So weird, it feels like I was just here writing about the September Home Sales Report number...oh wait, that's because I was. But we've got A LOT of catching up to do, so let's unwrap the Christmas gift that was the October Homes Report numbers from the Knoxville Area Association of Realtors (aka, Santa KAAR). To the charts!
When what to my wondering eyes should appear, but a slightly lower red dot and slightly lower housing inventory in October both year over year and month over month! As I mentioned in the September 2014 post, ths has been The Year of Inventory Correction (or was it Pricing Correction? Maybe both. We'll see...), and October certainly didn't disappoint. A lot of the major correction took place early in the year, but we steadily declined or just held steady over the third quarter, and that's just fine by me.
Look! Up there! On the rooftop! It looks like Rudolph (aka the dotted line which represents the active number of listings in the greater Knoxville area) took a big jump in October! Now, as you can see, that's traditinally a very strange month for an uptick like that. I would say it's based mostly on seller/consumer confidence in the market It goes a little something like this:iIf sellers are seeing that homes are selling and prices are good, maybe they put the kiddos back in school, did a little cleaning and decided to try their luck before Christmas. I know I had a number of clients who did just that. In the meantime, we'll definitely keep on eye on this through the end of the year.
Wait...Chirstmas isn't over quite yet! Is that ANOTHER ticked up line that I see? It's a Christmas miracle! That's right, Virginia, October 2014 Knoxville home sales defied seasonal norms and jumped up both year over and AND month over month. I'd say that gets a hearty "Ho, ho, ho!" Again, I believe the reason for this is buyer/consumer confidence. And that goes a little something like this: summer selling season is over (sellers may negotiate more), rates are still hovering around 4%, rents are going up, and if we're going to buy a house, now is looking like a pretty sweet time. And again, we'll keep an eye on this trend over the next two months of data. COME ON FOURTH QUARTER!
So, let's break all this down, shall we?
- Inventory - Still at an 8 year low, still slowly correcting.
- Listings - Listings made a HUGE jump month over month in October.
- Sales - Sales also made that jump. Go, sales, go!
- Pricing - Average prices for 2, 3, & 4 BR homes where all up year over year.
- The weather.
- Justin Bieber.
- Owls (SO 2014).
- Consumer confidence seems to be ticking up for both buyers and sellers, indicating that we may have pretty sweet November and December home sales news.
- Speaking of things that are pretty swee, mortgage rates are still hovering in the low 4's, making buying a much more financially sound decision than renting for a lot of folks.
- Inventory is still low, and buyers are definitely out buying. If you find a house you like, find a good agent, do your homework, and make an offer, because it will most likely be gone by this time next week.
All information provided by KAAR (Knoxville Area Association of Realtors). My opnions are just that: opininos. I'm not really an expert in anything, but I do like to write about real estate.