Remember back when it was cold? And there was lots of snow on the ground? And ice and stuff? Yeah, me neither, but that was the month that was February. And for an ice cold month, home sales in Knoxville, at least according to the Knoxville Area Association of Realtors (street name: KAAR) ,February Home Sales Report, were pipin' hot. Check out these toasty charts!
Royal blue is the colored line to watch in 2015 and this line is giving us plenty to look at. It represents the months of housing inventory in the greater Knoxville area, and as you can see, it was DOWN in February. And yes, that's not unusal for that time of year, but we're still at an 8 year long inventory low. Yowza.
This royal blue dot represents active listings, and as you can see, they were slightly down in February, which is one reason for the continuing low inventory. But what's the other reason? Oh yeah....
SALES! Sales were WAY up in February both year over year and month over month. Or, like I said earlier, PIPIN' HOT. Closed units were on track with 2008 and 2013 numbers, and both of those were pretty good years (well, at least for the beginning of 2008). It will be VERY interesting to see how sales track the rest of the year, considering the lack of inventory. It will also be interesting to see how home prices repond to increased sales and lack of inventory. Speaking of which...
- Inventory - The temperature may be rising, but housing inventory isn't.
- Pricing - Average and median sales were up almost entirely across the board, with the average price of a 3 BR home up over $17,000 year over year. Yeah, I said almost $20,000.
- SALES! - Sales continue to be up year over year and month over month, and we're not even into Spring Selling Season numbers yet. I can't wait!
- Rates - They're still below 4% and I actually had a client lock in under 3.4% last week. Fo shizzle.
- My cats - I mean, they are seriously too fat and furry for this unseasonably warm weather.
- Listings - We're starting to see more homes come on the market now that Spring is here, but the good ones are going fast.
- Rentals - The rental market remains tight, with renters unable to find suitable homes to rent.
- FHA Loans - With (more) new 3% conventional loan products with fewer fees, FHA is is starting to look VERY 2014 all of a sudden.
- Nelly - Seriously, dude? No one is hot enough in herre to take all their clothes off for you anymore.
- We have a perfect storm of low inventory, lack of rentals, motivated buyers, and low interest rates. I think this may lead to a pot of gold at the end of the Spring Selling Season rainbow.
- Speaking of rentals...there's no doubt that a lack of rentals and availability of low down payment financing is pushing first time buyers into the market. It should be interesting to see how the rental market vs. buying market plays out in Knoxville over the rest of this year.
- My Spidey senses aren't tingling about a Seller's Market...yet. However, with houses flying of the shelf and multiple multiple offer situations occurring daily, that tingle could come at any moment...
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.