2011 ended up about 400 homes below 2010 at this time. In analyzing the sales data for the past few years the 2010 and some of the 2011 data was artificially inflated by the $8,000 tax credit that expired on April 30th of 2011.
That tax credit may have been driving Knoxville area sales by as much as 20% or more. In addition to driving sales it also seems to have encouraged the sale of more lower priced homes (first time buyers) driving the average sales prices down along with the median prices.
I’m hearing a lot of anecdotal positive stories from my fellow Realtors about increased traffic at open houses, more inquiries on listings for sale, and lenders fielding questions about interest rate and mortgage loans.
If all that positive activity continues, then 2012 should be a good year for Knoxville sellers and buyers with both increased numbers of sales and higher average prices since the market will be more balanced with the demise of the tax credit.
Interest rates remain at historic lows and inventory of homes in all prices ranges is plentiful.