July Sevier County Residential Sales Analysis
After allowing enough time for all sales to be recorded I have conducted a thorough analysis of the Great Smoky Mountain Association of Realtors MLS sold data for July. As a part of this research I compared July-07 with the last two years (unfortunately the board’s MLS data only goes back 3 years). The bottom line of this review is that sales continue to somewhat lag the same period’s results for 2006 and are significantly behind the high water 2005 numbers. To make all of the numbers and observations below make more sense please view this table summarizing the performance of our market.
Although using a single month’s sales results to indicate a market’s trend is problematic, there is valuable information here. As the table clearly shows, residential sales numbers for the Realtors in our area were significantly off in July 2007 compared to the two previous July periods by any measure. Because both units and average price declined when compared with 2006 the result was a sharp decrease in total volume of 15%. The fact that the average and mean price values dropped even with the increasing costs of materials confirms that there is real pressure on sellers and builders which we have felt for some time.
When results for the first seven months of 2007 are compared with the same period of the last two years a clear pattern emerges. While unit sales are only slightly down during year to date (YTD) 2007 when compared to the same period in 2006, prices are significantly off, much more so in July than for the entire year. The fact that prices for the most recent period are off the most may indicate that the opportunity for buyers to grab a bargain is finally here. You will note that although unit sales dropped slightly in 2006 as compared to 2005, the average and median prices didn’t drop until this year. While second home, log home style houses are probably affected the most the softening of the market can also be felt in the sale of traditional residences to a lesser degree.
In sum, this is a great time to be a buyer of property in the Gatlinburg, Pigeon Forge, Sevierville area. It is, however, a more difficult time to sell property here and as this analysis confirms. If we can assist you in buying or selling property here, please contact us.