Tuesday, September 25, 2007
I interviewed realtors from across the state of Tennessee
I did have the opportunity to interview realtors from across the state and here are the excerps from those interviews.
1.Lenoir city (close to Knoxville) Real estate still selling but seeing a flood of new listings without a flood of buyers. Currently there is an inventory of 5 years of "new construction" built so new construction has almost stopped.
2.Tellico Village/Loundon (still in east Tennessee) This is primarily a retirement area with many of the buyers relocating out of Florida. Sales have slowed and inventories have risen. The agent I interviewed told me the Florida clients are still looking but cannot buy until their Florida properties are sold. I told this agent that we too have been getting lots of Florida clients but they have slowed down quite a bit(probable for the same reasons)
3.Pidgeon Forge/Sevierville/Gatlinburg-Sales have been close to last years numbers but inventories have really increased without the increase in buyers.
4.Memphis market- The agents I interviewed all said the same thing. Sales are flat with lots of deals falling through because of financing. Lots of mortgage brokers and some real estate firms going out of business. I have been talking alot about the b-paper collapse. The Memphis market has been hit really hard by the sub prime market collapse.
5. Jackson,Tn- Market sill doing "ok" sales about the same as last year but inventories are expanding without the increase of buyers. New construction still good in the "hot areas" except where there are "too many" new homes completed in same neighborhood. One agent I interviewed told me she is seeing a drastic slowdown in new construction sales for homes $450,000 and up. I suspect it is because the money to purchase these expensive homes has been coming from the sale of Florida and California properties.
6.Dyersburg,Tn-I shared with all these realtors that our sales are good and invited them to move to Dyersburg,Tn to help us sell real estate. I do have a Florida client who is coming to purchase a home from me and to work with me but guess what? He cannot sell his home in Florida.
What do I see on the horizon for the other areas of the country? I see continued corrections( for next 6-9 months) in their real estate markets. When prices get crazy and run up so quickly, there is almost always a correction. We see that time and again in the stock market. The markets will correct and then recover.
What do I see for the Dyersburg market? I see continued steady growth with sales slowing just a bit but still good. Our sales should move faster when the other areas of the country recover.
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