The Knoxville, TN metro area housing market in January 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has decreased by 3.1% year-over-year, settling at $374,900. In contrast, the Median List Price has risen by 3.5% to $414,000, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics show a modest increase, with the median Price Per Square Foot up by 2.1% to $207.50, and the Median List Price per square foot experiencing a more significant rise of 7.8% to $226.85. This suggests that while sellers are optimistic about pricing, buyers are negotiating more effectively, as reflected in the lower sales prices.

In terms of sales activity, the number of Homes Sold has seen a slight decline of 0.1% year-over-year, with 732 Homes Sold in January 2025. Pending Sales have also decreased by 0.8%, totaling 1,020. However, New Listings have surged by 20.0%, reaching 1,078, which contributes to the increased inventory, now at 3,307 homes, up 17.5% from the previous year.

The Months of Supply, a critical indicator of market balance, has increased dramatically by 70.0% to 4.5 months. This shift suggests a transition towards a more balanced market, potentially favoring buyers as inventory grows and sales slow.

Market dynamics are further illustrated by the Median Days on Market, which has increased by 4.0% to 74 days. The average sale to list ratio has slightly decreased by 0.5% to 97.6%, indicating that homes are selling closer to their list prices, albeit with some negotiation.

The percentage of Homes Sold above list price has dropped by 5.2% to 18.4%, while Price Drops have increased by 6.1% to 23.8%. These figures suggest that sellers are adjusting their expectations in response to market conditions. Additionally, the percentage of homes going off the market in two weeks has decreased by 5.4% to 31.3%, indicating a slower pace of sales.

Overall, the Knoxville housing market in January 2025 reflects a shift towards a more balanced environment, with increased inventory and slower sales activity. Buyers may find more opportunities as sellers adjust to the evolving market dynamics.