SLOW & STEADY…
adequately explains the Knoxville real estate market right now… Despite the inventory of homes on the market being up over 30% compared to the summer and the overall number of homes sold declining for the 3rd straight month, home prices remain fairly consistent.
The limited supply of homes relative to the housing demand in the Knoxville area is a major factor in why home prices remain slightly higher than last year. This demand is fueled by a strong local economy with a relatively low unemployment rate.
On the surface, the ongoing trend of more list price reductions (year-over-year) would suggest that home prices are declining. However, that is not really what is happening…
More home sellers have been listing their homes at “above-market” prices. While this was an effective strategy to get top-dollar for one’s home in 2021, and most of 2022, it is not nearly as effective in today’s market. As a result, more home sellers are reducing the prices of their homes in order to sell them at current market prices.
