East Tennessee Housing Market Update – January 2025
If you’ve been keeping an eye on the housing market, you may have noticed something interesting: instead of slowing down for the holidays like it usually does, the East Tennessee real estate market actually picked up speed in December! Home sales increased by 3.4% from November and an impressive 14.5% from December 2023.
So, what does this mean if you’re thinking about buying or selling a home in 2025? Let’s break it down.
Home Sales Are on the Rise
While winter is typically a slower time for real estate, December bucked the trend. Not only did more homes sell, but prices remained strong. The median sale price in our region was $374,000, which is 8.41% higher than last year. This is a great sign that East Tennessee’s housing market is holding steady and even growing.
Inventory—or the number of homes available for sale—also improved, up 28.4% from last year. This is important because more homes on the market give buyers more options and can help balance out price increases.
Homes Are Selling Quickly
If you’re selling your home, here’s some good news: houses are still moving fast! In December, half of all homes sold were under contract in 30 days or less. That’s a bit slower than last year when homes were snatched up in just 18 days, but still a sign of strong demand.
Another interesting stat: almost 38% of homes sold for the asking price or more, and nearly 9% sold for at least $10,000 over asking. So, while buyers have more options, well-priced homes in desirable areas are still attracting strong offers.
Mortgage Rates and Market Outlook
One of the biggest factors affecting the housing market is mortgage rates. Throughout December, rates hovered around 7%, finishing the year at 6.93%. While that’s higher than the ultra-low rates we saw a couple of years ago, it’s actually an improvement from the peaks of 2023. Many experts expect rates to stabilize or even decline slightly in 2025, which could help more buyers afford homes.
Knoxville & Surrounding Areas
Focusing on Knox County, home sales were up 10.8% from last year. The number of homes for sale also increased by 23.4%, which is encouraging for buyers hoping for more choices.
What This Means for You
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If you’re a buyer: More inventory means you’ll have a bit more selection, but competition is still strong. If rates drop, demand could pick up again, so acting sooner rather than later may be smart.
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If you’re a seller: Homes are still selling quickly, especially when priced right. With inventory increasing, buyers have more options, so making sure your home is in great shape and priced competitively is key.
Final Thoughts
After two years of market slowdowns, the fact that home sales are rebounding is a great sign for 2025. If you’re thinking about buying or selling in East Tennessee, now is a great time to start planning.
Need help navigating the market? Let’s chat about your goals and how I can help you make the most of this ever-changing real estate landscape!
