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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!

Charming Fox Den Cottage with Modern Upgrades and Outdoor Oasis – 12218 Torrey Pines Point

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Welcome to this quaint cottage-style home in the heart of Farragut’s prestigious Fox Den Subdivision. Located on a sought-after cul-de-sac just a short stroll from the Fox Den Country Club and its incredible amenities, this 4-bedroom, 3 full and 2 half-bath home offers the perfect blend of charm, convenience, and luxury living. Many recent updates, including: new roof (2025), freshly painted upstairs (2025), new carpeting on main stairwell and upstairs (2025), 2 new HVAC units (2019) and more. 

Step Into Your Dream Home

From the moment you walk through the door, you’ll fall in love with the open floor plan that effortlessly connects the beautifully renovated kitchen, dining, and living areas. The owner’s suite on the main level ensures convenience and privacy, while the additional three bedrooms upstairs provide space for family or guests.

This home also features a bonus room perfect for a home office, playroom, or extra bedroom, as well as a spacious rec room in the basement, ideal for a media room, game room, or home gym. With room for everyone and everything, this home is as functional as it is inviting.

Outdoor Living at Its Finest

The outdoor space is an entertainer’s dream! With multiple large patios, an outdoor fireplace, and lush landscaping, this home was designed for hosting gatherings or enjoying peaceful evenings under the stars. Plus, plans and approvals are already in place to build an artist’s cottage/outbuilding, with utilities ready to go. Whether you’re a creative professional or simply looking for extra space, this addition offers endless possibilities.

A Lifestyle Like No Other

Living in Fox Den means more than just owning a home—it’s about embracing a lifestyle. Just a short distance from your front door, you’ll find the Fox Den Country Club, where you can enjoy:

  • A championship golf course set against the stunning Smoky Mountain backdrop.
  • A state-of-the-art fitness center open 24/7.
  • Premier tennis and pickleball courts.
  • A resort-style swimming pool.
  • Multiple dining venues, from the family-friendly Tackett’s Terrace to the social and sophisticated Legends Patio. Whether you’re stopping by for a quick bite or soaking in the spectacular views of the 18th hole, dining at Fox Den is always a treat.

Prime Location in Fox Den

Situated at 12218 Torrey Pines Point, this home offers the peace of a quiet cul-de-sac with the convenience of being just steps from the vibrant heart of the community. Whether you’re an avid golfer, fitness enthusiast, or simply looking to enjoy the social atmosphere of Fox Den, this home delivers the perfect combination of location and lifestyle.

Don’t Miss Out

This thoughtfully updated home, with its charming cottage vibe, bonus room, rec room, and incredible outdoor space, is a rare find in Fox Den. With plans already in place for additional possibilities, it’s ready to meet your vision.

Schedule your private showing today and experience the charm, comfort, and lifestyle of 12218 Torrey Pines Point!

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

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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.

  1. 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.
  2. 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.
  3. 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.

  1. 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.
  2. 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.
  3. 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

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

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.

Stunning One-Level Home Near Downtown Knoxville | Updated Kitchen, Large Deck, & Big Backyard!

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Welcome to this beautifully updated, one-level home in the heart of Knoxville, Tennessee located at 3108 Walridge Road, Knoxville, TN 37921, just 13 minutes from downtown and the University of Tennessee. Step inside to discover gleaming hardwood floors and stylish tile throughout the open living spaces. The modern kitchen, with stainless steel appliances, a farmhouse sink, and charming shiplap accents, seamlessly flows into the family room, creating an inviting space for gatherings. Whether you’re hosting friends or enjoying a quiet evening, the warmth of the wood-burning fireplace in the adjoining flex space offers endless possibilities for an office, study, or cozy retreat. The owner’s suite is a true sanctuary, complete with French doors leading to a spacious deck—perfect for your morning coffee or sunset relaxation. The en-suite bathroom has been thoughtfully updated with a custom tile shower, offering a luxurious start and end to your day. Two additional bedrooms and another fully updated bathroom provide ample room for all. Outside, you’ll love the oversized composite deck, which makes for easy maintenance while overlooking the expansive, fenced backyard. Picture afternoons spent under the shade of a stunning tree, cultivating your garden, or working on projects in the convenient storage shed. The unbeatable location allows you to walk to the nearby elementary school and enjoy the strong curb appeal of this charming home. Lifestyle perks? You’re minutes from the vibrant energy of downtown Knoxville—whether it’s catching a UT football game, dining at trendy restaurants, or taking in live music, this location offers the perfect balance between quiet suburban living and exciting city life. Have questions? Want to schedule a private showing? Need help buying or selling a home anywhere around the Knoxville area? Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!

