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Knoxville & East Tennessee Real Estate SHIFT: May 2025 Market Update

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The East Tennessee real estate market is sending a clear signal: the frenetic, seller-dominated era is over. After years of intense competition, the data through May 2025 reveals a decisive shift towards a more balanced, traditional, and strategic market. For buyers, this means more options and renewed negotiating power. For sellers, it demands a new approach to pricing and presentation.

In our latest update, Troy Stavros of Cornerstone Realty Associates breaks down the critical numbers, trends, and forecasts for both the broader East Tennessee region and the Knoxville metropolitan hub. Here’s what you need to know.

The Big Picture: A Unified Shift to a Balanced Market

Across the region, the story is consistent. A surge in housing inventory, a slower sales pace, and moderating price growth have collectively tipped the scales. While the direction is the same, the velocity of this change differs, with the Knoxville market experiencing a more rapid and dramatic cooling-off period than its surrounding areas.

East Tennessee Housing Market: The Regional View (May 2025)

Looking at the entire East Tennessee area, the move towards balance is clear when comparing year-over-year data from May 2024 to May 2025:

  • Home Sales: Down 10.3%
  • Inventory of Homes: Up a significant 38.2%
  • Pending Sales: Up 13.9%
  • New Listings: Up 9.6%
  • Median Sales Price: Rose a modest 2.14% to $372,825
  • Absorption Rate: Increased to 4.43 months of inventory, placing the region firmly in a balanced market (traditionally 4-6 months).

A Closer Look: The Knoxville, TN Market (May 2025)

For properties with a Knoxville address, the trends are even more pronounced, signaling a faster correction:

  • Home Sales: Down 10.8%
  • Inventory of Homes: Skyrocketed by 57.5%
  • Pending Sales: Up 13.6%
  • New Listings: Up 11.8%
  • Median Sales Price: Rose 2.07% to $407,500
  • Absorption Rate: Increased to 2.63 months of inventory. While technically still a seller’s market, it’s heading towards balance at a much faster speed.

Knoxville vs. East Tennessee: A Tale of Two Markets

While both markets are cooling, Knoxville is doing so more dramatically.

  • Pace of Slowdown: Knoxville’s absorption rate grew by 51.15% year-over-year, far outpacing the regional increase of 35.89%. This shows the gap between inventory and sales is widening much more quickly in the city.
  • Days on Market: The median days on market in Knoxville surged by 71.43% (from 7 to 12 days), while the regional median saw a more moderate increase of 42.86% (from 14 to 20 days).
  • Seller Adjustments: Sellers in Knoxville are reacting more aggressively. The median list price in Knoxville fell by 5.37%, a much steeper drop than the regional decline of 0.69%, signaling intense competition.

Key Advice for Sellers in Today’s Market

The market no longer guarantees a quick, above-asking-price sale. Strategy and realism are your keys to success.

  1. Price Aggressively & Accurately: This is the single most important factor. With a 5.37% drop in the median list price in Knoxville, you are competing against sellers who are already adjusting downward. Price your home correctly from day one to avoid languishing on the market.
  2. Invest in Presentation: With surging inventory, your home must stand out. Professional photography, decluttering, and ensuring your home is in pristine, move-in-ready condition are no longer optional—they are essential.
  3. Be Patient & Prepared to Negotiate: The days of reviewing multiple offers in a single weekend are fading. Expect an average market time of around 60 days in the broader region. Be prepared for a sale to take weeks, not days, and expect to negotiate on price and terms.

A Window of Opportunity: Key Advice for Buyers

This is the most advantageous market for buyers in several years. You are in a position of strength.

  1. Take Your Time & Explore Options: The fear of missing out (FOMO) has subsided. The significant increase in inventory means you can be more deliberate, compare properties thoroughly, and avoid rushed decisions.
  2. Exercise Your Negotiating Power: The data confirms that sellers are more flexible. Don’t hesitate to submit offers below the list price and include important contingencies for inspections and financing. Pay close attention to a property’s “days on market”—a higher number often indicates a more motivated seller.
  3. Don’t Mistake a Balancing Market for a Crashing One: Prices are not in a freefall; they are still appreciating modestly. Waiting on the sidelines for a major price crash is a risky strategy that may not pay off. The real opportunity is the combination of more choice and reduced competition.

