With the start of the New Year, people often make predictions of what the year will hold. With 2013 being a solid year for the Knoxville real estate market, it can be easy to wonder what 2014 will hold for the real estate market. Here are a few predictions from Knoxville Home Team on what 2014 might mean for the Knoxville real estate market.
Knoxville Real Estate Market Prediction #1 – Interest Rates Will Rise
During 2013, mortgage interest rates slowly rose from their historically low levels. During 2014, it can be expected that mortgage interest rates will continue to slowly increase. Historically, as the economy improves, mortgage interests tend to increase. For anyone considering buying a Knoxville home in 2014, it is important to keep in mind mortgage rates are still historically low.
Knoxville Real Estate Market Prediction #2 – Increase in Housing Inventory
During 2013, at times, the Knoxville housing inventory was limited. 2014 should see an increase in Knoxville homes on the market, particularly during the spring and summer months. With the economy slowly improving, home prices increasing, many homeowners will start putting their homes on the market, which will mean an increase in homes on the market. The Knoxville market can continue to expect to see a mix of foreclosures, short sales, and traditional sales as the market continues to recover.
Knoxville Real Estate Market Prediction #3 – Homeownership Will Remain More Affordable Than Renting
Over the past few years, owning a Knoxville home has been considered cheaper than renting. In some large national markets, this may not continue to be the case, but in Knoxville, owning a home will continue to be more affordable that renting. Knoxville enjoys a lower cost of living that many areas around the country, which helps contribute to this as well.
Are you thinking about buying or selling a Knoxville home this year? If there is anyway Knoxville Home Team can assist you, please let us know, you can give Rick at call at 865-696-9002 or send an email to [email protected]. Kati can be contacted at 865-392-5880 or via email at [email protected].