Are you planning to buy or sell a home in Knoxville, TN, or East Tennessee? Understanding the local housing market is essential to making informed decisions. Our January 2025 Knoxville and East Tennessee Housing Market Update provides the latest insights into market trends, pricing, and opportunities for buyers and sellers. Whether you’re navigating Knoxville’s competitive real estate market or looking at surrounding counties like Anderson, Loudon, or Sevier, this breakdown will help you stay ahead.

Knoxville Real Estate Market Trends – January 2025

The Knoxville housing market is cooling but remains stable, making it an intriguing time for both buyers and sellers. Here’s what you need to know:

• Home Sales: Down 2.1% compared to January 2024.
• Pending Sales: Virtually flat, down just 0.4%.
• Inventory Growth: Up 23.8%, providing more options for buyers.
• Median Sales Price: Slightly down by 0.95%, now at $391,250.
• Absorption Rate: Dropped from 2.11 months in December to 2.01 months in January, showing continued demand despite seasonal cooling.
• Days on Market: Increased to an average of 42 days, reflecting slower turnover.

What This Means for Buyers in Knoxville

• Opportunities: With inventory growing and prices softening slightly, buyers have more options and negotiating power.
• Focus Areas: Mid-range properties offer the best value, with motivated sellers and stable demand.

What This Means for Sellers in Knoxville

• Challenges: Increased competition requires competitive pricing and excellent property presentation.
• Opportunities: Well-priced homes continue to attract buyers, particularly in higher-value segments.

East Tennessee Housing Market Overview – January 2025

The East Tennessee real estate market, including counties like Anderson, Loudon, Sevier, and Blount, is cooling but resilient. Here’s a snapshot of the region:

• Home Sales: Up 1.9% year-over-year.
• Pending Sales: Increased by 11%.
• Inventory: Up 26.2%, offering more opportunities for buyers.
• Median Sales Price: Rose 2.91%, now at $360,193.
• Absorption Rate: Down from 3.86 months (December) to 3.52 months (January), pointing to steady demand.

County-Specific Real Estate Trends

Loudon County

• Inventory: Up 42.9%.
• Pending Sales: Up 21.7%.
• Median Sales Price: Up 21.11%, reaching $525,000.
• Opportunities for Buyers: Increased inventory and longer days on market create room for negotiation, especially in mid-range price segments.
• Challenges for Sellers: Homes must be competitively priced and well-prepared to attract buyers.

Sevier County

• Inventory: Up 32.8%.
• Pending Sales: Down 21%.
• Median Sales Price: Down 4.51%, now at $540,000.
• Opportunities for Buyers: This market is transitioning closer to a buyer’s market, offering great deals in mid-range properties.
• Challenges for Sellers: Increased competition and declining prices require strategic pricing and marketing.

Blount County

• Inventory: Up 41.3%.
• Pending Sales: Up 41.5%.
• Median Sales Price: Up 1.26%, now at $380,000.
• Opportunities for Buyers: More inventory means more options and opportunities to negotiate better terms.
• Challenges for Sellers: Growing competition requires top-notch presentation and pricing strategies.

Anderson County

• Inventory: Down 8.9%.
• Median Sales Price: Up 12.69%, now at $309,900.
• Opportunities for Buyers: While inventory is tighter, the mid-range segment offers great value.
• Challenges for Sellers: Lower inventory gives sellers leverage, but strategic pricing is still key.

Key Takeaways for Buyers

1. Leverage Growing Inventory: With inventory increasing in most counties, buyers have more options and negotiating power.
2. Focus on Mid-Range Properties: Many counties are seeing price corrections in this segment, making it an ideal time to secure value.
3. Be Strategic: Work with a local real estate expert to identify the best deals and opportunities in Knoxville and East Tennessee.

Key Takeaways for Sellers

1. Price Competitively: Increased competition means pricing your home realistically is essential to attract buyers.
2. Prepare Your Home: Invest in staging, repairs, and presentation to stand out in a growing inventory pool.
3. Be Patient: Homes are taking longer to sell, so be prepared for extended marketing times.

Why Real Estate in Knoxville and East Tennessee Remains Attractive

Despite cooling trends, the Knoxville and East Tennessee housing markets remain fundamentally healthy. Here’s why:

• Resilient Prices: Sale prices are stable or increasing in many areas, especially in higher-value segments.
• Stable Demand: Absorption rates remain relatively low, signaling ongoing buyer activity.
• Opportunities for Both Buyers and Sellers: Whether you’re buying or selling, the current market offers strategic opportunities.

Conclusion: Navigating the Knoxville and East Tennessee Real Estate Market

The Knoxville and East Tennessee housing markets are transitioning toward balance, offering exciting opportunities for buyers and sellers alike. With growing inventory, longer days on market, and moderate price adjustments, now is the time to strategize your move.

For Buyers: Leverage increased inventory and negotiate better deals, especially in mid-range properties.
For Sellers: Focus on competitive pricing and property preparation to attract motivated buyers.

If you’re considering buying or selling real estate in Knoxville or East Tennessee, contact Cornerstone Realty Associates today. We’re here to provide expert guidance and help you make the most of this changing market.

FAQs About Knoxville Real Estate

1. Is Knoxville a buyer’s or seller’s market in 2025?

• Knoxville remains a seller’s market due to low absorption rates, but buyers are gaining negotiating power as the market cools.

2. Are home prices dropping in Knoxville?

• Median sales prices are slightly down but remain stable overall.

3. What are the best counties for buyers in East Tennessee?

• Sevier County and Roane County offer great opportunities for buyers due to increasing inventory and price corrections.

4. Should I sell my home in Knoxville now?

• Yes, but be prepared for increased competition. Pricing competitively and preparing your home well will be key to a successful sale.

