The East Tennessee lake home market in quarter 2 of 2023 continued to exhibit signs of stability and moderate growth. Despite not reaching the same levels of frenzied activity seen in 2022, the market remained robust with a strong demand for lakefront properties from both local and out-of-state buyers. Inventory remained at record lows, intensifying the competition among buyers and driving up prices.
Moving out of qtr 1, the slower pace of activity during the winter months was expected, and sellers who were motivated to take advantage of the reduced competition and low inventory were still able to achieve top dollar for their properties. Prices in the lake markets remained relatively steady, with only minor fluctuations depending on location and property condition.
Similar to previous years, our lake market demonstrated its seasonal nature, with demand fluctuating throughout the year. Quarter 2, which encompasses the spring months and the start of boating season, saw increased activity compared to the winter period. As the weather improved and the water levels reached their peak, buyers were eager to seize opportunities to enjoy lakefront living, boating, fishing, and other outdoor activities. This heightened demand, combined with limited inventory, created another competitive environment where multiple buyers often competed for the same property.
Housing inventory in East Tennessee including lakefront homes has been much slower to recover from post-pandemic lows than in other parts of the state. The total housing inventory in Knoxville was down roughly 50% from pre-pandemic levels compared to Nashville (down 15%) and the state as a whole (down 25%). This helps to explain why East Tennessee is seeing home price growth accelerate yet again, at a slower pace compared to the height of the pandemic housing frenzy.
The market remains an attractive option for buyers seeking a vacation home or a permanent residence in a beautiful and recreational-rich region.
While the national housing market is shifting, our lake home market typically tends to be focused toward retirees, vacation homes, and investment properties so we don’t typically get affected quite the same as larger city markets. National headlines about the market don’t always reflect the local and niche markets, the best way to keep a pulse is look at the data in the local market and talk with our Lake Team.
Free to the public, the market report can help lake home buyers and sellers better understand their local market and how it relates to other similar competing markets. Finding an affordable lake home can be a challenge in the ever change real estate market.
Our report helps buyers understand:
How do lake markets compare statewide and regionally by price?
Which lake markets have the most affordable homes or land?
Which lake markets have the most homes in your target price range?
Our report will help sellers understand:
How does your lake market compare to OTHER similar lake markets around you?
How many homes are in the same price range as your home or lot (a key when pricing your property)?
LAKES WITH YEAR ROUND WATER – (4-6 FT. WATER LEVEL DROP IN WINTER MONTHS)
Tellico Lake offers beautiful Smoky Mountain Views and fabulous award winning communities. TVA also restricts future development on the lake which ultimately keeps price point for lakefront stronger.
CLICK HERE to view all active properties for sale on Tellico Lake.
This lake is nearby double the size of Tellico, Watts Bar Lake offers both a variety of lake communities and lake homes with few to no restrictions.
CLICK HERE to view all active properties for sale on Watts Bar Lake.
Ft. Loudoun Lake is a popular choice for folks wanting all the conveniences of living close to Knoxville and an active lake.
CLICK HERE to view all active properties for sale on Ft. Loudoun Lake.
LAKES WITH SEASONAL WATER – (20-50 FT. WATER LEVEL DROP IN WINTER MONTHS)
Douglas Lake offers private and seclusion while also being close to popular destinations such as Sevierville, Pigeon Forge and the Great Smoky Mountains National Park.
CLICK HERE to view all active properties for sale on Douglas Lake.
Norris Lake has the largest reservoir on a tributary of the Tennessee River and is a popular lake for all your favorite summer water activities and offers a variety of seasonal lakefront marinas and restaurants.
CLICK HERE to view all active properties for sale on Norris Lake
As a multi-state, full-service brokerage, Lakefront Living Realty has not only data on the different East Tennessee lake areas, we have local knowledge and specialize in the major lake communities such as Rarity Bay and Tellico Village. This quarterly report contains real estate information from the Knoxville MLS on the 5 major lakes where lake homes are sold.
Reposted by Karen Millikan, Lakefront Living, On The Lake Realty, TN