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Knoxville & East TN Real Estate Market Update: Year-End 2025 Review & 2026 Outlook

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Happy New Year! As we close the book on 2025, the Knoxville and East Tennessee real estate markets are telling a fascinating story of normalization, returning balance, and new opportunities.

If 2025 was the year the market took a breath, 2026 is shaping up to be the year it finds its footing—especially with major news regarding mortgage rates hitting the headlines just yesterday.

Here is your comprehensive breakdown of the December 2025 numbers, a full-year review, and my top predictions for what lies ahead in 2026.

The Big Picture: Knoxville vs. East Tennessee

Overall, 2025 moved us toward a more balanced feel. Inventory is up, homes are taking longer to sell, and buyers finally have room to negotiate. However, the city and the region are behaving differently.

Knoxville: Strong Finish, Softening Prices

Knoxville had a dramatic finish to the year.

  • Sales: Up 12.5% year-over-year in December.
  • Inventory: Skyrocketed by 31.6%.
  • The Surprise: Despite the activity, pricing softened. The median sold price dipped 5% in December to $380,000.

Knoxville remains a tighter market than the region (2.9 months of supply), but the pricing dip suggests sellers are adjusting to the new reality.

East Tennessee: Building Momentum

The broader region is showing signs of a very strong start to 2026.

  • Pending Sales: While Knoxville pendings were up 6.1%, East Tennessee’s pending sales jumped 19%.
  • Balance: The region sits at 4.4 months of supply, making it a more balanced environment where buyers have genuine leverage.

Surrounding County Breakdown (Data Cards Below)

Real estate is hyper-local. To understand where the market is going, we have to look at the specific counties we serve. Here is how the numbers shook out for December and the full year of 2025.

Roane County

Roane is seeing a surge in activity, likely driven by spillover demand from Knoxville and lake-access lifestyle buyers.

  • The Data: Inventory is up 23.6% and pending sales jumped 14% in December.
  • Pricing: You might see a headline that prices jumped 25% in December, but don’t let that fool you. That is likely a “mix shift” (more expensive homes selling that month). The full-year appreciation is a steady, modest 3.17%.
  • The Takeaway: Roane is catching demand. Expect moderate appreciation and solid traffic in 2026.

Knox County

Knox County, the metro anchor, is showing clear signs of normalization.

  • The Data: Inventory is up significantly—nearly 29% year-over-year in December, with pending sales also up almost 10%.
  • Pricing: Despite the increased options and returning buyers, price growth is mild: median sales price rose just under 2% in December, and the full-year gain was just above 2%.
  • The Takeaway: This suggests a market that’s regained balance after the ultra-competitive years, with more choices for buyers and steady, sustainable price trends. Knox is still the area’s bellwether—more inventory, more buyers coming back, but prices are stabilizing rather than surging.

Anderson County

Anderson is the “Supply Leader” right now.

  • The Data: Inventory jumped 37.4% in December—the largest increase in this group.
  • Pricing: Prices held up (up 3.92% in Dec), but full-year growth was only 1.22%.
  • The Takeaway: Supply is rising faster than demand here. If rates drop, Anderson has the inventory to absorb buyers without instantly turning into chaos. It is currently a very buyer-friendly market.

Loudon County

Loudon remains the higher-priced, hybrid market catering to move-up buyers and retirees.

  • The Data: Pendings were up 15.7% in December, showing strong demand.
  • Pricing: The median price sits at $497,000.
  • The Takeaway: Loudon is payment-sensitive. Turnkey homes sell well, but dated or oddly located homes are sitting. Expect a “split market” in 2026 where condition dictates success.

Sevier County

Sevier is our most unique animal due to the investment and second-home dynamic.

  • The Data: Pendings were up a massive 22.74% in December.
  • Pricing: Full-year price growth was modest at 2.22%.
  • The Takeaway: This market is highly sensitive to interest rates. If rates stay low, Sevier could re-accelerate quickly, but pricing will depend heavily on investor appetite.

