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. This decline contrasts with the Median List Price, which has increased 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 rising by 2.1% to $207.50, and the Median List Price per square foot climbing by 7.8% to $226.85. These figures suggest that while overall sales prices have dipped, the value attributed to the space itself has appreciated.

In terms of sales activity, the number of Homes Sold has slightly decreased by 0.1% year-over-year, totaling 732 units. Pending Sales have also seen a minor decline of 0.8%, with 1,020 transactions in the pipeline. However, New Listings have surged by 20.0%, reaching 1,078, which has contributed to a 17.5% increase in inventory, now at 3,307 homes.

The Months of Supply, a critical indicator of market balance, has risen significantly by 70.0% to 4.5 months. This increase suggests a shift towards a more balanced market, potentially easing the competitive pressure seen in previous years. The Median Days on Market have increased by 4.0% to 74 days, indicating that homes are taking slightly longer to sell.

The average sale to list ratio has decreased by 0.5% to 97.6%, reflecting a slight reduction in the percentage of the list price that sellers are achieving. The percentage of Homes Sold above list price has dropped by 5.2% to 18.4%, further highlighting the cooling of the market. Additionally, Price Drops have become more common, increasing by 6.1% to 23.8% of listings.

Finally, the percentage of homes going off the market within two weeks has decreased by 5.4% to 31.3%, suggesting that buyers are taking more time to make purchasing decisions. Overall, the Knoxville housing market in January 2025 is characterized by a cooling trend, with increased inventory and longer selling times, providing more opportunities for buyers to negotiate favorable terms.