Hardin Valley Real Estate Market
The Knoxville Area Association of REALTORS recorded 715 homes sold in the Hardin Valley zip code of 37932 in 2021. That’s 29 more homes than sold in 2020. Let’s break down the data to learn more about the real estate market in our area.
The Mountain and Valley
The title of Mountain or the most expensive home sold in Hardin Valley belongs to 3101 Stephens Landing Way. Closed on November 19th for $2,695,000, which is more than double last year’s mountain. Despite being on the market for 91 days, the sellers remained firm on the price and it paid off with a 100% list price sale. This sprawling two story basement home is set on a 1.71 acre lot and checks in at 8,611 sq ft with 4 bedrooms and 4 ½ baths. Take a dip in the pool or do a cannonball off of the dock into the Clinch River!
The Valley or the least expensive house sold in 37932 is 1316 Whittbier Dr in Wellingtom West subdivision just off of Hickey Rd near the Plumb Creek Park. Sold for $131,000 on the 2nd of April, the listing stated that it needed some TLC. With 3 bedrooms and 2 full baths on ⅗ of an acre, it likely could be sold again just 8 months later for a significantly higher price even without repairs or remodeling. The seller accepted a cash offer on the same day it was listed.
The dash refers to the other 713 Hardin Valley homes sold in between our Mountain and Valley this past year.
$200,000 and under: 33 (45 in 2020)
$200,001-$300,000: 81 (125 in 2020)
$300,001-$400,000: 235 (305 in 2020)
$400,001-$500,000: 196 (131 in 2020)
$500,001 and above: 170 (71 – 500k+ in 2021)
The median sale price was $403,008 (up 10.1% over 2020). Overall, our housing inventory remains young; 310 (43%) of the houses that transferred ownership were built in 2020 or 2021. This is a slight decrease of 2% from last year but still represents over two out of every five homes sold in Hardin Valley.
Focusing on the remaining 405 resold homes in 37932, listings were on the market for 13 days on average (median of 3 days) prior to receiving an accepted offer, a full two week decrease from 2021’s 27 days on market (median of 8 days).
If you feel like most homes sell within a weekend, you are correct. The most frequent number of days on the market was 1 day (81 sales) followed by only 2 days (72 sales). While this leaves very little time for buyers to think through making an offer, it has never been more convenient to list and sell a home because you only have to keep it clean from Friday to Sunday and it will be time to start packing before you know it. Considering selling? We are here to help!
What should you offer??
A comparison of list price to sale price for Hardin Valley homes built in 2019 and before revealed a ratio of 101.1%. Using the 37932 median price of $403,008, a 1.1% price increase is a rise of $4,446.66 over the list price.
Nearly 2/3 of all resold homes in Hardin Valley sold above list price. The average purchase price went over by $17,900.24. Keep this number in mind if you are competing for a home or if you are selling and don’t want to leave money on the table.
The largest offer over list price was $100,525. Originally marketed for $150,000, 10117 Wolf Den Ln closed for $250,525. Not surprisingly, it back on the market after being freshened up for $375,000 (link to the new listing).
As displayed in the infographic above, Hardin Valley is seeing an increasing percentage of homes being sold in the $400,000-$500,000 (27.4%) and the $500,000+ (23.8%) categories, which were only 19% and 10% respectively in 2020. This is equally due to homes appreciating at an unprecedented pace and newer, more expensive homes/subdivisions building out this demographic.
Also, some of the builders in 37932 are transitioning to spec homes. A spec home (short for speculation) is when a builder begins construction and chooses finishes prior to having a contract to purchase. While theoretically more risky, builders are making the most of the backlog of buyers to make the construction process more efficient and profitable.
One of the perks of buying a new construction home in a hot market is the appreciation gained from paying today’s price 4-6 months from contract execution. With builders turning to spec homes, buyers are not only missing out on the appreciation, they are again finding themselves in multiple offer situations and paying over list price for the same home.
Nationally, economists are anticipating a cooling down of the real estate market from the previous couple of record breaking years. This should not be interpreted as the financial cliff we all fell off beginning in 2008 but rather this is part of the historical rise and fall of real estate markets and we are coming down nationally from the peak of tremendous growth. The biggest trigger to set the decline in motion will be the rise in interest rates. If the interest rates don’t increase, I largely expect the party to continue.
Locally, we (Tennessee, Knoxville and Hardin Valley) should expect to do better than the rest of the nation because we are a destination for those in the exodus from California and the North. While there has always been an appeal to living somewhere beautiful with a lower cost of living, the most recent immigration is defined by politics. Conservatives feel unrepresented in their more progressive states and have made the decision that now is the time to move. While conservative governance can be found in most rural areas in Tennessee, new residents also seeking the convenience and opportunities of a city have ruled out Nashville and Memphis and are flocking to our beloved Knoxville. Due to the great reputation of our schools and the increasing number of new subdivisions, families with school age children are zeroing in on 37932.
If interest rates do increase, local buyers will begin to get priced out of the market for the homes they desire. The decreased competition will result in decreasing sales prices but we should still expect multiple offers but they may not be as high over list price as what we have seen. The Knoxville market will end up doing better than the rest of the nation come what may in the next year. If home sale prices flatten out nationally, locally we will see modest increases. If home sale prices go decline nationally, expect local prices to flatten out but I do not foresee them going backwards.
A number of my clients have asked if they should sell, grab an apartment and wait for a crash. My advice to them and to you is continue to enjoy your current home. The reason being if you pull out, you should plan to lose money to rent, realtors and rising home prices that will amount to tens of thousands if not hundreds of thousands of dollars depending on how long you wait to correct your mistake. It is okay to sell and purchase another home if you are looking to change your quality of life or move away, otherwise stay put!
Real Estate Questions?
Article author, Adam Wilson, can be reached by phone (865.233.8648 mobile, 865.622.5171 office) or by email (firstname.lastname@example.org) with any questions. Adam is the managing broker of Adam Wilson Realty, a Hardin Valley based real estate firm located between the McDonalds and Wendy’s on Hardin Valley Rd (2043 Castaic Lane Suite C, Knoxville TN 37932.)
Adam Wilson Realty, a realtor who focuses on homes for sale in Hardin Valley and helps all sorts of people whose housing no longer fits their current lifestyle. I listen to their needs, get them out of their current place and into just the right house so that home can be a place they want to be.