Blount County

Blount is the “Sleeping Giant” that just woke up.

  • The Data: Pending sales surged 38.8% in December—the biggest jump in the region.
  • Pricing: Prices remained flat (up roughly 1%).
  • The Takeaway: This is a classic sign of a heating market. Demand is surging, but buyers still have enough negotiating room to keep prices from spiking. If this momentum carries into Spring, expect a faster sales pace.

Community Spotlights: Farragut, Lenoir City, & Tellico Village

(Data Cards Below)

  • Farragut: Still supply-constrained. Sales were up nearly 47% in December. If rates drop, Farragut will feel it through competition.
  • Lenoir City: Acting like a healthy, balanced market. If rates drop, Lenoir City will feel it through affordability, as more buyers will qualify for loans.
  • Tellico Village: A lifestyle market. 2025 was much more balanced than 2024. If rates drop, Tellico will feel it through momentum and a strong Spring start.

The Game Changer: Mortgage Rates Drop to 5.99%

Just yesterday, we received major news: President Trump announced a push for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities.

The market reacted instantly. The 30-year fixed rate dropped to 5.99% today.

This is the first time we have seen a rate start with a “5” since 2023. This is a massive psychological barrier. Whether you are buying, selling, or refinancing, this changes the math and the mindset heading into 2026.

5 Predictions for the 2026 Housing Market

Based on the 2025 data and this new rate environment, here is what I expect:

  1. Buyers Will Re-Enter the Market: It’s not just about affordability; it’s about confidence. At 5.99%, buyers who have been on the sidelines will return.
  2. Pendings & Closings Will Improve: East TN already has pending momentum. Lower rates will convert those contracts into closings.
  3. Inventory Won’t Vanish: We have more inventory than a year ago. Even with higher demand, I don’t expect the shelves to clear overnight.
  4. Prices Will Stabilize: The price softening we saw in December (especially in Knoxville) should level out. We aren’t going back to double-digit appreciation, but we should see steady, modest growth.
  5. The “Split Market” Continues: Even with lower rates, buyers are picky. Updated, move-in-ready homes will fly. Overpriced or dated homes will still need price cuts.

The Bottom Line

2025 was a year of normalization. 2026 looks like a year of opportunity.

If rates hold at these levels, the pace of the market is going to change quickly. Strategy matters now more than ever. If you are thinking about buying or selling this year, let’s start planning now so you can take advantage of this shift.

Have questions about your specific home or neighborhood? Reach out to Cornerstone Realty Associates today.

Are Knoxville Home Prices Cooling? October 2025 Knoxville & East Tennessee Housing Market Update

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Are you wondering what’s really happening in the Knoxville and East Tennessee real estate market? The latest data for October 2025 reveals a turning point for both buyers and sellers, with significant changes in inventory, pricing, and market dynamics. Whether you’re thinking of buying, selling, or just keeping an eye on the local market, this comprehensive update breaks down the key trends you need to know.

Knoxville Housing Market: A Shift Toward Balance

The Knoxville single-family home market is experiencing a notable transition. Inventory levels have surged by an impressive 42.3% year-over-year, giving buyers far more choices than in October 2024. New listings are up 11.5%, and pending sales have climbed by 12.3%, indicating that demand remains active despite the influx of supply.

However, closed home sales dropped 5.9% compared to last year. This shift means that, while buyers are interested, the increased inventory isn’t being fully absorbed, signaling a clear move away from the intense seller’s market conditions of recent years.

Pricing Trends in Knoxville

  • Median sales price fell 5.9% year-over-year to $382,500, a significant decline.
  • Average sale price remained virtually flat at $497,005, up just 0.4%.
  • Median active list price dropped 2.3%, while the average list price increased 2.2%. This suggests that while some sellers are adjusting prices downward, higher-priced homes are staying on the market longer.
  • Average days on market jumped 48.5% to 49 days, and median days on market rose 43% to 20 days. Homes are taking longer to sell as buyers become more deliberate and selective.

