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East Tennessee Housing Market Report — July 2026

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Every East Tennessee Market Posted Gains in June — Here’s What the Data Says

The June 2026 numbers are in, and the story they tell might surprise you. Despite mortgage rates hovering near 7%, every single market I track across East Tennessee posted year-over-year closings gains last month. Farragut surged 52.5%. Anderson County climbed 24.7%. Even Sevier County — the region’s softest market — grew 21.3%.

Buyers have adapted. They’re making decisions based on need, life circumstances, and local value rather than waiting for a rate cut that, frankly, isn’t coming this year. But understanding what’s happening nationally is essential to understanding where our local markets are headed, so let’s start there.

What the June CPI Report Means for East Tennessee Home Buyers and Sellers

The June Consumer Price Index landed this week, and the headline number grabbed attention. CPI came in at 3.5% year over year, but the monthly reading of -0.4% on a seasonally adjusted basis marked the sharpest single-month decline since April 2020. Energy drove the drop — overall energy costs fell 5.7% month over month, and gasoline prices specifically declined 9.7%.

However, the number that matters most for the housing market told a different story. Core CPI, which strips out volatile food and energy prices, held steady at 2.6% year over year and was completely flat month over month. The sticky, services-driven inflation that the Federal Reserve watches most closely barely budged. That distinction is critical for anyone trying to time a home purchase around falling interest rates.

The Federal Reserve’s Message Is Clear: No Rate Cuts in 2026

Newly appointed Federal Reserve Chairman Kevin Warsh testified before Congress on the morning of the CPI release and left no room for ambiguity. He stated the committee has “no tolerance for persistently elevated inflation” and remains committed to the 2% target. He went further, saying policymakers “need to choose lower prices,” signaling the Fed will keep financial conditions tight as long as necessary.

The June CPI print did accomplish one thing: it effectively closed the door on a rate hike at the July 29th FOMC meeting. The CME FedWatch Tool now shows an 86% probability that the Fed holds rates steady, and the pressure from committee members who had been projected to support raising rates later this year has dissipated.

But no one expects rate cuts in 2026. The Fed wants to see sustained declines in core inflation before they’ll even consider easing. For buyers and sellers in East Tennessee, the takeaway is straightforward — rates near 7% are the operating reality, not a temporary condition. Planning around that reality is far more productive than waiting for it to change.

Oil Prices and the Strait of Hormuz: The Wildcard for Housing

The variable that could upend everything is oil. Brent crude surged nearly 10% in a single session after the United States reinstated a naval blockade of Iranian vessels and both nations escalated military actions near the Strait of Hormuz, one of the most critical shipping lanes in the world. As of mid-July, Brent is trading at $85.78 per barrel and continuing to climb.

This matters for East Tennessee real estate in 2 important ways. First, if oil sustains above $90 a barrel, gasoline prices reverse course and the CPI relief we just discussed evaporates. The rate-hike conversation comes back to the table. Second, higher oil prices directly increase construction costs through lumber transportation, material delivery, and equipment fuel, constraining new housing supply at exactly the time the region needs more of it. This is the exogenous variable every buyer and seller should be watching over the next 60 days.

Current Mortgage Rates and What to Expect Through Year End

The 30-year fixed mortgage rate sat at 6.64% on Friday, jumped to 6.72% on Monday, and settled at 6.70% on Tuesday. It was a modest move, but the trajectory is informative. Expect mortgage rates to trade in a band between 6.4% and 7.1% through the end of 2026. This is the environment we’re operating in, and the East Tennessee markets are proving they can perform within it.

Knox County Housing Market Update

Knox County remains the anchor market for the region. June closings rose 7.9% year over year, and year-to-date closings are tracking above 2025 levels. The median home price in Knox County is sitting in the low $400s and has been essentially flat year over year. This is a market where the constraint is inventory, not demand. Buyers are active and engaged, but sellers remain locked in by the rate gap between their current mortgage and what they’d pay on a new home.

Looking ahead, Knox County is on track to finish 2026 with total closings in the range of 7,800–8,200 units, representing a 5–10% increase over last year. Median prices should remain stable in the low $400K range. Any loosening in the lock-in effect, even modest, would unlock significant additional transaction volume. If you’re considering selling a home in Knox County, the demand is there — pricing it right is the key to capturing it.

