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

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

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

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

The Big Picture: Knoxville vs. East Tennessee

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

Knoxville: Strong Finish, Softening Prices

Knoxville had a dramatic finish to the year.

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

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

East Tennessee: Building Momentum

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

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

Surrounding County Breakdown (Data Cards Below)

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

Roane County

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

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

Knox County

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

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

Anderson County

Anderson is the “Supply Leader” right now.

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

Loudon County

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

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

Sevier County

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

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

Blount County

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

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

Community Spotlights: Farragut, Lenoir City, & Tellico Village

(Data Cards Below)

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

The Game Changer: Mortgage Rates Drop to 5.99%

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

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

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

5 Predictions for the 2026 Housing Market

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

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

The Bottom Line

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

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

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

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

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

Knoxville Housing Market: A Shift Toward Balance

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

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

Pricing Trends in Knoxville

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

Month-Over-Month Snapshot

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

Key Takeaway for Knoxville

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

East Tennessee Housing Market: Signs of Normalization

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

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

County-Level Highlights

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

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

Market Charts: Knoxville Metro at a Glance

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

Why Is This Happening?

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

What’s Next for Knoxville Real Estate?

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

Final Thoughts

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

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

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

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

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 2024 Knoxville & East Tennessee Housing Market Update “How’s the market?”

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If you’re considering buying or selling real estate in East Tennessee or Knoxville, staying informed about the latest market trends is crucial. The housing market in these areas continues to evolve, influenced by economic conditions, mortgage rate fluctuations, and generational trends. Here’s a comprehensive update for July 2024 to help you make the best decisions in this dynamic market.

Millennials Drive Real Estate Trends in Knoxville and East Tennessee

In 2024, Millennials have become the largest group of homebuyers, surpassing even Baby Boomers. This generational shift is having a significant impact on the East Tennessee and Knoxville real estate market. Millennials are keenly aware of the long-term financial benefits of homeownership, particularly in a market where property values have been resilient. As a result, more young buyers are entering the market, driving demand and shaping the future of real estate in Knoxville and beyond.

Mortgage Rates and Their Impact on Knoxville Real Estate

Mortgage rates have been a significant factor in the East Tennessee real estate market. Over the past two years, rates have risen from historic lows of around 3% to nearly 7%, causing many homeowners to stay put, creating a “lock-in” effect. However, as of July 2024, there’s good news for prospective buyers: mortgage rates have begun to ease, currently hovering just below 6.5%. This slight decrease is expected to continue as inflation cools and the Federal Reserve adjusts its policies.

For those looking to buy a home in Knoxville or East Tennessee, this trend could make homeownership more affordable in the coming months. On the flip side, sellers should be aware that lower rates could bring more buyers into the market, potentially increasing competition.

This shift in mortgage rates is critical for anyone considering buying a home in Knoxville or East Tennessee. Monitoring Knoxville mortgage rates and understanding how they influence home affordability will be key to timing your entry into the market.

East Tennessee Real Estate Market: Inventory and Price Trends

East Tennessee Real Estate Trends

  • Home Sales: Increased by 7.1% Year-over-Year
  • Pending Sales: Up 12.4%
  • Inventory: Rose by 42.7%
  • Median Sales Price: Up 7.14% to $375,000

The real estate market in East Tennessee is experiencing a significant increase in inventory, the highest level seen in 2024. This increase provides more options for buyers, but also indicates that the market is balancing out, with supply beginning to catch up to demand. This trend could lead to more stable prices in the coming months, making it a good time to buy a home in East Tennessee.

For those searching for East Tennessee property, the rise in inventory means more choices and potentially better deals. Keeping an eye on East Tennessee real estate trends will help you stay ahead in this evolving market.

Knoxville Real Estate Market Update

  • Home Sales: Up 15% Year-over-Year
  • Pending Sales: Up 15%
  • Inventory: Increased by 51.6%
  • Median Sales Price: Rose by 3.97% to $395,000

In Knoxville, the real estate market remains strong, with a significant year-over-year increase in both home sales and inventory. The median sales price continues to rise, though at a more moderate pace. For sellers in Knoxville, this means the market remains favorable, though pricing strategies should be carefully considered as more homes come onto the market.

