The Greater Knoxville housing market slowed last month, but the bigger picture remains positive.
Across East Tennessee, home sales through August were 6.7% higher than the same period in 2025. Buyers have more homes to choose from, while sellers are still receiving close to their asking prices.
Here’s what the latest numbers show:
- Median sale price: $402,050 (down 0.8% from last year).
- Available housing inventory increased 4.5%, giving buyers more options.
- Half of homes sold went under contract within 27 days, one day faster than a year earlier.
- Just 43.4% of homes sold at or above asking price, including 19.5% that sold above asking.
- Homes sold for approximately 98.95% of their list price, showing that final sale prices generally remained close to what sellers requested.
- New construction accounted for 10.7% of sales, its lowest monthly share since 2022.
More inventory does not necessarily mean every buyer has plenty of choices. Homes priced between $300,000 and $400,000 remain an important part of the market, and available supply is currently not matching the demand. Newly built homes also tend to carry higher prices, limiting their ability to fill the affordability gap.
For buyers, the increased selection may create more opportunities to compare homes and negotiate, although competitively priced properties can still attract multiple offers. For sellers, accurate pricing and high-quality presentation remain crucial as buyers gain more choices.
Looking ahead, mortgage rates and the supply of affordable homes will continue to shape the Knoxville market. September pending sales and homes under contract but not yet closed rose 9% from last year, suggesting solid buyer activity heading into fall.
Data source: East Tennessee REALTORS®
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