AGENT MLS HOME FINDER

The Knoxville real estate market has been one of the stronger real estate markets in the southern portion of the United States and the state of Tennessee, although there is no firm indication of whether that trend will continue. Knoxville and Knoxville County have been stronger than other parts of the state in terms of foreclosure rates and other typical market indicators, although it seems they may finally be succumbing to the delayed effects of the nationwide economic crisis and the collapse of the sub-prime mortgage market. It is quite possible that real estate in Knoxville is now weaker than the rest of Tennessee, although still much stronger than the rest of the nation.

According to a September 10, 2009 article in the Nashville Business Journal, real estate in the state of Tennessee has been suffering less from the ill effects of the nationwide real estate crisis. The article, based on figures from RealtyTrac, found that “Tennessee’s foreclosure rate continues to improve, falling for the third month in a row. According to Realty Trac’s August 2009 US Foreclosure Market Report, Tennessee had 4,209 foreclosure filings – default notices, scheduled auctions, and bank repossessions – in August.” That contradicts a September 11, 2009 article in the Daily Times, which found for real estate in Knoxville specifically that “Foreclosure rates in the Knoxville area – which includes Anderson, Blount, Loudon, and Union counties – have increased for the month of July over the same period last year, according to First American CoreLogic….Foreclosure activity in the Knoxville area is lower than the national foreclosure rate, which was 2.8 for July 2009, representing a 1.8 percentage point difference.”

A September 15, 2009 article on the WBIR website focused more on commercial foreclosures, generally speaking the second most important component of a market, after the homes for sale in Nashville. The article by Anthony Welsch said that “There are projects in East Tennessee moving forward with that Frazier says appear to be a high chance of success…Frazier says the diverse East Tennessee economy, which he says shielded the area from getting blitzed with residential foreclosures, should have the same insulating impact in the commercial sector.”