I promised you a Home Sales Report Blogging Bonanza and a Home Sales Report Blogging Bonanza is what you shall have. So, without further ado, let's take an icy dip into the December Home Sales Report numbers from the Knoxville Area Association of Realtors (you might also know them as "KAAR"). Ready, set, GO!
Wait...is that a VERY late Christmas surprise that I see? If you look closely, you can see that the little dotted red line up there FELL SHARPLY in December 2014. In fact, the housing inventory in the greater Knoxville area is now below 2006 levels, taking it back to the levels of "The Good Old Days." What could possibly account for this? Well, let's see what other gifts are still left under that dried out Christmas tree that we overlooked...
Well, here's one reason. Active listings went down again in December, both year over year and month over month. Fewer active listings is definitely going to lead to less inventory. As you can see, December is not historically the most popular month to list, but we're sitting at at least an 8 year low. This could be because people just don't think it's time to list their home yet OR because they paid more for their homes than they can sell them for OR people rented their homes during the dark days of 2009-2012. It could also be aliens. Seriously, it's hard to know.
Hold up, now Santa, what did you hide back in the corner here? HOLY RUDOLPH, DID CLOSED SALES REALLY JUMP UP ON THE ROOFTOP LIKE THAT IN DECEMBER? Well, that explains the housing inventory drop, I guess. But seriously, sales were at the same level they were at in December 2006, you guys. THAT WAS THE GOOD OLD DAYS. Not only that, as you can see, it's HIGHLY UNUSUAL for sales to jump up in December like that. My explanation? Low interest rates + tight rental market + still pretty good prices = Buyers gonna buy.
So, let's break all this down, shall we?
- Inventory - If it were a shorty, it would be in da club, gettin' low, low, low, low, low.
- Most Pricing - Average & median prices for 2, & 3 bedroom homes and condos were once again all up year over year.
- SALES! - We haven't seen a December this hot since 2006. If sales were a club, the roof would be on fire.
- Bradley Cooper - Have you seen that sniper movie? I'd take him to da club.
- Listings - Meh. I think it's seasonal, but why they're so low overall...possibly aliens.
- 4+ BR Pricing - Average and median prices were once again down for larger homes in December.
- Renting - The rental market is tight, yo. If it were a club, it would be 54 in the late 70s: Expensive, exclusive and hard to get into.
- Crocheted shorts for men. Seriously, no.
- The high October sales and listing numbers remain a mystery, but November seems to have brought the market back in line with seasonal norms.
- Interest rates certainly didn't have anything to do with the dip in sales in November, as many buyers are still locking in at or just under 4%.
- With sales having dropped in November, I'm not saying it's a seller's market, but I am saying buyers may want to start saving up their change for their closing costs for the 2015 Spring Selling Season.
All information provided by KAAR (Knoxville Area Association of Realtors). My opnions are just that: opinions. I'm not really an expert in anything, but I do like to write about real estate.