Optimize your next real estate move in Knoxville and East Tennessee. Contact us today to get started!

If you’re considering buying or selling a home in Knoxville or East Tennessee, the real estate market is positioned for an exciting year in 2025. With strong demand, competitive pricing, and Knoxville being identified as a housing hotspot by the National Association of Realtors and Zillow, there’s never been a better time to make your move. Let’s dive into the latest housing trends and what they mean for you if you’re looking to buy or sell in East Tennessee.

Knoxville Housing Market Trends

December 2024 vs. December 2023: What’s Changed?

The Knoxville real estate market ended 2024 on a high note, showing increased inventory and rising home prices. Here’s a quick snapshot of the year-over-year changes for December:

• Median Sales Price: Up 8.11%, now at $400,000
• Home Sales: Stable, down just 0.2%
• Pending Sales: Up 14.1%
• Inventory Levels: Increased by 16.7%
• Average Price Per Square Foot: $226

What This Means for Buyers:
With inventory levels up and December being a month with the most price negotiations, winter might still be a great time to buy before the competitive spring market takes off.

What This Means for Sellers:
The median sales price is climbing, making it an excellent time to list your home. However, with more inventory on the market, pricing your property competitively is key to standing out.

2024 in Review: Knoxville’s Year-End Housing Data

Knoxville’s housing market saw solid growth in 2024 compared to 2023:

• Median Sales Price: Up 7.57% to $398,000
• Home Sales: Increased by 6.3%
• Pending Sales: Up 4.7%
• Inventory Levels: Up 10%
• Absorption Rate: Increased by 46%

This consistent growth points to Knoxville’s strong demand, driven by its affordability and quality of life compared to other metro areas.

East Tennessee Housing Market Highlights

Across East Tennessee, the real estate market followed a similar trend of rising prices and increased inventory. Key insights from December 2024 vs. December 2023 include:

• Home Sales: Up 8.2%
• Median Sales Price: Increased by 7.25% to $370,000
• Inventory Levels: Up 26.2%
• Pending Sales: Up 13.4%
• Average Price Per Square Foot: $218

2024 vs. 2023 Year-End Data for East Tennessee

• Home Sales: Increased by 1.6%
• Median Sales Price: Up 7.67% to $365,000
• Inventory Levels: Up 11.9%
• New Listings: Increased by 10.8%

Top Price Ranges for Buyers and Sellers in 2024

If you’re buying or selling, understanding popular price ranges can help guide your strategy. In Knoxville and East Tennessee, the most active price ranges were:

• $250,000 to $400,000: The majority of sales occurred in this range, with the $350,000 to $400,000 bracket seeing the highest activity.
• New Listings: The $250,000 to $300,000 range had the most new homes listed in December 2024.
• Active Listings: The $300,000 to $350,000 price point had the highest available inventory in Knoxville.

For Buyers: These price ranges are competitive, so being prepared with pre-approval and quick decision-making can help you secure your dream home.

For Sellers: If you’re in one of these price brackets, demand is high, and now is an excellent time to list your property.

Why Knoxville and East Tennessee Are Housing Hotspots

Knoxville’s growth isn’t just a local trend—it’s part of a larger migration pattern. Tennessee ranked 5th in net inbound migration in 2024, with over 48,000 people moving to the state. Knoxville, in particular, has been highlighted as one of the top 10 housing hotspots for 2025 by the National Association of Realtors.

Why People Are Moving to Tennessee:

• Affordable cost of living
• No state income tax
• Growing job market
• High quality of life

With consistent inbound migration over the past five years, Knoxville’s housing market has remained robust, even during times of economic uncertainty.

Interest Rates: What to Watch in 2025

One of the biggest factors influencing the housing market in 2025 will be mortgage interest rates. After dipping to 6.68% in early December 2024, rates climbed back up to 7.26% by the end of the year.

• For Buyers: Higher rates can impact affordability, so it’s critical to work with a knowledgeable real estate agent and lender to explore your options.
• For Sellers: Rising rates may slow buyer activity, making it important to price your home competitively and market it effectively.

Real Estate Market Insights by County

Knox County

• Median Sales Price (December 2024): $390,000 (+6.85%)
• Inventory Levels: Up 18.1%
• Pending Sales: Up 8.8%

Anderson County

• Median Sales Price (December 2024): $329,000 (+18.24%)
• Inventory Levels: Slightly Down (-0.6%)

Loudon County

• Median Sales Price (December 2024): $544,000 (+13.93%)
• Inventory Levels: Up 43.2%

Sevier County

• Median Sales Price (December 2024): $550,000 (-16.05%)
• Pending Sales: Down 21.42%
• Inventory Levels: Up 21.88%

Sevier County, home to many investment properties, has seen a slowdown due to higher interest rates impacting cash flow for investors.

What to Expect in 2025

With Knoxville and East Tennessee real estate markets continuing to grow, 2025 looks promising for both buyers and sellers. Key takeaways:

• For Buyers: Winter offers opportunities for negotiation, but spring will bring increased competition. Lock in your mortgage rate as soon as possible to maximize affordability.
• For Sellers: Rising prices and low inventory make this a great time to sell, especially in popular price ranges like $250,000 to $400,000.

Ready to Buy or Sell in Knoxville? Let’s Talk!

Whether you’re buying, selling, or investing in the Knoxville or East Tennessee area, having the right real estate partner can make all the difference. At Cornerstone Realty Associates, we’re here to help you navigate the market and achieve your real estate goals.

📞 Contact us today to get started! Whether you’re moving to Knoxville or selling your home, we’ll make the process seamless. Let’s make 2025 your year for real estate success!