the East Tennessee Real Estate Market. I will be updating the Blog routinely with information that I think may be useful to you as another tool to help in your ongoing real estate plans and management.
If this is your first visit to this Blog our market region is broken up into three components, a north region, an east region and a west region. The east and west regions are divided by the Tennessee River.
The North region generally takes in all of Roane County as well as some of south Anderson and a portion of Loudon County.
The West region encompasses all of Rhea County, areas of North Hamilton, Eastern Bledsoe and East Cumberland Counties.
The East region covers all of Meigs County as well as parts of North Hamilton (on the east side of the river) and Western McMinn County.
In April, our market shows signs of moving in the positive direction. After months of near stagnant growth, the recent activity shows that buyers are coming back to the market. There are a number of reasons for this not the least of which is that interest rates, while fluctuating down slightly this month are tending a slow but steady rise and buyers are beginning to understand that the interest rate bottoms have passed and the time to get back in is now ahead of rates rising higher. Interest rates are still relatively stabile at near historic lows but are beginning to trend up with the current rate for a 30 year fixed conventional loan at 4.78%, down from 4.8 percent a week earlier and 5.06 percent a year ago. The rate for a 15 year loan meanwhile, dropped down to 3.97 percent from 4.02 percent the prior week and 4.39 percent during the comparable period of 2010.
In addition to the change in interest rates, buyers are also seeing the inventory levels drop, with that happening and the number of properties in a wide range of prices beginning to sell, the mentality that “the house will be there and there is no rush” is beginning to result in missed opportunities. This is creating the beginnings of a sense of urgency from buyers to act when they find a property the want.
Mortgage lenders and banks have also started to relax some on the tight requirements that are needed to qualify for a loan and there are also a number of new programs that are entering the market that can assist both the buyers with a long term financial history and the first time buyers that are beginning to build there financial base.
If you are in the buying mode and you are looking at East Tennessee, my advice is the time to be making decisions is now. If you are in the selling mode and located in East Tennessee, our recommendation would be to seriously consider getting your property on the market.