Looking Ahead: 6-Month Real Estate Forecast (June-December 2025)

The market normalization seen through May is expected to continue and solidify over the next six months.

  • Inventory Will Continue to Rise: Driven by new listings and longer selling times.
  • Price Growth Will Decelerate: Projections suggest modest annual price growth in the low single digits (2-3%).
  • Seller Concessions Will Become Commonplace: Expect to see more sellers offering to cover closing costs or reducing their asking price.
  • Mortgage Rates Remain the Biggest Variable: Most forecasts predict rates will hover in the mid-to-high 6% range. Any stabilization will help the market, but the era of ultra-low rates is firmly in the past.

Have Questions About Your Specific Situation?

Whether you’re considering selling your property or looking to buy a home in East Tennessee, navigating this shifting market requires expert guidance. Understanding the nuances of a specific neighborhood or price point is key to making a successful move.

If you have questions about this data or want to discuss your specific real estate goals, don’t hesitate to reach out.

This market update was provided by Troy Stavros with Cornerstone Realty Associates. For a personal consultation, please find our contact information below.

Contact me at 865-999-0925 or email Troy@865realestate.com

Farragut, TN Real Estate Market Update: April 2025 Trends for Buyers and Sellers

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Are you considering buying or selling a home in Farragut, Tennessee? This affluent Knoxville suburb continues to be one of the most desirable real estate markets in East Tennessee. With its combination of luxury homes, strong demand, and steady market trends, Farragut offers unique opportunities for both buyers and sellers.

In this April 2025 market update, we’ll dive into the latest data, trends, and insights to help you make informed real estate decisions.

Farragut Real Estate Market Overview

The Farragut housing market remains robust, with strong demand for premium properties. While there are slight signs of cooling, such as an increase in the absorption rate, the market still leans toward sellers. Here’s a breakdown of the key metrics as of April 2025:

1. Inventory and Absorption Rate

  • Active Listings: Around 100 properties, remaining stable.
  • Absorption Rate: Increased by 11.66% year over year to 2.49 months.

What This Means:

  • For Sellers: While the market remains strong, homes may take slightly longer to sell compared to last year. Competitive pricing and preparation are critical.
  • For Buyers: The slight rise in the absorption rate offers more room for negotiation compared to 2024, but the market is still competitive.

2. Pricing Trends

  • Average List Price: Increased by 4.27% to $868,857.
  • Median List Price: Declined by 5.53% to $721,743, indicating sellers are adjusting prices to match buyer expectations.
  • Average Sale Price: Increased by 12.49% to $767,214, reflecting strong demand for high-end homes.
  • Median Sale Price: Increased slightly by 1.37% to $664,000.

What This Means:

  • For Sellers: Luxury and high-end properties are in demand, but pricing competitively is essential to attract buyers quickly.
  • For Buyers: Rising sale prices indicate strong competition for quality homes. Act quickly on well-priced properties to avoid losing out.

3. Days on Market

  • Average Days on Market: Decreased by 25.53% to 35 days, showing homes are selling faster.
  • Median Days on Market: Increased by 50% to 6 days, suggesting some homes linger due to pricing or desirability.

What This Means:

  • For Sellers: Well-priced and prepared homes are selling quickly, while overpriced properties are taking longer to sell.
  • For Buyers: Competitive pricing is key—homes that are priced right move fast, so be ready to act decisively.

4. Sale-to-List Price Ratio

  • Sale-to-Original List Price: Just under 98%, indicating minimal concessions during negotiations.
  • Sale-to-Final List Price: Reflects similar trends, with homes selling close to their final list prices.

What This Means:

  • For Sellers: Pricing your home strategically from the start avoids the need for price reductions, helping ensure quicker sales.
  • For Buyers: Expect to pay near the asking price for desirable homes, as there is limited room for negotiation.

