Farragut, Tennessee, is a charming town located in Knox County that has so much to offer its residents. Farragut is known for its high quality of life, excellent schools, thriving businesses, and of course, its beautiful homes. For families who want a welcoming community, this town is an obvious choice. Farragut residents are friendly and committed to making sure the town continues to be a fantastic place to live. Here, you’ll find a slew of local events and festivals throughout the year that bring people together and foster a sense of community.
Overall, Farragut is a wonderful place to live, with a strong sense of community, beautiful outdoor spaces, and a convenient location. Many people are drawn to this town –– but what is the Farragut, TN, real estate market like? Is it affordable to live here, and what trends and market forecasts can we expect here in 2023 and beyond? Not to worry –– here’s a breakdown of the real estate market trends and forecast in Farragut.
Farragut, TN housing market prices, trends & forecasts 2023
Farragut, TN housing market forecast 2023
Like most other locations in the United States, the Farragut housing market forecast looks like it will continue to be a seller’s market for the remainder of 2023. People are seeing high demand for a low supply of homes for sale across Tennessee, and Farragut is no exception. Here is a more in-depth look at trends you can expect from the Farragut, TN real estate market this year:
Home values will continue to slowly increase
Over the last two years, real estate in Farragut has skyrocketed in value. The seller’s market, driven by lower interest rates at the time, a lack of home supply, and an increase in interested buyers, has helped spur this on. This trend is expected to continue throughout the year, but the increase in home prices is supposed to slow. More homes are coming onto the market, which should help slow the increase in home prices.
Rising interest rates through 2023
Since emerging from the pandemic and experiencing inflation throughout 2022, there has been an increase in interest rates for 30-year fixed-rate mortgages. Concern over inflation continues to grow, and the Federal Reserve has already indicated that rates will continue to rise in 2023. The Federal Reserve expects interest rates to reach 5.1% by the end of 2023. However, there is light at the end of the tunnel –– they also plan to drop interest rates down to 4.3% by the time 2024 ends.
Investing indicators will favor landlords
Tennessee is historically a landlord-friendly state, with laws that tend to favor landlords. Also, there is no state income tax in Tennessee, making it an appealing location for real estate investors. Though it does cost more to invest in rental properties in Farragut right now as a result of appreciation, the rental market in the Knoxville area is strong and offers an extremely low vacancy rate that is attractive for landlords.
Positive net population migration
Farragut’s population has been steadily increasing since 1990, and the growth rate has increased significantly over the course of the last three years, at a rate of 10.89% from 2020 to 2023. As of March 2023, the current population in Farragut is 26,164, and is expected to continue to grow at a rate of 3.51%.
Knox County housing market trends 2023
The appreciation of homes in Knox County over the last few years has starkly affected the market. A combination of lower mortgage interest rates, a low supply of homes for sale, and an increase in demand for them has pushed home prices higher than ever. While at first, this sounds like good news for sellers, it’s a double-edged sword. Selling a home means eventually needing to buy a home in that same seller’s market, which can be tough. Many buyers have been pushed out of the market, resulting in increased competition for rental units. This has worked to landlords’ advantage, especially in Tennessee, which favors landlords.
Farragut, TN real estate market: should you invest?
The Farragut, TN real estate market has been consistently growing over the past few years, with a strong demand for homes and an increase in property values. Home values are predicted to continue to increase, and the rental market is strong, so investment properties are a solid move here. Whether you’re a first-time homebuyer or an experienced investor, Farragut is an excellent place to invest in real estate.
Expert tips for buying and selling in the current market
Tips for selling in a seller’s market:
Selling your home in the current market conditions in Farragut, TN means that pricing your home competitively should attract multiple offers and create a bidding war between potential buyers. Ensure that your home is in top-notch condition, and well-staged so that it stands out from other homes on the market.
Tips for buying in a seller’s market:
In a market like Farragut, it’s important to act quickly when you find a home you like, and be prepared to make a strong offer with favorable terms to compete with other buyers. Be flexible and open-minded about your home search criteria like size and amenities to increase your chances of finding a home in this highly competitive market.
Feel at home in Farragut? Reach out to Alexis Guindi
If you’re looking to buy or sell a home in Farragut, TN, working with a realtor who understands local market trends and forecasts is invaluable. That’s where Alexis Guindi comes in. As a dedicated local real estate agent, Alexis will work tirelessly to ensure that your experience is as seamless and stress-free as possible. With her extensive knowledge of the local market, you can trust Alexis to guide you through every step of the buying or selling process. Don’t hesitate to reach out to Alexis Guindi today and make your Farragut real estate dreams a reality.
*Header photo courtesy of Alexis Guindi