If you’re considering buying or selling a home in Knoxville or East Tennessee, the real estate market is positioned for an exciting year in 2025. With strong demand, competitive pricing, and Knoxville being identified as a housing hotspot by the National Association of Realtors and Zillow, there’s never been a better time to make your move. Let’s dive into the latest housing trends and what they mean for you if you’re looking to buy or sell in East Tennessee.
Knoxville Housing Market Trends
December 2024 vs. December 2023: What’s Changed?
The Knoxville real estate market ended 2024 on a high note, showing increased inventory and rising home prices. Here’s a quick snapshot of the year-over-year changes for December:
- Median Sales Price: Up 8.11%, now at $400,000
- Home Sales: Stable, down just 0.2%
- Pending Sales: Up 14.1%
- Inventory Levels: Increased by 16.7%
- Average Price Per Square Foot: $226
What This Means for Buyers:
With inventory levels up and December being a month with the most price negotiations, winter might still be a great time to buy before the competitive spring market takes off.
What This Means for Sellers:
The median sales price is climbing, making it an excellent time to list your home. However, with more inventory on the market, pricing your property competitively is key to standing out.
2024 in Review: Knoxville’s Year-End Housing Data
Knoxville’s housing market saw solid growth in 2024 compared to 2023:
- Median Sales Price: Up 7.57% to $398,000
- Home Sales: Increased by 6.3%
- Pending Sales: Up 4.7%
- Inventory Levels: Up 10%
- Absorption Rate: Increased by 46%
This consistent growth points to Knoxville’s strong demand, driven by its affordability and quality of life compared to other metro areas.
East Tennessee Housing Market Highlights
Across East Tennessee, the real estate market followed a similar trend of rising prices and increased inventory. Key insights from December 2024 vs. December 2023 include:
- Home Sales: Up 8.2%
- Median Sales Price: Increased by 7.25% to $370,000
- Inventory Levels: Up 26.2%
- Pending Sales: Up 13.4%
- Average Price Per Square Foot: $218
2024 vs. 2023 Year-End Data for East Tennessee
- Home Sales: Increased by 1.6%
- Median Sales Price: Up 7.67% to $365,000
- Inventory Levels: Up 11.9%
- New Listings: Increased by 10.8%
Top Price Ranges for Buyers and Sellers in 2024
If you’re buying or selling, understanding popular price ranges can help guide your strategy. In Knoxville and East Tennessee, the most active price ranges were:
- $250,000 to $400,000: The majority of sales occurred in this range, with the $350,000 to $400,000 bracket seeing the highest activity.
- New Listings: The $250,000 to $300,000 range had the most new homes listed in December 2024.
- Active Listings: The $300,000 to $350,000 price point had the highest available inventory in Knoxville.
For Buyers: These price ranges are competitive, so being prepared with pre-approval and quick decision-making can help you secure your dream home.
For Sellers: If you’re in one of these price brackets, demand is high, and now is an excellent time to list your property.
Why Knoxville and East Tennessee Are Housing Hotspots
Knoxville’s growth isn’t just a local trend—it’s part of a larger migration pattern. Tennessee ranked 5th in net inbound migration in 2024, with over 48,000 people moving to the state. Knoxville, in particular, has been highlighted as one of the top 10 housing hotspots for 2025 by the National Association of Realtors.
Why People Are Moving to Tennessee:
- Affordable cost of living
- No state income tax
- Growing job market
- High quality of life
With consistent inbound migration over the past five years, Knoxville’s housing market has remained robust, even during times of economic uncertainty.
Interest Rates: What to Watch in 2025
One of the biggest factors influencing the housing market in 2025 will be mortgage interest rates. After dipping to 6.68% in early December 2024, rates climbed back up to 7.26% by the end of the year.
- For Buyers: Higher rates can impact affordability, so it’s critical to work with a knowledgeable real estate agent and lender to explore your options.
- For Sellers: Rising rates may slow buyer activity, making it important to price your home competitively and market it effectively.
Real Estate Market Insights by County
Knox County
- Median Sales Price (December 2024): $390,000 (+6.85%)
- Inventory Levels: Up 18.1%
- Pending Sales: Up 8.8%
Anderson County
- Median Sales Price (December 2024): $329,000 (+18.24%)
- Inventory Levels: Slightly Down (-0.6%)
Loudon County
- Median Sales Price (December 2024): $544,000 (+13.93%)
- Inventory Levels: Up 43.2%
Sevier County
- Median Sales Price (December 2024): $550,000 (-16.05%)
- Pending Sales: Down 21.42%
- Inventory Levels: Up 21.88%
Sevier County, home to many investment properties, has seen a slowdown due to higher interest rates impacting cash flow for investors.
What to Expect in 2025
With Knoxville and East Tennessee real estate markets continuing to grow, 2025 looks promising for both buyers and sellers. Key takeaways:
- For Buyers: Winter offers opportunities for negotiation, but spring will bring increased competition. Lock in your mortgage rate as soon as possible to maximize affordability.
- For Sellers: Rising prices and low inventory make this a great time to sell, especially in popular price ranges like $250,000 to $400,000.
Ready to Buy or Sell in Knoxville? Let’s Talk!
Whether you’re buying, selling, or investing in the Knoxville or East Tennessee area, having the right real estate partner can make all the difference. At Cornerstone Realty Associates, we’re here to help you navigate the market and achieve your real estate goals.
📞 Contact us today to get started! Whether you’re moving to Knoxville or selling your home, we’ll make the process seamless. Let’s make 2025 your year for real estate success!