5. Price Volume Trends

  • Active List Volume: Increased slightly due to higher average list prices.
  • Sold Volume: Increased significantly, driven by higher average sale prices and steady demand.

What This Means:

  • For Sellers: Strong demand, particularly in the luxury market, means higher price points and faster sales.
  • For Buyers: Be prepared to act quickly and pay premiums for high-end properties.

Conclusions for Buyers and Sellers

For Sellers

  1. Strong Demand: Farragut remains a desirable market with rising sale prices and faster sales for well-prepared homes.
  2. Competitive Pricing: While the market favors sellers, overpriced homes may linger longer. Price strategically to attract buyers.
  3. Luxury Opportunities: High-end properties are in demand, with buyers willing to pay premium prices for desirable homes.

For Buyers

  1. Act Quickly: Homes are selling faster than last year, especially those priced competitively. Be prepared to move fast.
  2. Limited Negotiation: Expect to pay close to the asking price, as sellers maintain pricing power.
  3. Prepare for Premiums: The rise in average sale price highlights strong competition, particularly in the luxury segment.

Farragut Market Outlook

The Farragut real estate market remains robust, driven by strong demand for premium homes. While there are slight signs of cooling, such as the increase in absorption rate, the market still clearly favors sellers. Buyers should act decisively and be prepared for limited concessions, while sellers can capitalize on demand by pricing homes strategically and presenting them well.

Why Work with a Farragut Real Estate Expert?

Navigating the competitive Farragut housing market requires local expertise. Whether you’re buying or selling, working with a knowledgeable real estate professional ensures you make the most of your opportunities.

At Cornerstone Realty Associates, we specialize in Farragut real estate, offering personalized guidance to help you achieve your goals.

Ready to Buy or Sell in Farragut, TN? Contact Us Today!

📞 Phone: 865-999-0925
📧 Email: troy@865realestate.com
🌐 Website: 865realestate.com

Let’s make your real estate journey in Farragut a success!

April 2025 Knoxville & East Tennessee Housing Market Update: What Buyers and Sellers Need to Know

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Are you planning to buy or sell real estate in Knoxville or East Tennessee in 2025? With the latest housing market data in hand, you can make informed decisions that align with current trends in the area. In this market update, we’ll break down the key insights from April 2025, including inventory levels, price trends, and market conditions for both buyers and sellers.

Whether you’re a first-time buyer, seasoned investor, or a homeowner ready to sell, here’s everything you need to know about the Knoxville and East Tennessee real estate markets.

Knoxville Housing Market: Cooling but Still Favoring Sellers

The Knoxville housing market is showing signs of cooling, but it remains a slight seller’s market. Here are the latest stats comparing April 2025 to April 2024:

  • Home Sales: Down 15.4% year over year.
  • Pending Sales: Up 10.9%, showing steady buyer interest.
  • Inventory Growth: Up 61.4%, giving buyers more options.
  • Median Sales Price: Increased 4.94% to $404,000.
  • Average Price Per Square Foot: $234 per square foot.
  • Absorption Rate: Rose to 2.38 months, reflecting a slight shift toward balance but still favoring sellers.
  • Days on Market: Average days on market increased by 44.12% to 49 days, signaling a slower pace for home sales.

What This Means for Sellers in Knoxville

Sellers in Knoxville need to adapt quickly to changing conditions by pricing homes competitively and ensuring properties are well-prepared for listing. While prices are still rising, the increase in inventory and absorption rate indicates growing buyer leverage.

What This Means for Buyers in Knoxville

With more inventory and slower sales, buyers have greater negotiating power. However, desirable homes are still selling quickly. Acting decisively on well-priced properties is key to securing your dream home.