OCTOBER 2023 East Tennessee & Knoxville Real Estate Update: Key Market Trends for Buyers & Sellers

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The Knoxville real estate market continues to shine in the national spotlight, securing a formidable second place in the FHFA’s ranking of the top 100 metros for median appraised value growth of single-family homes in Q2 2023. This impressive 9.1% increase from the previous year not only reflects the area’s robust market dynamics but also significantly surpasses the national median, which saw a slight decline.

In a notable achievement, the Knoxville metro area climbed to the 18th spot in the prestigious Wall Street Journal/Realtor.com Emerging Housing Markets Index for Fall 2023. This index, revered for identifying top-performing markets, underscores Knoxville’s appeal with its low living costs and flourishing economy.

The rental landscape in Knoxville is also evolving. After a remarkable near-20% growth in apartment rents in Q3 2022, the pace has moderated, with a 4.5% year-over-year increase in Q3 2023. This trend is in sharp contrast to the national average, which saw a mere 0.04% increase, highlighting Knoxville’s unique rental market trajectory.

Knox County emerges as a tax haven, boasting one of the lowest effective property tax rates in the U.S. at 0.32% in 2022, as per Attom Data’s analysis. This factor, among others, continues to attract homeowners and investors alike.

Despite the market’s overall vitality, approximately a quarter of homes still sold above asking price, a slight decrease from the previous month. Remarkably, over 10% of these sales were at least $10,000 over the listed price, indicating strong buyer interest and competition.

While 2023 has seen a general slowdown in East Tennessee’s housing market, it hasn’t dampened the region’s growth, especially when compared to cities like Nashville and Memphis, which experienced declines in home values.

However, the Knoxville MSA witnessed a significant 27% drop in purchase appraisals from the previous year in Q2 2023, reflecting the wider impact of increasing mortgage rates and limited inventory on buyer activity.

Looking forward, East Tennessee faces a challenging environment with soaring mortgage rates, now at their highest since the early 2000s. The average monthly payment for a median-priced new listing has surged to $2,400, a 22% increase from last year. Despite this, the tight supply continues to propel home prices upward, even as sales volumes decline.

With mortgage rates hovering around 7.5% and buyer expectations set around 5.5%, the market is at a critical juncture. This disconnect, rooted in decades of historically lower rates, shapes current perceptions of home buying feasibility.

Interestingly, the current mortgage rates, while higher than recent averages, are still below the long-term historical average of 7.7% since 1970. This context is vital for understanding the evolving dynamics of homebuyer attitudes and the enduring appeal of homeownership.

As for today’s mortgage landscape, rates have slightly decreased to 7.40% from over 8% last month. This fluctuation continues to influence buyer decisions and market trends.

In a reassuring sign for the Knoxville area, Auction.com’s analysis predicts a low risk of home price correction. This prediction, based on foreclosure auction data, indicates a significant reduction in foreclosure sales volume compared to 2019 levels.

The Knoxville real estate market, reshaped by the pandemic, has witnessed shifts not just in home prices, but also in inventory, population, and median income, further cementing its position as a dynamic and evolving market.

For more updates and insights into the East Tennessee and Knoxville real estate markets, stay tuned and subscribe to the YouTube channel here: https://www.youtube.com/@KnoxvilleTN.

Have questions or need guidance buying or selling real estate in the Knoxville TN or anywhere in East Tennessee? Contact Troy Stavros at 865-999-0925 today and let’s start a conversation.

