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

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

Knoxville Housing Market: A Shift Toward Balance

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

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

Pricing Trends in Knoxville

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

Month-Over-Month Snapshot

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

Key Takeaway for Knoxville

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

East Tennessee Housing Market: Signs of Normalization

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

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

County-Level Highlights

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

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

Market Charts: Knoxville Metro at a Glance

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

Why Is This Happening?

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

What’s Next for Knoxville Real Estate?

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

Final Thoughts

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

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

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

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

Tellico Village Real Estate Market Update: April 2025 Trends for Buyers and Sellers

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Are you considering buying or selling a home in Tellico Village, located in breathtaking Loudon, Tennessee? This sought-after community is known for its scenic beauty, active lifestyle, and desirable real estate options. As of April 2025, the housing market in Tellico Village is showing signs of transition, providing opportunities and challenges for buyers and sellers alike.

In this blog post, we’ll break down the latest trends, key metrics, and actionable insights you need to navigate the Tellico Village real estate market with confidence.

Tellico Village Housing Market Overview

The Tellico Village market is shifting from a strong seller’s market to a more balanced environment, with growing inventory levels and softening prices. While the market remains active, buyers are gaining leverage, making this a key moment for both buyers and sellers to act strategically.

1. Inventory and Absorption Rate

  • Active Listings: Increased to approximately 160 homes by April 2025 (up 89% from one year ago), signaling higher inventory levels.
  • Absorption Rate: Jumped by 85.56% year over year, reaching 5.14 months of inventory (up from 2.77 months in April 2024).

What This Means:

  • For Sellers: Homes are taking longer to sell, and pricing competitively is now critical in a more crowded market.
  • For Buyers: With increased inventory and a market nearing a buyer’s market threshold of six months, buyers have more options and greater negotiating power.

2. Pricing Trends

  • Average List Price: Increased modestly by 2.86% to $678,972, reflecting steady seller confidence.
  • Median List Price: Decreased slightly by 0.64% to $639,900, showing sellers are adjusting expectations to meet demand.
  • Average Sale Price: Declined by 9.28% to $636,021, suggesting buyers are negotiating lower prices, especially on higher-end properties.
  • Median Sale Price: Rose slightly by 1.06% to $624,900, indicating stability in mid-range home values.

What This Means:

  • For Sellers: Sellers of premium properties must adjust pricing expectations and consider offering incentives to attract buyers.
  • For Buyers: Declining average sale prices present opportunities to secure deals, particularly on luxury homes.

3. Days on the Market

  • Average Days on Market: Decreased slightly by 7.5% to 74 days, showing some homes are selling faster than before.
  • Median Days on Market: Increased significantly by 73.08% to 45 days, reflecting that less desirable or overpriced homes are lingering longer.

What This Means:

  • For Sellers: Well-priced, move-in-ready homes are selling quickly, but overpricing will likely lead to extended market times.
  • For Buyers: Buyers have more time to evaluate their options, especially for homes that have been on the market longer.

4. Sale-to-List Price Ratio

  • Sale-to-Original List Price Ratio: Dropped to under 94%, indicating that sellers are accepting offers well below their initial asking prices.
  • Sale-to-Final List Price Ratio: Remains strong at around 98%, showing that sellers who adjust their prices competitively still sell near their final asking price.

What This Means:

  • For Sellers: Start with a competitive price to avoid prolonged market times and eventual price reductions.
  • For Buyers: Buyers can negotiate discounts, particularly on homes that have lingered on the market.

5. Price Volume Trends

  • Active List Volume: Increased, driven by higher inventory levels and steady list prices.
  • Sold Volume: Declined, reflecting a slower pace of closed transactions and the softening of average sale prices.

What This Means:

  • For Sellers: Rising competition requires enhanced marketing efforts and realistic pricing strategies.
  • For Buyers: Slower sales activity gives buyers more leverage, time, and opportunities to find the right home.

Conclusions for Buyers and Sellers

For Sellers

  1. Increased Competition: With rising inventory and longer absorption rates, sellers must focus on competitive pricing and effective property presentation to stand out.
  2. Pricing Strategy: Overpricing homes will lead to extended market times and eventual price reductions. Start with a fair market price to attract buyers quickly.
  3. Market Preparation: Homes that are well-maintained, updated, and move-in-ready are more likely to sell quickly in this transitioning market.

For Buyers

  1. Increased Leverage: With more inventory and a cooling market, buyers have more negotiating power than before.
  2. Time to Evaluate: The longer absorption rate and increased days on market give buyers more time to make informed decisions.
  3. Negotiation Opportunities: Declining average sale prices and the drop in the sale-to-original list price ratio provide opportunities to secure favorable deals, particularly on higher-end homes.

Tellico Village Market Outlook

The Tellico Village real estate market is transitioning toward balance, with rising inventory, slower sales, and softening prices. While still active, the market is no longer as strongly tilted toward sellers as in prior years. Sellers must adapt to these changes by pricing competitively and presenting their homes effectively, while buyers can take advantage of increased inventory and negotiating opportunities.

Why Work with a Tellico Village Real Estate Expert?

Navigating a shifting real estate market requires the guidance of a knowledgeable local expert. At Cornerstone Realty Associates, we specialize in helping sellers price and market their homes for success and assisting buyers in finding the perfect property in Tellico Village.

Ready to Buy or Sell in Tellico Village? Contact Us Today!

📞 Phone: 865-999-09825
📧 Email: troy@865realestate.com
🌐 Website: 865realestate.com

Let’s make your Tellico Village real estate goals a reality!