Gatlinburg and Pigeon Forge Cabin Foreclosures

The Sevier County overnight cabin rental sales market experienced a tremendous downturn in conjunction with the financial crisis of 2008. Development of new cabin subdivisions and overnight rentals had exploded during the build up to the financial crisis. A large portion of the development occurred from 2005 to 2008 in Sevier County and once the foreclosure crisis hit the nation Sevier County certainly felt the ramifications. Cabin foreclosures were rampant beginning in 2008 and lasting mostly through 2012.

Cabin Foreclosures within Subdivisions

There were some developments that ended up going into foreclosure, having been developed right at the peak of the market. The more evident fall out from the foreclosure crisis was overnight cabin rentals being foreclosed upon. In Gatlinburg and Pigeon Forge it wasn’t uncommon for cabins that had sold for $600,000 just a couple years prior selling for $300,000 following the foreclosure crisis of 2008.

The foreclosures certainly weren’t limited to one area of Sevier County and they were widespread among the cities of Gatlinburg, Pigeon Forge, and Sevierville. No area having investment cabins was immune. However, there were several cabin subdivisions that experienced higher than normal percentages of foreclosures and declines in value. These subdivisions were typically those completed just prior to 2008 where buyers had paid extravagant prices.

Some of the subdivisions in Gatlinburg and Pigeon Forge that were hit especially hard with cabin foreclosures included:

  • Alpine Mountain Village (Pigeon Forge)
  • Arrowhead Resort (Pigeon Forge)
  • Bear Creek Crossing (Pigeon Forge)
  • Black Bear Falls (Gatlinburg)
  • Black Bear Ridge (Pigeon Forge)
  • Brothers Cove Resort (Pigeon Forge)
  • Cedar Creek Crossing (Pigeon Forge)
  • Cedar Falls (Pigeon Forge)
  • Covered Bridge Resort (Pigeon Forge)
  • Eagle Crest (Pigeon Forge)
  • Elk Springs Resort (Gatlinburg)
  • Hemlock Hills (Gatlinburg)
  • Hidden Springs Resort (Pigeon Forge)
  • Laurel Oaks (Gatlinburg)
  • Legacy Mountain Resort (Pigeon Forge)
  • Mountain Shadows Resort (Gatlinburg)
  • Pinnacle View (Pittman Center)
  • Sherwood Forest Resort (Pigeon Forge)
  • Sky Harbor (Gatlinburg/Pigeon Forge)
  • Smoky Cove (Pigeon Forge)
  • Smoky Mountain Ridge (Pigeon Forge)
  • Starr Crest Resort (Pigeon Forge)
  • Summit View (Pigeon Forge)
  • The Preserve Resort (Wears Valley)
  • Thunder Mountain (Wears Valley)

The common denominator among the vast majority of the subdivisions above is clearly the subdivision was developed in the 2004 to 2007 time frame. With cabins being predominantly sold from 2005 to 2008. The inflated prices of the cabins weren’t sustainable for many cabin owners. Especially owners who were highly leveraged and using less than desirable property management companies at a 60/40 split.

Gatlinburg foreclosure cabin renovation at Lots of Lovin. One bedroom cabin rental
Gatlinburg foreclosure cabin renovation

The frequency of cabin foreclosures from 2008 to 2012 made it easy to find bargains for buyers. Some management companies certainly faced hardships, in part due to portions of their inventory under management going into foreclosure.

Rental Cabin Incomes as a result of Recession

Surprisingly to many, the overall rental incomes produced in Sevier County didn’t face a substantial drop. While many cabin owners went into foreclosure and a few management companies ended up closing their doors, the vast majority of management companies survived and most cabin owners were able to “weather the storm”. Even with a down economy visitors still flocked to Gatlinburg, Pigeon Forge, and the Smoky Mountains.

With the Smoky Mountains being within a day’s drive of half the population within the United States the Smokies are primarily a driving destination. When the economy struggled during the recession of 2008 most people who typically took vacation still went on vacation. Some just scaled back and didn’t plan as extravagant of a vacation. Instead of the more costly flying destinations or a week-long high end beach retreat location people were booking cabins (and hotels) at the comparatively bargained priced areas of Gatlinburg and Pigeon Forge.

