The Knoxville real estate market differs substantially from the remainder of the state of Tennessee, especially Memphis. The entirety of Knox County has been making at least a superficial recovery in the last few months, although a considerable amount of debate remains upon whether or not the temporary boost will become more permanent in nature. During the second week of July, a record total of 234 home deeds changed hands, although the total dropped to a more normal 156 in the most recent figure. Unfortunately, there is no guarantee whether or not this temporary blip will boost the other components of the Knoxville real estate market, especially in the retail and commercial sectors.
One possible reason behind the short-lived recovery is the eight thousand dollar tax credit offered by the federal government to first time home buyers. According to Realtor Jim Lee, “And as in previous weeks the mid to lower end ranges still dominate the market. The $50,000 to $200,000 price point has been where the action is for most all of 2009 and shows no signs of changing. I believe this market is primarily being driven by first time buyers attracted by the huge selection of homes, stories of great prices, the lowest interest rates in history, and the $8,000 federal tax credit most of them will qualify for.” Overall, though, the Knoxville real estate market has been reeling from the continued effects of the collapsed real estate bubble, both in terms of time on market and overall sales.
According to figures compiled by the Knoxville Area Association of Realtors, the number of units sold plummeted in the two years prior to the present day, while over the same period the amount of time required for a unit to sell increased drastically. This means that houses and condominiums on Knoxville real estate take much longer than the rest of Tennessee. There is something of an odd relationship between short sales and foreclosures and the rest of Knoxville real estate, whereby more hurried and almost desperate sales artificially inflate the sales figures in the region.