Knox County Housing Market Update | October 2026 Edition

Home Sales Regain Momentum

Greater Knoxville’s housing market bounced back last month, with home sales increasing 10.9% compared to 2025, bringing year-to-date sales growth to 7.2%.

For Knox County buyers and sellers, these regional numbers provide useful context…  Overall activity is improving, but home prices and competition vary by price range. 

September at a Glance

• Median sale price: $412,000, up from $380,00 a year earlier.
• Available housing inventory: Up 7.5% (more options for homebuyers)
• Time to contract: Half of homes sold went under contract within 32 days (one day longer than last year). 
• Sale-to-list price ratio: 98.4%, meaning homes are still selling close to their asking prices on average.
• At or above asking price: Just 36.8% of homes sold, including 16.4% that sold above asking.
• New construction: 9.6% of total sales, down from 14% last year and the lowest monthly share since 2022.

Price Range Makes a Difference

Homes under $350,000 accounted for nearly 45% of September sales, averaging 31 days on the market and selling for approximately 98.42% of their list price.

By comparison, homes priced above $1 million represented 4.6% of sales, averaged 45 days on the market, and sold for approximately 95.6% of list price. These differences show why a strategy based on comparable properties is more useful than broad market headlines.

What This Means for Buyers and Sellers

More inventory gives buyers more choices, although well-priced homes still attract strong competition and bidding wars. Sellers should pay close attention to recent comparable sales, presentation, and competing listings when setting their asking price.

Looking ahead, the report’s 4% year-over-year increase in pending sales points to continued activity this fall, although pending contracts do not guarantee completed sales. Greater Knoxville’s housing recovery remains encouraging, with local conditions offering a more useful guide than national headlines alone.

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Source: East Tennessee REALTORS®, October 2026 Market Pulse and September 2026 Home Sales Report.