865 Real Estate

East Tennessee Real Estate & Neighborhood Source

Is the Knoxville Real Estate Market Finally Returning to Normal?

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If you have been following my recent market updates, you’ve likely heard me use one word repeatedly: Normalizing.

For the last few months, I have sensed a shift in the Knoxville real estate landscape. The frantic pace of the pandemic years has settled, and we are moving toward stability. Now, new data from First American confirms exactly what we’ve been seeing on the ground.

In this video, I break down a recent report from First American’s Chief Economist that highlights why Knoxville is leading the pack in the return to a balanced housing market.

The Key to Unlocking the Housing Market: New Listings

The article I reference in the video focuses on a crucial metric: New Listings.

While active inventory can increase simply because homes are sitting on the market longer, new listings represent fresh supply. This “flow” of new homes is vital because it gives buyers real options and stimulates transactions. As the Chief Economist at First American notes:

“Where new listings grow, sales flow.”

The data suggests a strong optimism for 2026. As more homeowners choose to list their properties, buyers will have more opportunities to purchase, moving the entire market one step closer to balance.

The 4 Quadrants of Normalization: Where Does Knoxville Stand?

First American analyzed 75 major metropolitan markets, comparing their October 2025 performance against their pre-pandemic averages (October 2018–2019). They divided these markets into four quadrants based on how close their new listings and sales volume were to “normal.”

The results for our local area are incredibly encouraging.

Knoxville is a “Pacesetter”

Knoxville, Tennessee, landed in the upper-right quadrant, designated as a Pacesetter.

What is a Pacesetter?
Pacesetters are markets that are closer to their pre-pandemic norms for both new listings and sales volume than the typical market.

Along with cities like Pittsburgh and Virginia Beach, Knoxville is leading the national return to normalized activity. This quadrant features markets that generally offer relative affordability compared to the rest of the country.

What This Means for Buyers and Sellers in Knoxville

This report cements what I have been saying for months: While things are slowing down compared to the peak frenzy, we are not crashing—we are normalizing.

  • For Sellers: The market is active, and sales are responding to the improved supply. You are entering a market that is functioning closer to historical health.
  • For Buyers: The increase in fresh listings means you have more choices. The “Pacesetter” status indicates that transactions are flowing, making it a great time to enter the market.

Summary

The data is clear: Knoxville is a leader in the housing recovery. We are seeing a healthy return to pre-pandemic levels of activity, which provides stability for everyone involved in a real estate transaction.

If you have questions about how this “Pacesetter” status affects your home value or your ability to buy in 2026, please don’t hesitate to reach out.

Troy Stavros
Cornerstone Realty Associates
Knoxville, TN

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.