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MARCH 2025 – Knoxville Real Estate Market Trends: What Buyers and Sellers Need to Know

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The East Tennessee real estate market is evolving, with significant shifts that impact both buyers and sellers. Whether you’re looking to purchase your dream home or sell your property in Knoxville or the surrounding areas, understanding current market conditions is essential for making informed decisions.

The Knoxville Housing Market: By the Numbers

Recent data shows Knoxville’s real estate market is transitioning toward more balanced conditions after years of exceptional growth. As the #1 city for home price appreciation among the 100 largest US cities over the past seven years (with an impressive 98.13% increase), Knoxville now shows signs of stabilization.

Key market indicators reveal:

  • Increasing Inventory: Active listings have grown steadily, providing more options for buyers
  • Modest Price Growth: Median sale prices rose 4.79% year-over-year to $400,000, while average sale prices increased 6.21% to $477,733
  • Extended Selling Timeline: Average days on market increased by 21.62% to 45 days
  • Absorption Rate: Now at 2.12 months, up 35.90% from last year

What This Means for Sellers

If you’re considering selling your Knoxville home, these trends suggest several strategic approaches:

1. Competitive Pricing is Critical

With more homes available, pricing your property correctly from the start is essential. The data shows a slight decline in the sale-to-original-list price ratio, indicating buyers are negotiating more successfully. However, properties still sell at approximately 98% of their final list price after any adjustments.

2. Prepare for Longer Selling Periods

Homes are taking longer to sell compared to last year’s fast-paced market. Be prepared for an extended timeline and consider what improvements might help your property stand out among increased competition.

3. Quality Properties Still Command Premium Prices

Despite growing inventory, desirable homes in good condition continue selling at higher price points. Investing in strategic improvements and professional marketing can help your property attract quality offers.

What This Means for Buyers

The shifting market presents new opportunities for those looking to purchase in East Tennessee:

1. More Options and Less Pressure

With active listings increasing, buyers now have more properties to choose from and time to make decisions. This reduces the pressure of bidding wars that characterized previous years.

2. Negotiating Power

The longer days on market and declining sold-to-original-list price ratio create favorable conditions for negotiations. Buyers have more leverage to request concessions or negotiate on price.

3. Still a Strong Market

While conditions have improved for buyers, Knoxville remains a desirable market with steady appreciation. Don’t expect dramatic price drops – quality properties in sought-after areas still sell quickly and close to asking price.

Looking Ahead: Knoxville’s 5-Year Forecast

What can we expect for Knoxville real estate in the coming years? Based on economic indicators and demographic trends, experts project:

  • Continued appreciation of 14-20% over the next 5 years
  • Annual appreciation rates of 2.5-4%
  • Sustained growth in population and employment opportunities
  • Ongoing appeal to young professionals, families, and retirees

The factors that drove Knoxville’s remarkable past performance – including quality of life, relative affordability, economic diversification, and urban revitalization – continue to position the area favorably compared to other markets across the country.

Making Your Next Move in East Tennessee Real Estate

Whether buying or selling in this evolving market, working with a knowledgeable local real estate professional is more important than ever. From pricing strategies to negotiation expertise, experienced guidance can help you navigate these changing conditions successfully.

For personalized advice on your specific real estate goals in Knoxville or anywhere in East Tennessee, contact Troy Stavros with Cornerstone Realty Associates at 865-999-0925. With deep local market knowledge and a commitment to client success, Troy can help you make confident decisions in today’s market.

Discover Your Dream Home at 8613 Rayworth Trail, Powell, TN – East Tennessee’s Prime Real Estate!

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Embark on a journey to comfort and convenience with this beautiful home nestled in the heart of Powell, Tennessee, a sought-after location in East Tennessee. Spanning a generous 2,170 square feet, this well cared for property in the Knoxville area ensures a perfect blend of style and functionality, making it a top choice for those searching for homes in Powell, TN.

🔑 Key Features: Spacious Living in East Tennessee: Enjoy 3 cozy bedrooms, plus a large bonus room perfect for various uses, in this Powell, TN home. Modern Kitchen: Delight in preparing meals in the updated kitchen, equipped with stainless steel appliances. Luxurious Owner’s Suite: Relax in the opulent owner’s suite bath, complete with a jetted tub, separate shower, and dual sinks in this Knoxville area home. Outdoor Oasis: Unwind on the covered patio overlooking the fenced backyard in Powell, complete with an oversized storage shed and playset.

🛠 Recent Upgrades: 4-year-old roof ensuring durability in East Tennessee’s climate. Updated bathrooms for a modern touch in this Powell, TN property. 2 car garage with a handy workbench for all your projects.

📍 Prime Location in Knoxville Area: Situated just minutes from Emory Road in Powell, enjoy effortless access to a plethora of shopping and dining options in the Knoxville area. The convenient location also provides easy access to the interstate, making your daily commute from East Tennessee a breeze.

