Knoxville, TN Housing Market Report

The Knoxville housing market as of December 2025 is transitioning into a more balanced environment, moving away from the frantic pace of previous years. With active inventory surging by 20.55% year-over-year to 4,141 units, buyers now have significantly more options than they did twelve months ago. This increase in supply is reflected in the median days on market, which has climbed to 72 days—a 16-day increase over last year. While the market still leans slightly toward sellers due to consistent demand, the 0.98 sale-to-list ratio suggests that buyers are successfully negotiating small discounts off asking prices.

Price trends in Knoxville have shown remarkable stability throughout the second half of 2025. After a very slight dip in August, the median home value has seen five consecutive months of incremental growth, reaching $359,252 in December. This represents a modest 0.75% year-over-year increase, indicating that the market has moved from rapid appreciation into a phase of sustainable, low-volatility growth. This steady climb suggests that while the influx of inventory is cooling the heat of competition, it has not led to a devaluation of local real estate assets.

Looking ahead, the Knoxville metro area remains a resilient market for both homeowners and investors. The rental market mirrors the sales market's stability, with a median rent of $1,716 reflecting a marginal 0.47% annual increase. For sellers, the key to success in 2026 will be realistic pricing and patience, as the longer days on market require a more strategic approach to listing. For buyers, the current climate offers a rare window of opportunity to browse a larger selection of homes without the immediate pressure of bidding wars, though they should still expect to pay near asking price for well-maintained properties.