Gatlinburg and Pigeon Forge certainly aren’t immune to downturns in the economy. Among tourist locations, however, Sevier County is better situated and on more solid footing than most. The area’s staying power is primarily due to affordability, variety of attractions and entertainment, ease of access to large population centers, and being next door to the most heavily trafficked National Park in the United States and one of the few with free admission.

Currently the overnight cabin rental investment market has recovered in Pigeon Forge, Gatlinburg, and Sevierville. Instead of cabin foreclosures being extremely common and rampant across the area, now it is incredibly rare to see a rental cabin come available as a foreclosure.

Historical Cabin Foreclosures in Sevier County

The bathroom of a Gatlinburg cabin foreclosure prior to its renovation. Lots of Lovin removed the tub and created a luxury bath in its place.
Gatlinburg foreclosure cabin bathroom

For historical reference and data purposes, below is a list of cabin foreclosures that were available on October 26, 2013. This was past the peak of the foreclosures, but the market was on the way to recovery. Now it is uncommon to see more than one or two cabins foreclosed at a time across our entire market.

Gatlinburg and Pigeon Forge area Cabin Foreclosures and Short Sales as of October 26, 2013

1827793416 Jason PlaceJones CoveOma Lee Williams1,8003$109,900
1850961110 Annes Road Unit 2GatlinburgCove Mountain Resorts1,0081$112,500
1850991110 Annes Road Unit 3GatlinburgCove Mountain Resorts1,0081$112,500
1841861723 Rose PassGatlinburgSky Harbor9821$119,900
1841133715 Eagle LaneGatlinburgCobbly Nob - Golf Creek2,0163$134,900
1756101166 Ski View DriveGatlinburgAlpendorf1,6644Foreclosure that started remodeling, but didn't finish$139,900
181125326 Greenwood WayPigeon ForgeWoodridge Village1,5501Approved Short Sale$146,900
1826092309 Windy LanePigeon ForgeEagle Crest1,0082Good Mountain Views, Rental Income $38,294 in 2012$148,500
1844644357 Parkside Village WayWears ValleyParkside Village1,4762Borders Smoky Mountains National Park!$149,900
183696316 Silver Stone WayPigeon ForgeStone Henge1,1202$155,000
185289421 Maples RoadGatlinburgHoward Maples Sub.1,7843$157,900
1810681913 Bird Hill RoadGatlinburgBirds Creek9122$164,500
184570753 Penelope LaneSeviervilleFox Vista1,7283Lake Access$167,000
1770981205 Oak PlaceGatlinburgChalet Village North1,5362$169,900
1845841625 Hidden Hills Rd.GatlinburgFormer Mountain Shadows Off.1,6322Former Mountain Shadows Rental Office$169,000
1786684440 Forest Vista WayPigeon ForgeSherwood Forest Resort7801$174,500
1851434419 Forest Vista WayPigeon ForgeSherwood Forest Resort1,3702$179,900
184151331 Caney Creek RoadPigeon ForgeFalling Waters1,2612$179,900
1515332739 Mountain Preserve DriveWears ValleyThe Preserve Resort1,4042$29,935 Income 2012,$2,900 Water Assessment$185,000
1853322251 Upper Middle Creek RoadPigeon ForgeSummit View2,6644Very good deal, mountain view$189,090
1789012811 White Oak Ridge LaneWears ValleyThe Preserve Resort1,4041$195,000
1842301816 High View CourtGatlinburgSky Harbor1,4882Approved Short Sale$199,500
1790221713 High Rock WayPigeon ForgeBlack Bear Ridge Resort7601$199,900
182095915 Deer Run WayBluff Mtn/WaldeHidden Mountain East #41,5363$200,000
1776932038 McCarter DrivePigeon ForgeTwin Rock Mountain2,2403Part of a group of short sale cabins see listing for $1,050,000$200,000
