It's a great question, and one that we're asked all the time. We're currently at an 8 year low in housing inventory in the Knoxville market and according to the fine folks over at Inman, this is pretty much a national trend. Luckily for us, they also have a pretty good set of explanations.
It boils down to this:
- Capital gains tax.
- Step up in basis (yeah, I didn't know what that was either. Read the article).
- Susatained low interest rates.
- Home value disruption in 2008 and 2009.
- Home values still not at peak.
- Sense that values will continue to climb.
- The "I refinaned into a great interest rate/Where would I go?" dilemma.
- Stunted new development.
It's a good read over your long weekend coffee. Check it out and let us know your thoughts.