knoxville real estate market update Archives

Knoxville Housing Market Update: Signs of Stability This Spring

A Market Catching Its Breath

Home sales dipped 4.5% year over year, following an unusually active winter. Many buyers moved up early to take advantage of favorable mortgage rates, temporarily pulling demand forward. Even with last month’s slowdown, total sales for the first quarter are still up 5.3% year-over-year—a solid indicator that overall demand remains healthy.

Prices Leveling Off

Price growth is flattening, giving buyers a bit more breathing room and encouraging sellers to adopt more thoughtful pricing strategies.

Inventory Improving (But Still Tight)

Housing inventory has increased 10% compared to last year, which is a step in the right direction. However, supply is still limited, especially for affordable homes, keeping the market competitive in key segments.

Homes are also taking slightly longer to sell, with half going under contract in 40 days or less (up from 33 days last year). This suggests buyers are being more selective and value-conscious.

Buyers Gaining Some Leverage

Fewer homes are selling above asking price, and the sale-to-list ratio has dipped slightly to 98.6%. Sellers are increasingly offering concessions and incentives, signaling a shift toward more balanced negotiations.

What’s Driving the Shift?

Mortgage rates fluctuated last month, briefly rising above 6.4%, which slowed buyer activity. However, rates stabilized by the end of the month, and improving consumer confidence is helping bring buyers back into the market.

Looking Ahead

There’s reason for optimism… Pending sales for April are up 10% year over year, pointing to a stronger spring season ahead.

More importantly, the market is beginning to behave more as it did historically, something Knoxville hasn’t experienced in years. While that may feel slower on the surface, it actually signals a healthier, more predictable environment for both buyers and sellers.

The Bigger Picture

Despite recent improvements, the region still faces a significant housing shortage. Over the past eight years, the Greater Knoxville area has added nearly 100,000 residents, yet home sales volumes remain near 2018 levels. That gap highlights an ongoing need for more housing, especially affordable options.

Bottom Line:

The market is stabilizing. Buyers are becoming more selective, sellers need to price strategically, and while conditions are improving, inventory constraints remain the biggest challenge. For now, steady and informed decision-making will be key for anyone entering the market this spring.

Get Your Local Market Report

🏡 Knox County Home Sales Report – October 2025

The Knoxville housing market showed steady gains across multiple key metrics, signaling a market that’s slowly balancing after several years of rapid shifts.

📈 Sales and Prices Have Leveled Off

The median sale price in Knox County was $383,000, down slightly from this same period last year.

That said, the average sales price of homes in Knox County was almost 10% higher than in October of 2024.

🏠 Inventory Expands, Creating More Opportunities

Buyers had more choices in September, as total housing inventory grew 26% year over year. While increased inventory can sometimes cool prices, East Tennessee’s steady demand continues to support healthy sales levels across the region.

⏱️ Market Pace: Slowing Slightly, But Still Active

The average number of days it took homes to go under contract was about 30% higher (47 days vs. 33 days) than last year. This modest increase in days on market suggests that buyers are taking a bit more time to make decisions — a sign that the market is shifting toward balance.

💸 Offers and Sale Prices

Competition remains strong, though slightly less intense than in previous years:

37.7% of homes sold at or above asking price
16.9% sold for more than asking
6.7% sold for $10,000+ over asking
2.3% sold for $25,000+ over asking

The sale-to-list price ratio held steady at 98%, up slightly from 97.5% last year — showing that sellers are still achieving near-full asking prices even with more listings on the market.

💰 High-End Market and New Construction

Luxury and new construction homes continued to make a strong showing:

5.5% of homes sold for more than $1 million
New construction accounted for 13.8% of total home sales

These numbers highlight the growing diversity in East Tennessee’s housing market, appealing to a broad range of buyers.

🔍 What This Means for Buyers and Sellers

For buyers, increased inventory means more selection and slightly more negotiating power than last year.
For sellers, homes are still commanding strong prices — but realistic pricing and patience are key as the market continues to normalize.

East Tennessee remains one of the region’s most dynamic housing markets, balancing affordability, demand, and growth. As we move deeper into fall, the trends suggest continued stability with opportunities on both sides of the market.