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Knoxville Real Estate Trends: Why Buyers and Sellers Are Flocking to East Tennessee in 2025

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Knoxville, Tennessee, has emerged as one of the hottest real estate markets in the first quarter of 2025, with buyers and sellers showing significant interest in the region. Tennessee continues to rank among the top states for relocation, and Knoxville leads the way as the most searched city in the state for potential movers.

Tennessee: A Top Destination for Relocation

A recent study by U.S. News & World Report highlighted migration trends across the United States in early 2025. Tennessee was among the top three most-researched states for relocation. The study attributes Tennessee’s growing appeal to several key factors:

  • Affordable Cost of Living: Compared to other regions, Tennessee offers a lower cost of living, making it especially attractive for families and retirees.
  • Mild Climate: East Tennessee, including Knoxville, enjoys four distinct but moderate seasons, perfect for outdoor enthusiasts and those seeking a change from harsh winters or scorching summers.
  • Natural Beauty: The Great Smoky Mountains, located just a short drive from Knoxville, provide endless opportunities for hiking, camping, and outdoor recreation.
  • Tax Benefits: With no state income tax, Tennessee is an appealing choice for individuals and families looking to maximize their financial resources.

Knoxville: The Star of Tennessee Real Estate

Knoxville has become a focal point for homebuyers and investors alike. Ranked as the most-searched city in Tennessee for relocation, Knoxville offers a mix of urban conveniences and small-town charm, making it a prime spot for both buyers and sellers.

Why Knoxville?

  1. Booming Real Estate Market: Knoxville’s real estate market continues to grow, with homes selling quickly and demand outpacing supply.
  2. Access to Nature: Its proximity to the Great Smoky Mountains and other outdoor attractions makes it ideal for those seeking a balanced lifestyle.
  3. Thriving Job Market: Knoxville’s economy is bolstered by industries such as healthcare, education, and technology, attracting professionals from across the country.
  4. Cultural Scene: From the Knoxville Symphony Orchestra to vibrant festivals, the city has a rich cultural landscape that appeals to a diverse population.

Other Popular Tennessee Cities

While Knoxville leads the pack, Franklin and Chattanooga also ranked among the most-searched cities for relocation in 2025.

  • Franklin: Known for its historic charm and upscale living, Franklin is a favorite for families and professionals.
  • Chattanooga: With its scenic beauty and strong startup culture, Chattanooga attracts both outdoor lovers and entrepreneurs.

Southern Migration Trends in 2025

The South has become a magnet for movers in 2025, thanks to its affordability, warmer weather, and lower population density. Alongside Tennessee, states like South Carolina, North Carolina, and Alabama are seeing increased interest.

For buyers and sellers in Knoxville, this influx of newcomers creates an exciting opportunity. Buyers can find affordable homes in a growing market, while sellers can take advantage of high demand to maximize their home’s value.

Ready to Make Your Move?

Whether you’re buying or selling in Knoxville, now is the time to act. Knoxville’s real estate market is thriving, and its appeal as a relocation destination continues to grow. Contact a local real estate expert today to take advantage of these trends and find your dream home in East Tennessee!

East Tennessee and Knoxville Real Estate Market Report: JUNE 2024

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As the summer heats up, so does the real estate market in East Tennessee and Knoxville. With data gathered through the end of June, we have a comprehensive look at the current trends and what buyers and sellers can expect in the coming months.

East Tennessee Market Overview

Home Sales and Inventory

  • Home Sales: Down 12.5% compared to June 2023.
  • Pending Sales: Up 4.8%.
  • Inventory: Up 40% from last year.
  • New Listings: Increased by 1%.
  • Median Sales Price: Up 8.01%, now at $376,500.
  • Average Price Per Square Foot: $221.

The absorption rate has seen a slight increase to 3.3 months of inventory, indicating a still strong seller’s market. Despite a rise in inventory, prices continue to climb due to sustained demand.

Knoxville Market Dynamics

Sales and Pricing Trends

  • Home Sales: Down 8.4% from last year.
  • Pending Sales: Up 1.3%.
  • Inventory: Up 53.5%.
  • New Listings: Nearly unchanged, down just 0.3%.
  • Median Sales Price: Increased by 3%, now at $408,150.
  • Average Price Per Square Foot: $220.

The absorption rate in Knoxville stands at 1.84 months, still favoring sellers. The Knoxville Market Action Index shows a strong seller’s market, with the city experiencing one of the highest price shifts in the nation since the peak in 2022.

