Hardin Valley Real Estate Market
The East Tennessee Association of REALTORS recorded 472 homes sold in the Hardin Valley zip code of 37932 in 2023. That’s 53 less homes sold than in 2022. 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 3302 W Gallaher Ferry Rd. Closed on June 30th for $2,375,000, which is $475,000 more than last year’s mountain. Listed in May at $2,299,000, the buyers incentivised the sellers with $76,000 over list price to snag the property on the first day it was listed. A spacious home with 3 bedrooms, 4 1/2 baths and 4,276 sq ft set on a 3.78 acre lot, the authentic stone work, waterfall and lake frontage with slip really set this home apart.
The Valley or the least expensive house sold in 37932 is 12215 Buttermilk Rd near Marietta Church Rd. Sold for $125,000 on the 29th of November, the seller came down from a listing price of $149,000. With 2 bedrooms and 1 full bath on 1 acre, it spent 1 day on the market before accepting a cash offer. Extensive work was needed; it is unknown if the new buyer will rehab the home or replace it with new construction.
The Dash
The dash refers to the other 470 Hardin Valley homes sold in between our Mountain and Valley this past year.
HOMES SOLD
$300,000 and under: 34 (47 in 2022)
$300,001-$400,000: 76 (79 in 2022)
$400,001-$500,000: 102 (113 in 2022)
$500,001-$600,000: 103 (136 in 2022)
$600,001-$700,000: 70 (79in 2022)
$700,000 and above: 87 (43 in 2022)
*Active Listings By Price Range
The median sale price was $520,000 (down 1.3% over 2022). Overall, our housing inventory remains young; 202 (42.8%) of the houses that transferred ownership were built in 2022 or 2023. This is a slight increase of 5.3% from last year and represents nearly two out of every five homes sold in Hardin Valley.
Focusing on the remaining 270 resold homes in 37932, listings were on the market for 25 days on average (median of 10.5 days) prior to receiving an accepted offer, a week’s increase from 2022’s 17 days on the market (median of 5 days).
Welcome Back To Normal
As a realtor with 12 years of experience, what feels like a slow and scary market after being on fire the past couple of years is actually a return to the normal. In 2019, resold homes were on the market for an average of 42 days (median of 12 days) and sold for 97.9% of their list price ($7,053 off of the list price). 2023 had a typical pacing with a spring selling season that lasted until the start of school in August. After a quiet month, activity picked back up after Labor Day and continued until the seasonal slowdown from Thanksgiving to Christmas. The best way to think of the market is that it is slower but by no means slow.
Overall, the market is much healthier now in terms of decision making. Buyers have time to think about a property, make an offer and usually retain the appraisal and inspection contingencies. On the flip side, sellers are still selling between 2-4 weeks with the occasional multiple offers. 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 2021 and before revealed a ratio of 98.6%. Using the 37932 median price of $520,000, a 1.4% price decrease is $7,280 under the list price, roughly $7,500 off.
The newer the house is to the market, the more likely you are to pay list price. As houses get closer to 30 days on the market, sellers become more flexible on pricing. If a house receives multiple offers, offering above list price is still a must.
Trends Noted
As displayed in the infographic above, Hardin Valley is seeing an increasing percentage of homes being sold in the $700,000 and Above (18.4%) range, which was 13.3% in 2022 and only 4.7% in 2021. This is equally due to homes appreciating at an unprecedented pace and newer, more expensive homes/subdivisions building out this demographic.
Also, most of the builders in 37932 have transitioned back to build to order from spec homes. A spec home (short for speculation) is when a builder begins construction and chooses finishes prior to having a contract to purchase. Several builders have finished new construction homes that are sitting vacant and have began offering incentives to move the properties. It never hurts to see if you can get them to come down on price on a finished home.
Crystal Ball
As expected, homes in Hardin Valley continued to appreciate and the bottom did not fall out of the Knoxville market. Nationally, other states are seeing declines in home values. While you may have noticed several price reductions on listed homes this fall and winter, this is mostly due to overpricing that was never supported by a CMA (comparable market analysis); do not be concerned.
The median sales price in the East Tennessee market is now $346,000, which is a 10.8% increase from last year. Differing from the national market, Knoxville is not suffering from an inventory shortage. While they may not be homes that the market is interested in (or interested in paying 7-8% interest on) there are over 4,200 houses available for sale. Typically when buyers are picky, this leads to a buyer’s market. Thanks to record low mortgages in the 2 and 3% percent range, sellers are not flooding the market with houses, even though their homes no longer fit their lifestyle. This has led to stability in the Knoxville market with a slight seller’s advantage
There is still pent up demand for housing in Knoxville, both locally and nationally. If interest rates continue to decrease (currently mid 6’s), be ready for round two of the crazy market that we lived through from from 2020 to 2022. The previously high interest rates prevented out of staters from being able to sell their homes. Once their homes become “affordable” to their markets, the return of cash buyers to Knoxville will commence. At the same time, local sellers will find the lower interest rates more tolerable and will finally put their homes on the market as they pursue their own purchases. The closer we get to 5%, the crazier things will get. If rates slowly decrease, Knoxville will ease back into a strong sellers market.
At the start of the new year, there are 3,990 houses on the market (see them all here.) The greater Knoxville area needs around 4,500 homes listed to be a balanced market so sellers still have an advantage. Though decreased, out of state buyers continue to choose Knoxville because it is the largest conservative city in Tennessee. Online forums praise Hardin Valley for their schools and nice, new subdivisions.
Overall, 2024 is a safe and solid year to buy or sell a home. Interest rates are in the 6% range. While higher than they have been over the past couple of years, rates are still historically lower to normal. If you are waiting for 2-3% interest rates to return, remember that they came following The Great Recession and COVID. If we ever get lower rates like that again, it will be after another calamity. In other words, don’t sit around and wait for it unless you are very happy with your current housing. If your home is too small, you need to downsize, or your income justifies fancy new digs, it’s our opinion that you can move forward with confidence on a home purchase or a listing. Happy New Year Hardin Valley and remember to be excellent to each other in 2024! – Adam Wilson
Real Estate Questions?
Article author, Adam Wilson, can be reached by phone (865.233.8648 mobile, 865.622.5171 office) or by email (adamgiveme5@gmail.com) 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.
