As the housing market began to decline across the nation foreclosures and short sales soon started appearing everywhere. And while the Smoky Mountains area was one of the last places to be affected by this phenomenon, eventually it happened. Sevier County’s property values continuously increased at a substantial rate over the years because of the strong tourism and hospitality market but eventually succumbed to the collapsing economy. While we were not hit nearly as hard as most places in the U.S. by the bursting housing bubble it did take its toll on our Smoky Mountains property values. Many people started to panic and soon for sale signs began popping up everywhere. Then the banks started tightening up their belts especially for loans on second homes and investment properties. This created a large imbalance between the supply and demand of Smoky Mountains property here which inevitably led to a decrease in property value due to the low sale prices of Tennessee foreclosures and short sales and especially foreclosures in Gatlinburg and log cabin foreclosures.
Many owners were forced to reduce the asking price of their properties due to comps and low appraisals that were affected by surrounding property sales. This led to some of the lowest property prices here in years creating a buyer’s market. That being said, you don’t necessarily have to buy a foreclosure in Gatlinburg, log cabin foreclosures or a short sale to get a great deal. A lot of owners are pricing their Smoky Mountains properties aggressively to compete with the foreclosures and short sales springing up across the county.
In recent months the number of Tennessee foreclosures and short sales has declined in Sevier County. According to the Great Smoky Mountains MLS, since January 1st of 2010 to present date (September 1st) there were approximately 189 residential foreclosures and 77 short sales that closed in Sevier County, which is significantly less than the 2009 totals. You can still get a great deal right now with many properties here well below the average market value but it will not last forever. The market is showing signs of improvement and if you wait too long to capitalize you could miss out. So contact me today and let me find you a deal in the Smokies!