💰 Affordable Financing in Powell, TN: Take advantage of 100% financing available, making your dream home in East Tennessee more attainable than ever! Don’t miss this incredible opportunity to own a piece of prime real estate in Powell, TN, near Knoxville. At 8613 Rayworth Trail, indulge in the perfect blend of luxury, comfort, and convenience in East Tennessee.

🌟 Don’t let this opportunity slip away! Text Troy Stavros at CornerStone Realty Associates now at 📱 865-999-0925. Secure your private tour and get all your questions answered. Your dream home at 8613 Rayworth Trail, Powell, TN is waiting for you. Reach out now and open the door to your future! 🏡

8613 Rayworth Tr, Powell, TN 37849

$380,000
Property Type: Single Family Bedrooms: 3 Square Footage: 2,170 Lot Size (sq. ft.): 16,553 Status: Closed
Current Price: $380,000 List Date: 10/14/2023 Last Modified: 12/21/2023

Description

Step into comfort and convenience with this beautiful home nestled in the heart of Powell, Tennessee. Spanning a generous 2,170 square feet, this well cared for property exudes warmth and modern elegance, ensuring a perfect blend of style and functionality. 🔑 Key Features: Spacious Living: Enjoy 3 cozy bedrooms, plus a large bonus room perfect for a home office, gym, playroom or media room. Gourmet Kitchen: Delight in preparing meals in the updated kitchen, equipped with sleek stainless steel appliances. Plenty of storage in the abundance of cabinets and oversized pantry. You'll also love the command central workstation in the kitchen next to a large window. A great place for home office work or to just peruse the internet. Luxurious Owner's Suite: Relax in the bright owner's suite. With a bath, complete with a jetted tub, separate shower, and dual sinks. An oversized walk-in closet offers ample space for your wardrobe. Outdoor Oasis: Unwind on the covered patio overlooking the private, fenced backyard, complete with an oversized storage shed and playset. Additional Amenities: Enjoy newer hardwood floors throughout the main level. Revel in the warmth of the fireplace, and make use of the extra parking space for your RV or additional vehicles. The main level also features a formal dining room, separate laundry room and a 1/2 bath 🛠 Recent Upgrades: -4-year-old roof ensuring durability and peace of mind. -Updated bathrooms for a modern touch. -Updated kitchen is a pleasure to spend time in. -2 car garage with a handy workbench for all your DIY projects. 📍 Prime Location: Situated just minutes from Emory Road, enjoy effortless access to a plethora of shopping and dining options. The convenient location also provides easy access to the interstate, making your daily commute a breeze. 💰 Affordable Financing: Take advantage of the option of 100% financing available through USDA, making your dream home more attainable than ever! Don't miss this incredible opportunity to own a piece of paradise in Powell, TN. At 8613 Rayworth Trail, indulge in the perfect blend of luxury, comfort, and convenience. Schedule your private tour today and step into the lifestyle you deserve!

More Information MLS# 1241437

Location Tax Legal Info

House #: 8613 Street Name: Rayworth St Suffix: Tr State/Province: TN Zip Code: 37849 PIN #: 046KC008 Subdivision: Foxworth Geo Lat: 36.056823 Geo Lon: -84.022439

Contract Info

Auction Y/N: No Listing Price: 380000 Current Price: $380,000 Status: Closed Listing Date: 2023-10-01

General Property Description

Type: 2 Story Acres: 0.38 Acre Source: Tax Records Site Built: Yes Restrictions: Yes SqFt - Total (Aprox): 2170 SqFt - Main Lvl: 1000 SqFt - 2nd Flr Lvl: 1170 # Bedrooms: 3 Baths - Full: 2 Baths - 1/2: 1 # of Rooms: 6 Fireplace: Yes # Fireplace: 1 Property Status: N/A HOA: No Year Built: 2001 Bonus Room: Yes

Status Change Info

Status Change Date: 2023-11-09 Under Contract Date: 2023-10-15 Sold Date: 2023-11-08 Sold Price: $380,000

Property Features

Style: Traditional Construction: Frame - Brick Siding: Brick; Vinyl Basement: Slab Lot Description: Level; Rolling Slope View: Wooded Fireplace: Gas Log Floors: Hardwood; Vinyl Fuel: Electric; Gas (Natural) Heat: Central Cooling: Ceiling Fan(s); Central Cooling Appliances: Dishwasher; Disposal; Range; Self Cleaning Oven; Smoke Detector Sewer: Public Sewer Water: Public Other Rooms: Extra Storage; Family Room; Laundry/Utility; Split Bedroom; Workshop Misc Features: Internet Available; Pantry; Walk-in Shower; Walk-In Closet(s); Washer/Dryer Connect; Whirlpool Tub; Wired for Internet Exterior Features: Fence - Privacy; Fence - Wood; Fenced - Yard; Patio; Prof Landscaped; Windows - Insulated Outbuildings: Storage Shed Dining Area: Formal Dining Area Showing: See Agent Instructns New Financing: Cash; Conventional; FHA; New Loan; USDA/Rural; VA Loan