Farragut Real Estate Market Update

Farragut is the most competitive market in East Tennessee right now, and the June data confirms it emphatically. Closings surged 52.5% year over year. The year-to-date absorption rate sits at just 2.44 months, firmly in strong seller’s market territory. Inventory is declining, and the combination of top-rated schools, premium amenities, and an unmatched lifestyle continues to drive outsized demand.

If current trends hold, expect the median home price in Farragut to push toward $800K by Q4. Buyers shopping for homes in Farragut should be prepared for multiple-offer scenarios on well-priced properties through the summer and into fall. This is not a market where a wait-and-see approach is working in your favor. Sellers, meanwhile, hold significant leverage — but overpricing still carries risk even in a market this tight.

Blount County Housing Market Update

Blount County continues its pricing convergence with Knox County. The median home price has settled into the $400K–$430K range, and the absorption rate is trending below 2.75 months, pushing Blount County into tight seller’s market territory that’s beginning to resemble Farragut’s competitive dynamics.

The county’s appeal as a Smoky Mountains-adjacent market offering real value compared to Sevier County continues to attract both primary-residence buyers and investors. If the absorption rate drops below 2.5 months, we’re looking at a pricing environment that strongly favors sellers through year end. Blount County is a market where the window for buyers to find relative value is narrowing, and it’s worth paying close attention to over the coming months.

Anderson County Real Estate: The Region’s Best Value

Anderson County is the best value story in East Tennessee, and June painted a compelling picture. Closings jumped 24.7% year over year, and new listings surged 33.3%, the strongest listing growth in the entire region. At a median home price of $377,000, Anderson County is the most accessible market in this report.

What makes Anderson County particularly interesting right now is that the supply increase is being met with proportional demand growth. Prices aren’t falling — they’re stabilizing. If listing growth continues while demand holds, the absorption rate could drift toward 3.5 months, giving buyers a slightly more balanced negotiating environment. The median should finish the year somewhere between $370K and $390K. For buyers who are feeling priced out of Knox County or Blount County, Anderson County deserves serious consideration. The market fundamentals are strong, the value is real, and the trajectory is encouraging.

Loudon County Housing Market: The Transformation Story of 2026

Loudon County is undergoing the most dramatic market shift in the region. Just 12 months ago, the absorption rate sat at 5.07 months — a soft, buyer-leaning market. Today it’s 3.63 months. Active listings are down 15.7% year over year. This market has gone from soft to competitive in a single year, and the momentum shows no signs of reversing.

Sellers in Loudon County have their strongest positioning in over a year. Expect median home prices to hold in the $580K–$625K range through year end, with potential for further appreciation if inventory continues its downward trajectory. If you’ve been on the fence about listing your Loudon County home, the data suggests your negotiating position is only getting stronger.

Lenoir City Real Estate: A Market at a Crossroads

Lenoir City is the market I’m watching most closely right now. The median home price surged 18.88% in June, the largest percentage gain in the region. But pending sales dropped 15.4%. That’s a tension that needs to resolve one way or the other, and the answer will shape Lenoir City’s trajectory for the rest of the year.

If June’s price jump was driven by a cluster of higher-priced closings in a small sample — what analysts call a sales-mix effect — then the median will normalize back toward the $490K–$510K range in coming months. But if it reflects genuine appreciation driven by Loudon County spillover demand, Lenoir City may be entering a new pricing tier permanently. The pending sales decline suggests some buyer resistance at the new price level. The next 2 months of data will be critical, and I’ll be reporting on exactly what they reveal.

Tellico Village Market Update

Tellico Village has decisively shifted into a seller’s market. The absorption rate sits at 3.6 months and is trending downward. The median home price is in the $650K–$700K range, and the sale-to-list ratio is 99.8%, meaning homes are selling at virtually full asking price.

The retirement and second-home buyer demographic that drives Tellico Village is less sensitive to mortgage rates than the broader market. Many of these buyers are paying cash or making large down payments, which insulates the community from rate volatility and gives sellers confidence to hold firm on pricing through the fall selling season. If you own a home in Tellico Village and have been thinking about listing, the market conditions are firmly in your favor.

Roane County Real Estate: A Dramatic Turnaround

Roane County’s turnaround is one of the most compelling stories in this report. Previously the region’s weakest price performer, Roane County posted one of the strongest gains in June — up over 14% year over year to a median of $385,500. Closings rose 19.3%, pending sales increased 11.4%, and the absorption rate sits at a healthy 3.24 months.

