Knox County Housing Market Update | July 2026 Edition

Knoxville Housing Market Shows Renewed Momentum at Midyear

At the halfway point of 2026, the Greater Knoxville housing market appears to be settling into a healthier rhythm after several years of volatility.

Buyers and sellers are returning to the market, often motivated by life changes they can no longer postpone. That pent-up demand is driving activity despite mortgage rates remaining slightly higher than they were last year.

Meanwhile, price growth has moderated, and housing inventory continues to improve.

July 2026 Market Snapshot

East Tennessee home sales (number of homes sold) increased 14.1% compared to this time in 2025, while the median sale price rose 3.3%.

Other notable indicators include:

• Housing inventory increased 6.5% year over year.
• Half of the homes sold went under contract within 20 days.
• Approximately 43% of homes sold at or above asking price.
• About 18.7% sold for more than the asking price.
• The average sale-to-list price ratio remained nearly unchanged at 98.9%.
• New construction accounted for 11% of sales, down from 13.4% one year earlier.

These numbers point to a market with more available homes but also enough buyer demand to absorb that inventory. Well-positioned properties are still moving quickly, and nearly one in five homes is selling above its asking price.

What Buyers and Sellers Should Expect

Single-family home sales were up approximately 14%, bringing total sales for the first half of 2026 to 9% above the same period last year. Demand also emerged earlier than usual, beginning in late 2025 rather than waiting for the traditional spring selling season.

Although new listings and home completions have increased, the median time on market has returned to 20 days. This suggests the additional supply is being met by a meaningful increase in buyer activity.

East Tennessee REALTORS® continues to project 6.1% sales growth for the full year. If current trends hold, the Knoxville-area market should remain active through the remainder of 2026.

For sellers, pricing and presentation will remain critical as buyers gain more choices. For buyers, improving inventory should create additional opportunities, but desirable homes can still attract strong competition.

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Market statistics are from East Tennessee REALTORS® and reflect regional activity.