The Knoxville, TN metro area housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has increased by 4.0% year-over-year, reaching $390,000, indicating a steady appreciation in home values. Meanwhile, the Median List Price remains unchanged at $409,170, suggesting a stabilization in seller expectations.

Price Per Square Foot metrics show a more pronounced growth, with the median Price Per Square Foot rising by 4.2% to $210.31, and the Median List Price per square foot increasing by 7.2% to $224.25. This indicates a stronger demand for space, potentially driven by buyers prioritizing square footage in their purchasing decisions.

However, the number of Homes Sold has decreased by 8.6% year-over-year, totaling 755 units. This decline in sales volume could be attributed to various factors, including affordability challenges or a shift in buyer sentiment. Conversely, Pending Sales have seen a modest increase of 2.6%, reaching 1,240, suggesting that while completed transactions have slowed, there is still active interest in the market.

New Listings have slightly decreased by 1.5% to 1,122, while inventory has surged by 16.6% to 3,452 homes. This increase in inventory, coupled with a 100% rise in Months of Supply to 4.6 months, indicates a shift towards a more balanced market, potentially easing the competitive pressures seen in previous years.

The Median Days on Market have remained relatively stable, with a slight increase of 1.0% to 78 days. This stability suggests that while homes are taking slightly longer to sell, the market is not experiencing significant delays in transaction times.

The average sale to list ratio has decreased by 0.9% to 97.6%, and the percentage of Homes Sold above list price has dropped by 4.0% to 19.7%. These metrics indicate a softening in buyer competition, with fewer homes selling above asking price. Additionally, the percentage of Price Drops has increased by 4.1% to 23.1%, reflecting adjustments in seller pricing strategies to align with market conditions.

Finally, the percentage of homes going off market in two weeks has decreased by 9.9% to 36.8%, suggesting a slower pace in buyer decision-making and potentially more negotiation room for buyers.

Overall, the Knoxville housing market in February 2025 reflects a mix of growth in home values and a cooling in sales activity, with increased inventory and a more balanced supply-demand dynamic. Buyers and sellers alike should navigate these conditions with careful consideration of pricing strategies and market timing.