Roane County has established itself as a viable and increasingly popular alternative for buyers priced out of Knox, Blount, and Loudon counties. Expect the median to settle in the $350K–$385K range for the year, with the upper end more probable if current demand continues. This is a market that has earned serious attention from buyers looking for strong fundamentals at a lower price point.

Sevier County Housing Market: Still a Buyer’s Market

Sevier County remains the region’s outlier. The supply overhang sits at 9.29 months, which is far too large to work through in a single selling season. The structural issue is clear — the inventory is concentrated in investment properties and former short-term rentals that don’t attract the same organic, primary-residence demand driving the other 8 markets in this report.

There are positive signs. Closings rose 21.3% year over year in June, and the median home price is gradually recovering toward the $490K–$510K range. But sellers in Sevier County should continue to price aggressively and expect longer marketing times. The oil price spike adds particular risk here, because higher gas prices directly impact tourism-dependent economies and could shrink the pool of vacation-property buyers considering the Smokies.

East Tennessee Housing Market Forecast: Second Half of 2026

Here’s how the second half of 2026 is shaping up across the region.

Mortgage rates will trade between 6.4% and 7.1% through year end, with no rate cuts expected. Regional closings volume will moderate from June’s strong numbers but remain positive through Q3. Seasonal cooling will temper Q4 as it always does, but the floor for transaction volume is higher this year than it was last year. Prices across East Tennessee will appreciate at a moderate 3–7% year over year, with significant variation by market. Knox County stays stable, Farragut and Loudon County have the most upward pricing power, and Sevier County continues its gradual recovery.

The single most important variable for the second half is inventory. The lock-in effect — where homeowners with 3–4% mortgage rates face $800–$1,200 more per month if they sell and buy at today’s rates — will continue to suppress new listings as long as rates stay above 6%. Markets already tightening, including Farragut, Loudon County, Tellico Village, and Blount County, are likely to get even tighter through the summer.

How to Position Yourself in Today’s East Tennessee Market

The markets with the most pricing power heading into the second half are Farragut, Loudon County, and Tellico Village. Declining inventory and strong demand give sellers in these markets clear leverage.

The best value opportunities for buyers are in Anderson County and Roane County, where median prices sit well below the regional average while market fundamentals continue to strengthen.

Lenoir City and Blount County are the markets to watch most closely. Lenoir City needs to prove whether its price surge is sustainable, and Blount County’s absorption rate is approaching a tipping point into strong seller’s territory.

Sevier County remains the lone buyer’s market, with nearly 10 months of supply and structural inventory challenges that won’t resolve quickly.

The Bottom Line for East Tennessee Real Estate

Rates near 7% are the reality we’re working within, and every market in this report proved in June that transactions happen and value exists even at these levels. Inventory constrained by the lock-in effect is the dominant force shaping prices and competition across the region. And oil prices, driven by escalating tensions near the Strait of Hormuz, are the wildcard that could reshape the economic landscape in ways that ripple directly into our local communities.

Whether you’re buying or selling, the most important thing you can do right now is make decisions based on current conditions rather than hypothetical future ones. The data is clear, the trends are identifiable, and opportunities exist across every price point and market in East Tennessee.

If you’d like to talk through what the latest data means for your specific situation, I’m here to help. Reach out anytime for a no-obligation conversation about your next move in the East Tennessee housing market.

This analysis is based on MLS data downloaded July 13, 2026, with macroeconomic data current as of July 14 and 15, 2026.

Knoxville Housing Market Update: The Lock-In Effect Is Finally Easing for East Tennessee Homebuyers

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If you’ve been searching for a home in Knoxville or anywhere across East Tennessee, you’ve likely felt the frustration of limited inventory. The good news? A significant shift in the housing market suggests that more homes could be coming to market soon, offering relief for buyers throughout the region.

What’s Changing in the Housing Market?

The housing market recently reached a notable milestone that signals the mortgage “lock-in” effect is beginning to fade. According to the Federal Housing Finance Agency, more homeowners now hold mortgages with rates at or above 6% than those with loans below 3%. This marks the first time this has occurred since late 2020, during the height of the COVID-19 pandemic.

For Knoxville-area buyers who have been competing for a limited number of listings, this shift could mean more opportunities in the months ahead.

