housing market updates Archives

Knox County Housing Market Snapshot | December 2025 Edition

Knox County Housing Market Update: Where We Stand Heading into 2026

As we close out 2025 and look ahead to 2026, the Knox County and East Tennessee housing market is showing clear signs of stabilization.

After several years of rapid price appreciation and volatility, the market has entered a more balanced and sustainable phase…

Nationally and locally, the era of runaway home prices appears to be behind us. Instead, we are seeing a healthier environment defined by steadier values, improving inventory, and renewed buyer confidence as mortgage rates ease.

Mortgage Rates and Buyer Confidence Are Improving

One of the most important drivers of recent activity has been mortgage rates. Single-family home sales this fall proved highly responsive to interest rate movement. In December, the average 30-year fixed mortgage rate dropped to a two-month low of 6.18%.

When paired with wage growth in specific sectors, lower rates are beginning to restore buying power for many households. This shift helped fuel a noticeable increase in buyer activity toward the end of the year and positions the market well heading into early 2026.

Home Sales Activity Is Picking Up

Momentum is not limited to East Tennessee. In November, the National Association of REALTORS® reported the highest level of pending sales in three years nationwide. Locally, the signal was even stronger: pending sales in the East Tennessee REALTORS® MLS were up nearly 30% compared to November 2024.

For Knox County, this reflects renewed demand from both local buyers and those relocating to the region, fueled by job growth, quality of life, and relative affordability compared to many other metro areas.

The Numbers…

Home sales increased 2.6% year-over-year
Median sale price: $387,000, down 2.6% from last year
Inventory increased 16.2% year-over-year
38.7% of homes sold at or above asking price
- 16.8% sold above asking
- 5.7% sold for $10,000+ over asking
- 2.7% sold for $25,000+ over asking
New construction accounted for 13.6% of sales

What This Means for Homebuyers

For buyers, conditions are improving. More inventory and slightly softer prices have created better opportunities to negotiate, while lower rates have helped offset affordability challenges.

That said, demand remains strong in the most affordable price ranges—particularly between $200,000 and $350,000, where supply continues to lag housing demand. Buyers in these segments should still be prepared to move decisively when the right home becomes available.

What This Means for Sellers

For sellers, the data supports confidence, but not complacency. Homes are still selling close to list price, and nearly 40% are achieving the asking price or higher. However, pricing strategy, proper presentation, and relevant marketing strategies are more critical now than they were during the peak frenzy years.

The good news is that home values in Knox County are holding up well and are expected to remain stable into 2026.

Looking Ahead to 2026

While 2025 sales activity remained relatively flat overall, the market performed as expected, with home prices stabilizing after years of rapid growth. The traditional spring surge was muted by economic uncertainty, but a gentle rally emerged in the fall as rates declined.

Looking forward, all signs point to a stronger and more active 2026:

Price spikes from the post-pandemic era are behind us
Inventory has surpassed pre-pandemic levels
Demand remains elevated due to ongoing in-migration
Monetary policy may continue to support housing affordability

One long-term challenge remains supply, especially with affordable housing. As Knox County and the surrounding areas continue to grow and available land becomes scarcer, future solutions will likely focus on building upward rather than outward. Thoughtful density can help preserve the region’s character, improve affordability, and sustain a healthy housing market.

Bottom Line

The Knox County housing market is stable, competitive, and well-positioned for the year ahead. Whether you’re planning to buy, sell, or stay informed, 2026 is shaping up to be a year defined by opportunity rather than uncertainty.

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Knox County Housing Market Snapshot | November 2025

As Knoxville Metro Nears 1 Million Residents: What the Latest Housing Data Really Means

As the Knoxville metropolitan area edges closer to the significant milestone of one million residents, recent headlines have focused on the challenges tied to growth, including rising housing costs, increased homelessness, and the long-term strain of continued population growth.

These concerns are real, but they should not spark alarm. Knoxville’s economic landscape remains healthy, and the pace of growth has stabilized. While the bulk of in-migration occurred over the last five years, today’s population increase has slowed to a more sustainable 1.1% annually.

A Market Showing Signs of Relief

November delivered several encouraging indicators for East Tennessee homebuyers and sellers.

Total Home sales rose 1.3% month-over-month, 8.2% year-over-year, and 4.7% year-to-date.
Mortgage rates eased, and housing inventory increased, giving previously sidelined buyers a new opportunity to re-enter the market.
For the first time since 2020, the median home sale price dipped year over year, falling 1.9%. This is a small but meaningful signal that market pressures are beginning to normalize after several years of rapid appreciation.

