The Current State of the Knoxville Housing Market…

An Overview of the Current State of the Knoxville Housing Market.

Rising Home Prices

Home prices are rising and there is a lot of demand for housing in Knoxville right now. In the 4th Quarter of 2022, the median listing price in Knoxville was $426,633. The national average was $412,743. That is more than a $10,000 difference. By February 2023, Knoxville’s median listing price was more than $40,000 higher than the U.S. average.

Low Inventory Levels

Low inventory levels are one reason for the strong market. Prices are rising as a result of buyer competition and the fact that there are currently fewer homes for sale in the Knoxville area than there have been in recent years. In point of fact, as of March 2023, Knoxville has an absorption rate of 0.92 months. This means that should no new homes come on the market and demand keep at the same pace, we would run out of homes for sale in less than 1 month.

Growing Population

A growing population and a robust local economy are also contributing to the strong housing demand. In recent years, Knoxville has experienced steady job growth thanks to the establishment of numerous significant businesses there. The city's high quality of life and low cost of living have made it a popular destination for retirees and young professionals alike. Tennessee experienced its largest year-over-year increase in population since 2007. It surpassed seven million residents in 2022, according to data compiled by the Tennessee State Data Center.

In spite of the strong market, buyers still have opportunities in the Knoxville area. Particularly, buyers may locate more affordable alternatives in some of the outer suburbs of the city or in smaller towns in the region. Although there may not be as much demand in these areas as in more central ones, they can still provide a high level of quality of life and strong appreciation potential.

With high demand and rising prices, the current market conditions are favorable for sellers. To maximize your return, however, it is essential to accurately price your home. Depending on factors like location, condition, and trends in the local market, working with a local real estate agent can assist you in determining the ideal price for your home.

In Conclusion…

The housing market in Knoxville remains robust and stable for both buyers and sellers. Now may be a good time to take advantage of the favorable market conditions if you are thinking about buying or selling a home in the area.