Room Information

Family Room Dining Room Kitchen Utility Room Garage Master Bedroom Bedroom 2 Bedroom 3 Bonus Room
Listing Office: Doorbell Real Estate
Office Phone: 888-388-3667
Last Updated: December - 21 - 2023
8613 Rayworth Tr, Powell, TN 37849- MLS# 1241437
The data relating to real estate for sale on this Web Site comes from the IDX Program of the Knoxville Area Association of REALTORS® Multiple Listing Service. © Copyright 2020 All rights reserved. IDX information is provided exclusively for consumers' personal, non-commercial use, it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that the data is deemed reliable but is not guaranteed accurate by the MLS. This information is updated weekly, however, some of these properties may subsequently have sold and may no longer be available. The Real Estate Broker providing this data believes it to be correct, but advises interested parties to confirm the data before relying on it in a purchase decision.
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Despite higher interest rates data shows buyer activity is UP!

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Are you a homeowner considering selling your house? Wondering if it’s the right time? Well, here’s some good news: despite higher mortgage rates, buyer traffic is on the rise.

Recent data from the ShowingTime Showing Index, which measures buyers actively touring homes, reveals a significant increase in buyer demand over the past few months. Even during the colder months, the limited number of homes for sale kept shoppers on the lookout.

To put things into perspective, let’s compare this February’s foot traffic with the traffic from the past six years. This February showcased one of the strongest buyer activities we’ve seen in recent memory, excluding the highly unusual years of 2021 and 2022. When compared to the more normal, pre-pandemic years, the data clearly indicates a rise in buyer activity.

What’s even more impressive is that this increase in buyer traffic occurred despite the rise in mortgage rates this February. The Freddie Mac 30-year fixed mortgage rate climbed from 6.09% to 6.50%. However, it didn’t deter more buyers from searching for their dream homes.

According to Jeff Tucker, Senior Economist at Zillow, this upward trend in buyer activity may continue. Typically, March and April experience a seasonal uptick in home shoppers.

If you’re looking to sell your house, this year’s active buyer market should be encouraging news. It’s a clear indication that potential buyers are out there, possibly searching for a home just like yours. By partnering with a real estate professional and listing your house now, you can put your home in front of eager buyers today.

In conclusion, the rising foot traffic in this year’s housing market is a positive sign that buyers are actively looking to purchase homes, even in the face of higher mortgage rates. If you’re ready to sell, let’s connect and make the most of this opportune time.

Have questions? Want to talk about buying or selling a home? Contact Troy Stavros with CornerStone Realty Associates today at 865-999-0925. My team and I are here to serve you!

APRIL 2023 East Tennessee and Knoxville Housing Market UPDATE

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The Current Housing Market in East Tennessee: Rising Prices, Low Inventory, and High Demand

The Knoxville real estate market and the broader East Tennessee region are experiencing a significant surge in housing prices due to a combination of factors, including an incredibly low inventory of homes for sale and a high demand driven by an influx of people migrating from other parts of the country. As a result, both homebuyers and renters are feeling the impact of these market conditions.

One of the primary reasons for the rising prices in East Tennessee is the shortage of available homes. The inventory of houses for sale has reached historically low levels, creating a highly competitive market. With fewer homes on the market, potential buyers are faced with limited options, leading to increased competition and bidding wars for desirable properties. As a result, prices are being driven up as buyers vie for a limited supply of homes.

The region’s popularity as a destination for relocation is a key driver of the high demand in East Tennessee. Many people are choosing to move to this area due to its natural beauty, affordable cost of living, and growing job opportunities. This influx of new residents has intensified competition for housing, further fueling price increases.

Rents in Knoxville, specifically, have been significantly impacted by these market dynamics. According to recent data, apartment rents in Knoxville were up 12.75% in the first quarter of 2023, far surpassing the national average of 4.46% growth. The scarcity of available rental units has given landlords greater leverage, allowing them to raise rental prices to meet the soaring demand.

While the rising prices may pose challenges for renters, homeowners in the region are benefiting from the current market conditions. A recent report from the National Association of Realtors revealed that middle-income homeowners in Knoxville accumulated an average of $109,890 in housing wealth over the past decade as their homes appreciated in value. The sharp increase in home prices has provided homeowners with significant financial gains and enhanced their overall net worth.