Understanding the Lock-In Effect and Its Impact on East Tennessee

The lock-in effect occurs when homeowners with ultra-low mortgage rates from the pandemic era refuse to sell because purchasing a new home would mean taking on a significantly higher rate. When mortgage rates hovered near historic lows in 2020 and 2021, many East Tennessee homeowners locked in rates below 3%. When the Federal Reserve began raising interest rates in early 2022 to combat inflation, these homeowners found themselves financially incentivized to stay put.

The numbers tell the story clearly. The share of homeowners with rates below 3% peaked at 24.6% in early 2022 and has since declined to 20% by the third quarter of 2025. Meanwhile, homeowners with rates at or above 6% have grown from 7.3% in mid-2022 to 21.2% late last year.

How This Affects Knoxville Home Buyers and Sellers

For prospective homebuyers in Knoxville, Maryville, Oak Ridge, and surrounding East Tennessee communities, the lock-in effect has created real challenges. The scarcity of existing homes on the market has contributed to rising prices and intense competition. Nationally, the median age of first-time homebuyers reached a record 40 years old in 2025, driven in part by existing owners staying in their homes far longer than in previous decades.

The National Association of Realtors reported in its 2025 Profile of Home Buyers and Sellers that the median expected tenure in a purchased home is now 15 years, with 28% of buyers declaring it will be their forever home. This represents a dramatic shift from the period between 2000 and 2008, when sellers typically stayed in their homes for just six years.

Signs of Improvement for the East Tennessee Real Estate Market

While the largest share of outstanding mortgages still falls within the 3% to 4% range, representing almost a third of all loans, the gradual shift toward higher-rate mortgages is expected to bring more inventory to the market over time. Industry experts note this isn’t a dramatic change but rather a meaningful step forward for market activity.

Life circumstances continue to motivate sellers regardless of their mortgage rates. Job relocations, growing families, and financial changes are prompting some East Tennessee homeowners to list their properties even when it means giving up favorable loan terms.

What Knoxville Home Buyers Should Know Going Forward

If you’re considering buying a home in Knoxville or the broader East Tennessee region, here’s what to keep in mind. More inventory is expected to gradually come online as homeowners with pandemic-era low rates eventually need to move for life or financial reasons. Should mortgage rates decline into the mid-5% range or lower, expect a more significant increase in available listings as homeowners become more willing to trade their low rates for a new property.

The East Tennessee housing market remains competitive, but these shifts suggest that patience and preparation could pay off for buyers in 2026 and beyond. Working with a knowledgeable local real estate professional who understands the Knoxville market can help you act quickly when the right opportunity arises.

Whether you’re a first-time buyer in Knoxville, looking to upgrade in Farragut, or searching for property in the Smoky Mountain foothills, understanding these market dynamics can help you make informed decisions about your home purchase.

Looking to buy or sell a home in Knoxville or East Tennessee? Contact Troy Stavros with CornerStone Realty Associates today at 865-999-0925 to schedule a time to talk.

Knoxville Housing Market Update November 2025 | Prices Dropping & Inventory Up

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Are you wondering what’s happening in the Knoxville real estate market and across East Tennessee this November? As 2025 draws to a close, both buyers and sellers are facing a market that looks very different from the frenzied years of the recent past. Let’s dive into the latest housing market data for Knoxville and all of East Tennessee, so you can make informed decisions about your next move.

Knoxville and East Tennessee: Market Overview

The East Tennessee housing market and Knoxville’s real estate market are both cooling, but at different rates. Inventory is rising, homes are staying on the market longer, and buyers now have more negotiating power than at any time in recent years. If you’ve been waiting for the market to shift, now’s the time to pay close attention.

Key Similarities:

  • Inventory is up in both Knoxville and the surrounding region.
  • Homes are taking longer to sell.
  • Buyers have more room to negotiate.

Key Differences:

  • Knoxville’s market is cooling faster than the broader East Tennessee region.

Inventory & New Listings

Knoxville:

  • Inventory up 25% year-over-year
  • New listings down 8%
  • Homes are sitting longer before selling

East Tennessee (Regional):

  • Inventory up 15% year-over-year
  • New listings down 2%

This means more choices for buyers in Knoxville, but also indicates that homes aren’t moving as quickly as before.

