Home prices in Knoxville remain higher than at this time last year (just over 7% higher to be exact). That said, the total housing inventory in our area is almost 40% higher year-over-year. This should help keep local home prices relatively steady, despite the demand for housing continuing to remain strong.
It is also good news for home buyers as they have more homes to choose from than at any point since early 2020. Home buyers also have a little more leverage when it comes to making offers and negotiating contracts.
Interest rates ticked down a bit from earlier in the month. As of now, the consensus from credible sources such as Fannie Mae and the Mortgage Bankers Association is that rates should remain in the mid-to-low 6% range throughout 2025. Some outliers say rates could drop below 5% in 2025, but all sources agree that rates will continue a downward trend next year.