Month-Over-Month Snapshot

Compared to September, the absorption rate in Knoxville ticked up slightly to 3.11 months (from 3.05). Both average and median days on market increased, reinforcing the trend of a cooling market. Despite these headwinds, pending sales rose from last month, showing there’s still underlying demand even as buyers take more time and exercise greater negotiating power.

Key Takeaway for Knoxville

The Knoxville real estate market is now much more balanced. Buyers have regained leverage, sellers face more competition, and price appreciation has clearly stalled. Sellers should prepare for longer marketing times and the need to price competitively to attract offers. Buyers, on the other hand, can expect a greater selection of homes and improved negotiating conditions compared to the overheated market of a year ago.

East Tennessee Housing Market: Signs of Normalization

Looking beyond Knoxville, the East Tennessee single-family housing market is also showing clear signs of normalization in October 2025.

  • Inventory levels rose sharply, up more than 22% from last year, giving buyers more options and easing some of the competitive pressure.
  • Home sales were up just over 3% year-over-year, while pending sales surged 20.8%, signaling strong momentum heading into the winter months.
  • New listings climbed 12%, and while sellers continue to price homes optimistically (list prices up 2–3%), actual sales prices showed stability.
    • Median sales price dipped just 0.54% to $368,000
    • Average sale prices remained flat
  • Absorption rate now sits at 4.78 months, up from 4.06 a year ago, reflecting a market moving toward balance.
  • Average days on market rose to 64, a 36% increase from last year, though marketing times improved slightly compared to September.

County-Level Highlights

  • Roane County: Inventory up 41.7%, pending sales up 32.2%, median price up 3.7% to $350,000.
  • Knox County: Inventory up 37.1%, pending sales up 12.7%, median price down 4.74% to $381,000.
  • Anderson County: Inventory up 34.6%, pending sales up 21%, median price down 1.34% to $332,000.
  • Loudon County: Inventory up 17.1%, pending sales up 11%, median price down 12.52% to $544,500.
  • Sevier County: Inventory up 10.94%, pending sales down 11.41%, median price up 25% to $575,000.
  • Blount County: Inventory up 10.5%, pending sales up 13%, median price down 2.46% to $390,075.

Four out of six counties saw median prices lower than a year ago, showing that while some areas still see appreciation, price growth is largely stalled or even negative across much of the region.

Market Charts: Knoxville Metro at a Glance

  • Active listings are at their highest in six years, surpassing even pre-pandemic levels.
  • Weeks of supply have jumped to 17, up from 11 in 2019, showing a significant increase in inventory relative to demand.
  • 2025 saw the lowest number of homes sold for this point in the year in the past seven years, reflecting slowing demand.
  • New listings are the second highest in seven years, further adding to supply.
  • Days on market are at their highest in six years, and pending sales are at their second lowest.
  • Sale-to-list price ratio is at 98.1%, tied with 2019 and 2024, indicating more negotiation and less bidding above asking price.
  • Price drops are at their highest in the past six years, reflecting increased pressure on sellers to adjust pricing.

Why Is This Happening?

The market is still digesting the effects of the pandemic boom. Many buyers who would have purchased homes in 2025 instead bought earlier, thanks to historically low interest rates and a flexible work-from-home environment. This “pull forward” in demand has resulted in slower sales today, combined with a return to more normal inventory levels.

What’s Next for Knoxville Real Estate?

Despite the current moderation, Knoxville remains a market to watch. According to Zillow, the city ranks number four among the top 15 U.S. metros expected to see the largest home price increases between September 2025 and September 2026, with a forecasted 5% gain. Move Buddha’s Moving Forecast also names Knoxville as the most popular city to move to in 2026, with a high in-to-out migration ratio.

