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2014 Tellico Homes Sales Same as Last Year

Monday, January 5th, 2015 | Uncategorized | No Comments

The last several years I have written articles on the Tellico Village housing market results, so I’m doing an update on the 2014 market results. The last few years we saw MLS home sales accelerate back to the 2007 sales level of 181 (84 sales in 2011, 144 in 2012, 184 in 2013). Home sales in 2014 were flat, with last year’s sales of 184. Through Dec 17th in 2013, there were 179 closings, and this year was exactly the same, so we should finish the year with about 184. Certain house pricing categories improved, but the major numbers remained the same.

In 2013, 50% of the houses sold for $310,000 and under. In 2014, it was the same. Seventy-five percent of home sales last year occurred below $385k and again was the same in 2014. There was one sale above $1 million this year ($1.04) and one last year ($1.1). However, there were three sales between $900k and $1 million this year versus one sale last year. Also, six home sales occurred between $800-900k in 2014 versus one home sale in 2013. There were also six home sales in 2014 between $700-800k versus five sales last year. There were 32 sales between $400k-699k in 2013, 11 of which were waterfront homes with docks. This year there were 29, 12 of which were waterfront homes with docks. Kahite data isn’t included in the above numbers, but they sold seven homes in 2013 and five in 2014.

So the high-end market showed improvement, mainly at the expense of waterfront lots. Usually we have been selling multiple waterfront lots in the $300 to over $500k each year, but this year we only had one waterfront (dockable) sale, and it was for just under $300k. It appears that many potential waterfront lot buyers in 2014 saw value in the waterfront homes that had been usually significantly reduced from original asking prices and bought them rather than going through the building process.

Another improvement is spec builders coming into our community. There were 66 new home starts this year versus 59 last year. Several builders have come in and are generally building homes in from the high $200s to high $300s. Buyers are snapping them up, often before they are finished. Most popular models are around 2,000-2,200 square feet on the main level with a bonus room/bath above the garage for around 2,400-2,600 total square feet. The other type is the basement rancher with 1,850-2,200 on the main and a lower level that is usually half finished. Third car garages have also proved very popular with buyers.

That is a lot of information to digest but should be helpful to buyers, sellers, and people looking to build. Each summer we have more than 200 homes on the market. So it is still a buyer’s market. There are usually at least 20 homes competing against each other in any price range. The average sale price of the final (not original) listing price is about 6%. Avoid the temptation of overpricing because of a bad offer. You can always work a bad offer versus overpricing it and no offer. Missing time during the prime selling season before doing a price reduction may cost you a home sale. (Seventy-five percent of home sales occur March through October.) Overpriced homes tend to make it easier to sell a correctly priced home, because buyers are using the overpriced one as a comparison. If you bought a home at the top of the market or haven’t updated your home in many years, it may be difficult to get your invested money back. Some people netted less for their homes than they paid for them after closing, generally because they bought near the top of the market.

Also, homes have to appraise for a loan. Often people get confused between appraised value and assessed value. The county assessed value is often not reflective of current values as many lot and homeowners have found out. The assessor generally drives by the home rather than go in it. Therefore, it can in many cases not reflect the true value of the home in today’s market. An appraisal for a loan is different. The appraiser not only goes in the home but then compares it to current home sales in the area. The appraisal tends to be more accurate. Realtors should now have plenty of good comparables for homes in Tellico Village to provide you with an accurate picture of where your home should roughly sell.

A few points worth reinforcing can be determined from the above information. Even though home sales have rebounded, home prices will continue to be under pressure as long as Tellico Village has a large inventory of homes. Well priced homes, especially under $350k but also in higher price categories, should sell fairly quickly, but homes selling above $900k, especially above $1 million, will find it tough to locate buyers based on the last several years of sales. A magazine article ranked curb appeal second, presentation inside the home third, but the single most important item was price. Too often sellers drop their prices too late. Most buyers, besides wanting a deal, have researched the market and tend to be very knowledgeable and look at buying a home as a business decision based on how the home may sell in the future and what costs are required to update the home. Also, many buyers aren’t willing to take on a lot of home projects, so fix some of the areas you have control over like wallpaper or a fresh coat of neutral paint.

If you want more information on the Tellico Village/Kahite housing market or have questions, feel free to contact me.

Alden Williams
Village Realty
(865) 604-3251

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East Tennessee's Mountain Views

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