Key Market Highlights in Knoxville TN

Median Sale Price: $325K–$389K
Price per Sq Ft: $217–$234
Inventory Growth: +40–57%
Absorption Rate: ~4 to 4.5 months
Average Days on Market: ~45
Rent Growth Forecast: ≈3.5%
Home Price Forecast: ≈2.9%

What This Means for Buyers & Sellers

For Buyers: The increase in inventory means more options and better negotiating power. With active listings exceeding 2,800 and average days on market climbing, buyers have time to explore homes without being rushed into bidding wars.

For Sellers: While home prices remain strong, the urgency has faded. Proper pricing and presentation are key to avoiding long market times. Expect buyers to be selective, especially in areas with more inventory.

For Investors: With rent growth and moderate appreciation ahead, Knoxville remains a solid market for long-term strategies. Vacancy rates are low, and rental demand is steady, especially in neighborhoods near the university and tech corridors.

Knoxville Real Estate Stats at a Glance

A Softening Seller’s Market

In June 2025, the median home price in Knoxville hovered around $388,575, a 4% year-over-year increase. However, some data points show a slight dip of 1.5%, placing the median closer to $325,000 in May. Homes are typically selling in 45 days, compared to 42 days this time last year.

Rising Supply & Balanced Pace

Inventory has jumped—up nearly 40–57%—bringing the absorption rate to about 4 to 4.5 months. This shift indicates a move toward a more balanced market. Pending sales are also rising, up about 14% from earlier this year, suggesting that buyers are still active despite higher borrowing costs.

Price Per Square Foot Trends

The average price per square foot in Knoxville now ranges between $217 and $234. West Knoxville is leading the way with a median home price of $354,900, a 2.6% increase year-over-year. Suburban areas continue to offer strong value, especially for first-time buyers and investors.

Rent & Forecast Outlook

Rental rates are expected to grow by approximately 3.5% over the next year, with home values projected to appreciate by around 2.9%. This positions Knoxville as a steady market for buy-and-hold investors looking for long-term gains.

What Homeowners Should Do Now

Buyers: Watch listings closely and act when you find a well-priced home. The market favors those who are prepared but patient.

Sellers: Price competitively, focus on curb appeal, and be ready to negotiate. Proper timing and presentation matter more than ever.

Investors: Evaluate cap rates and rental demand by neighborhood. Knoxville’s forecasted rent increases support buy-and-hold strategies in key zip codes.

So… Is now a good time to sell a house in Knoxville Tennessee?

Knoxville’s real estate market in mid‑2025 is shifting toward balance. While sellers can still achieve strong prices, buyers now have breathing room. For investors, stable appreciation and growing rental demand make Knoxville a smart place to park capital.

Whether you’re looking to buy, sell, or invest, understanding the local dynamics can help you make confident, informed decisions in the months ahead. Contact us if you need any help.

Key Stats: Knoxville’s Real Estate Market [Mid‑2025 Update]

Key Market Highlights in Knoxville TN

What This Means for Buyers & Sellers

Knoxville Real Estate Stats at a Glance

What Homeowners Should Do Now

So… Is now a good time to sell a house in Knoxville Tennessee?

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