Editor’s Note: Understanding Tellico Village real estate market performance and the investment required to maximize it is important to all property owners. The following is the first in a series of three articles that will answer questions most frequently asked of the Tellico Village marketing team.

Q: What is the current status of the Tellico Village real estate market?

A: Both 2017 and 2018 were record-breaking years for virtually all Tellico Village real estate performance metrics. This pace has continued through the first six months of 2019, with total Multiple Listing Service sales up 10 percent vs. 2018. POA lot sales are up 44 percent. New single-family building permits are up 8 percent. Residential property values increased 2 percent to $153 per square foot. The average residential time on the market declined about 20 percent (from 3 months to 2.4 months).

Q: Given the strength of the national economy, wouldn’t the real estate market be strong even without the POA marketing program?

A: While the economy continues to be strong, the national housing market was soft through the first six months of 2019, with single-family existing home sales down 4 percent and housing starts down 5 percent vs. 2018.

Tellico Village’s real estate trends have been stronger than the national housing market since the POA marketing program was launched in 2013. As a result of the 2007 “Great Recession,” the Village suffered far greater damage than the national market, culminating with 2011 existing home sales down 61 percent vs. 2005 compared with a national decline of 39 percent. Once implemented, the POA marketing program helped reverse this negative performance. By 2017, Tellico Village existing home sales were up 100 percent vs. 2012 — more than five times the national increase of just 19 percent.

Since the economy was common to both the national and Tellico Village real estate markets, these differences were due to other factors. The Village’s extraordinarily weak 2005-2011 performance was abetted by a total absence of marketing investment. Introduction of the POA marketing program helped reverse this trend, and the Village’s record-breaking 2017-2019 existing home sales have been driven by program-created leads that directly resulted in over half of the total homes sold during this period.

Stated simply, the real estate market would not be nearly as strong today without the benefit of the POA marketing program.

Q: Why should Villagers care about the real estate market?

A: With existing home sales doubling since 2012, average time on the market has been reduced from 7 months to 2.4 months, and residential property values have increased a total of 26 percent. The impact of recent increases in Tellico Village property values is staggering. During the last 30 months, property values have increased 15.3 percent, from $132.74 per square foot to $153. Since January 2017, property owners have sold 740 homes and actually “cashed-in” equity increases totaling $30.1 million, or an average of $40,680 per home sold.

For many Villagers, their home is their most important asset. At some point, most will want or need to sell their home to finance the next phase of their lives. All residents now have the added security of knowing that if they own an average-priced home in Tellico Village ($414,016), their home is worth an average of $54,823 more than just 30 months ago.

Property owners should be able to sell their homes on a timely basis and at a fair price. This was the original premise of the POA marketing program and remains its primary objective today. Every property owner has a major stake in the degree to which this program has been, and continues to be, successful.

A Tellico Village resident, Fred Toettcher is a member of the Tellico Village Property Owners Association marketing team.