Expert Real Estate News

2009 Housing Market Predictions

According to the Knoxville News Sentinel, Knoxville home prices fell a mere .5% (one half percent) in October compared to 10.4% across the country. The article said it was a slight improvement over September.

I wrote about the Oak Ridge, Tennessee, third quarter. My numbers showed that there are some “hot” selling houses in Oak Ridge.

There was another good article about home sales in the Sentinel today. It explains the poor numbers for the whole housing market in 2008. It may not be a big surprise that the housing market was worse in 2008 than we knew and, in some cases, the worse in 18 years.

What this means for you if you are selling right now is that if the house prices are going down, which for the most part they are, in order to sell right now, you may have to price your house ahead of the market. Ahead of the market means below the “market price,” which might be that lowest price your real estate agent mentioned in their CMA. Some agents recommend pricing 10% below the market price. The really good news is that you may make up this amount, or make more, when you buy your new house at a discount.

Another news item that will affect home prices is that the rules for appraisers are about to get even stricter. I will be on the lookout, but I could not find an article about this online; it was just announced this week. This will mean your house will have to compare in price strictly with very recent sales, close proximity, and the market trend (meaning if it’s going down, your price may have to be down.)

More good news, though, is the constantly dropping interest rates. Who would have ever dreamed 30 years ago that you could lock in a mortgage rate of 4%? Will they go lower? I have heard a rumor that they may reach 3%!

Well, the prediction articles were hard to find, except in foreign countries, and they decided to quit predicting for now. But, hopefully you have some good, current information to help you make some decisions based on your particular situation. Be wise. Get plenty of professional advice. Listen to your gut. Write down your goals. Review your track record.

http://www.knoxnews.com/news/2008/dec/05/mega-light-show-matched-music/

It just sunk in about where this light show is and how entertaining it is. It appears to be well-worth the $10 per car (12 on weekends). See the link to Knoxnews.com above for all the details. Cathy

My financial advisor, Phil Glasgow, sent this newsletter to us. It explains a lot of what is going on in the economy. I hope you find it helpful. I need to read it more thoroughly and try to determine what it means for our investing. Financial Explanations and Predictions

Have you considered buying a condo in Oak Ridge? It’s amazing how much square feet you can get for under $100,000, if you buy a Wilderness Trace condo in Oak Ridge, Tennessee.

Many of you may not have considered buying one, but you get almost 1,700 square feet (and there is over 1800 square feet counting the first floor hallway), 3 bedrooms, 2 ½ baths, and a big one-car garage, which if you have been looking in Oak Ridge, you know are hard to come by. Amazingly, there is also a workshop area!

Now, if you can’t do stairs, don’t buy it. But, if you want the space of a roomy house for the cost of a tiny one you should call your real estate agent today and schedule a showing for 72 Valley Forge, Oak Ridge, TN 37830. Give your opinion.

See more information about 72 Valley Forge

Here are the numbers for the third quarter 2008 in Oak Ridge, Tennessee. The number of houses sold decreased by 11%, but it was a slight increase over the first quarter. The average sale price has actually increased each quarter this year, and the average days on market have reduced. The houses with 2000-2499, 3 bedroom, 2+ baths have been the most difficult to sell this year. In the third quarter, however, there was a drop in the price of those houses, and they sold quicker. The three best selling house sizes are:

• 1000-1499 sq. ft., 3 bedroom, one bath, but the price of those houses have dropped about 3%
• 1500-1999 sq. ft., 3 bedroom, two bath,but the price dropped 15% over the 2nd quarter
• 3000-3999 square foot house, those houses saw a 17.5% increase in average sale price