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Knoxville & East Tennessee Housing Market Update February 2025: What Buyers & Sellers Need to Know

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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.

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.

July 15, 2024 Monday Market Minute – Knoxville Real Estate and Housing Market Data

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As the real estate landscape in Knoxville, Tennessee, continues to evolve, staying informed about the latest market trends is crucial for both buyers and sellers. Let’s delve into the current state of the Knoxville real estate market, based on the latest data and insights provided by Troy Stavros from Cornerstone Realty Associates.

Market Overview: Demand Outpaces Supply

The Market Action Index (MAI) in Knoxville indicates a robust seller’s market. Last week, the MAI climbed from 44.82 to 50.54, signaling increasing demand compared to supply. This trend emphasizes that sellers have the upper hand, and buyers might face stiffer competition to secure their desired properties.

Inventory Trends: A Slight Dip

Inventory levels experienced a slight decrease, dropping from 805 active listings to 792. This reduction might be a residual effect of the July 4th holiday, but it also hints at a potential peak in inventory for the year. Fewer new listings have been added, with a noticeable decline from 153 new listings to 125 in just a week. This decrease in new listings further tightens the market, reinforcing the seller’s advantage.

Price Dynamics: Stability with Upward Pressure

Despite the fluctuations in inventory, the median list price of active homes has remained relatively steady, slightly below the levels seen in 2023. However, the median new list price for recent listings has surpassed last year’s figures, indicating that new properties entering the market are priced higher than before. This trend suggests continued upward pressure on home prices due to constrained supply and sustained demand.

Price Adjustments: Consistent Reductions

Price reductions have remained steady, with 46% of homes currently on the market experiencing price drops. This consistency over the past few weeks suggests that while sellers are pricing their homes higher initially, there is still room for negotiation, offering potential opportunities for astute buyers.

Segment Analysis: Diverse Market Activity

Breaking down the market into segments provides a clearer picture of demand across different price ranges:

  • Lowest Segment ($299,900 and below): This segment saw 45 new listings and 46 homes absorbed, with active listings spending an average of 28 days on the market.
  • Mid-Low Segment ($416,030): Here, 28 new listings were recorded, with 33 homes being absorbed and an average market time of 28 days.
  • Mid-High Segment ($567,000): This range had 21 new listings and 32 absorptions, with active listings spending 35 days on the market.
  • Highest Segment ($934,450): The top-tier segment saw 31 new listings and 28 absorptions, with the longest market time of 40 days among all segments.

Despite the prevailing seller’s market, the most expensive properties in Knoxville ($934,450) are experiencing the longest days on market (DOM). This suggests a potential opportunity for high-end buyers to negotiate better deals, even as the rest of the market remains fiercely competitive.

Conclusion

Whether you’re looking to buy or sell a home in Knoxville, staying informed about the latest market trends is essential. With demand outpacing supply, inventory levels fluctuating, and prices holding steady, it’s a dynamic market that requires strategic planning and informed decision-making. For personalized advice and insights, don’t hesitate to reach out to Troy Stavros at Cornerstone Realty Associates.

Understanding Real Estate Affordability at the End of 2023 in Knoxville TN and beyond: A Deep Dive

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As 2023 draws to a close, the real estate market continues to be a hot topic, especially concerning affordability. Troy Stavros has recently shed light on the current state of affordability in the real estate market, referencing a comprehensive Redfin research article. This blog post delves into the key points from that discussion, providing insights into where we stand, how we got here, and what the future may hold for prospective homeowners.

Affordability Crisis in 2023:

The year 2023 has been particularly challenging for homebuyers. According to the Redfin research highlighted by Stavros, only 15.5 percent of homes were affordable for the typical U.S. household — the lowest share on record. This stark decline in affordability is a significant drop from 20.7 percent in 2022 and over 40 percent before the pandemic-induced home-buying boom. The factors contributing to this downturn include soaring home prices, elevated mortgage rates, and a general tightening of the housing market.

The Research’s Premise:

The Redfin article digs into the affordability of homes across the 97 most populous U.S. metropolitan areas. It defines an affordable listing as one where the estimated monthly mortgage payment is less than 30 percent of the local county’s median household income. This metric is a standard guideline for housing affordability and reflects the financial strain many families face in the current market.

