The housing market is expected to continue a slow thaw during the coming year. Buyers are ready to buy, but not all sellers are ready to sell. 

Buyers will have a little more bargaining room because there will be more inventory. And if mortgage rates stabilize in the 6% range, housing will become more affordable for many buyers.  

Most experts look for sales to level off at a pre-pandemic level. That’s about where they were in November. 

So far, the price growth rate has slowed. That too is expected to continue into the prime Spring buying and selling season. 

 Meanwhile, there are things buyers can and should now be doing. 

DO YOUR HOMEWORK 

The Northeast Tennessee Association of Realtors® (NETAR) offers a wide array of market updates and insights that can be found on its website at www.netar.us. Getting a firm footing on local conditions instead of what you see in mass media is important because real estate is hyper-local, and most mass media coverage is focused on major metro areas. 

LOAN AND MORTGAGE OPTIONS 

Get pre-qualified by a lender now. Then, check out mortgage loan programs for one that fits your pocketbook and needs. Some lenders have special programs for first-time buyers. FHA, USDA, and VA loans are also viable options. Each has different requirements and advantages.  

DOWNPAYMENT SAVINGS 

Many buyers compensated for higher home prices by lowering their downpayments this year. During the third quarter, the median downpayment in the Johnson City metro area was $21,555 – 7.6% of the home’s purchase price. In the Kingsport-Bristol metro area, the median downpayment was $11,500 – 4.9% of the home’s purchase price. In both cases, the downpayments required private mortgage insurance (PMI) that added hundreds of dollars a month to the mortgage payment. The better the downpayment often means a better interest rate and if buyers hit the 20% market there’s no PMI. 

PARTNER WITH A LOCAL REALTOR® 

Finding and partnering with the right professional Realtor® will be more important than ever in the coming year. Lawsuits have confused the real estate process and Realtors® are working overtime to compensate for misinformation. And they are pros at helping their clients navigate the real estate buying and selling process. It’s a good idea to interview several agents to find one you’re comfortable with. And there’s nothing wrong with asking for and checking references. Some agents specialize in first-time buyers, others have a specialty that accommodates elders. The list of specialties is long, and it’s a good idea to do the research and find the best agent for your needs. 

TEMPER YOUR EXPECTATIONS 

While mortgage rates are expected to be in the 6% range, they vary. There are many good mortgage calculators online that will help you keep your monthly mortgage commitment in your affordability range. And don’t forget about closing costs, the price of a home inspection, and moving expenses. Be prepared for the surprise costs that always seem to pop up. 

Most financial experts urge buyers to keep their total monthly housing cost to 30% of their income. Everyone likes to tour a dream home, but wishful shopping above your financial ability is both time-consuming and frustrating for everyone concerned. 

BE PERSISTENT AND PATIENT 

Remember Murphy’s Law: Anything that can go wrong will go wrong.  

There are typically bumps in the road of homes buying journeys. They come as unexpected costs, delays, or disappointments. The secret to getting past them is patience and persistence that if it can be fixed, it will. If not, there are other options. 



Buying – or selling a home – is not a typical business transaction. That’s why having the right professional Realtor® who has the time to hold your hand and get you over the rough spots is so important. Finding an agent you trust and feel comfortable with is the key to a positive real estate experience.