KNOXVILLE’S BOOMING DOWNTOWN REAL ESTATE MARKET IS SLOWING, and the problem seems to be a mixture of financing and difficulty selling homes in the ‘burbs. Looking around the neighborhoods, my sense is that a lot of people remain unrealistic in their pricing, thinking that by expecting “only” four percent appreciation over the past few years they’re pricing low. In fact, the Knoxville market has never really appreciated faster than that. If I were selling my house, I’d probably price it at 2005 levels or even below. And I notice that people who do cut the price seem to sell a lot faster.
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