Few were braced for a market correction lasting this long. The latest Standard and Poor’s Case-Shiller index shows that prices have hit a new market low, values declining back to levels not seen since 2002 nationally and in some regions, prices are back to levels not seen since the 1990’s.
And just like the stock market, when prices decline to a level which represents value, it is indicative that it is indeed the time to buy before home prices begin to creep upward. And in the East Tennessee market, we believe that to be the case. Naturally we can only guestimate the exact bottom of this market but for a long term purchase, the real estate buyer who pulls the trigger NOW and makes that purchase is going to be happy they capitalized on the downturn and took advantage of solid values in the marketplace.
Enters the upturn.
16 million new housing units will soon be needed to meet population growth and shifting demands, according to Harvard University’s Joint Center for Housing Studies in its latest annual "State of the Nation's Housing" report.
Predictions are that we will see distressed properties taper off and our market begin to revive itself. As more inventory decreases, real estate prices will steady. Once the inventory lessens, prices will begin to inch upwards as supply and demand takes a reverse role. With the evolvement of many Baby Boomers retiring and looking to relocate to specific regions of the U.S. (East Tennessee being among the top 5 choices) – this has and will continue to provide a steady stream of buyers into the market place as there is a definite migration pattern occurring in certain areas of the U.S, primarily East Tennessee.
Over the longer term, the number of younger households is set to rise sharply, supporting growth in the population that fuels growth in both new renters and first-time buyers. The report also predicts a need for greater housing units for several reasons. For example, the report projects demand for 1 million new homes a year is needed to meet population growth in the coming decade. The report also predicts a surge in smaller homes, estimating that 3.8 million baby boomers will be looking to downsize their homes within the next decade. Also in adding to the increase in housing units needed, Immigration growth, the need to replace existing homes, and demand for second homes will contribute to rising demand, the report notes. Therefore, researchers conclude at least 16 million new housing units will soon be needed.
We have witnessed a shift in the East Tennessee housing market to accommodate the demand for long term rental housing, especially in and near Pigeon Forge, Tennessee, Sevierville, Tennessee, as well as other areas like Knoxville, Tennessee. East Tennessee Realty Group averages upwards of 10 calls per day from prospective lease tenants looking for long term rental property in the Sevier County, Tennessee area. Sadly, most stories are the same. They come from the Northern region where industries have taken a punch resulting in job loss, and the loss of housing. They come to this area seeking employment and new start but can't buy due to the blow to their credit thus, they are forced to rent.
East Tennessee Realty Group has been soliciting property owners of vacation property to convert their property to long term rental, especially those that may be experiencing a higher vacancy rate. We are also encouraging investors to pursue long term rental property. East Tennessee Realty Group offers full property management services from marketing to background checks for absentee owners. We are taking the necessary steps to transition with the ever changing market and continue supporting our growing clientele and customer base. Customers know where to turn for help with their real estate needs as East Tennessee Realty Group covets the reputation for going above and beyond the call of duty to take care of our clients and customers.
If you own a property and would be interested in converting it to long term rental we would be glad to work with you. If you are looking for a solid real estate investment, we encourage you to consider the long term rental market. Contact East Tennessee Realty Group for more information 865-774-7764 or email to: info@easttnexperts.com
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