Closed & Pending Sales

  • East Tennessee closed sales: Down just 0.3% (virtually flat)
  • Knoxville closed sales: Down 14%

However, pending sales (homes under contract) are up:

  • 18% regionally
  • 9% in Knoxville

This shows that buyer activity is returning, but buyers are more selective, especially in Knoxville.

Home Prices: Median & Average

Knoxville:

  • Median sales price: Down 6% to $385,000
  • Average sales price: Down nearly 3%

East Tennessee:

  • Median sales price: Down 3% to $365,000
  • Average sales price: Up 4% (luxury/high-end sales remain strong)

Takeaway: Knoxville is seeing a broader correction across all price points, while high-end properties in the region are still performing well.

Days on Market (DOM)

Knoxville:

  • Average DOM: Up 50% to 57 days
  • Median DOM: Up 83%

East Tennessee:

  • Average DOM: Up 27% to 71 days
  • Median DOM: Up 37%

Despite the increases, Knoxville homes still sell faster than regional homes in absolute terms—but the rate of change is much steeper in Knoxville.

County-Level Highlights

  • Roane County: Inventory up 28.4%, pending sales up 73.7%, median price down 8% ($287,000)
  • Knox County: Inventory up 21.9%, pending sales up 9%, median price down 2.99% ($390,000)
  • Anderson County: Inventory up 31.7%, pending sales up 50.9%, median price flat ($350,603)
  • Loudon County: Inventory up 11.8%, pending sales up 31.9%, median price up 8.78% ($570,000)
  • Sevier County: Inventory up 7.29%, pending sales down 4.93%, median price down 7.04% ($500,000)
  • Blount County: Inventory up 4.8%, pending sales up 3.4%, median price flat ($376,250)

Note: Some counties see big month-to-month swings due to smaller sample sizes and varying property types.

Weekly Trends: A Deeper Look

  • Median Sales Price: For the first time in five years, the weekly median in Knoxville is lower than the previous year.
  • Active Listings: Highest in six years, even above pre-pandemic levels.
  • Weeks of Supply: Highest since 2019 (16 weeks vs. 13 last year).
  • Homes Sold: Near the lowest point in six years.
  • New Listings: Highest for this week in six years.
  • Days on Market: Highest in six years (72 days).
  • Pending Sales: Second lowest in six years.
  • Sale-to-List Price Ratio: Lowest in six years, indicating more negotiation and price reductions.
  • Price Drops: Most in any of the past six years for this week.

Mortgage Rates and Market Opportunity

  • Fed interest rate: Dropped 0.25% in November, but mortgage rates remain at 6.32% for a 30-year loan.
  • If rates fall below 6%, expect more buyers to return to the market and possibly more sellers to list.

What Does This Mean for Buyers and Sellers?

For Buyers:

  • More choices, more time, and more negotiating power.
  • This is the best opportunity in years to buy in Knoxville or East Tennessee.

For Sellers:

  • Price aggressively from day one.
  • Overpriced homes will sit—there’s no longer a “hot market” safety net.
  • Be prepared for more competition and negotiation.

Bottom Line

The Knoxville real estate market is normalizing after years of record growth and rapid sales. While there’s no “crash,” the market correction is real—especially in Knoxville, where inventory gains, price drops, and slower sales are more pronounced. The broader East Tennessee market is cooling but remains stable, with continued strength in luxury segments.

Whether you’re buying or selling, understanding your specific market is key.

If you have questions about your neighborhood, want to know your home’s value, or are thinking about buying in Knoxville or East Tennessee, reach out today. The right guidance can help you seize opportunities in this evolving market.

Ready to make your next move in East Tennessee? Contact Troy Stavros with Cornerstone Realty Associates for personalized advice and up-to-date market data.

East Tennessee & Knoxville Housing Market Update – August 2025

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Are you curious about the current real estate trends in Knoxville and East Tennessee? Whether you’re considering buying, selling, or investing, understanding the latest market shifts is essential for making the right move. Here’s a comprehensive, data-driven look at the August 2025 housing market update for East Tennessee and Knoxville, including prices, inventory, and expert insights.

