The Knoxville real estate market is one of the most exciting places for today’s investors to acquire properties.
Real estate in Knoxville is expected to appreciate at a rate of nearly twice the national average over the next year.
Knoxville real estate investing has seen its participants double their ROI in the first part of 2019.
It isn’t the least bit presumptuous to suggest the Knoxville real estate market may be one of the hottest real estate markets in the country. The city’s close proximity to Nashville and relatively affordable home prices are responsible for an influx of demand that few other cities can compete with. Knoxville real estate investors, on the other hand, have enjoyed an incredible run since the calendar turned to 2019—to the tune of doubling their return on investments, nonetheless. That said, there are very few markets with more promising fundamentals than Knoxville, and there’s nothing to suggest the city won’t be trending in the right direction for the foreseeable future.
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Median Home Price Knoxville
In one year’s time (April 2018 to May 2019), the Knoxville real estate market saw median home prices increase by as much as 9.2%. Real estate in Knoxville has been on an incredible run to say the least. To put things into perspective, the median home value in the United States increased 6.1% over the last year. Despite the disparity in recent appreciation rates, however, the median home value in Knoxville is considerably less than the national average, $173,900 and $226,800 respectively. Nonetheless, expect Knoxville to make up even more ground in the coming year. Thanks to its close proximity to Nashville and more buyer-friendly prices, Knoxville has seen an influx of demand that will most likely push prices higher for the foreseeable future. It is reasonable to expect home values in Knoxville to increase by as much as 5.4%, or nearly twice the rate of the national average over the course of next year. If trends continue how industry pundits suspect, there’s a good chance the median home value in Knoxville could reach $183,000 by this time next year.
Knoxville Foreclosure Statistics
According to RealtyTrac, a nationally recognized real estate data company that specializes in foreclosure data, the Knoxville real estate market has approximately 142 properties that fit the description of a distressed home (default, auction or bank owned). At that rate, the number of distressed properties in Knoxville is relatively low, and apparently dropping as the city distances itself from the last recession. According to RealtyTrac’s most recent data, the number of properties that received a foreclosure filing has dropped month-over-month and year-over-year, 57% and 35% respectively.
It is worth pointing out that the overwhelming majority of distressed properties identified by RealtyTrac are auction homes. As their names suggest, auction homes have already been repossessed by their loan originators and are either currently up for auction to the highest bidder, or will be at some point in the near future.
Auction homes represent a unique opportunity for Knoxville real estate investors, as long as they know where to look. That said, here’s a breakdown of the neighborhoods in Knoxville with the highest distribution of distressed properties:
37924: 1 in every 1,073 homes is currently distressed
37914: 1 in every 2,456 homes is currently distressed
37909: 1 in every 2,540 homes is currently distressed
37918: 1 in every 3,831 homes is currently distressed
37921: 1 in every 4,046 homes is currently distressed
Knoxville Real Estate Investing
Knoxville real estate investing has enjoyed what many are calling a resurgence in the local housing market. Thanks, in large part, to its close proximity to Nashville, the Knoxville real estate market has experienced an uptick in demand from those who want to escape the higher prices of its neighbor to the East. At the moment, buying real estate in Knoxville appears to be a good investment, as homes are still relatively affordable and there appears to be plenty of demand. At the very least, owners shouldn’t have any trouble finding buyers for their homes. According to Zillow, real estate in Knoxville lasts an average of 62 days on the market, which is three days shorter than the national average.
The Knoxville real estate market is about as hot as anywhere else in the country, especially for local real estate investors. In addition to a relatively low “days-on-market” indicator, real estate in Knoxville is expected to appreciate at a rate of more than twice the national average over the next year. Opportunistic Knoxville real estate investors should be able to capitalize on extremely favorable market conditions for the foreseeable future. In fact, many local real estate investors have already seen incredible returns.
The Knoxville real estate market was one of eleven markets where investors doubled their return on investment (ROI) in the first quarter of 2019. According to Attom Data Solutions, the markets with the highest average gross flipping ROI “were Pittsburgh, Pennsylvania (131.2 percent); Flint, Michigan (127.6 percent); Shreveport, Louisiana (112.5 percent); Scranton, Pennsylvania (112.0 percent); and Knoxville, Tennessee (105.0 percent).
Knoxville Real Estate Market Summary
Real estate in Knoxville is amongst the most coveted assets in the country. Thanks to a unique combination of relative affordability and increasing demand, local real estate investors have found the Knoxville real estate investing environment to be incredibly welcoming. Few cities, for that matter, have been able to reward investors with a higher return on investment in the first part of 2019 than Knoxville. Conditions have been so favorable, in fact, that Knoxville is one of just eleven markets in which real estate investors have been able to double their ROI since the beginning of this year. As a result, the Knoxville real estate market belongs in the conversation with today’s best places to invest.
Have you thought about investing in the Knoxville real estate market? If so, what are you waiting for? We would love to know your thoughts on real estate in Knoxville in the comments below.
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