Spotlight on Metropolitan Areas:

Stavros highlights the significant disparities in affordability across different areas, with a special focus on Tennessee cities like Nashville and Knoxville. For instance, Nashville saw a mere 3.4 percent of homes deemed affordable in 2023, a dramatic decrease from 8.8 percent in 2022. Knoxville experienced similar trends where they saw a 10.7 percent of homes deemed affordable in 2023, a dramatic decrease from 22.7 percent in 2022.. These figures illustrate the severe affordability issues plaguing not just these cities but many metropolitan areas across the country.

Looking Ahead:

Despite the grim current state of affordability, there is a glimmer of hope. Discussions around potential federal interest rate reductions in 2024 could lead to lower mortgage rates, possibly increasing the share of affordable homes. This prospect offers some solace to those struggling to find affordable housing in today’s market.

Conclusion:

The current state of real estate affordability is undeniably challenging, with 2023 marking a record low in accessible housing options for many Americans. However, understanding these trends is crucial for navigating the market effectively. As we look forward to potential economic shifts and policy changes, staying informed and prepared is key to capitalizing on future opportunities in the real estate market.

Have questions? Want to talk about your specific situation? Contact Troy Stavros with Cornerstone Realty Associates at 865-977-9700 or text him at 865-999-0925 today. We look forward to serving you!

JUNE 2023 Knoxville Real Estate Market Update: Rising Rents, Home Prices, and Mortgage Rates

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Welcome to the Knoxville Real Estate Report! In this video, we’ll dive into the latest trends and insights shaping the housing market in our beautiful city.

First, let’s talk about apartment rents. Over the past year, Knoxville has seen a remarkable increase of 9.2% in apartment rents, outpacing the national average growth of 2.3%. This means that finding a place to rent in Knoxville has become more competitive, and prices are on the rise.

In June, the Federal Reserve decided to keep interest rates steady after a string of ten consecutive rate increases. However, officials hinted that future rate hikes may be necessary next month if inflation doesn’t continue to decrease. This decision has implications for the housing market, as higher interest rates can impact the affordability of homes and influence buyer behavior.

Speaking of the housing market, East Tennessee has experienced a notable increase in housing inventory throughout June. However, the number of homes listed for sale remains approximately 60% lower than pre-pandemic levels. This shortage of available homes contributes to the high prices and rents we are currently seeing in the region.

The recently released “The State of the Nation’s Housing 2023” report from the Harvard Joint Center for Housing Studies confirms that home prices and rents remain high in East Tennessee. With higher interest rates locking homeowners in place and slowing construction, the market faces challenges in meeting the demand for affordable housing.

Home sales in Knoxville saw a boost in May, partly due to a temporary decline in mortgage rates the previous month. Buyers in today’s market are highly sensitive to mortgage rates, and their fluctuations can impact home sales in the coming months. Additionally, the lack of inventory and new listings has intensified competition, especially for homes priced under $400,000.

In summary, while market activity has somewhat normalized, the housing market in Knoxville is still far from ordinary. Higher mortgage rates and historically low inventory levels create a dynamic that is unfamiliar territory for many. Although the situation may seem unsustainable, data suggests that these market conditions are likely here to stay.

Looking at housing inventory, we observed a modest increase over the past month, which is typical for this time of year. Active listings in June were up around 20% compared to the previous year. However, inventory levels remain well below pre-pandemic averages across all counties in the East Tennessee region. Although most counties experienced month-over-month increases in inventory, the growth was relatively subdued compared to historical trends.

Now, let’s talk about mortgage rates. Currently, rates are just over one percentage point higher than they were a year ago, resulting in a 20% increase in the required monthly payment for the median-priced listing. These higher rates have led many homeowners to hold off on selling their homes and moving, contributing to the low inventory we’re seeing in the market. As a result, prospective buyers are increasingly turning to the new-home market.

Looking ahead, the outlook for mortgage rates remains uncertain. Despite the Federal Reserve’s decision to pause rate hikes in June, there is a possibility that rates will resume their upward trend in the near future. With inflation still above the Fed’s target, it’s likely that rate increases will be on the horizon. As a result, mortgage rates are expected to hover around 6.5% throughout the summer months.

In Knoxville, only a small percentage of homes listed for sale have a lower estimated monthly payment compared to a year ago. This indicates that while home price growth has slowed, it remains positive, and lower monthly payments are limited to a few listings at the top end of the market. That wraps up our Knoxville Real Estate Report. Stay tuned for more updates on the local housing market. If you found this information valuable, be sure to like this video and subscribe to our channel for future updates. Thanks for watching!

Have questions? Need a market analysis on a particular part of town or home? Need help buying or selling a home in East Tennessee? Contact Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!