These shifts suggest that the extreme competitiveness for homes from 2021 through 2023 is slowly giving way to a more balanced environment where homebuyers have more options and sellers can still benefit from strong, but stabilizing, demand.

Latest Home Sales Report

Market Highlights

Home sales: Up 8.2% year-over-year
Median sale price: Down 1.9% year-over-year
Total housing inventory: Up 19.8% year-over-year
Days on market: Up 33% year-over-year
Pricing strength:
- 37.6% sold at or above asking
- 16.8% sold above asking
- 8% sold for $10,000+ above asking
- 3.5% sold for $25,000+ above asking
Sale-to-list price ratio: 98.5%, up from 97.7%
New construction: 12.2% of total home sales
Inventory in the Greater Knoxville area now stands at 8,450 active listings—the highest level in more than five years.

What’s the Outlook?

As 2025 winds down, the Greater Knoxville market is finally capturing some of the pent-up momentum from earlier in the year. Sales have been climbing steadily through summer and fall, and the region is on pace to outperform 2024 by roughly 5%.

The slight 1.9% dip in median price is modest, but it marks the first decrease since 2020, suggesting the market is cooling into a healthier, more navigable phase. Inventory continues to build, giving buyers more breathing room than they’ve had in years.

Still, the long-term challenge remains: ensuring that housing is accessible not just to newcomers but also to Knoxville’s current residents.

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Knox County Housing Market Snapshot | September 2025

Knox County Housing Market Update

For the first time in 2025, home sales are showing growth across every primary metric — year over year, month over month, and year to date. September brought unseasonably strong sales, thanks in part to movement in mortgage rates, and the momentum could signal the strongest housing market performance since 2022. Optimism is emerging nationally and locally as both inventory and buyers continue to return.

One clear takeaway is that an effective pricing strategy has never been more critical. As the spread between list price and sale price begins to normalize, sellers who price smartly are best positioned to capture strong buyer demand.

Market Highlights

Sales growth: Up 2.1% from July and 7.4% from August 2024
Median sale price: $408,450
Inventory: Increased 31.4% compared to last year
Time on market: Just half of homes went under contract in 28 days or less (up from 20 days last year)
Pricing trends:
- Only 39% of homes sold for asking price or above (downward trend continues)
- 18.3% sold above asking
- 7.9% sold for $10,000+ over asking
- 2.7% sold for $25,000+ over asking
Luxury market: 5.5% of homes sold for more than $1 million — the highest this year
Sale-to-list ratio: 98.6% (slightly down from July but still above August 2024’s 97.6%)
New construction: Made up 11.9% of all sales

What’s Driving the Market?

August’s boost in sales was partly due to seasonal factors but also fueled by optimism in lending. 30-year fixed mortgage rates eased into the lower 6% range, prompting a spike in applications. Still, some buyers remain hesitant, waiting to see if rates and affordability fall further.

At the same time, buyers are becoming more selective. In the current market, buyers are expecting more value for their dollar. They want modern amenities, move-in ready properties, and little to no DIY work. As a result, homes are spending more time on the market.

Outlook for Fall 2025

It’s not a buyer’s market yet, but conditions are shifting toward balance. Increased inventory and more cautious buyers mean that homes are no longer guaranteed to sell fast at top dollar.

The good news? The market is stabilizing while continuing to grow. Although 39% of August sales closed at or above asking, this number is moving back toward pre-pandemic “normal” levels of 28–30%. This return to balance suggests that East Tennessee real estate is becoming healthier and more sustainable for the long term.

For sellers, this means strategy matters: pricing correctly from the start is the key to attracting the right buyers. For buyers, more choices and longer days on market provide opportunities to negotiate and find a home that fits their needs.

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Knox County Housing Market Snapshot | August 2025

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.

Knox County Housing Market Snapshot | January 2025

NAVIGATING FOGGY WATERS

Home sales and home prices both continue to remain higher than they were 12 months ago. This indicates that the demand for housing in Knoxville remains relatively strong.

That said, total housing inventory is up almost 30% from this time last year. Should our housing inventory continue to increase, this will put downward pressure on home prices as homebuyers will have more listings to choose from. Also, the number of homes sold at or above the list price is WAY down from what it was in early 2024, which is another indicator that we may be heading into a more “buyer’s market” in 2025.

Housing affordability remains a major issue for our area. Some experts believe that only about 25% of those looking to buy or sell a home right now are able to do so comfortably. Should interest rates drop significantly in the coming months, this should spark more demand for homes that could potentially push prices upward.

Overall, the direction of our housing market is murky at best right now. Depending on how some key factors play out will determine how home prices, housing inventory, and home affordability evolve in the Knoxville area.

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