The speed at which homes are selling in East Tennessee is remarkable. Statistics show that half of the homes sold were under contract in 16 days or less. Furthermore, 23.8% of homes sold for more than the asking price, with 12% selling for at least $10,000 over asking and 4% selling for at least $25,000 over asking. This data indicates a highly competitive market, with buyers willing to pay a premium to secure a property.

New construction has played a role in meeting the demand for housing, representing 15% of total home sales in the area. However, it is still not sufficient to offset the low inventory levels and escalating prices in the overall market.

Buyer competition remains fierce, although there has been a slight decline in the number of offers received on average. According to the Knoxville Area Association of Realtors’ Market Pulse Survey, the typical listing in the Knoxville area received 2.2 offers in the first quarter of 2023, down from 6.2 offers in 2022. Nevertheless, multiple offer scenarios are still extremely common, with half of all homes receiving at least two offers.

Affordability is becoming a growing concern in East Tennessee, particularly as mortgage rates have increased in recent weeks. Economic uncertainty has placed upward pressure on rates, with the current average rate for a 30-year loan standing at 6.69%. The higher interest rates are discouraging some homeowners from listing their homes for sale, as they are locked into lower rates below 4% or even below 3%. This further constrains the available housing supply and exacerbates the affordability problem in the market.

In conclusion, the housing market in East Tennessee, including Knoxville, is experiencing a surge in prices driven by a combination of low inventory and high demand.

MARCH 2023 East Tennessee & Knoxville Housing Market Update

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Knoxville Real Estate Market Shows Signs of Growing Beyond Its Affordable Reputation

The Knoxville real estate market has always been known for its affordability, but new data shows that the city’s median listing price is now higher than the national average. This suggests that the competitive advantage of Knoxville’s affordability may be slipping away, making it more challenging for homebuyers to find homes within their budget. In the fourth quarter of 2022, the median listing price in the Knoxville area was $426,633, compared to $412,743 nationally. By February 2023, the local median listing price had increased by more than $42,000 compared to the U.S. average, making Knoxville the 47th-highest among the top 150 U.S. housing markets. One of the significant issues contributing to the shortage of inventory is that fewer people are moving. Life event movers, who typically move up or down in the housing market, are staying in their homes longer, creating a “mortgage lock-in” group. With over 60% of outstanding residential mortgages in Tennessee having an interest rate of 4% or below, potential sellers are hesitant to list their homes for sale, given the prospect of trading out their current mortgage for a new one with a much higher interest rate. This has led to fewer homeowners putting their homes on the market, particularly those priced under $500,000, where new listings are down 19% year-over-year.

Additionally, some homeowners who have to move are opting to keep their existing house with their sub-3% mortgage, rent it out, and buy a new home without selling their current one, which further exacerbates the inventory problem.

Investors represent another group that has not contributed much to the inventory. While institutional investors with Wall Street money have slowed their purchasing, none of them are selling, creating no discernible inventory coming from investors at this time.

Distressed homeowners represent the third potential source of inventory, but as of now, essentially none of these people are selling homes either. With the US still having record employment and the big layoffs in the tech sector generally finding work quickly, there are no indications of this group selling homes at this time.

According to experts, homeowners in Knoxville can see that they have a really good deal where they currently live. Therefore, unless something dramatically changes, the current environment is expected to remain.

The Knoxville real estate market’s challenges are not just about inventory, however. Tennessee’s population surpassed seven million residents in 2022, marking the largest year-over-year population increase since 2007, according to the Tennessee State Data Center. This growth is driving up rent prices, with Knoxville experiencing the second-fastest rent growth of any US metro area in 2022, according to a report from the National Association of Realtors®.

As Knoxville continues to grow, it will be essential to address the inventory shortage and affordability issues to ensure that the city remains an attractive place to live for both current residents and newcomers.

Have questions? Comments? Want to talk about the market? Want to talk about buying or selling a home in East Tennessee? Contact Troy Stavros at CornerStone Realty Associates today at 865-999-0925. My team and I look forward to serving you!

Almost Half of the Homes Sold in Farragut in March were CASH or At or Above List Price!

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Almost 1/2 (45%) of the homes sold so far in March in Farragut have been for cash or at/above their listing price (some both). We saw some sell for over $100K above their list price! I go over these sales in the video along with the breakdown of the sold prices and subdivisions. Lack of inventory and consistent demand is still pushing prices higher both in Farragut and most of East Tennessee. Don’t believe what you are hearing on the national news. For example, the national news reported that data through the end of February showed the first Year over Year reduction in the median sales price of homes nationally. However, in Knoxville, we saw a $30,000 increase in the median sales price compared to the end of February last year. Always remember, real estate is LOCAL and sometimes HYPER-LOCAL.

Have questions? Wondering what your home might be worth in today’s market? Contact the Troy Stavros TEAM with CornerStone Realty Associates today at 865-999-0925. We look forward to serving you!