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East Tennessee Real Estate & Neighborhood Source

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

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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.

Is the Knoxville Real Estate Market Finally Returning to Normal?

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

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

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

The Key to Unlocking the Housing Market: New Listings

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

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

“Where new listings grow, sales flow.”

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

The 4 Quadrants of Normalization: Where Does Knoxville Stand?

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

The results for our local area are incredibly encouraging.

Knoxville is a “Pacesetter”

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

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

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

What This Means for Buyers and Sellers in Knoxville

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

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

Summary

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

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

Troy Stavros
Cornerstone Realty Associates
Knoxville, TN

Knoxville & East Tennessee Real Estate Market Update: What Buyers and Sellers Need to Know (June 2025)

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Knoxville & East Tennessee Real Estate Market Update: What Buyers and Sellers Need to Know (June 2025)

Are you thinking of buying or selling a home in Knoxville or the greater East Tennessee region? The local real estate market is always evolving, and the latest data through June 2025 brings some important trends you should know before making your next move.

Knoxville: Still a Seller’s Market, But Things Are Shifting

Knoxville continues to lead the region as one of the hottest real estate markets in East Tennessee. Homes here are selling faster and closer to list price than anywhere else in the region:

  • Median Sale Price: $420,000 (up 3.7% year-over-year)
  • Average Days on Market: 40 days (still historically low)
  • Sold-to-List Price Ratio: 97% (sellers are getting top dollar!)
  • Absorption Rate: 2.8 months (a healthy seller’s market)

What does this mean for sellers?
If you’re considering selling your Knoxville home, now is a great time. Well-priced, move-in ready homes are still seeing strong demand and quick sales. Inventory is rising slightly, but competition from buyers remains high. Pricing your home right and preparing it for showings can help you maximize your sale price.

What about buyers?
Knoxville buyers should be prepared to act quickly when the right property hits the market. With competition still robust, getting pre-approved and working with a local agent will help you move fast and negotiate effectively.

East Tennessee: Growing Inventory, More Choices for Buyers

The broader East Tennessee market is showing signs of cooling compared to its peak frenzy. This shift brings both opportunities and considerations for buyers and sellers:

  • Median Sale Price: $377,900 (up 0.8% year-over-year)
  • Average Days on Market: 60 days (up from 44 one year ago)
  • Absorption Rate: 4.6 months (moving toward a balanced market)
  • Average List Price: $611,146

For buyers:
There are more homes to choose from than last year, and sellers are more open to negotiation. This is the most buyer-friendly market we’ve seen in years, so if you’ve been waiting for less competitive conditions, now may be your opportunity.

For sellers:
It’s still a good time to sell, but patience and the right pricing strategy are essential. With more homes on the market, buyers have options—so making your home stand out is more important than ever. Staging, repairs, and a competitive price can help your home sell faster.

Knoxville vs. East Tennessee: Key Differences

  • Speed of Sale: Knoxville homes sell 20 days faster, on average, than the rest of East Tennessee.
  • Pricing Power: Knoxville sellers see higher median and average sale prices.
  • Market Balance: Knoxville remains a solid seller’s market, while East Tennessee is moving toward a more balanced market with more negotiating room for buyers.

Should You Buy or Sell Now?

If you’re a seller in Knoxville:
You can still take advantage of strong prices and fast sales—but don’t delay. Rising inventory means more competition is on the horizon.

If you’re a buyer in East Tennessee:
You finally have more choices and negotiating power. Take time to find the right home, but be ready to act when you find it.

Expert Local Help Makes the Difference

Whether you’re buying or selling, the right strategy is key in today’s market. Our team lives and works right here in East Tennessee and Knoxville—we know the neighborhoods, the trends, and how to get you the best results.

Thinking about making a move?
Contact us today for a free market analysis, a custom home search, or just to talk about your options in the Knoxville and East Tennessee real estate market.

Knoxville & East Tennessee Real Estate Market: Q3 2025 Predictions

1. Inventory Will Continue to Rise

  • East Tennessee: Expect further increases in active listings. Seasonal patterns and the current momentum suggest more homeowners will list, especially as those who delayed selling during spring jump in.
  • Knoxville: Inventory will grow but at a slower pace than the broader region. New construction and move-up sellers will add to choices, but demand will keep absorption rates relatively low.

What it means:
Buyers will enjoy more options, but sellers will face more competition.

2. Days on Market Will Edge Higher

  • East Tennessee: As inventory builds, average days on market (DOM) could reach 65–70 days by late Q3. Homes will take longer to sell, especially those that are overpriced or need work.
  • Knoxville: DOM will likely edge up but remain below 50 days, still a quick pace historically.

What it means:
Sellers must price competitively and present homes well to attract buyers. Buyers may have slightly more negotiating power.

3. Prices Will Stabilize or See Only Modest Gains

  • East Tennessee: Median sale prices are likely to plateau or increase only slightly. With more inventory and longer selling times, aggressive price growth is unlikely.
  • Knoxville: Sale prices may hold steady with a slight upward bias, driven by continued strong demand and limited supply of turnkey homes in desirable neighborhoods.

What it means:
Don’t expect dramatic price drops, but sellers should not anticipate bidding wars or big price jumps either.

