Knoxville Relocation

The Knoxville real estate market, along with the rest of the state of Tennessee, continued to face mixed signals during the first quarter of the New Year. One positive piece of news in a nearby urban area was reported by a March 23, 2010 article in the Chattanoogan, which found that “The local real estate market continued to recover from a sluggish January and levels observed in the same period last year, according to statistics released Tuesday, in both number of homes sold and median price, according to data released by the Multiple Listing Service (MLS) of the Chattanooga Association of Realtors.” The article continued to state that “In February, Southeast Tennessee and the Northwest Georgia area saw the sale of 406 residential units, a 35.7% increase compared to the previous month’s sales and a 19.1% increase in sales over the same period last year.”

Short sales and foreclosures, however, continue to depress the general market and the market for Knoxville homes for sale. According to a March 28, 2010 article in the Murfreesboro Post, which noted that “The nation’s housing market has a tough row to hoe in the coming months and years. The number of distressed properties is still high and many homeowners are either underwater on their mortgage or on the verge of foreclosure.” The article, composed by Michelle Willard, continued to state that “The market has been affected in three ways, he said, a drop in home values, a 10-20 percent national drop in home sales from historical levels and an increase in distressed properties.” According to John Tuccillo, former chief economist of the National Association of Realtors, “We’ve seen a market recession more than anything else. It’s a market that had gone into a tailspin.”

The effect of foreclosures on Knoxville and Tennessee real estate for sale has been great enough that a commission has been established to alleviate foreclosures in the state, according to a March 16, 2010 article by Daniel Connolly. The piece, published in the Commercial Appeal, found that “A bill pending in the Tennessee legislature would make it easier for homeowners who are behind on payments to enter into negotiations with lenders to avoid foreclosure.”