Final Thoughts

The October 2025 Knoxville and East Tennessee housing market update clearly shows a shift toward balance. Inventory is up, prices are moderating, and homes are taking longer to sell. Buyers now have more leverage and negotiating power, while sellers must adjust expectations and price competitively to succeed in this new environment.

If you’re thinking about buying or selling a home in Knoxville or East Tennessee, now is the time to work with a knowledgeable real estate professional who can help you navigate these changing market conditions.

For more updates or to get advice tailored to your situation, don’t hesitate to reach out!

Ready to make your next move in Knoxville or East Tennessee? Contact us today for personalized guidance and market insights.

East Tennessee & Knoxville Housing Market Update SEPTEMBER 2025: Prices, Trends, and Buyer-Seller Insights

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Are you a homeowner, buyer, or seller looking to understand the latest trends in the East Tennessee and Knoxville housing market? As we approach the end of 2025, market conditions have shifted, interest rates are making waves, and submarkets like Farragut, Lenoir City, and Tellico Village are showing unique patterns. Here’s everything you need to know to navigate the Knoxville real estate market this fall.

Knoxville Housing Market 2025: Cooling but Not Crashing

After years of rapid price growth and frenzied bidding, the Knoxville housing market in 2025 is undergoing a noticeable transformation. Inventory has surged by over a third compared to last year, and homes are staying on the market longer—almost double the days compared to 2024. Sales volume is down nearly 8% year-over-year, and the median home price is now essentially flat, even dipping slightly in some neighborhoods.

Key Takeaway for Home Sellers:
Knoxville sellers must be strategic with pricing and flexible on concessions, as buyers have more options and are no longer rushing to make offers.

East Tennessee Real Estate: A More Resilient Picture

While Knoxville proper is feeling the pinch, East Tennessee’s real estate market as a whole remains resilient. Median prices are up 2-3% year-over-year, and pending sales have benefited from a temporary dip in mortgage rates this fall. Outlying areas such as Lenoir City, Loudon County, and Roane County are seeing steady or even rising demand, absorbing much of the new inventory and maintaining price growth.

Key Takeaway for Buyers:
If you’re priced out of Knoxville, expanding your search to the broader East Tennessee market—especially growing towns and counties—can offer better value and more affordable monthly payments.

Why Outlying Areas Are Booming: Affordability Shifts Demand

One of the biggest trends of 2025 is that outlying communities are capturing buyers who might otherwise have purchased in Knoxville. As the city’s median price outpaces regional averages, many buyers are looking to suburbs and nearby towns for better deals.

  • Farragut: With its top-rated schools and amenities, Farragut remains in demand. However, rising prices and inventory mean homes are staying on the market longer despite a 30% jump in pending sales after the recent rate drop.
  • Lenoir City: This value-driven hotspot is attracting buyers with newer homes and reasonable commutes to Knoxville. Inventory is up, but homes are selling quickly, making for a competitive market.
  • Tellico Village: Known for its active-adult community and lakefront living, Tellico Village is experiencing a surge in inventory and a dip in median sale price, giving buyers more choices and negotiating power—especially for homes needing updates.

Key Takeaway for Investors:
Strong demand in Lenoir City and Farragut, as well as lifestyle-driven buyers in Tellico Village, make these submarkets worth watching for potential appreciation and rental opportunities.

The Role of Mortgage Interest Rates

Mortgage rates have been the wild card in the Knoxville and East Tennessee housing market. Earlier this fall, rates dipped briefly to just over 6%, sparking a surge in pending sales. However, any further increases could dampen both buyer demand and price growth, particularly in Knoxville, where affordability is stretched.

Key Takeaway for Buyers & Sellers:
Watch interest rates closely—lower rates could mean more competition and firmer prices, while higher rates might extend days on market and open the door to negotiation.

