Greater Knoxville Housing Market Update: August 2026
Knoxville’s housing market heads toward fall following another month of strong sales. Last month’s data shows rising home prices, slightly more inventory, and buyers taking a little longer to make their move.
Here’s a look at the numbers:
- Home sales increased 10% compared with July 2025, bringing year-to-date sales growth to 8.2%.
- The median sale price reached $401,000, up 2.8% from a year ago.
- Housing inventory rose 4.5%, giving buyers more options.
- Half of the homes sold went under contract within 28 days, three days longer than last year.
- 43% of homes sold at or above asking price, including 19.8% that sold above asking.
- The sale-to-list price ratio remained at 98.8%, unchanged from last year.
- New construction accounted for 12% of sales, down from 13%.
Despite the momentum, early-August sales data suggest a quieter fall. The spring wave of buyers who had postponed moving may be easing, while inventory is beginning to rebuild, particularly among homes priced above the median.
For homebuyers, that could mean more selection and time to compare properties. However, nearly one in five July sales closed above the asking price, indicating that overall competition for homes remains relatively strong. From a numbers standpoint, we are still in the midst of a “seller’s market”
For home sellers, accurate pricing and strong presentation will become increasingly important as buyers weigh their options. Conditions can differ considerably by neighborhood and price range, making nearby comparable sales more useful than regional headlines alone.
If borrowing rates remain steady, the outlook points toward a healthy, more typical pace of sales through the rest of the year.
Source: East Tennessee REALTORS® July 2026 Home Sales Report and accompanying outlook. Figures reflect the broader East Tennessee region. Home sales activity is reported on a seasonally adjusted annualized basis to account for typical seasonal fluctuations.
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