East Tennessee Housing Market: A Steady Transition Toward Balance

Compared to Knoxville, the East Tennessee market is transitioning more gradually, moving closer to a balanced market. Here’s the year-over-year data for April 2025:

  • Home Sales: Down 12.5% compared to April 2024.
  • Pending Sales: Up 13.7%, reflecting active buyer interest.
  • Inventory Growth: Up 39.4%, giving buyers more options.
  • Median Sales Price: Increased 6.23% to $375,000.
  • Average Price Per Square Foot: $227 per square foot.
  • Absorption Rate: Rose to 4.07 months, nearing a balanced market.
  • Days on Market: Average days on market increased by 16.98% to 62 days, while the median rose 53.33% to 23 days.

What This Means for Sellers in East Tennessee

Sellers in East Tennessee can take a more patient approach compared to Knoxville. With homes taking longer to sell, focusing on property presentation and strategic pricing is crucial. The market is nearing balance, but sellers can still benefit from price appreciation.

What This Means for Buyers in East Tennessee

Buyers have more time to evaluate properties as the market stabilizes. While the slower pace offers more flexibility, competitive pricing means there’s less room for dramatic discounts.

Key Trends Driving the Knoxville and East Tennessee Housing Markets

1. Growing Inventory Levels

Both Knoxville and East Tennessee are experiencing rising inventory levels, providing buyers with more options. However, Knoxville’s faster absorption rate increase (52.2% year over year) suggests a more rapid market adjustment compared to East Tennessee’s slower pace (29.25%).

2. Seasonal Market Upswing

Spring is the busiest time for real estate, and both markets are benefiting from seasonal demand. Pending sales have increased significantly in Knoxville, jumping from 488 in February to 666 in April, highlighting strong buyer activity.

3. Pricing Trends

  • Knoxville: Median sales price rose by 5.19% to $405,000, while the median list price declined by 3.25%. This suggests sellers are adjusting expectations to attract buyers.
  • East Tennessee: Median sales price increased 6.23% to $375,000, with a modest 1.24% rise in list prices. Sellers here are maintaining steadier pricing strategies.

4. Affordability Challenges

Rising prices and high mortgage rates (currently hovering around 6.92%) are creating affordability challenges for many buyers. The “lock-in effect” is also keeping some potential sellers on the sidelines, as 72% of homeowners with mortgages have interest rates below 5%.

County-Specific Market Insights

Here’s a quick overview of housing trends in surrounding East Tennessee counties:

  • Knox County: Inventory up 57.6%, pending sales up 12.2%, and median sales price up 7.08% to $401,547.
  • Roane County: Inventory up 29.3%, pending sales down 12.3%, and median sales price down 1.5% to $319,000.
  • Anderson County: Inventory up 37.6%, pending sales up 14%, and median sales price down 0.5% to $297,500.
  • Loudon County: Inventory up 65.8%, pending sales down 4.3%, and median sales price up 4.98% to $527,500.
  • Sevier County: Inventory up 18.1%, pending sales down 5.7%, and median sales price down 3.81% to $525,000.
  • Blount County: Inventory up 51.2%, pending sales up 19.6%, and median sales price up 6.84% to $406,000.

Opportunities and Challenges for Buyers and Sellers

For Sellers

  • Knoxville: Price your home competitively and prepare it well to stand out in a cooling market.
  • East Tennessee: Be patient with longer selling times, but focus on presentation and pricing to attract buyers.

For Buyers

  • Knoxville: Leverage increased inventory and negotiate strategically, but act quickly on desirable properties.
  • East Tennessee: Take advantage of a balanced market to explore more options, but don’t expect deep discounts.

National Market Context: How Knoxville and East Tennessee Compare

Nationally, the housing market is seeing more metro areas with falling home prices. However, Knoxville and East Tennessee continue to experience year-over-year price appreciation.

Despite low national home sales (near historic lows since 1995), East Tennessee’s resilience reflects strong local demand and steady market conditions.

Final Thoughts: Steady as She Goes

The Knoxville and East Tennessee housing markets are adapting to increased inventory and shifting buyer behavior. Knoxville is cooling faster, while East Tennessee’s transition is more gradual.

Whether you’re buying or selling, understanding these nuanced trends is key to making informed decisions. If you’re ready to take the next step in the Knoxville or East Tennessee real estate market, contact Troy Stavros with Cornerstone Realty Associates for expert guidance.

