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.
