Knoxville Housing Market Update…
The Knoxville housing market continued to shift toward a buyer’s market with increased activity. While prices held steady, more homes hit the market, giving buyers and sellers new dynamics to navigate.
Sales Activity
Home sales in July increased 7.3% compared to the same month last year. This marks a welcome sign of momentum for the region, following a period of slower activity in 2024.
Home Prices Holding Steady
The median sales price in Knox County was $415,000, which is somewhat lower than the August 2024 number of $445,000. However, August’s average sales price of $506,115 was up slightly from last year.
Inventory Expands
Housing inventory rose 31.2% year-over-year, providing buyers with more options than they’ve had in recent years. This increase may help ease some of the intense competition seen during the height of the market.
Sale Prices vs. Asking Prices
While competition remains, it’s more measured than before:
- 46% of homes sold at or above the asking price
- 21.3% sold for more than asking
- 8% sold for at least $10,000 over asking
- 2.8% sold for at least $25,000 over asking
New Construction’s Role
New builds accounted for 14.4% of all sales, signaling that new construction continues to play an essential role in meeting buyer demand.
What This All Means
Overall, the numbers paint a picture of a market in transition:
- Sellers benefit from strong demand, with many homes still attracting offers at or above list price.
- Buyers are gaining more choice as inventory grows, and slightly longer time-on-market means less pressure to rush.
- Prices remain steady, showing resilience even as conditions shift.
As we move through the second half of 2025, East Tennessee’s housing market appears to be stabilizing—neither overwhelmingly favoring sellers nor buyers, but offering opportunities for both.
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