knoxville real estate Archives

Knox County Housing Market Update | July 2026 Edition

Knoxville Housing Market Shows Renewed Momentum at Midyear

At the halfway point of 2026, the Greater Knoxville housing market appears to be settling into a healthier rhythm after several years of volatility.

Buyers and sellers are returning to the market, often motivated by life changes they can no longer postpone. That pent-up demand is driving activity despite mortgage rates remaining slightly higher than they were last year.

Meanwhile, price growth has moderated, and housing inventory continues to improve.

July 2026 Market Snapshot

East Tennessee home sales (number of homes sold) increased 14.1% compared to this time in 2025, while the median sale price rose 3.3%.

Other notable indicators include:

Housing inventory increased 6.5% year over year.
Half of the homes sold went under contract within 20 days.
Approximately 43% of homes sold at or above asking price.
About 18.7% sold for more than the asking price.
The average sale-to-list price ratio remained nearly unchanged at 98.9%.
New construction accounted for 11% of sales, down from 13.4% one year earlier.

These numbers point to a market with more available homes but also enough buyer demand to absorb that inventory. Well-positioned properties are still moving quickly, and nearly one in five homes is selling above its asking price.

What Buyers and Sellers Should Expect

Single-family home sales were up approximately 14%, bringing total sales for the first half of 2026 to 9% above the same period last year. Demand also emerged earlier than usual, beginning in late 2025 rather than waiting for the traditional spring selling season.

Although new listings and home completions have increased, the median time on market has returned to 20 days. This suggests the additional supply is being met by a meaningful increase in buyer activity.

East Tennessee REALTORS® continues to project 6.1% sales growth for the full year. If current trends hold, the Knoxville-area market should remain active through the remainder of 2026.

For sellers, pricing and presentation will remain critical as buyers gain more choices. For buyers, improving inventory should create additional opportunities, but desirable homes can still attract strong competition.

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Market statistics are from East Tennessee REALTORS® and reflect regional activity.

Knox County Housing Market Snapshot | March 2026 Edition

Knox County Housing Market Update – March 2026

Strong Demand Meets Tight Inventory Heading Into Spring

The Knoxville housing market is showing clear signs of acceleration as we move into spring. March data reflect a notable surge in buyer activity, steady price growth, and a market beginning to show signs of normalization.

Demand Surges Despite National Headwinds

Home sales across East Tennessee rose 16.3% year over year, a significant increase that stands in stark contrast to the broader U.S. housing market. Nationally, existing home sales have remained relatively flat.

Locally, however, momentum is building. The first two months of 2026 have already produced a 12% cumulative increase in sales compared to the same period in 2025, signaling that buyer confidence remains strong.

This divergence reinforces a key point: East Tennessee continues to outperform national trends, driven by relative affordability and sustained in-migration.

Prices Continue Upward—But at a Controlled Pace

The median home price reached $390,000, which is about the same as last year.

Equally important is the sale-to-list price ratio of 98.75%, which has edged up slightly from last year. This suggests:

Sellers are still achieving near-ask pricing
Buyers are gaining negotiating leverage
Pricing expectations are becoming more aligned with actual market conditions

This is a hallmark of a stabilizing market, not a declining one.

Inventory Improves

Housing inventory increased 10% year over year, a welcome development for buyers who have faced persistent supply constraints.

However, this improvement comes with an important caveat:
Recent demand has already begun absorbing that additional inventory.

Three consecutive months of strong sales have thinned available supply, particularly in entry-level and workforce housing segments, where demand is most sensitive to mortgage rates.

This creates a structural imbalance:

Demand is rising
Inventory is improving (but not fast enough)
Lower price tiers remain undersupplied

As a result, housing inventory will likely act as the primary constraint on further sales growth heading into peak season.

Market Pace and Competition Dynamics

Homes are taking slightly longer to sell, with half going under contract in 51 days (up from 42 days last year). This shift indicates a more measured pace, giving buyers additional time to evaluate opportunities.

At the same time, competition remains active:

42.15% of homes sold at or above asking price
16.9% sold above asking
6.5% sold $10K+ over asking
2.5% sold $25K+ over asking

New Construction Gains Share

New construction accounted for 15.9% of total sales, up from 14.9% last year. This gradual increase is critical, as new builds are one of the few scalable solutions to the region’s supply shortage.

However, construction alone is unlikely to fully offset demand in the near term, especially in affordable price bands.

Outlook: What This Means Going Forward

For Buyers:
Conditions are improving, but not dramatically. Increased inventory and longer days on market create more opportunities, yet competition remains very strong for well-positioned homes. Acting decisively is key.

For Sellers:
You’re still in a favorable position, but precision matters more than ever. Pricing correctly and presenting well will determine whether you capture top-of-market value or sit on the market.

For Investors:
This is a nuanced window. Demand strength supports rent growth and exit values, but inventory constraints—especially at lower price points — signal opportunities in development, value-add, and the acquisition of scarce homes in high-demand categories.

Bottom Line

East Tennessee remains a standout market nationally, combining strong demand, steady appreciation, and improving (though still constrained) supply.

The key trend to watch isn’t demand—it’s inventory capacity. If supply cannot keep pace, it will ultimately cap transaction volume, even in the face of strong buyer interest.

For now, the market is best described as:
Stable, competitive, and structurally undersupplied—heading into peak season.

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Knox County Housing Market Snapshot | May 2024

WHERE ARE HOME PRICES GOING?

While average and median home prices in the Knoxville area are still slightly above what they were at this time last year, will this continue or will they begin to drop as housing inventory rises?

Despite interest rates dropping over the past few weeks, they still aren’t low enough to significantly boost homebuyer demand. That said, most credible mortgage experts and economists still predict interest rates to be on a downward trend by the end of this year. Lower interest rates mean more home buyers.

The continued upward trend in the cost of living in Knoxville appears to be significantly affecting people in our area. Per capita income hasn’t kept pace with rising prices in many cases, leaving many people with less disposable income and likely contributing to the rapid increase in overall consumer debt (e.g., personal loans, credit cards). As a result, it’s highly likely that we will see more people having to sell their homes to access the equity they have accumulated over the past few years to keep up with living expenses.

On the flip side, Knoxville’s unemployment rate remains extremely low. There is also a steady flow of new, higher-paying jobs from companies moving into the Knoxville area. These are two major reasons why we continue to see home price appreciation in our area.

If home price growth remains flat, interest rates drop into the low 6%- high 5% range, and the unemployment rate stays low, we should expect a healthy local housing market heading into 2025.

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2021 RealTrends Rankings | HMG Makes the List Once Again

Written By: Holli McCray

We’re pleased and proud to announce that Holli McCray Home Marketing Group was ranked by RealTrends as one of the top real estate teams in both Tennessee and the United States. RealTrends is one of the nation’s leading real estate news and information sources. Each year, they rank the top real real agents, teams, and firms through the nation based on various metrics. In 2021, we made their list in 3 categories based on our production in 2020…

You can read the full rankings report here: 2021 RealTrends Rankings Report

One of the top-selling real estate teams in the country for 2018

We’re so excited to announce that HMG was, once again, one of the top-selling real estate teams in the country last year! Every year, RealTrends compiles “The Thousand,” a report ranking the top estate teams and agents in the United States. This year, we made the top 250 based on the number of closings/sides we completed in 2018. We’re so, so grateful to our staff, real estate agents, and clients for being part of our success last year.