Although we have been very busy, it appears that the pace of real estate sales has again slowed. In fact, although these numbers are preliminary and will certainly be rounded up, the initial report shows that Gatlinburg area real estate agents sold only 204 homes during June. There will be more sales added, but there is no way that we can catch up to the torrid pace of sales that we enjoyed during June of 2016. For the third month in a row, we will post a decline from the hard to match pace of sales from a year ago. Here is the bad news in graphic form:
The problem is a lack of supply, not a lack of demand. There are lots of willing and ready buyers out there but the inventory is sorely lacking at this point. Construction is one answer as is more owners deciding now is a good time to sell as prices are still rising. If inventory doesn't increase, there simply isn't anything available to show to buyers.
To put this in perspective, Sevier County residential real estate sales have not been below the year ago same month value for three consecutive months since 2011. Hopefully, sales will recover and we are still ahead of the pace of the first half of 2016. If this trend continues however, it won't take long to lose that edge...
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Last month, I expressed some concern that our 2012 winning streak for Smoky Mountain residential real estate sales was going to be broken. Unlike the first 8 months of the 2012, September's results did NOT exceed those of September 2011. I also reminded readers that one month does not a trend make and that we would need to wait a couple of months to get a clearer indication of where our Gatlinburg area real estate market was headed. That caution turns out to be quite well thought because the latest residential sales results for our Gatlinburg area real estate market seem to be much better, with the early results already being better than most recent year's October results. Here is my preliminary table showing the good news:
Although the final tally will certainly be greater, the total number of residential sales as reported for now by the Great Smoky Mountain Association of Realtors during the first month of 2018 is only 170. The real problem isn't a lack of demand, but rather a lack of supply. In fact, we could sell many more units if we just had the inventory available. Here is the rather anemic looking table:
Just after midnight, VERY early this morning, we received a price from Fannie Mae on this 3 bedroom, 2 bath Sevierville cabin property. Due to Fannie Mae's First Look policy, we cannot enter any offers for 3 days but on Friday, we will be able to submit offers for prospective occupants. Investors will re required to wait a total of 3 weeks before they can submit offers. For more details, please click here to view the brand new MLS entry. Here are some photos of our very attractive Gatlinburg area listing: