1. Home Prices and Sales Activity
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Median Sale Price: In January 2025, the median sale price for homes in Knoxville was $310,350, a slight decrease of 0.54% compared to the previous year. Redfin
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Sales Volume: The number of homes sold in January 2025 decreased by 6.8% year-over-year, with 150 homes sold. Barron's+2Redfin+2Crib Metrics+2
2. Market Competitiveness
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Days on Market: Homes in Knoxville typically remain on the market for an average of 60 days, an increase from 47 days in the prior year. Redfin
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Seller's Market Indicators: Despite longer listing durations, the market retains competitive elements, with homes often receiving multiple offers and selling for approximately 3% below the list price. Redfin
3. Inventory Levels
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Increased Inventory: The Knoxville metro area experienced a 39.7% year-over-year increase in housing inventory, totaling 3,685 homes as of early 2025. Crib Metrics
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Months of Supply: The months of supply rose to 3.7 months, up 70% from the previous year, indicating a shift toward a more balanced market. Crib Metrics
4. Migration and Demand
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Population Growth: In 2024, the Knoxville metro area welcomed 9,661 new residents, contributing to sustained housing demand. 865 Real Estate
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Suburban Appeal: Suburbs such as Farragut, Hardin Valley, and Maryville are increasingly popular due to their quality of life, reputable school systems, and proximity to outdoor recreational opportunities. Morrell Realty
5. Mortgage Rates and Affordability
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Interest Rate Fluctuations: Mortgage rates began December 2024 at 6.68% but rose to 7.26% by year's end, influencing buyer affordability and market dynamics. 865 Real Estate
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Affordability Challenges: Rising mortgage rates and home prices present affordability challenges for buyers, particularly in sought-after neighborhoods.
Overall, Knoxville's real estate market in early 2025 reflects a transition toward a more balanced environment, with increased inventory and moderated price growth. Buyers and sellers should stay informed about these evolving trends to navigate the market effectively.
Reach out to an experienced realtor today, like me ;) to navigate these opportunities!
