Smoky Mountain Residential Market Still Slowing
A quick review of our residential market statistics confirms what I have known by working every day in the business – the slowdown continues and the pace of the real estate market’s activity decline is even accelerating. To put this another way, the rate of sales is continuing to slow at a steeper angle.
Below are the total number of 2007 residential units sold by month reported by our local organization, the Great Smoky Mountains Association of Realtors through our multiple listings service or MLS:
From a peak of 322 residential units sold in August of 2005 the decline in units sold has been quite dramatic. While some real estate agents/brokers/agencies will tell you that everything is rosy it simply isn’t right now – that is unless you are a potential buyer!
As an aside this slowdown (which began a couple of years ago) has not been kind to the real estate industry members. From a peak of approximately 750 agents in our board last year we have dropped about 10% to 687 (still too many!). In fact, approximately one half of our current membership has been in the industry for less than 3 years. Many of these folks are part time agents and aren’t heavily committed to the profession. Because they haven’t seen a down market before they probably don’t have the skills to survive during a difficult period. For this reason I forecast a continued drop in the number of real estate agents nationwide and our market will be no exception.
In light of the residential sales figures above now is a very good time to be a buyer. We are now seeing price drops and great opportunities are out there if you are willling to search. Prior to real estate, my profession was as an investment advisor. I worked in that industry for about 8 years and was quite successful at it before eventually suffering burnout. During my stint in the investment brokerage business I learned an immense amount and much of that learning applies to my career as a real estate broker. When everyone is scared of a situation is always when the best opportunities are available. The real estate market is certainly viewed negatively by most folks currently and that is exactly why the opportunities are superb for brave buyers who are willing to be patient.
If you are looking to purchase (or sell) property here and want to benefit from our years of experience in the Gatlinburg, Pigeon Forge, and Sevierville real estate market please contact me. We can help you make an excellent real estate purchase that will hopefully benefit you greatly over the coming years. If you are needing to sell and want an honest opinion of your property and what it will bring in our current market, we will be glad to help. As the number one selling company in the county, we can provide the results you are looking for, whether you are a buyer or a seller!
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Nice post Jeff. Finally something that is an accurate depiction of our market. Many agents have been blowing smoke regarding our market. Granted we have faired better than most, it has slowed and sellers are still holding strong on price. The buyers are out there and willing (residential market) but until listing prices come down to a point that is realistic with our current market I suspect we will have to endure this for a while….
Agreed. The market for quality homes remains intact but views are essential and with so much new construction available older homes are having to compete on price only which is never pleasant.