Knoxville real estate trends Archives

The Housing Market Is Finding Its Balance Again

February 3, 2026 By Troy Stavros

Remember the whirlwind of 2020 and 2021? The pandemic housing boom was unlike anything we’d seen before. With historically low interest rates, stimulus checks hitting bank accounts, and millions of Americans suddenly working from home, buyer demand exploded almost overnight.

Just how intense was it? Federal Reserve researchers estimate that new construction would have needed to increase by 300% just to keep up with demand during that period. Of course, that wasn’t possible, you can’t build homes as quickly as people decide they want to buy them. The result? Available inventory practically evaporated, and home prices soared. By June 2022, U.S. home prices had climbed an astonishing 43.2% above where they stood in March 2020 (49.7% in Knoxville).

A Return to Normal

Since mid-2022, the market has been catching its breath. We’ve entered what economists call a “recalibration phase”… essentially, a return to more sustainable, balanced conditions after that extraordinary surge.

Want proof? Take a look at the percentage of homes selling below their original asking price over the past several years:

Year	Homes Selling Below List Price
2018	62%
2019	64%
2020	55%
2021	38%
2022	42%
2023	54%
2024	58%
2025	62%

What This Means for You

See the pattern? We’ve returned to pre-pandemic norms, where roughly 6 in 10 homes sell for less than their initial list price. This isn’t bad news, it’s actually a sign of a healthier, more balanced market where buyers have room to negotiate and sellers need to price strategically.

If you’re buying: You likely have more leverage than buyers did a few years ago. Don’t be afraid to make reasonable offers below asking price.

If you’re selling: Proper pricing from the start is more important than ever. The days of overpricing and expecting a bidding war are behind us in most markets.

Have questions about what this means for your specific situation? Let’s talk, I’d love to help you navigate today’s market.

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

January 16, 2026 By Troy Stavros

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

December 12, 2025 By Troy Stavros

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.

Knoxville & East Tennessee Real Estate SHIFT: May 2025 Market Update

June 12, 2025 By Troy Stavros

The East Tennessee real estate market is sending a clear signal: the frenetic, seller-dominated era is over. After years of intense competition, the data through May 2025 reveals a decisive shift towards a more balanced, traditional, and strategic market. For buyers, this means more options and renewed negotiating power. For sellers, it demands a new approach to pricing and presentation.

In our latest update, Troy Stavros of Cornerstone Realty Associates breaks down the critical numbers, trends, and forecasts for both the broader East Tennessee region and the Knoxville metropolitan hub. Here’s what you need to know.

The Big Picture: A Unified Shift to a Balanced Market

Across the region, the story is consistent. A surge in housing inventory, a slower sales pace, and moderating price growth have collectively tipped the scales. While the direction is the same, the velocity of this change differs, with the Knoxville market experiencing a more rapid and dramatic cooling-off period than its surrounding areas.

East Tennessee Housing Market: The Regional View (May 2025)

Looking at the entire East Tennessee area, the move towards balance is clear when comparing year-over-year data from May 2024 to May 2025:

Home Sales: Down 10.3%
Inventory of Homes: Up a significant 38.2%
Pending Sales: Up 13.9%
New Listings: Up 9.6%
Median Sales Price: Rose a modest 2.14% to $372,825
Absorption Rate: Increased to 4.43 months of inventory, placing the region firmly in a balanced market (traditionally 4-6 months).

A Closer Look: The Knoxville, TN Market (May 2025)

For properties with a Knoxville address, the trends are even more pronounced, signaling a faster correction:

Home Sales: Down 10.8%
Inventory of Homes: Skyrocketed by 57.5%
Pending Sales: Up 13.6%
New Listings: Up 11.8%
Median Sales Price: Rose 2.07% to $407,500
Absorption Rate: Increased to 2.63 months of inventory. While technically still a seller’s market, it’s heading towards balance at a much faster speed.

Knoxville vs. East Tennessee: A Tale of Two Markets

While both markets are cooling, Knoxville is doing so more dramatically.

Pace of Slowdown: Knoxville’s absorption rate grew by 51.15% year-over-year, far outpacing the regional increase of 35.89%. This shows the gap between inventory and sales is widening much more quickly in the city.
Days on Market: The median days on market in Knoxville surged by 71.43% (from 7 to 12 days), while the regional median saw a more moderate increase of 42.86% (from 14 to 20 days).
Seller Adjustments: Sellers in Knoxville are reacting more aggressively. The median list price in Knoxville fell by 5.37%, a much steeper drop than the regional decline of 0.69%, signaling intense competition.

Key Advice for Sellers in Today’s Market

The market no longer guarantees a quick, above-asking-price sale. Strategy and realism are your keys to success.

Price Aggressively & Accurately: This is the single most important factor. With a 5.37% drop in the median list price in Knoxville, you are competing against sellers who are already adjusting downward. Price your home correctly from day one to avoid languishing on the market.
Invest in Presentation: With surging inventory, your home must stand out. Professional photography, decluttering, and ensuring your home is in pristine, move-in-ready condition are no longer optional—they are essential.
Be Patient & Prepared to Negotiate: The days of reviewing multiple offers in a single weekend are fading. Expect an average market time of around 60 days in the broader region. Be prepared for a sale to take weeks, not days, and expect to negotiate on price and terms.

A Window of Opportunity: Key Advice for Buyers

This is the most advantageous market for buyers in several years. You are in a position of strength.

Take Your Time & Explore Options: The fear of missing out (FOMO) has subsided. The significant increase in inventory means you can be more deliberate, compare properties thoroughly, and avoid rushed decisions.
Exercise Your Negotiating Power: The data confirms that sellers are more flexible. Don’t hesitate to submit offers below the list price and include important contingencies for inspections and financing. Pay close attention to a property’s “days on market”—a higher number often indicates a more motivated seller.
Don’t Mistake a Balancing Market for a Crashing One: Prices are not in a freefall; they are still appreciating modestly. Waiting on the sidelines for a major price crash is a risky strategy that may not pay off. The real opportunity is the combination of more choice and reduced competition.

Looking Ahead: 6-Month Real Estate Forecast (June-December 2025)

The market normalization seen through May is expected to continue and solidify over the next six months.

Inventory Will Continue to Rise: Driven by new listings and longer selling times.
Price Growth Will Decelerate: Projections suggest modest annual price growth in the low single digits (2-3%).
Seller Concessions Will Become Commonplace: Expect to see more sellers offering to cover closing costs or reducing their asking price.
Mortgage Rates Remain the Biggest Variable: Most forecasts predict rates will hover in the mid-to-high 6% range. Any stabilization will help the market, but the era of ultra-low rates is firmly in the past.

Have Questions About Your Specific Situation?

Whether you’re considering selling your property or looking to buy a home in East Tennessee, navigating this shifting market requires expert guidance. Understanding the nuances of a specific neighborhood or price point is key to making a successful move.

If you have questions about this data or want to discuss your specific real estate goals, don’t hesitate to reach out.

This market update was provided by Troy Stavros with Cornerstone Realty Associates. For a personal consultation, please find our contact information below.

Contact me at 865-999-0925 or email Troy@865realestate.com

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

August 21, 2024 By Troy Stavros

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.

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

July 16, 2024 By Troy Stavros

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.