East Tennessee & Knoxville Single-Family Housing Market Report – August 2025

Economic & Market Context (Applies to Both Markets)

  • Mortgage rates have dropped to the low 6% range (~6.29%), improving affordability and monthly payments for buyers.
  • Labor market data is a growing concern: National job growth over the past year was revised sharply lower, with only 22,000 jobs added in August and significant downward revisions in sectors like leisure, hospitality, retail, and business services.
  • Buyer confidence is mixed—improved by rate relief but tempered by employment insecurity.
  • Inventory is elevated across markets, providing buyers with more choices and reducing urgency.
  • Days on market and absorption rates are increasing, signaling a slower pace of sales and movement toward a more balanced or slightly buyer-leaning market.
  • Negotiability is up: Sale-to-list ratios are lower, and price reductions/concessions are more common.
  • Lending standards may tighten further due to economic uncertainty, limiting access for marginal buyers.

Supply, Demand & Pricing Dynamics (Shared Trends)

  • Active inventory is high vs. last year, keeping upward pressure off prices and giving buyers leverage.
  • New listings remain steady, showing seller engagement, but not enough to create excess supply.
  • Median sale prices are flat to modestly up, while average sale prices have been buoyed by upper-tier transactions.
  • Absorption rates are trending higher YoY, indicating more choices and slower turnover.
  • Days on market for sold listings have increased substantially, especially for homes not priced to current conditions.
  • Sellers must be realistic on pricing and incentives; buyers can negotiate more assertively, especially on stale listings.

Knoxville vs. East Tennessee: Key Differences & Local Nuance

1. Inventory, Absorption & Market Speed

  • Knoxville
    • Absorption rate: 2.94 months (Aug 2025), up 34% YoY—still somewhat seller-leaning but moving toward balance.
    • Active listings: ~1,600, with steady but not excessive new supply.
    • Average Days on Market: 46 (+35% YoY); Median DOM: 22 (+83% YoY).
    • Market is slightly faster than the broader East Tennessee region (which has a 4.82 month absorption rate and longer DOM), but both are slowing.
  • East Tennessee (Region-Wide)
    • Absorption rate: 4.82 months (Aug 2025), up 27% YoY—close to balanced, potentially tipping buyer-friendly if demand softens.
    • Average DOM: 63 (+37% YoY); Median DOM: 29 (+45% YoY).
    • More pronounced inventory build and slower pace overall vs. Knoxville.

2. Pricing Trends

  • Knoxville
    • Median list price: $415,000 (down 7.4% YoY).
    • Average sale price: $512,654 (up 10.5% YoY).
    • Median sale price: $390,888 (up 1.5% YoY).
    • Pricing reflects a sharper correction in list prices, with average sale price buoyed by upper-tier deals, but most sellers see little real appreciation.
  • East Tennessee
    • Median list price: $440,000 (nearly flat YoY).
    • Average sale price: $471,398 (up 6.8% YoY).
    • Median sale price: $376,200 (up 3.1% YoY).
    • List prices haven’t corrected as much as Knoxville, but the pattern of average prices outpacing median is similar, reflecting strength at the top of the market.

3. Negotiation & Sale-to-List Ratios

  • Knoxville
    • Sale-to-list ratios: 95–97% (lower than last year), with frequent discounts needed to close.
    • Median sale prices are often below median list prices, showing persistent buyer leverage.
  • East Tennessee
    • Sale-to-list price ratio: ~95%, also down YoY.
    • Negotiability is common across the region; sellers of aging inventory must stay flexible.

4. Market Segmentation & Buyer Behavior

  • Knoxville
    • Entry-level and mid-market segments ($250k–$400k): Most sensitive to job market fears; these buyers benefit from rate relief but are often sidelined by economic uncertainty.
    • Upper-tier sales ($400k+): Drive the average price higher, but volume is limited.
    • Homes priced right and move-in ready move fastest; stale inventory is slow to clear.
  • East Tennessee
    • Similar segmentation: Entry and mid-market buyers are most impacted by job and lending trends.
    • Upper-tier strength is evident but less concentrated than in Knoxville.
    • Market is generally a bit slower and more diverse across submarkets.

5. Risks & Outliers

  • Knoxville
    • List price declines are more pronounced than region-wide, suggesting sellers are adjusting expectations faster, or a higher share of affordable product is coming to market.
    • Market is less exposed to deep softening than some rural/outlying counties, thanks to more diversified local demand.
  • East Tennessee
    • Outlying areas may see greater inventory buildup and longer marketing times, especially if job losses are concentrated in specific towns or industries.
    • Region is somewhat more vulnerable to further economic shocks, particularly outside major metros like Knoxville.