4. Negotiation Will Increase—Especially Outside Knoxville

  • East Tennessee: Expect more price reductions and seller concessions (closing costs, repairs, rate buy-downs). Buyers can shop around and negotiate more assertively.
  • Knoxville: Some negotiation will return, but sellers of move-in-ready homes in top locations will still command strong offers.

5. Mortgage Rates & Affordability Remain Wildcards

  • If mortgage rates tick down, pent-up buyer demand could surge, especially in Knoxville, temporarily tightening the market.
  • If rates stay flat or rise, expect steady but not surging activity.

Bottom Line: Q3 2025 Outlook

  • Knoxville will remain a resilient market with strong demand, quick sales for well-priced homes, and stable prices.
  • East Tennessee as a region will trend more toward balance, with buyers gaining leverage, sellers facing more competition, and prices stabilizing.
  • Both markets will reward strategic buyers and sellers—those who prepare, price, and negotiate effectively.

Tips for Buyers & Sellers

  • Sellers: Price right from the start, invest in curb appeal, and be ready for negotiations.
  • Buyers: Take advantage of growing inventory, but move quickly on standout properties, especially in Knoxville.

Need personalized advice or want to know how your neighborhood will perform?
Contact our expert team for a custom analysis and stay ahead of the market this summer!

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!

MARCH 2025 – Knoxville Real Estate Market Trends: What Buyers and Sellers Need to Know

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The East Tennessee real estate market is evolving, with significant shifts that impact both buyers and sellers. Whether you’re looking to purchase your dream home or sell your property in Knoxville or the surrounding areas, understanding current market conditions is essential for making informed decisions.

The Knoxville Housing Market: By the Numbers

Recent data shows Knoxville’s real estate market is transitioning toward more balanced conditions after years of exceptional growth. As the #1 city for home price appreciation among the 100 largest US cities over the past seven years (with an impressive 98.13% increase), Knoxville now shows signs of stabilization.

Key market indicators reveal:

  • Increasing Inventory: Active listings have grown steadily, providing more options for buyers
  • Modest Price Growth: Median sale prices rose 4.79% year-over-year to $400,000, while average sale prices increased 6.21% to $477,733
  • Extended Selling Timeline: Average days on market increased by 21.62% to 45 days
  • Absorption Rate: Now at 2.12 months, up 35.90% from last year

What This Means for Sellers

If you’re considering selling your Knoxville home, these trends suggest several strategic approaches:

1. Competitive Pricing is Critical

With more homes available, pricing your property correctly from the start is essential. The data shows a slight decline in the sale-to-original-list price ratio, indicating buyers are negotiating more successfully. However, properties still sell at approximately 98% of their final list price after any adjustments.

2. Prepare for Longer Selling Periods

Homes are taking longer to sell compared to last year’s fast-paced market. Be prepared for an extended timeline and consider what improvements might help your property stand out among increased competition.

3. Quality Properties Still Command Premium Prices

Despite growing inventory, desirable homes in good condition continue selling at higher price points. Investing in strategic improvements and professional marketing can help your property attract quality offers.

What This Means for Buyers

The shifting market presents new opportunities for those looking to purchase in East Tennessee:

1. More Options and Less Pressure

With active listings increasing, buyers now have more properties to choose from and time to make decisions. This reduces the pressure of bidding wars that characterized previous years.

2. Negotiating Power

The longer days on market and declining sold-to-original-list price ratio create favorable conditions for negotiations. Buyers have more leverage to request concessions or negotiate on price.

3. Still a Strong Market

While conditions have improved for buyers, Knoxville remains a desirable market with steady appreciation. Don’t expect dramatic price drops – quality properties in sought-after areas still sell quickly and close to asking price.

Looking Ahead: Knoxville’s 5-Year Forecast

What can we expect for Knoxville real estate in the coming years? Based on economic indicators and demographic trends, experts project:

  • Continued appreciation of 14-20% over the next 5 years
  • Annual appreciation rates of 2.5-4%
  • Sustained growth in population and employment opportunities
  • Ongoing appeal to young professionals, families, and retirees

The factors that drove Knoxville’s remarkable past performance – including quality of life, relative affordability, economic diversification, and urban revitalization – continue to position the area favorably compared to other markets across the country.

Making Your Next Move in East Tennessee Real Estate

Whether buying or selling in this evolving market, working with a knowledgeable local real estate professional is more important than ever. From pricing strategies to negotiation expertise, experienced guidance can help you navigate these changing conditions successfully.

For personalized advice on your specific real estate goals in Knoxville or anywhere in East Tennessee, contact Troy Stavros with Cornerstone Realty Associates at 865-999-0925. With deep local market knowledge and a commitment to client success, Troy can help you make confident decisions in today’s market.

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

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

Millennials Drive Real Estate Trends in Knoxville and East Tennessee

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

Mortgage Rates and Their Impact on Knoxville Real Estate

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

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

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

East Tennessee Real Estate Market: Inventory and Price Trends

East Tennessee Real Estate Trends

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

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

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

Knoxville Real Estate Market Update

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

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

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

County-Specific Real Estate Insights: Knoxville and Surrounding Areas

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

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

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

Opportunities and Challenges in the Knoxville Real Estate Market

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

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

Final Thoughts

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

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

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