Below is a link to a graph of the number of new construction homes that have been started. It is really amazing to see the sharp decline. It brings up an important factor about supply and demand. In Knoxville there are over 17000 homes on the market, where as last year at this time, there were only just over 12000 homes on the market. Builders are scared to break ground on a new home unless they have a buyer already. On top of that, the banks are not lending money freely. I think that it is a 2 fold problem. It will be interesting to see how this plays out over time. I have recently had experience with a few buyers who just can not find what they are looking for in the Knoxville Market. You would think that with all the homes out there for sale, they would be able to find whatever they want. In many cases the listing price is still way out of line with the actual market for various reasons. That is another topic for another day.
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