1789163069 Legacy Vista DrivePigeon ForgeLegacy Mountain Resort1,5241$207,000
184588875 Great Smoky WayGatlinburgGatlinburg Falls Resort9801Mountain View$210,000
1852701856 Laurel Valley WayWears ValleyWears Valley Property1,1321$217,900
1845092013 Settlers Ridge WayGatlinburgSettlers Ridge1,9142$224,900
1831732820 Daybreak WayStrawberry PlainsRoy Keirsey Property3,6183$224,900
1803692664 Dogwood Ridge WayWears ValleyDogwood Farms2,4663$225,000
1852441849 Laurel Valley WayWears ValleyWears Valley Property1,6622Furnished Foreclosure$229,900
1852691860 Laurel Valley WayWears ValleyWears Valley Property1,6642Furnished Foreclosure$229,900
184549646 Gatlinburg Falls WayGatlinburgGatlinburg Falls Resort1,6642$235,000
1851232650 Grassy Branch LoopGatlinburgTreehouse Cabins & Resort2,6943$259,500
1851205248 Riversong WayGatlinburgRiversong Estates2,9923$279,900
179021854 Black Bear Cub WayPigeon ForgeBlack Bear Ridge Resort1,7201Indoor Pool$284,900
183791271 Cove Hollow RoadCosbyCovered Bridge Cove3,9245on over 4 acres$294,900
1789032012 Delta DawnBluff Mtn/WaldeLaurel Branch North3,4563Furnished foreclosure with views$299,900
1789042014 Delta DawnBluff Mtn/WaldeLaurel Branch North3,4563Furnished foreclosure with views$299,900
175853622 Park Vista WayGatlinburgGatlinburg Falls Parkview2,1063Theater Room, Great Rentals$325,000
1852722419 Rainbow Falls Ln.Wears ValleyThunder Mountain2,9403Furnished foreclosure with view & quality$359,900
1808502030 Delta DawnBluff Mtn/WaldeLaurel Branch North3,3323Theater rm, indoor 9 hole mini golf! View & Great Rental income$449,900
1567443024 Hickory Lodge DriveWears ValleyThe Preserve Resort2,8724$485,000
185142360 Pinnacle Vista Rd.GatlinburgPinnacle View3,7805Quality short sale cabin with mountain view and 1.84 acres$499,000
1697782868 White Oak Ridge LaneWears ValleyThe Preserve Resort3,2645$509,500
1776952042 McCarter DrivePigeon ForgeTwin Rock Mountain-8$83,575 2011 Rental Income. 6 BR Cabin & 2 BR cabin (see MLS 177707)$525,000
1785561941 Starr ViewPigeon ForgeStarr Crest Resort3,0215$614,825
185043236 Stone FenceGatlinburgSettlement at Gatlinburg4,5006$649,900
185013240 Stone FenceGatlinburgSettlement at Gatlinburg4,5006$649,900
1520083028 Hickory Lodge DriveWears ValleyThe Preserve Resort4,6248Over $100k in rental income$749,000
178725536 Mossy BrookGatlinburgEstates at Norton Creek4,9543Great Quality$820,000
184923McCarter Dr. (2030,2042)Pigeon ForgeTwin Rock Mountain-144 cabins w/ amazing views. 14 BR's & 12 Baths. Gross income 2011: $114,532$995,000
1557114539 Misty View DrivePigeon ForgeLegacy Mountain Resort5,61612Approx. $160k rental income$1,200,000
A historical view of cabin foreclosures in Gatlinburg and Pigeon Forge. This snapshot of available cabin foreclosures and short sales is from October 26, 2013. The data was compiled from the Great Smoky Mountains Association of Realtors. Data obtained from the GSMAR (Great Smoky Mountains Association of Realtors). Data such as the availability of properties is not guaranteed as accurate along with any price changes. A best effort is made to maintain the accuracy of this page, but is not guaranteed. The listings within this page belong to other Brokerages and Realtors within the GSMAR. This data is for information and statistic purposes to evaluate the number of foreclosures on the market, the areas of foreclosed properties and the price trends of those properties at a certain point in time.