Looking to buy or sell in Knoxville or East Tennessee? Let’s make your real estate goals a reality. Reach out today for personalized advice and support!

Contact Troy Stavros, Cornerstone Realty Associates
📞 Phone: 865-999-0925
📧 Email: troy@865realestate.com

Luxury Golf Course Home for Sale | 412 Heathermoor Drive – Fox Den Country Club – Farragut TN

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Stunning Golf Course Estate in Farragut’s Exclusive Smithfield Subdivision

Welcome to your dream home—a true masterpiece of luxury and elegance nestled on the prestigious Fox Den Country Club Golf Course. Located in the sought-after Smithfield subdivision, this home offers an unparalleled lifestyle where tree-lined streets, friendly sidewalks, and meticulously kept yards create the perfect neighborhood atmosphere. Just 5 minutes from premier shopping, dining, top-rated schools, and healthcare, this property combines convenience with a serene retreat-like setting that feels worlds away. Boasting over 6,400 square feet, this home features 5 spacious bedrooms, 5 full baths, and 2 half baths, offering plenty of room for family and guests. Step through stately steel doors into a home designed for both comfort and grandeur. Gorgeous hardwood floors guide you through expansive spaces perfect for entertaining, including an oversized kitchen built for gathering and a breathtaking two-story great room highlighted by a floor-to-ceiling stone fireplace—just one of five fireplaces throughout the home. The main-level owner’s suite is a private oasis, offering a grand retreat with luxurious finishes, including a spa-like bathroom with a steam shower that will leave you completely refreshed and rejuvenated. Upstairs and downstairs, you’ll find additional bedrooms, bonus rooms, and flexible spaces to accommodate family, guests, or your creative pursuits. But the true crown jewel of this home awaits you out back. Step onto the enormous covered stone patio and take in the stunning views of the lush fairways, manicured greens, and shimmering lake. Host unforgettable evenings around the two outdoor stone fireplaces, or simply relax and soak in the beauty of your golf course-front sanctuary. This home is more than a residence—it’s a lifestyle. With its timeless luxury, modern amenities, and unbeatable location, it’s the perfect place to call home. Schedule your private tour today and make this extraordinary property your own.

MARCH 2025 – Knoxville Real Estate Market Trends: What Buyers and Sellers Need to Know

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The East Tennessee real estate market is evolving, with significant shifts that impact both buyers and sellers. Whether you’re looking to purchase your dream home or sell your property in Knoxville or the surrounding areas, understanding current market conditions is essential for making informed decisions.

The Knoxville Housing Market: By the Numbers

Recent data shows Knoxville’s real estate market is transitioning toward more balanced conditions after years of exceptional growth. As the #1 city for home price appreciation among the 100 largest US cities over the past seven years (with an impressive 98.13% increase), Knoxville now shows signs of stabilization.

Key market indicators reveal:

  • Increasing Inventory: Active listings have grown steadily, providing more options for buyers
  • Modest Price Growth: Median sale prices rose 4.79% year-over-year to $400,000, while average sale prices increased 6.21% to $477,733
  • Extended Selling Timeline: Average days on market increased by 21.62% to 45 days
  • Absorption Rate: Now at 2.12 months, up 35.90% from last year

What This Means for Sellers

If you’re considering selling your Knoxville home, these trends suggest several strategic approaches:

1. Competitive Pricing is Critical

With more homes available, pricing your property correctly from the start is essential. The data shows a slight decline in the sale-to-original-list price ratio, indicating buyers are negotiating more successfully. However, properties still sell at approximately 98% of their final list price after any adjustments.

2. Prepare for Longer Selling Periods

Homes are taking longer to sell compared to last year’s fast-paced market. Be prepared for an extended timeline and consider what improvements might help your property stand out among increased competition.

3. Quality Properties Still Command Premium Prices

Despite growing inventory, desirable homes in good condition continue selling at higher price points. Investing in strategic improvements and professional marketing can help your property attract quality offers.