Unlocking Opportunities: Exploring the Modern Era of Adjustable-Rate Mortgages

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Cast your mind back to the real estate turbulence of 2008, a time when adjustable-rate mortgages (ARMs) commanded the spotlight. Fast forward to today, and ARMs are experiencing a resurgence in popularity among both seasoned homeowners and first-time buyers. Let’s delve into the reasons behind this shift and lay to rest any concerns it might evoke.

A visual representation of data from the Mortgage Bankers Association (MBA) serves as our guide, illustrating the gradual rise in the prevalence of adjustable-rate mortgages over recent years:

As the graph demonstrates, the landscape shifted from approximately 3% of all mortgages in 2021 to a notable increase in ARMs usage last year. The rationale behind this uptick is quite straightforward. With mortgage rates undergoing a significant climb, homeowners found solace in the ARMs option. The allure was simple: ARMs provided a way to secure lower interest rates in a climate where conventional borrowing costs were peaking.

Now, let’s debunk any misconceptions right away – the ARMs of today are not the same as the ones that contributed to the 2008 housing crisis. A pivotal factor behind that crisis was the lax lending standards prevailing at the time. Borrowers could obtain ARMs without substantiating their employment, income, or assets – a recipe for financial instability. This approach landed many homeowners in hot water, as they grappled with loans they were never truly qualified for.

In this iteration, lending standards have undergone a transformation. The financial sector has heeded the lessons from history, implementing stringent verification procedures for income, assets, and employment. In essence, modern-day borrowers are required to qualify for their loans, establishing their capacity to repay.

Archana Pradhan, an Economist at CoreLogic, elucidates the evolution:

“About 60% of Adjustable-Rate Mortgages (ARM) originated in 2007 were granted with minimal or no documentation… Similarly, in 2005, 29% of ARM borrowers had credit scores below 640… At present, nearly all conventional loans, including both ARMs and Fixed-Rate Mortgages, mandate comprehensive documentation, amortization, and are extended to borrowers with credit scores above 640.”

To make this crystal clear, let’s put it in layman’s terms, as described by Laurie Goodman at Urban Institute:

“The Adjustable-Rate Mortgages available today carry no more risk than other mortgage products, and their lower monthly payments could potentially widen access to homeownership for a larger pool of prospective buyers.”

For those concerned that today’s ARMs might resemble the previous crisis triggers, take comfort in knowing that the dynamics have shifted significantly this time around.

And for those venturing into the realm of homeownership for the first time, seeking viable lending options to navigate today’s affordability challenges, consider reaching out to a trusted lender. They stand ready to guide you through the intricate landscape of modern real estate financing.”

Is Now A Good Time To Sell A Home in East Tennessee?

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Looking to sell your home in Knoxville or East Tennessee?

Despite a slowdown in the housing market from a year ago, it’s still a sellers’ market due to the low supply of homes for sale. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), there is currently only a 2.6-month supply of homes available for sale, which is historically low.

The situation is even more dramatic in East Tennessee, Knoxville, Farragut, and the surrounding areas, where there is only a 1.77-month supply of inventory through the end of March, and Knox County has less than one month worth of inventory. With so few homes available, buyers are facing increased competition, which is keeping upward pressure on prices. As a result, sellers are in a prime position to negotiate deals on their ideal terms.

However, even in this competitive market, there are still many buyers who are ready, willing, and able to purchase a home. So, if you’re thinking about selling your home in Knoxville or East Tennessee, now is an ideal time to do it. By listing your house in good condition and at the right price, you can attract attention from competitive buyers.

Overall, today’s sellers’ market holds great opportunities for homeowners looking to make a move in Knoxville and East Tennessee. If you’re ready to sell your home, let’s connect to discuss how to jumpstart the selling process and maximize your exposure to serious buyers.

Have questions? Wondering what your home might be worth in today’s competitive market? Want to talk about selling your home or buying a new one? Contact the Troy Stavros TEAM today at CornerStone Realty Associates at 865-999-0925. We look forward to serving you!