If you’re considering selling your home in Knoxville, understanding these market dynamics is essential to pricing your property competitively. The current trends in Knoxville real estate indicate that while the market is still strong, strategic pricing will be key to attracting buyers.

County-Specific Real Estate Insights: Knoxville and Surrounding Areas

While the Knoxville real estate market shows steady growth, surrounding counties are experiencing mixed trends:

  • Roane County Real Estate: Inventory up 56.7%, median sales price up 8.28% to $322,950.
  • Sevier County Real Estate: Inventory up 46.55%, median sales price down 12.12% to $452,500.
  • Loudon County Real Estate: Inventory up 64.4%, slight decrease in median sales price by 1.23%.
  • Blount County Real Estate: Inventory up 35.4%, median sales price down 1.37%.

These figures highlight the importance of understanding local market conditions when buying or selling property in East Tennessee. Areas like Sevier County are seeing price drops, likely due to decreased investor activity, making it a potential opportunity for buyers. Meanwhile, counties like Roane are still experiencing strong price growth, indicating sustained demand.

Opportunities and Challenges in the Knoxville Real Estate Market

The real estate market in East Tennessee and Knoxville is showing signs of balancing out. For buyers, increasing inventory and easing mortgage rates may offer a better chance to find the right home. For sellers, especially in high-demand areas like Knoxville, the market remains favorable, but it’s important to stay competitive as more listings come online.

If you’re contemplating selling your home in Knoxville, or buying property in East Tennessee, now is the time to act. Staying informed about Knoxville real estate opportunities and challenges will help you navigate this complex market effectively.

Final Thoughts

The East Tennessee and Knoxville housing market is in a state of flux, with both growth and challenges evident in the data from July 2024. By staying informed and strategically using the current trends, buyers and sellers can make the most of the opportunities presented by this dynamic market.

For more insights into buying or selling property in East Tennessee or Knoxville, or to discuss your specific real estate needs, don’t hesitate to reach out. We’re here to help you navigate these evolving market conditions.

For more insights into buying or selling property in East Tennessee or Knoxville, or to discuss your specific real estate needs, don’t hesitate to reach out. We’re here to help you navigate these evolving market conditions. Contact Troy Stavros with CornerStone Realty Associates at 865-999-0925 today.

Knoxville Real Estate vs. National Real Estate in Q1

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housing market knoxville vs nationalBuyers and sellers of Knoxville real estate need to be very careful what they believe when listening to the media about the housing market.  Sure you can believe most of the numbers you hear, but you can’t necessarily translate what those numbers say to your local market.  REAL ESTATE IS LOCAL.  Here are some good examples which show how our local Knoxville real estate market is bucking the trends of the national housing market.

A recent article in the Wall Street Journal titled, “Why the Nation’s Hot Housing Market Is Cooling, Slightly” made the following statements:

“The housing market showed signs of cooling in the first quarter as the supply of homes for sale expanded and lofty prices put a damper on demand in recent months.  A key driver of the price slowdown was an increase in the supply of existing homes listed for sale in the first quarter, which expanded by 3.1% from a year earlier..”

  • When we compare this statement against our local Knoxville real estate numbers we differ quite a bit.  Where the national market “showed signs of cooling” in the first quarter of the year, the Knoxville market’s PENDING home sales are up 14.3% from one year ago and up 15.5% year to date (refer to chart at bottom of the page). April numbers show the trend continuing as PENDING home sales were up 21.8% from last year and 17.7% YTD.
  • If a “key driver to the nation’s price slowdown was an increase in the supply of existing homes in the first quarter”… what happened in Knoxville? The supply of homes has DECREASED by 15.6% from one year ago and is DOWN 8.1% year to date (refer to chart at bottom of page).  Logic would tell us that if the increased inventory is making the nation’s price growth slow, then Knoxville’s decreased inventory would do the opposite.   This seems to be proving accurate as noted in my recent article, “List Prices Are Rising Fast On Knoxville Real Estate” that showed list prices rising by 2.1% in a one month period between March and April.

I just hope this example will make you think twice when you hear news about the housing market on the national media.  Your best source of learning the status of your local Knoxville real estate market is a local, Knoxville real estate agent.  To discuss the market or your goals with buying your selling a home in Knoxville, contact me, Troy Stavros with Gables & Gates, REALTORS today!

Knoxville real estate market update april 2013