What This Means for Buyers

The shifting market presents new opportunities for those looking to purchase in East Tennessee:

1. More Options and Less Pressure

With active listings increasing, buyers now have more properties to choose from and time to make decisions. This reduces the pressure of bidding wars that characterized previous years.

2. Negotiating Power

The longer days on market and declining sold-to-original-list price ratio create favorable conditions for negotiations. Buyers have more leverage to request concessions or negotiate on price.

3. Still a Strong Market

While conditions have improved for buyers, Knoxville remains a desirable market with steady appreciation. Don’t expect dramatic price drops – quality properties in sought-after areas still sell quickly and close to asking price.

Looking Ahead: Knoxville’s 5-Year Forecast

What can we expect for Knoxville real estate in the coming years? Based on economic indicators and demographic trends, experts project:

  • Continued appreciation of 14-20% over the next 5 years
  • Annual appreciation rates of 2.5-4%
  • Sustained growth in population and employment opportunities
  • Ongoing appeal to young professionals, families, and retirees

The factors that drove Knoxville’s remarkable past performance – including quality of life, relative affordability, economic diversification, and urban revitalization – continue to position the area favorably compared to other markets across the country.

Making Your Next Move in East Tennessee Real Estate

Whether buying or selling in this evolving market, working with a knowledgeable local real estate professional is more important than ever. From pricing strategies to negotiation expertise, experienced guidance can help you navigate these changing conditions successfully.

For personalized advice on your specific real estate goals in Knoxville or anywhere in East Tennessee, contact Troy Stavros with Cornerstone Realty Associates at 865-999-0925. With deep local market knowledge and a commitment to client success, Troy can help you make confident decisions in today’s market.

Knoxville & East Tennessee Housing Market Update February 2025: What Buyers & Sellers Need to Know

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The East Tennessee and Knoxville housing markets continue to evolve as we move through 2025. According to the latest February data compiled by Cornerstone Realty Associates, the region is showing signs of transitioning toward a more balanced market with some interesting variations across different counties. Here’s a comprehensive analysis of what’s happening in our local real estate market.

East Tennessee Housing Market Overview

When comparing February 2025 to February 2024, East Tennessee shows some notable trends:

  • Home sales: Down 8.5%
  • Pending sales: Up 1.4%
  • Inventory: Up significantly by 33.6%
  • New listings: Up 2.1%
  • Median sales price: $360,000 (up 1.84%)
  • Average price per square foot: $217
  • Absorption rate: 3.59 months (up from 3.58 months)

The absorption rate increase of 29.6% year-over-year suggests homes are taking longer to sell, gradually shifting the market toward a more balanced or buyer-friendly environment. While this indicates buyers now have more options and sellers face increased competition, prices remain relatively stable.

Days on market have increased steadily, now exceeding 65 days across East Tennessee. Though homes are taking longer to sell than last year, demand remains strong enough to sustain gradual price increases.

Knoxville Housing Market Data

The Knoxville metro area presents a somewhat different picture:

  • Home sales: Down 12.6%
  • Pending sales: Down 2.7%
  • Inventory: Up 39.7%
  • New listings: Up 0.2%
  • Median sales price: $408,500 (up 5.42%)
  • Average price per square foot: $230
  • Absorption rate: 2.01 months (down from 2.06 months)

Despite rising inventory, Knoxville remains a relatively competitive market with just 2 months of inventory (a healthy market is typically 4-6 months). With this low inventory level, prices are likely to remain stable or continue rising.

The sold-to-list price ratio remains high at over 97%, indicating homes are generally selling close to asking prices. While negotiation power has slightly increased for buyers, Knoxville continues to be a relatively strong market for sellers.

County-by-County Analysis

Knox County

  • Inventory up 39.8%
  • Pending sales down 4.9%
  • Median sales price: $400,600 (up 4.9%)
  • Price per square foot: $228

Knox County’s housing market is shifting toward a more balanced state with increasing inventory and longer selling times. The absorption rate has risen from 1.56 to 2.03 months, a 30.13% increase year-over-year.

