If you’re following the news, you’re hearing that the national housing market is cooling—inventory is climbing, price growth has slowed to the low single digits, and sellers are increasingly offering concessions—signaling a shift toward a more balanced or even buyer-leaning market. Mortgage rates are expected to stay elevated in the 6.5–7% range through the rest of the year, keeping affordability a key challenge.
Here in Knoxville, we’re seeing some of the same cooling patterns, though the market remains technically a seller’s market based on inventory. According to RPR, months of supply rose from just 2.11 in February to 2.78 in May, and has held steady at 2.79 through July. While that’s a notable increase, it’s still well below the 5–6 months considered balanced. In other words, there still aren’t as many listings as buyers would like to see.
At the same time, other metrics are leaning more in buyers’ favor. I pulled all homes sold across every West Knoxville zip code from the FlexMLS system and analyzed the data to create timely metrics through the end of August.
- Closed sales have edged down; 421 in June, 395 in July, and 393 in August.
- Homes are also sitting longer, with average days on market rising 20% in just three months, from 36 days in June to 43 days by August.
- Sellers aren’t commanding quite the same prices either: the sale-to-list ratio slipped from 97.2% to 95.9%, a 1.3% decline that makes a real difference at higher price points. For example, a home listed at $1,000,000 would have sold for about $972,000 in June, but only about $959,000 in August—a $13,000 difference.
My Observations from the Field
Beyond the numbers, here’s what we’re seeing firsthand in the West Knoxville market:
- Many of the buyers we’re helping aren’t loving the options available—low inventory continues to limit choices.
- Plenty of buyers want to move but remain hesitant because of those sticky interest rates.
- Out-of-state and relocating buyers, often cash buyers, remain a significant share of the buyer pool.
- For sellers, if you’ve got a home with strong appeal and you’re willing to price it appropriately, you still have an excellent chance of selling quickly thanks to low inventory.
- On the other hand, sellers who overprice based on last year’s or early 2025 data risk long listings and multiple price cuts. More homes with condition or layout challenges—once snapped up quickly—are now sitting longer, as today’s more discerning buyers read the headlines and focus on value.
How We Can Help
As local experts, we stand ready to answer your questions and guide you through the market. We offer free in-person consultations and home valuations for sellers, and on the buyer side, we provide no-obligation consultations and same-day showings to help you explore your options with confidence.
