The following chart shows just how much cabin prices have fallen on average from their unrealistic peak reached in 2007. We analyzed sales from 2007 until now for log and log-look cabins with between 2000 and 3000 square feet of finished space. Each year the number of sales has dropped and prices have also retreated dramatically. Here is the summary chart:
While 2009’s values are only for the first two months of the year the decline in log and log look home sale prices is staggering. While it is a miserable time to consider selling Sevier County real estate it is a wonderful market if you are a potential buyer of a vacation home here in the Gatlinburg area.
Although there is no fully accurate way to accurately separate vacation home property sales from full time residences the log/log look characteristic is a pretty good one. Note that although overall prices have also declined the average of “only” a nearly 4% and then roughly 10% decline when the sale of all 2000-3000 square foot homes are analyzed means that homes more likely to be full time residences must be holding their own fairly well.
Clearly, it appears that the real decline in our market is in the second home market and this makes a lot of sense. In economically challenging times a second home is quite a luxury and many people have decided to sell or have suffered foreclosures of these properties. If you are in a position to buy a vacation home at this time your opportunity for a bargain is outstanding. For help in either buying or selling Gatlinburg area real estate, or for that matter any property within our service area which includes all of Sevier County, please contact us!