Anderson County

  • Inventory up 34.3%
  • Pending sales up 8%
  • Median sales price: $324,900 (up 8.3%)
  • Price per square foot: $180

The absorption rate has increased from 1.87 to 2.47 months, indicating homes are taking longer to sell. While prices are rising, longer selling times suggest buyers have more leverage than before.

Blount County

  • Inventory up 36.4%
  • Pending sales up 34%
  • Median sales price: $380,000 (up 3.68%)
  • Price per square foot: $235

Blount County’s housing market is transitioning to a more balanced state. The absorption rate has increased from 2.37 to 2.84 months, suggesting homes are taking longer to sell.

Loudon County

  • Inventory up 68.1%
  • Pending sales up 15.9%
  • Median sales price: $417,000 (down 8.33%)
  • Price per square foot: $228

Loudon County is showing the most significant shift toward a buyer’s market. The absorption rate has surged from 2.4 to 3.81 months, a 58.09% increase year-over-year. Loudon County’s market is clearly shifting toward a more buyer-friendly environment.

Roane County

  • Inventory up 32.8%
  • Pending sales up 4.3%
  • Median sales price: $338,000 (up 6.46%)
  • Price per square foot: $179

The absorption rate has increased from 2.18 to 2.9 months, a 33.49% increase. This suggests homes are taking longer to sell, transitioning the market toward a more balanced environment.

Sevier County

  • Inventory up 20%
  • Pending sales down 12.5%
  • Median sales price: $540,000 (down 3.16%)
  • Price per square foot: $261

Sevier County is firmly in a buyer’s market with an absorption rate of 8.75 months, up from 6.58 months (a 32.98% increase). With high inventory and slower sales, buyers have significant negotiating power in this county.

Migration Patterns Affecting the Market

The report also highlights important migration trends affecting the local market:

  • Knox County: Net migration has returned to pre-pandemic levels (5.6 people per 1,000 residents)
  • Loudon County: Still seeing strong migration (27.3 people per 1,000)
  • Sevier County: More people are now leaving than arriving
  • Knoxville Metro Area: Still saw 9,661 net new residents in 2024

Overall, the region continues to attract new residents, though not at the peak levels seen in 2021-2022 when the Knoxville area saw over 18,000 net new residents.

Price Appreciation

Despite the shifting market, East Tennessee continues to see solid price appreciation:

  • Knox County: 2.7% increase year-over-year, 80.7% over five years
  • Loudon County: 2.9% increase year-over-year, 63.8% over five years
  • Anderson County: 6.6% increase year-over-year
  • Blount County: 4.9% increase year-over-year

The Knoxville metro area as a whole has seen a 73.2% price increase over the past five years.

Interest Rates and Market Outlook

Interest rates as of mid-March 2025 are at 6.78% for a 30-year loan, which remains relatively high compared to historical standards. The market analysis suggests that if rates drop below 6.5% and get closer to 6%, we could see a significant increase in demand.

What This Means for Buyers and Sellers

For Sellers:

  • Price competitively from the start to avoid extended market times
  • Be prepared for more negotiation than in recent years
  • Well-priced homes are still selling at strong values
  • Accurate pricing and strong marketing are essential in a shifting market

For Buyers:

  • More inventory means more choices and greater negotiation power
  • Longer days on market allows for better deal-making opportunities
  • Sellers are generally more flexible on pricing and closing terms
  • Well-priced homes in desirable areas still command competitive offers

Conclusion

The East Tennessee and Knoxville housing markets are transitioning toward a more balanced state, with significant variations by county. While inventory is rising and homes are taking longer to sell, prices remain relatively stable in most areas. Sevier and Loudon counties are showing the most significant shifts toward buyer’s markets, while Knoxville proper remains relatively competitive for sellers.

It’s important to remember that real estate is hyperlocal – conditions can vary dramatically between neighborhoods and even individual properties. A specific subdivision or property could defy overall market trends based on its unique characteristics and desirability.

If you’re considering buying or selling a home in East Tennessee, now is an excellent time to consult with a local real estate professional who can provide specific insights for your particular situation and location.