If you have been following my recent market updates, you’ve likely heard me use one word repeatedly: Normalizing.
For the last few months, I have sensed a shift in the Knoxville real estate landscape. The frantic pace of the pandemic years has settled, and we are moving toward stability. Now, new data from First American confirms exactly what we’ve been seeing on the ground.
In this video, I break down a recent report from First American’s Chief Economist that highlights why Knoxville is leading the pack in the return to a balanced housing market.
The Key to Unlocking the Housing Market: New Listings
The article I reference in the video focuses on a crucial metric: New Listings.
While active inventory can increase simply because homes are sitting on the market longer, new listings represent fresh supply. This “flow” of new homes is vital because it gives buyers real options and stimulates transactions. As the Chief Economist at First American notes:
“Where new listings grow, sales flow.”
The data suggests a strong optimism for 2026. As more homeowners choose to list their properties, buyers will have more opportunities to purchase, moving the entire market one step closer to balance.
The 4 Quadrants of Normalization: Where Does Knoxville Stand?
First American analyzed 75 major metropolitan markets, comparing their October 2025 performance against their pre-pandemic averages (October 2018–2019). They divided these markets into four quadrants based on how close their new listings and sales volume were to “normal.”
The results for our local area are incredibly encouraging.
Knoxville is a “Pacesetter”
Knoxville, Tennessee, landed in the upper-right quadrant, designated as a Pacesetter.
What is a Pacesetter?
Pacesetters are markets that are closer to their pre-pandemic norms for both new listings and sales volume than the typical market.
Along with cities like Pittsburgh and Virginia Beach, Knoxville is leading the national return to normalized activity. This quadrant features markets that generally offer relative affordability compared to the rest of the country.
What This Means for Buyers and Sellers in Knoxville
This report cements what I have been saying for months: While things are slowing down compared to the peak frenzy, we are not crashing—we are normalizing.
- For Sellers: The market is active, and sales are responding to the improved supply. You are entering a market that is functioning closer to historical health.
- For Buyers: The increase in fresh listings means you have more choices. The “Pacesetter” status indicates that transactions are flowing, making it a great time to enter the market.
Summary
The data is clear: Knoxville is a leader in the housing recovery. We are seeing a healthy return to pre-pandemic levels of activity, which provides stability for everyone involved in a real estate transaction.
If you have questions about how this “Pacesetter” status affects your home value or your ability to buy in 2026, please don’t hesitate to reach out.
Troy Stavros
Cornerstone Realty Associates
Knoxville, TN