Did you know that Knoxville experienced the largest price increase among the 200 largest metro housing markets in the US since March 2020, with a staggering 73% rise? This unexpected surge highlights Knoxville as a unique hotspot in the national real estate landscape.

Surrounding Counties Snapshot

  • Roane County: Inventory up 70.5%, median price up 19.3% to $340,000.
  • Knox County: Inventory up 56.3%, median price up 2.41% to $399,900.
  • Anderson County: Inventory up 43.8%, median price up 10.34% to $320,000.
  • Loudon County: Inventory up 63%, median price up 4.10% to $510,000.
  • Sevier County: Inventory up 47.5%, median price up 5.52% to $525,750.
  • Blount County: Inventory up 55.4%, median price up 8.84% to $413,500.

Interest Rates and Market Impact

The recent drop in interest rates from over 7% to 6.85% is a significant development. This reduction could stimulate market activity, making it more affordable for buyers and potentially encouraging sellers to list their homes.

Homeowners Insurance Rates

Rising insurance rates are another factor affecting affordability. Tennessee saw an 11% increase in homeowners insurance in 2023, impacting the overall cost of homeownership.

Conclusion

The East Tennessee and Knoxville real estate markets are robust despite fluctuating trends. With rising inventory and stable prices, it’s a promising time for buyers and sellers alike. If you’re considering buying or selling in the area, now is a great time to act.

Contact Us If you have any questions or need assistance with your real estate needs, contact Troy Stavros at Cornerstone Realty Associates in Knoxville. We’re here to help you navigate the market and achieve your real estate goals.

East Tennessee & Knoxville Real Estate Market Update JAN 2024: Opportunities for Buyers and Sellers

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The real estate market in East Tennessee, including the vibrant Knoxville area, is poised for a significant upturn after a challenging couple of years. With mortgage rates expected to improve and housing becoming more affordable in the latter half of 2024, we’re on the brink of a dynamic shift. This anticipated change is set to welcome a new wave of eager buyers, driving up home sales and gradually increasing property values—a positive outlook for the East Tennessee housing landscape.

Essential Insights for East Tennessee and Knoxville Home Buyers and Sellers:

Recovery in Home Sales and Prices:

Following notable declines in 2022 and 2023, the East Tennessee real estate market is set for a robust recovery. Predictions indicate an 11.1% surge in home sales for 2024, with property prices also expected to rise by 3.6%—a trend fuelled by the ongoing housing supply shortage. For those looking to buy or sell in Knoxville, Tennessee, this recovery signals a ripe market.

Improving Housing Affordability:

The easing of mortgage rates in the second half of 2024 aims to make the market more accessible, especially for those previously sidelined. In Knoxville, property prices saw a 10.58% year-on-year increase by the end of 2023, underscoring the area’s demand and investment potential.

Adjustments in the Rental Market:

Knoxville’s rental sector is experiencing a slowdown in rent increases, with a forecasted average growth of 3.1% in 2024. Despite a slight decline in occupancy rates, the rental market remains strong, reflecting sustained demand.

Market Dynamics Favor Sellers and Buyers:

The pace of home sales is accelerating, with properties moving to contract in 18 days or less. A considerable number of homes are selling at or above list price, indicating a competitive market environment. This scenario is especially advantageous for sellers in the Knoxville area, while buyers must act swiftly to secure desirable properties.

Affordability Concerns:

The East Tennessee REALTORS® Housing Affordability Index points to ongoing challenges, with a widening income gap for median-priced homes. This index highlights the most significant affordability drop since 1985, emphasizing the need for market adjustments.

2024 Outlook for East Tennessee and Knoxville Real Estate:

The coming year promises a vibrant rebound for the East Tennessee and Knoxville real estate markets, offering substantial opportunities for both buyers and sellers. Despite ongoing affordability challenges, the anticipated dip in mortgage rates and improving market conditions suggest a more welcoming environment for homebuyers. Long-term trends and demographic shifts remain key drivers, ensuring the region’s real estate market remains an attractive prospect.

For those aiming to navigate the East Tennessee and Knoxville real estate markets, staying informed about these trends is crucial. Whether you’re buying your first home, searching for investment properties, or considering selling, 2024 holds potential for significant returns and successful transactions.

Ready to Make Your Move in the East Tennessee or Knoxville Real Estate Market?

Don’t navigate this dynamic market alone! Whether you’re buying, selling, or just exploring your options, Troy Stavros with CornerStone Realty Associates is here to guide you every step of the way. With expert insights into the East Tennessee and Knoxville markets, Troy can help you make informed decisions and seize the best opportunities.