Strategic Guidance for Both Markets

For Buyers

  • Assess job security and financial stability first—don’t overextend.
  • Negotiate confidently on older or price-reduced listings.
  • Take advantage of lower rates, but ensure full pre-approval and keep contingencies in place.

For Sellers

  • Price to current market—not to last year’s peak.
  • Expect longer marketing times and be ready for strategic concessions (rate buydowns, closing credits).
  • Invest in property condition and presentation to stand out.

For Investors

  • Underwrite with conservative rent and absorption projections.
  • Favor stable neighborhoods and properties with strong rental demand.
  • Prepare for higher vacancies or longer lease-up periods.

Outlook: What to Watch Through Year-End 2025

  • Pending sales and mortgage applications: Early signals for shifts in demand.
  • Local job market trends: Especially important in entry-level and service sectors.
  • Inventory build and price reductions: Especially if list prices keep falling in Knoxville.
  • Market speed: Any further rise in DOM or absorption signals softening.

Conclusion

Both Knoxville and the broader East Tennessee region are experiencing a market in transition, balancing improved affordability against weaker labor market data and rising inventory.

  • Knoxville is adjusting more quickly on price and remains a touch more resilient due to diverse demand, but is not immune to broader economic headwinds.
  • East Tennessee as a whole is trending toward a balanced or slightly buyer-leaning market, with greater risk of softening in less urban submarkets.
  • Success for buyers, sellers, and investors in either market hinges on realism, flexibility, and close attention to both local and macroeconomic trends as the remainder of 2025 unfolds.

Looking for advice specific to your neighborhood or price point?
Contact us for a custom market report or subscribe for monthly updates on Knoxville and East Tennessee real estate!

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

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Are you planning to buy or sell real estate in Knoxville or East Tennessee in 2025? With the latest housing market data in hand, you can make informed decisions that align with current trends in the area. In this market update, we’ll break down the key insights from April 2025, including inventory levels, price trends, and market conditions for both buyers and sellers.

Whether you’re a first-time buyer, seasoned investor, or a homeowner ready to sell, here’s everything you need to know about the Knoxville and East Tennessee real estate markets.

Knoxville Housing Market: Cooling but Still Favoring Sellers

The Knoxville housing market is showing signs of cooling, but it remains a slight seller’s market. Here are the latest stats comparing April 2025 to April 2024:

  • Home Sales: Down 15.4% year over year.
  • Pending Sales: Up 10.9%, showing steady buyer interest.
  • Inventory Growth: Up 61.4%, giving buyers more options.
  • Median Sales Price: Increased 4.94% to $404,000.
  • Average Price Per Square Foot: $234 per square foot.
  • Absorption Rate: Rose to 2.38 months, reflecting a slight shift toward balance but still favoring sellers.
  • Days on Market: Average days on market increased by 44.12% to 49 days, signaling a slower pace for home sales.

What This Means for Sellers in Knoxville

Sellers in Knoxville need to adapt quickly to changing conditions by pricing homes competitively and ensuring properties are well-prepared for listing. While prices are still rising, the increase in inventory and absorption rate indicates growing buyer leverage.

What This Means for Buyers in Knoxville

With more inventory and slower sales, buyers have greater negotiating power. However, desirable homes are still selling quickly. Acting decisively on well-priced properties is key to securing your dream home.

East Tennessee Housing Market: A Steady Transition Toward Balance

Compared to Knoxville, the East Tennessee market is transitioning more gradually, moving closer to a balanced market. Here’s the year-over-year data for April 2025:

  • Home Sales: Down 12.5% compared to April 2024.
  • Pending Sales: Up 13.7%, reflecting active buyer interest.
  • Inventory Growth: Up 39.4%, giving buyers more options.
  • Median Sales Price: Increased 6.23% to $375,000.
  • Average Price Per Square Foot: $227 per square foot.
  • Absorption Rate: Rose to 4.07 months, nearing a balanced market.
  • Days on Market: Average days on market increased by 16.98% to 62 days, while the median rose 53.33% to 23 days.

What This Means for Sellers in East Tennessee

Sellers in East Tennessee can take a more patient approach compared to Knoxville. With homes taking longer to sell, focusing on property presentation and strategic pricing is crucial. The market is nearing balance, but sellers can still benefit from price appreciation.

What This Means for Buyers in East Tennessee

Buyers have more time to evaluate properties as the market stabilizes. While the slower pace offers more flexibility, competitive pricing means there’s less room for dramatic discounts.

