Real Estate Slump in Tennessee? (Knoxville, Chattanooga: cul-de-sac, foreclosure, condos) - (TN) - Page 2 - City-Data Forum

gemkeeper · 02-26-2008, 07:19 PM

Great common sense, Hik!

knoxgarden · 02-26-2008, 07:56 PM

We aren't having the big drops in Knoxville because we never had the big highs. The market just sort of plods along with a few ups and downs, just like the local economy. People don't come to Knoxville to get rich quick.
I think downtown lofts have gone too high and will come down, both rents and sales prices. I'm seeing small-time investors selling off rentals and having to do a lot of upgrading before they can sell them.

mbmouse · 02-26-2008, 08:03 PM

I think GBH is right, it seems to be different from neighborhood to neighborhood. For example Johnson City was just last week put on the "declining market" list but just up the road in Kingsport they saw the same equity growth as last year and prior years. In Commercial (down town city buildings) there was huge value growth in the past 8 months. Then again, that has to do with a lot of revitalization in the city and several HIGH dollar homes(over million range) in JC being sold for much less than listed.......so who knows.

goodbyehollywood · 02-26-2008, 08:36 PM

Well, I'm not so smart-- I bought in Knoxville at the top of the market. But I sold in CA near the top of that market, so it all evened out. It's really irrelevant, if you're in it for the long haul, and I think most people agree that the time for flipping has come and gone. I would've liked to have waited to buy in Knoxville, but I found a unique property that met my specific and rather unusual needs, and there were multiple offers, so it was buy it or lose it.

I bought a building lot at the "top" of the market here, too. Only it's gone up 50% since then. Which brings me full circle to mbmouse's point that some neighborhoods are still going up, while others just down the road are experiencing a decline. I, personally, still see value in some parts of Knoxville. Others, much less so. But that's JMO.

gemkeeper · 02-26-2008, 09:39 PM

I hope by the time we can sell our house here outside Atlanta, the market is still reasonable stable in Knoxville.

I can't help but think that since we will be cash buyers it might make sense to buy in TN at the low end even with our house unsold here. We won't be handling two mortgages and it is $$ that will be spent either earlier or later.

We are in the fortunate position of not having to "dump" our current house and get out the best we can. We are able to wait things out. The only push is our desire to move and get settled in E. TN.

TnHilltopper · 02-26-2008, 09:46 PM

Is there really a such thing as a real estate slump?

There are growing predictions that the national housing price average will fall by 15-20% before it is all said and done. Some will point to the fact that the housing market in many areas was just simply way over priced to begin with. Other places such as in more rural areas, the prices remained much more stable. What we are seeing right now is a market correction and a culling of bad investments and poor financial fundamentals.

This latest bubble or housing cycle produced quite a bit of income for some people and left others on the tail end short, looking at a reset in their ARM and in some cases a doubling of their mortgage payment.

Even with the market in the state it is in, there are those with impeccable credit and substantial assets that will be able to march in and gobble up what will be a buyers bonanza soon. Especially those looking long term, which residential real estate has historically tended to be.

Makes a person wonder about the precision in the timing for the changing of the bankruptcy laws doesn't it?

However, for those folks who are looking to buy real estate as their primary investment and residence, then all of what is taking place should not matter as much. If you find a piece of land or a house that you love, suits your needs, and fulfills all your requirements then there is that intangible that is worth the added cost. Just keep in mind, the happiness you receive from something you purchased pales in comparison to the happiness of something you have created. Don't buy a house, create a home.

gemkeeper · 02-26-2008, 09:54 PM

Very well put, TnHilltopper. It is, afterall, a home that we are interested in. I am speaking for anyone moving into a new area, I believe. A house, we have, but we are seeking a home.

(Doggone it, can't give out anymore rep for a bit!!

I'll get back to ya!

)

TnHilltopper · 02-26-2008, 10:10 PM

Quote:

Originally Posted by gemthornton

Very well put, TnHilltopper. It is, afterall, a home that we are interested in. I am speaking for anyone moving into a new area, I believe. A house, we have, but we are seeking a home.

(Doggone it, can't give out anymore rep for a bit!!

I'll get back to ya!

)

I suspect your move from metro Atlanta to even the bustle of Knoxville will be one of great shock. It is like having a large weight lifted from ones chest to get out of the fast lane, set the cruise control and just heave a great sigh, and relax a bit.

I have traveled extensively over two hemispheres, a number of foreign countries, and most of the states here in the good ole U S of A, and I can say with some certainty that there is a cadence to the way of living here in Tennessee and in Appalachia that is lacking in so many other areas. Its one of those things that is best experienced and never quite explained. I wouldn't trade the home I have made for all the tea in China.

gemkeeper · 02-26-2008, 10:25 PM

That is good to hear, TnHilltopper. Our intent is to have the life that you describe - the life we have been preparing for so many years.

I am no stranger to Appalachia having grown up in northern Appalachia. I have said many times that the emotional draw to E. TN is that it is so much like my childhood homeplace with good, friendly neighbors.

Having been born and raised in the mountains of PA and living a small-town easy-going life were the staples of my childhood. I know that it served me well then and know that is the kind of place that I intend to spend the rest of my days.

Tennessee fits me like a comfy old slipper. It feels like my homeplace and I think I will fill an empty slot there.

hiknapster · 02-27-2008, 05:13 AM

Quote:

Originally Posted by gemthornton

I hope by the time we can sell our house here outside Atlanta, the market is still reasonable stable in Knoxville.

I can't help but think that since we will be cash buyers it might make sense to buy in TN at the low end even with our house unsold here. We won't be handling two mortgages and it is $$ that will be spent either earlier or later.

We are in the fortunate position of not having to "dump" our current house and get out the best we can. We are able to wait things out. The only push is our desire to move and get settled in E. TN.

What's the rush? Aren't you out in the country? What is so horrible about your area?

I'm not being argumentative. I'm really curious.