Welcome to your November 2024 Knoxville and East Tennessee Housing Market Update! Whether you’re considering buying or selling a home in Knoxville, Tennessee, or the surrounding East Tennessee region, understanding the latest market trends is essential. Let’s dive into the insights for November 2024 and explore how the market is shaping up as we head into 2025.
Knoxville and East Tennessee Housing Market Overview
The housing market across Knoxville and East Tennessee continues to demonstrate resilience, with key metrics pointing to a balanced and active market. Here’s what you need to know:
- Median Sales Price in East Tennessee: $375,000 (+7.69% YoY)
- Median Sales Price in Knoxville: $412,000 (+11.62% YoY)
- Pending Sales Growth: Knoxville up 17.9%, East Tennessee up 16.1%
- Inventory Growth: Knoxville up 27.6%, East Tennessee up 34.5%
- Average Price per Square Foot: Knoxville at $225, East Tennessee at $218
The market is moving in the right direction for buyers and sellers alike, with rising inventory levels providing more options for buyers, while steady price appreciation benefits sellers.
Key Trends in East Tennessee’s Housing Market
Let’s take a closer look at the East Tennessee real estate market and uncover the trends shaping it:
1. Inventory is Climbing
- Inventory increased by 34.5% year-over-year in East Tennessee, giving buyers more choices in a historically tight market.
- The absorption rate grew slightly to 4.08 months, reflecting the seasonally slower demand as we approached the winter months.
2. Steady Price Appreciation
- The median sales price in East Tennessee reached $375,000, up 7.69% year-over-year.
- The average sold price per square foot increased to $218, showcasing the ongoing demand for homes across the region.
3. Pending Sales Rising
- Pending sales were up 16.1%, reflecting strong buyer interest even as we moved into the holiday season.
4. Seasonal Demand Decline
As usual during the winter months, demand softened, with fewer homes going under contract compared to the summer highs. While new listings have decreased since August, the market remains healthy heading into 2025.
Knoxville Housing Market Insights
Knoxville remains a hot housing market as we approach 2025. Here’s a breakdown of the key data for November 2024:
- Median Sales Price: $412,000 (+11.62% YoY)
- Pending Sales: Up 17.9% YoY
- Inventory: Up 27.6% YoY
- Absorption Rate: 2.37 months, reflecting a continued seller’s market
- Average Price per Square Foot: $225
Knoxville’s housing market continues to shine due to its affordability, job growth, and quality of life, attracting both local and out-of-state buyers. With a median sales price increase of 11.62%, Knoxville is outperforming national trends, making it a top destination for those looking to buy or sell.
County-Level Housing Market Trends
Here’s how the housing market performed across some of the key counties in East Tennessee:
- Knox County:
- Median Sales Price: $402,000 (+10.9% YoY)
- Pending Sales: +15.8% YoY
- Inventory: +30.3% YoY
- Loudon County:
- Median Sales Price: $524,000 (+6.19% YoY)
- Inventory: +56.6% YoY (largest inventory growth in the region)
- Blount County:
- Median Sales Price: $375,000 (+7.14% YoY)
- Pending Sales: +20.3% YoY
- Sevier County:
- Median Sales Price: $572,500 (-0.44% YoY, nearly flat)
- Inventory: +24.43% YoY
- Anderson County:
- Median Sales Price: $350,000 (+12.9% YoY)
- Inventory: +9.3% YoY
What’s Driving Knoxville’s Housing Market Growth?
Knoxville has firmly established itself as one of the top housing markets in the U.S. for 2025, earning recognition from both the National Association of Realtors® (NAR) and Zillow. Here’s why:
- Job Growth and Economic Stability: Knoxville’s economy is growing steadily, with a 6.2% increase in payroll employment since 2020.
- Net Migration: Tennessee remains a top destination for those relocating from other states, drawn by Knoxville’s affordability and quality of life.
- Millennial Homebuyers: Younger buyers are transitioning from renting to owning, fueling demand in Knoxville.
- Tight Inventory Drives Prices Higher: While inventory is growing, the supply remains relatively low, especially in the most active price range of $350,000–$400,000, keeping competition strong.
Mortgage Rates and 2025 Housing Market Outlook
Mortgage rates remain a key factor in the market. Although rates are higher than historic lows, they have stabilized below 7%, with the 30-year fixed rate recently averaging 6.84%. As we head into 2025, the National Association of Realtors® predicts rates will hover between 5.5% and 6.5%, potentially improving affordability for buyers.
What to Expect in 2025
- Continued Price Growth: Knoxville’s housing market is expected to outperform national trends, with Zillow forecasting a 5.8% price increase in 2025.
- New Construction Activity: Home sales will be driven by new construction as existing homeowners remain locked into low mortgage rates.
- Sustained Demand: Knoxville’s affordability and employment opportunities will continue to draw buyers, ensuring a competitive market.
Should You Buy or Sell in Knoxville and East Tennessee?
If you’re buying a home in Knoxville, increasing inventory provides more opportunities, but prices continue to rise, so acting sooner rather than later may save you money. For sellers, the market remains hot, with demand strong and prices climbing year-over-year.
Need Help Navigating the Market? Contact Us Today!
Whether you’re buying, selling, or investing in Knoxville or East Tennessee, the market is full of opportunity. With over a decade of experience in the region, Troy Stavros with Cornerstone Realty Associates is here to guide you every step of the way.
Let’s make your homeownership dreams a reality this holiday season. Have a Merry Christmas, and we’ll see you next month for the December 2024 market update!