Knoxville Real Estate Forecast Through 2026

Looking ahead, the consensus among local experts is that the Knoxville real estate market will continue to normalize. Expect prices to remain flat or post only modest gains, with some neighborhoods possibly seeing slight declines. The broader East Tennessee market, however, is expected to show more resilience, especially in growth corridors and popular commuter towns.

Tips for Success:

  • Buyers: Expand your search radius to include outlying areas for more options and better deals.
  • Sellers: Be realistic about pricing, and consider offering concessions or updates to attract buyers.
  • Homeowners: If you’re not in a rush to move, waiting for rates to drop could bring more favorable selling conditions.

Final Thoughts: Navigating the East Tennessee & Knoxville Housing Market

Whether you’re buying, selling, or simply monitoring property values, staying informed about local trends is essential in a shifting market. Knoxville is correcting faster than the region, but East Tennessee remains a strong bet for homeowners and investors. Keep an eye on interest rates and be ready to act quickly when the right opportunity arises.

Ready to make your move?
For the latest Knoxville and East Tennessee market updates, tips for home buyers and sellers, and expert real estate advice, subscribe to our newsletter or contact us today!

East Tennessee housing market September 2025
Knoxville housing market September 2025
East Tennessee counties housing market September 2025
Farragut TN housing market September 2025
Lenoir City TN housing market September 2025
Tellico Village housing market September 2025

Knoxville and East Tennessee Housing Market Update – November 2024

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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:

  1. Job Growth and Economic Stability: Knoxville’s economy is growing steadily, with a 6.2% increase in payroll employment since 2020.
  2. Net Migration: Tennessee remains a top destination for those relocating from other states, drawn by Knoxville’s affordability and quality of life.
  3. Millennial Homebuyers: Younger buyers are transitioning from renting to owning, fueling demand in Knoxville.
  4. 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!

October 2024 Knoxville & East Tennessee Housing Market Update: Key Insights & Trends

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Welcome to your comprehensive October 2024 update on the Knoxville and East Tennessee housing markets! Whether you’re buying, selling, or just curious about the local real estate scene, we’ve got the latest insights and data you need.

Market Overview: East Tennessee

In October 2024, home sales in East Tennessee experienced a slight decline, down by 2.7% compared to last year. However, the inventory of homes surged by 37.9%, with new listings up by 7.1%. This increase in inventory provides more options for buyers, even as the market adjusts to rising interest rates and pre-election jitters.

Key Metrics:

  • Median Sales Price: $374,900 (up 7.11%)
  • Average Price per Square Foot: $225
  • Absorption Rate: 3.94 months (indicating more inventory and potentially less demand)

Despite fluctuations, East Tennessee’s housing prices remain stable to slightly rising, especially in high-demand areas.

Knoxville Real Estate Insights

Knoxville’s housing market shows resilience with home sales nearly steady, down just 0.2% from last year. The inventory increased by 31.4%, with new listings up by 1.5%. The city continues to see strong buyer interest, as reflected in the decrease in the absorption rate to 2.15 months.

Key Metrics:

  • Median Sales Price: $410,000 (up 9.63%)
  • Average Price per Square Foot: $230

Knoxville’s limited inventory suggests a continuing trend of rising home prices, driven by strong demand and insufficient supply.

County Breakdown

Roane County

  • Inventory Up: 22.6%
  • Median Sales Price: $340,000 (up 27.10%)

Knox County

  • Inventory Up: 34.3%
  • Median Sales Price: $400,000 (up 9.51%)

Anderson County

  • Inventory Up: 19.7%
  • Median Sales Price: $333,500 (up 17.02%)

Loudon County

  • Inventory Up: 47.6%
  • Median Sales Price: $629,000 (up 25.81%)

Sevier County

  • Inventory Up: 28.57%
  • Median Sales Price: $502,500 (down 1.48%)

Blount County

  • Inventory Up: 35.6%
  • Median Sales Price: $410,000 (up 12.3%)

Market Trends and Predictions

As we head into the end of the year, several factors will influence the Knoxville and East Tennessee housing markets:

  1. Interest Rates: Rising rates continue to impact affordability and buyer behavior.
  2. Inventory Levels: While inventory is up, it remains below pre-pandemic levels, keeping pressure on prices.
  3. Migration Patterns: Tennessee’s appeal due to its cost of living and quality of life continues to attract new residents, bolstering demand.