Baby Boomers Are Taking The Lead In The Current Knoxville Housing Market

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The Knoxville real estate market has been on a wild ride over the past year, with prices skyrocketing and inventory at record lows. However, one generation has remained relatively insulated from the volatility, and they are now proving to be the biggest movers in the market: baby boomers.

According to the National Association of REALTORS®’ 2023 Home Buyers and Sellers Generational Trends Report, baby boomers, defined as people between the ages of 58 and 76, made up 53% of sellers and 39% of buyers between July 2021 and June 2022. This makes them the largest group of buyers and sellers in the market.

Jessica Lautz, NAR’s deputy chief economist and vice president of research, notes that baby boomers have the upper hand in the homebuying market. “The majority of them are repeat buyers who have housing equity to propel them into their dream home, be it a place to enjoy retirement or a home near friends and family. They are living healthier and longer lives and making housing trades later in life.”

One reason for the boom in baby boomer real estate activity is their desire to downsize and move closer to family. Many are selling their larger homes in East Tennessee and using the equity to buy smaller homes in areas where they can be closer to loved ones. Additionally, they are drawn to newer Knoxville homes that require less maintenance and fewer potential problems with household systems, like plumbing or electricity.

On the other hand, millennials, who were once the leading drivers of the East Tennessee housing market, are now playing second fiddle, comprising about 28% of buyers. They were the largest homebuying force from 2014 to 2022 but have now been overtaken by baby boomers.

First-time home buyers in Knoxville have also faced headwinds in the latest housing cycle, with higher mortgage rates making it harder for them to enter the market. 70% of younger millennials, ages 24 to 32, and 46% of older millennials, ages 33 to 42, were first-time home buyers, according to the report.

In conclusion, baby boomers are proving to be the driving force behind the East Tennessee real estate market, with their equity and motivation making them the most active buyers and sellers in the market. While other generations are still active, baby boomers are leading the charge and are likely to continue doing so in the years to come.

Have questions? Ready to get the process of buying or selling a home started? Contact Troy Stavros with CornerStone Realty Associates today at 865-999-0925. We look forward to serving you!

Homes for sale in Farragut TN: 12813 Lebel Road

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Homes for sale in Farragut TN are hard to come by. Even more so in the sought-after Fox Run Subdivision. This beautiful home with a Stephen Fuller Southern Living floor plan is the one you’ve been waiting for. Gorgeous updated eat-in kitchen features vaulted ceilings, an abundance of granite counters for prep space and stainless steel appliances including a gas stove and farm sink. The main level also includes the owner’s suite with a wall of windows and access to the back deck. Owner’s bath has dual sinks, custom tub (easy replacement as it’s a standard-size opening) and walk-in shower. The main level also includes the formal dining room, office, and laundry room with utility sink. Upstairs you’ll find the 4 additional bedrooms and a bonus room. Outside you’ll love the privacy in the large backyard which includes a deck, patio, and gazebo with natural gas for a grill. During the warmer months you’ll enjoy Fox Run’s 2 pools, clubhouse, and play fields. For more information or to schedule a private showing contact Troy Stavros with CornerStone Realty Associates at 865-999-0925 today.

Homes for sale in Farragut TN : 405 Battle Front Trail

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One of a kind and originally built as a personal custom home for an architect. You will fall in love with not only all of the space but the amazing use of it in this conveniently located Farragut home on just under 1/2 acre. Need multiple main-level bedrooms? Check! Need home offices or hobby rooms? Check! Find 5 bedrooms and 3 full baths on the main level alone, one being the owner’s suite. Total of 6 possible bedrooms PLUS two large bonus rooms! The open floor plan has an updated custom kitchen opening directly to the family room, formal dining, and grilling porch. Two totally separate upstairs areas with bonus rooms. Screened porch overlooks a private backyard. Immaculately maintained. Farragut Schools. This is a must-see home. Be sure to watch the video tour and 360 Virtual tour.

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