Market Pulse Survey - Q3 2022
The Market Pulse Survey gathers on-the-ground information about local market conditions from members of the Knoxville Area Association of REALTORS® based on their client interactions and real estate transactions in the previous three months.
- Both buyer and seller traffic declined in the third quarter. 58% of respondents reported seeing less buyer traffic than usual. 38% of respondents reported less seller traffic than usual, while 38% reported seller traffic was about the same.
- REALTORS® expect buyer and seller traffic to remain suppressed over the next three months, with 54% of respondents expecting lower-than-usual buyer traffic. 86% expect seller traffic will be about the same or less than usual over the next three months.
- Respondents reported receiving an average of 2.5 offers on homes sold in Q3 2022, down from 3.5 offers in Q2 and 6 offers in Q1.
- 58% of REALTORS® expect home sales will decrease over the next year, 27% expect home sales will stay about the same, and 15% expect home sales will increase.
- Industry expectations regarding home prices have deteriorated over the course of the year, with 44% respondents saying they expect home prices will decrease over the next year. Only 39% of respondents in Q3 expect home prices to increase over the next year, down from 88% in the first quarter of 2022.
- Off-market sales accounted for just under 7% of sales in Q3, down from 16% in Q1.
- REALTORS® reported fewer problems with appraisals. Only 8.6% of homes sold in the past three months had an appraised value that was less than the purchase price, down from 19.5% the previous quarter.
- 45% of buyers in the past three months waived at least one contingency in their purchase contract, with 20% waiving the inspection contingency.
- In the past three months, 42% of REALTORS® closed at least one sale where the buyer was purchasing the property for use as something other than their primary residence (i.e., investment rental property, second home, etc.), down from 54% in Q2.
"REALTORS® have become noticeably less bullish about future house price growth, with a plurality of respondents now expecting home prices will decrease over the next year," said Hancen Sale, KAAR's Government Affairs and Policy Director. "Buyer and seller traffic is waning amid rising mortgage rates and the most aggressive action by the Fed to tamp inflation in nearly 40 years, and REALTORS® have felt the impact in a substantial way. Despite more grim expectations, it is important to remember the housing market is still performing at or above pre-pandemic levels."
About the Survey
- The Market Pulse Survey gathers on-the-ground information about local market conditions from members of the Knoxville Area Association of REALTORS® based on their client interactions and real estate transactions in the previous three months.
- The Q3 2022 Market Pulse Survey was conducted among 192 REALTORS® in the Knoxville area from October 6 to October 13, 2022.
- The Market Pulse Survey is provided by the Knoxville Area Association of REALTORS® (KAAR) solely for use as a reference. Resale of any part of this data is prohibited without KAAR’s prior written consent.
- Media inquiries about the survey should be directed to Hancen Sale at email@example.com.
Data Attribution: You are welcome to use or reproduce this survey data for your own purposes, but we ask that you attribute any full or partial use of the data to Knoxville Area Association of REALTORS® and include the time period when the survey was conducted.