Knox County, TN – Housing Market Summary (May 2025)
The median sales price in Knoxville rose to $400,000, a 3.1% increase (up from $388,000 a year ago), reflecting a trend of continued (though cooling) higher prices in the area. Homes are now spending an average of 40 days on the market, up from 30 days in May 2024, indicating a modest slowdown in buyer activity.
The sales price-to-list price ratio stands at 98.9%, suggesting that homes are generally selling slightly below asking price, consistent with a more balanced market.
Mortgage rates remained relatively flat throughout most of May, with 15-year fixed rates at 6.1% and 30-year fixed rates at 6.8%. That said, many mortgage experts are still predicting rates to fall throughout the rest of the year.
Overall, the market remains stable, but flattening home price appreciation and extended days on market point to a gradual shift toward more favorable conditions for buyers.
