To buy or rent, that is the question (Knoxville: real estate market, how much)

[FinallyDC]

Hi all,

Moving back to Knoxville (spent 9 years in Knox) this summer after being away for 4 years. My family of 4 (2 year old and 3 month old) will be in Knoxville for at least 3 years with the possibility of 5-10.

Even thinking of a 3 year time frame, we are pretty set in buying a place as the price of renting a home is about the same as buying, in my opinion. Our budget is about 250k and we are looking for a 4BR 2500sqft place.

With that, my spouse will be working near UT's campus and I will be working right off the Papermill exit. We don't want to live more than 20 minute drive from either work place.

I haven't been able to find much info, but how has the real estate market been the last few years and any projections over the next few years? I know the economic downturn didn't devastate Knoxville but it did negatively impact the local economy. However, it seems like the population is growing and numerous businesses are moving into the area.

Any recommendations of what areas to look at? Off Middlebrook, Northshore near 140, across the river from campus, etc.

Thanks and looking forward to my homecoming. Go Vols!

[creeksitter]

Tell us a bit more about your ideal home, lot size & neighborhood.

Old vs new, 1 or 2 story, can the 4th BR be in the basement?

[FinallyDC]

Thanks for the reply. Best case scenario is newer construction (post 2000), 2400-3000sqft, lot size not sure but a decent yard for kids to run around so maybe 7000 (again not sure), prefer a 2 story, and yest the 4th BR could be in the basement.

As for neighborhoods, literally anything a mile or two off of 40 between the Parkway and UT exits. However, we'd like to keep in mind resale as it could be a possibility in 3 years. I know there is alot of development happening on Northshore so that's a possibility but we don't necessarily have to be in a new development.

Hope that helps.

[creeksitter]

You'll find a lot of choices. I tend to think Northshore area will have better resale than Middlebrook area but the homes will be more expensive to begin with. Look both places then calculate how much you'd have at the end of 3 years if you put the house payment difference in the bank.

[FinallyDC]

Thanks for the advice. Everyone has been telling me Northshore is going to look great in a few years.

[oldmanbob]

Congrats and welcome back! The Northshore area is booming and with the new super shopping center will be nice and close. Several area will work and if you shop and stay west of Bearden, can avoid paying city taxes.