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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!

Diving Deep into the Biggest Concerns of Today’s Knoxville Home Buyers

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Diving Deep into Today’s Biggest Buyer Concerns | MyKCM

Last week, Fannie Mae released their Home Purchase Sentiment Index (HPSI). Though the survey showed 77% of respondents believe it’s a “good time to sell,” it also confirms what many are sensing: an increasing number of Americans believe it’s a “bad time to buy” a home. The percentage of those surveyed saying it’s a “bad time to buy” hit 64%, up from 56% last month and 38% last July.

The latest HPSI explains:

“Consumers also continued to cite high home prices as the predominant reason for their ongoing and significant divergence in sentiment toward homebuying and home-selling conditions. While all surveyed segments have expressed greater negativity toward homebuying over the last few months, renters who say they are planning to buy a home in the next few years have demonstrated an even steeper decline in homebuying sentiment than homeowners. It’s likely that affordability concerns are more greatly affecting those who aspire to be first-time homeowners than other consumer segments.”

Let’s look closely at the market conditions that impact home affordability.

A mortgage payment is determined by the price of the home and the mortgage rate on the loan used to purchase it. Lately, monthly mortgage payments have gone up for buyers for two key reasons:

  1. Mortgage rates have increased from 2.65% this past January to 2.9%.
  2. Home prices have increased by 15.4% over the last 12 months.

Based on these rising factors, a home may be less affordable today, but it doesn’t mean it’s not affordable.

Three weeks ago, ATTOM Data released their second-quarter 2021 U.S. Home Affordability Report which explained that the major ownership costs on the typical home as a percent of the average national wage had increased from 22.2% in the second quarter of 2020 to 25.2% in the second quarter of this year. They also went on to explain:

“Still, the latest level is within the 28 percent standard lenders prefer for how much homeowners should spend on mortgage payments, home insurance and property taxes.”

In the same report, Todd Teta, Chief Product Officer with ATTOM, confirms:

“Average workers across the country can still manage the major expenses of owning a home, based on lender standards.”

It’s true that monthly mortgage payments are greater than they were last year (as the ATTOM data shows), but they’re not unaffordable when compared to the last 30 years. While payments have increased dramatically during that several-decade span, if we adjust for inflation, today’s mortgage payments are 10.7% lower than they were in 1990.

What’s that mean for you? While you may not get the homebuying deal in Knoxville someone you know got last year, that doesn’t mean you shouldn’t still buy a home. Here are your alternatives to buying and the trade-offs you’ll have with each.

Alternative 1: I’ll rent instead.

Some may consider renting as the better option. However, the monthly cost of renting a home is skyrocketing. According to the July National Rent Report from Apartment List:

“…So far in 2021, rental prices have grown a staggering 9.2%. To put that in context, in previous years growth from January to June is usually just 2 to 3%. After this month’s spike, rents have been pushed well above our expectations of where they would have been had the pandemic not disrupted the market.”

If you continue to rent in Knoxville, chances are your rent will keep increasing at a fast pace. That means you could end up spending significantly more of your income on your rental as time goes on, which could make it even harder to save for a home.

Alternative 2: I’ll wait it out.

Others may consider waiting for another year and hoping that purchasing a home in Knoxville will be less expensive then. Let’s look at that possibility.

We’ve already established that a monthly mortgage payment is determined by the price of the home and the mortgage rate. A lower monthly payment would require one of those two elements to decrease over the next year. However, experts are forecasting the exact opposite:

  • The Mortgage Bankers Association (MBA) projects mortgage rates will be at 4.2% by the end of next year.
  • The Home Price Expectation Survey (HPES), a survey of over 100 economists, investment strategists, and housing market analysts, calls for home prices to increase by 5.12% in 2022.
Diving Deep into Today’s Biggest Buyer Concerns | MyKCM

Based on these projections, let’s see the possible impact on a monthly mortgage payment: By waiting until next year, you’d potentially pay more for the home, need a larger down payment, pay a higher mortgage rate, and pay an additional $3,696 each year over the life of the mortgage.

Bottom Line

While you may have missed the absolute best time to buy a home in Knoxville, waiting any longer may not make sense. Mark Fleming, Chief Economist at First American, says it best:

“Affordability is likely to worsen before it improves, so try to buy it now, if you can find it.”

Ready to talk more about it? Have questions? Want to get going and get into a home before it gets even more expensive? Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today. My team and I are ready to educate, guide, and help you step by step until you are in your new home.