NAVIGATING FOGGY WATERS
Home sales and home prices both continue to remain higher than they were 12 months ago. This indicates that the demand for housing in Knoxville remains relatively strong.
That said, total housing inventory is up almost 30% from this time last year. Should our housing inventory continue to increase, this will put downward pressure on home prices as homebuyers will have more listings to choose from. Also, the number of homes sold at or above the list price is WAY down from what it was in early 2024, which is another indicator that we may be heading into a more “buyer’s market” in 2025.
Housing affordability remains a major issue for our area. Some experts believe that only about 25% of those looking to buy or sell a home right now are able to do so comfortably. Should interest rates drop significantly in the coming months, this should spark more demand for homes that could potentially push prices upward.
Overall, the direction of our housing market is murky at best right now. Depending on how some key factors play out will determine how home prices, housing inventory, and home affordability evolve in the Knoxville area.
