You can get a house at a bargain price now — especially if you play hardball. This is a buyer’s market. Most of the other buyers have vanished since the tax credits on purchases expired.
We’re four to five years into the biggest housing bust in modern U.S. history. We have been lucky in Knoxville compared to other parts of the country and haven’t seen huge price drops but our prices are down.
Will prices fall further? Sure, they could. You probably won’t catch the bottom, but it doesn’t really matter so much in the long haul.
You can get a 30-year home loan for about 4% range on 30 year mortgages. WOW!! What’s not to like? These are the lowest rates on record. As recently as two years ago, they were about 6.5%. That difference in monthly payment is huge.
If inflation picks up, you won’t see these mortgage rates again. And if we get deflation and rates fall further, you can refinance.
When you own, you can have the kitchen and bathrooms you want. You can move the walls, build an extension — zoning permitted — or paint everything bright orange. We love Orange in Knoxville!!
Right now with rates low my buyers are finding they can actually get a better home for less money than renting a home in Knoxville.
What I’m advising my buyers to do if they can afford it is take a 15 year mortgage. Buy something that is comfortable for you both housing wise and payment wise. Then put it on a 15 year note at below 4%. The buildup in equity is huge and when prices do begin to rise again. You could sell the home and have a great deal of equity to put down on the next home.
There is a glut of homes on the market in Knoxville. Our inventory levels are higher than they were a year ago. Put that together with low rates and it makes it a GREAT time to buy.
Demand and supply will meet. Meanwhile, this housing glut will work itself out. he housing market goes in cycles and at some point we will come out of the current market.
If you want some help or have any questions call me at 865-696-9002 or email me [email protected]