Knoxville Real Estate Market Update – March 2025
As of the end of March, the Knoxville housing market continues to lean in favor of sellers, though we’re beginning to see some early signs of increased inventory that could bring more balance in the coming months. Let's take a look at some data:
My Market Analysis:
Inventory remains historically low—well below the 6-month threshold that indicates a balanced market. That said, March did bring a modest increase in available homes, which makes sense given the seasonal trend: spring typically kicks off more activity as families planning summer moves begin to list their homes, and sellers take advantage of improved curb appeal. While the overall level of inventory is still very limited, the month-over-month uptick is a positive sign for a healthier market moving forward.
For sellers, March proved to be an excellent month. Homes sold quickly and performed well on price, with many receiving full-price offers or more. Interestingly, while many people think of late spring or early summer as the best time to sell, our research shows that March consistently offers strong results. That’s because motivated buyers—often those looking to move over the summer—start their home search early to beat the crowd and secure their plans. Sellers who list in March are often met with serious, ready-to-act buyers who are determined to get ahead of the market.
For buyers, however, March was a challenging month. The data shows they faced tight competition: homes sold for just over asking price on average, and the median time on market dropped sharply to only 19 days. These figures suggest that buyers had to move quickly and offer competitively—often at or above list price—in order to secure a home. With limited choices and fast-moving listings, March proved to be a tough environment for many buyers.
Looking Ahead:
As we move into April, early signs point to continued increases in new listings, which could gradually improve conditions for buyers. Still, we’re seeing that not every home is flying off the market—properties that are overpriced or have significant drawbacks (such as location on a busy street, outdated condition, or lack of updates) are sitting longer.
The bottom line: in today’s Knoxville market, a well-priced, well-presented home in a desirable location is likely to sell quickly—sometimes within a day, and often with multiple offers. But unlike the frenzy of 2021, today’s buyers are discerning, and overpriced listings are being overlooked. Sellers who price too aggressively risk missing their window of peak interest.
As always, the broader economic outlook remains uncertain, and many are watching closely for changes to interest and mortgage rates, which could influence both buyer demand and inventory trends in the months ahead.
If you're thinking about making a move, we're here to help you navigate the market with confidence—whether that means selling strategically or staying competitive as a buyer. I’m also happy to perform a custom market analysis for specific areas or neighborhoods within the greater East Knoxville market if you’re looking for more localized insights.