Contact Troy Stavros at CornerStone Realty Associates today at 865-999-0925 to start your real estate journey with confidence. Let’s turn your real estate goals into reality!

East Tennessee Real Estate: A Dynamic Housing Market in 2023 and Beyond – NOVEMBER 2023 UPDATE

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Knoxville Real Estate Trends: A Thriving Market in East Tennessee

East Tennessee’s real estate market, particularly in Knoxville, has demonstrated remarkable resilience and growth in recent times. In Q3 2023, Knoxville’s home price growth ranked an impressive No. 4 among the top 100 metro areas. This surge reflects a significant 11.6% increase from the previous year, as reported by the Federal Housing Finance Agency (FHFA). Such robust growth showcases Knoxville’s burgeoning appeal in the East Tennessee real estate landscape.

Anticipating 2024: Knoxville’s Housing Market Projections

A recent survey from Fannie Mae shows that 23% of consumers think prices will fall over the next 12 months. That’s nearly one in four people who are dealing with that fear – maybe you’re one of them. To help ease that concern, here’s what the experts say will happen with home prices not just next year, but over the next five years. Looking forward, 2024 holds a blend of challenges and opportunities for Knoxville real estate. While Realtor.com’s 2024 forecast predicts a 5.9% dip in home sales, it concurrently anticipates a promising 7.2% rise in home prices. These projections, coupled with the East Tennessee REALTORS®’ forthcoming annual forecast, paint a picture of a market adjusting to evolving economic conditions.

Apartment Rent Growth and Student Housing Market

The rental market in Knoxville is also witnessing notable trends. October saw a continuation of accelerated apartment rent growth, with a 4.14% year-over-year increase across the Knoxville Metropolitan Statistical Area (MSA), significantly outpacing the national average. Additionally, the University of Tennessee’s student housing market ranked No. 11 nationally for rent growth in Fall 2023, marking a substantial 15.9% increase from the previous school year.

Knoxville’s Housing Market: Speed and Pricing

In the fast-paced Knoxville market, homes are selling swiftly. In October half of the homes sold were under contract in 12 days or less, indicating a slight fluctuation from previous periods. Remarkably, 26% of homes sold for more than the asking price, underscoring Knoxville’s competitive real estate environment.

Housing Market Dynamics and Inventory Trends

Despite challenges like limited inventory and affordability, the East Tennessee housing market is adapting. November witnessed a seasonal rise in housing inventory, with an 8.7% year-over-year increase in active listings across the region. This trend indicates a gradually improving market landscape as we move into 2024.

Knoxville’s Labor Market and Economic Factors

The economic backdrop of Knoxville’s real estate market remains strong, despite broader uncertainties. Knoxville’s labor market, as per the Bureau of Labor Statistics (BLS), continues to outperform, ranking among the top U.S. metros for job growth. RealPage Analytics reports a 3.7% increase in Knoxville’s employment base in the year ending October 2023, well above the metro’s long-term average.

Mortgage Rates and Economic Outlook

The mortgage landscape has seen dramatic shifts, we saw rates over 8% earlier in the year and as of today, according to Mortgage News Daily, the 30-year fixed mortgage rate is at 7.02% (UPDATE! One day later we are down to 6.62%!). This rate, while higher than last year’s average, reflects recent market adjustments. The Federal Reserve’s decision not to pursue another rate hike further shapes a cautiously optimistic economic outlook for the National, Knoxville and East Tennessee real estate markets. Many experts believe the FED will cut rates in 2024 leading to mortgage interest rates dropping as well. If that does happen, and you are a homebuyer, there is a Catch 22. Should interest rates fall, inventory will fall along with it, and competition will rise. That may seem counterintuitive but here is what the data shows. (show graphic). When looking at the data since 2016, you can clearly see that when we are in an environment of rates falling, inventory falls and vice verse. Therefore lower rates will stimulate increased demand from buyers leading to more competition, and lower supply… and what does the law of supply and demand tell us about what low supply and high demand will do to home prices? That’s right, it will make them rise. So if that’s the case, is it better to wait until that happens to buy a home, or buy now when competition is lower and there is more inventory available to choose from? We remember what it was like a few years ago when competition was fierce. I don’t think anyone wants that again, but rates dropping could bring it back.

Comment below or contact me, Troy Stavros, directly with questions or if I can help in any way. Call or text 865-999-0925.

Despite higher interest rates data shows buyer activity is UP!

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Are you a homeowner considering selling your house? Wondering if it’s the right time? Well, here’s some good news: despite higher mortgage rates, buyer traffic is on the rise.