Key Trends Driving the Knoxville and East Tennessee Housing Markets

1. Growing Inventory Levels

Both Knoxville and East Tennessee are experiencing rising inventory levels, providing buyers with more options. However, Knoxville’s faster absorption rate increase (52.2% year over year) suggests a more rapid market adjustment compared to East Tennessee’s slower pace (29.25%).

2. Seasonal Market Upswing

Spring is the busiest time for real estate, and both markets are benefiting from seasonal demand. Pending sales have increased significantly in Knoxville, jumping from 488 in February to 666 in April, highlighting strong buyer activity.

3. Pricing Trends

  • Knoxville: Median sales price rose by 5.19% to $405,000, while the median list price declined by 3.25%. This suggests sellers are adjusting expectations to attract buyers.
  • East Tennessee: Median sales price increased 6.23% to $375,000, with a modest 1.24% rise in list prices. Sellers here are maintaining steadier pricing strategies.

4. Affordability Challenges

Rising prices and high mortgage rates (currently hovering around 6.92%) are creating affordability challenges for many buyers. The “lock-in effect” is also keeping some potential sellers on the sidelines, as 72% of homeowners with mortgages have interest rates below 5%.

County-Specific Market Insights

Here’s a quick overview of housing trends in surrounding East Tennessee counties:

  • Knox County: Inventory up 57.6%, pending sales up 12.2%, and median sales price up 7.08% to $401,547.
  • Roane County: Inventory up 29.3%, pending sales down 12.3%, and median sales price down 1.5% to $319,000.
  • Anderson County: Inventory up 37.6%, pending sales up 14%, and median sales price down 0.5% to $297,500.
  • Loudon County: Inventory up 65.8%, pending sales down 4.3%, and median sales price up 4.98% to $527,500.
  • Sevier County: Inventory up 18.1%, pending sales down 5.7%, and median sales price down 3.81% to $525,000.
  • Blount County: Inventory up 51.2%, pending sales up 19.6%, and median sales price up 6.84% to $406,000.

Opportunities and Challenges for Buyers and Sellers

For Sellers

  • Knoxville: Price your home competitively and prepare it well to stand out in a cooling market.
  • East Tennessee: Be patient with longer selling times, but focus on presentation and pricing to attract buyers.

For Buyers

  • Knoxville: Leverage increased inventory and negotiate strategically, but act quickly on desirable properties.
  • East Tennessee: Take advantage of a balanced market to explore more options, but don’t expect deep discounts.

National Market Context: How Knoxville and East Tennessee Compare

Nationally, the housing market is seeing more metro areas with falling home prices. However, Knoxville and East Tennessee continue to experience year-over-year price appreciation.

Despite low national home sales (near historic lows since 1995), East Tennessee’s resilience reflects strong local demand and steady market conditions.

Final Thoughts: Steady as She Goes

The Knoxville and East Tennessee housing markets are adapting to increased inventory and shifting buyer behavior. Knoxville is cooling faster, while East Tennessee’s transition is more gradual.

Whether you’re buying or selling, understanding these nuanced trends is key to making informed decisions. If you’re ready to take the next step in the Knoxville or East Tennessee real estate market, contact Troy Stavros with Cornerstone Realty Associates for expert guidance.

Looking to buy or sell in Knoxville or East Tennessee? Let’s make your real estate goals a reality. Reach out today for personalized advice and support!

Contact Troy Stavros, Cornerstone Realty Associates
📞 Phone: 865-999-0925
📧 Email: troy@865realestate.com

Year Over Year Change in Rent Prices in Tennessee’s Biggest Cities

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The latest insights from Rentometer.com reveal that the average rent for three-bedroom single-family rentals (SFRs) in Knoxville hit $2,235 in Q3 2023, marking a 3% increase from last year. In contrast, a 3-BR apartment averaged $1,799 during the same period. Notably, Knoxville leads the five largest Tennessee cities with the largest year-over-year rent increase for single-family units!

The trend highlights Knoxville’s growing appeal and rising housing costs, especially when compared to other cities. For instance, renting a single-family home in Nashville used to be 23% more expensive than in Knoxville in Q2 2022; now, that gap has narrowed to 17%. Meanwhile, Chattanooga’s rental prices are now 12% cheaper than Knoxville’s, a notable increase from 7% last year.