If there is one category of our Gatlinburg area real estate market that is currently feeling the most extreme pain it is definitely in the class of lot and land sales. With foreclosures still driving our market most builders are currently huddled in a fetal position or have already left the community for greener pastures elsewhere. Where those better prospects are I don’t know but I do know that most of our Sevier County builders are parked with unsold inventory that they have more invested in than the current market will pay. Many spec homes sit idly waiting for a better market and some builders have chosen to rent their unsold homes out to at least earn some income from their investment. Builders are generally the best buyers of lots and in view of the current real estate environment the idea of starting another spec (cabin, chalet, or even primary residence) home is a very unattractive concept indeed.
Last week I was asked to sell a residential lot in the Sevierville area by a local bank that has foreclosed on the property. I explained to the asset manager of the institution that our lot/land market has been very slow and to have any chance of a prompt sale (which banks always want) the property would have to be priced very aggressively. After I viewed the property I started to update my numbers on lot sales and found to my dismay that our Tennessee Smoky Mountain real estate market currently has over a 12 and a half year supply of lots based on the dismal pace of sales over the past year. While I am certain that lot sales will eventually pick up it won’t happen until our unsold inventory of spec homes is reduced, either sold by the builder or unfortunately by the bank that financed the construction.
If however you would like a small rural lot exactly two doors down from Dolly Parton’s Sevier County farm home please contact us. Priced at just $15,000 you might never have the opportunity to buy Smoky Mountain real estate for less! For more details about this very affordable property almost next door to Sevier County’s most famous resident please click here.