Recent data from the ShowingTime Showing Index, which measures buyers actively touring homes, reveals a significant increase in buyer demand over the past few months. Even during the colder months, the limited number of homes for sale kept shoppers on the lookout.

To put things into perspective, let’s compare this February’s foot traffic with the traffic from the past six years. This February showcased one of the strongest buyer activities we’ve seen in recent memory, excluding the highly unusual years of 2021 and 2022. When compared to the more normal, pre-pandemic years, the data clearly indicates a rise in buyer activity.

What’s even more impressive is that this increase in buyer traffic occurred despite the rise in mortgage rates this February. The Freddie Mac 30-year fixed mortgage rate climbed from 6.09% to 6.50%. However, it didn’t deter more buyers from searching for their dream homes.

According to Jeff Tucker, Senior Economist at Zillow, this upward trend in buyer activity may continue. Typically, March and April experience a seasonal uptick in home shoppers.

If you’re looking to sell your house, this year’s active buyer market should be encouraging news. It’s a clear indication that potential buyers are out there, possibly searching for a home just like yours. By partnering with a real estate professional and listing your house now, you can put your home in front of eager buyers today.

In conclusion, the rising foot traffic in this year’s housing market is a positive sign that buyers are actively looking to purchase homes, even in the face of higher mortgage rates. If you’re ready to sell, let’s connect and make the most of this opportune time.

Have questions? Want to talk about buying or selling a home? Contact Troy Stavros with CornerStone Realty Associates today at 865-999-0925. My team and I are here to serve you!

APRIL 2023 East Tennessee and Knoxville Housing Market UPDATE

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The Current Housing Market in East Tennessee: Rising Prices, Low Inventory, and High Demand

The Knoxville real estate market and the broader East Tennessee region are experiencing a significant surge in housing prices due to a combination of factors, including an incredibly low inventory of homes for sale and a high demand driven by an influx of people migrating from other parts of the country. As a result, both homebuyers and renters are feeling the impact of these market conditions.

One of the primary reasons for the rising prices in East Tennessee is the shortage of available homes. The inventory of houses for sale has reached historically low levels, creating a highly competitive market. With fewer homes on the market, potential buyers are faced with limited options, leading to increased competition and bidding wars for desirable properties. As a result, prices are being driven up as buyers vie for a limited supply of homes.

The region’s popularity as a destination for relocation is a key driver of the high demand in East Tennessee. Many people are choosing to move to this area due to its natural beauty, affordable cost of living, and growing job opportunities. This influx of new residents has intensified competition for housing, further fueling price increases.

Rents in Knoxville, specifically, have been significantly impacted by these market dynamics. According to recent data, apartment rents in Knoxville were up 12.75% in the first quarter of 2023, far surpassing the national average of 4.46% growth. The scarcity of available rental units has given landlords greater leverage, allowing them to raise rental prices to meet the soaring demand.

While the rising prices may pose challenges for renters, homeowners in the region are benefiting from the current market conditions. A recent report from the National Association of Realtors revealed that middle-income homeowners in Knoxville accumulated an average of $109,890 in housing wealth over the past decade as their homes appreciated in value. The sharp increase in home prices has provided homeowners with significant financial gains and enhanced their overall net worth.

The speed at which homes are selling in East Tennessee is remarkable. Statistics show that half of the homes sold were under contract in 16 days or less. Furthermore, 23.8% of homes sold for more than the asking price, with 12% selling for at least $10,000 over asking and 4% selling for at least $25,000 over asking. This data indicates a highly competitive market, with buyers willing to pay a premium to secure a property.

New construction has played a role in meeting the demand for housing, representing 15% of total home sales in the area. However, it is still not sufficient to offset the low inventory levels and escalating prices in the overall market.

Buyer competition remains fierce, although there has been a slight decline in the number of offers received on average. According to the Knoxville Area Association of Realtors’ Market Pulse Survey, the typical listing in the Knoxville area received 2.2 offers in the first quarter of 2023, down from 6.2 offers in 2022. Nevertheless, multiple offer scenarios are still extremely common, with half of all homes receiving at least two offers.

Affordability is becoming a growing concern in East Tennessee, particularly as mortgage rates have increased in recent weeks. Economic uncertainty has placed upward pressure on rates, with the current average rate for a 30-year loan standing at 6.69%. The higher interest rates are discouraging some homeowners from listing their homes for sale, as they are locked into lower rates below 4% or even below 3%. This further constrains the available housing supply and exacerbates the affordability problem in the market.

In conclusion, the housing market in East Tennessee, including Knoxville, is experiencing a surge in prices driven by a combination of low inventory and high demand.