Conclusion

The Knoxville and East Tennessee real estate markets are navigating a complex landscape of increased inventory, rising prices, and changing buyer dynamics. For potential buyers and sellers, understanding these trends is crucial for making informed decisions.

If you’re considering buying or selling a home in Knoxville or East Tennessee, contact us at Cornerstone Realty Associates for expert guidance tailored to your needs.

Stay tuned for more updates as we continue to monitor the local real estate market. For personalized advice, reach out to Troy Stavros and the team at Cornerstone Realty Associates.

East Tennessee and Knoxville Real Estate Market Report: JUNE 2024

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As the summer heats up, so does the real estate market in East Tennessee and Knoxville. With data gathered through the end of June, we have a comprehensive look at the current trends and what buyers and sellers can expect in the coming months.

East Tennessee Market Overview

Home Sales and Inventory

  • Home Sales: Down 12.5% compared to June 2023.
  • Pending Sales: Up 4.8%.
  • Inventory: Up 40% from last year.
  • New Listings: Increased by 1%.
  • Median Sales Price: Up 8.01%, now at $376,500.
  • Average Price Per Square Foot: $221.

The absorption rate has seen a slight increase to 3.3 months of inventory, indicating a still strong seller’s market. Despite a rise in inventory, prices continue to climb due to sustained demand.

Knoxville Market Dynamics

Sales and Pricing Trends

  • Home Sales: Down 8.4% from last year.
  • Pending Sales: Up 1.3%.
  • Inventory: Up 53.5%.
  • New Listings: Nearly unchanged, down just 0.3%.
  • Median Sales Price: Increased by 3%, now at $408,150.
  • Average Price Per Square Foot: $220.

The absorption rate in Knoxville stands at 1.84 months, still favoring sellers. The Knoxville Market Action Index shows a strong seller’s market, with the city experiencing one of the highest price shifts in the nation since the peak in 2022.

Did you know that Knoxville experienced the largest price increase among the 200 largest metro housing markets in the US since March 2020, with a staggering 73% rise? This unexpected surge highlights Knoxville as a unique hotspot in the national real estate landscape.

Surrounding Counties Snapshot

  • Roane County: Inventory up 70.5%, median price up 19.3% to $340,000.
  • Knox County: Inventory up 56.3%, median price up 2.41% to $399,900.
  • Anderson County: Inventory up 43.8%, median price up 10.34% to $320,000.
  • Loudon County: Inventory up 63%, median price up 4.10% to $510,000.
  • Sevier County: Inventory up 47.5%, median price up 5.52% to $525,750.
  • Blount County: Inventory up 55.4%, median price up 8.84% to $413,500.

Interest Rates and Market Impact

The recent drop in interest rates from over 7% to 6.85% is a significant development. This reduction could stimulate market activity, making it more affordable for buyers and potentially encouraging sellers to list their homes.

Homeowners Insurance Rates

Rising insurance rates are another factor affecting affordability. Tennessee saw an 11% increase in homeowners insurance in 2023, impacting the overall cost of homeownership.

Conclusion

The East Tennessee and Knoxville real estate markets are robust despite fluctuating trends. With rising inventory and stable prices, it’s a promising time for buyers and sellers alike. If you’re considering buying or selling in the area, now is a great time to act.

Contact Us If you have any questions or need assistance with your real estate needs, contact Troy Stavros at Cornerstone Realty Associates in Knoxville. We’re here to help you navigate the market and achieve your real estate goals.