Knoxville, TN Metro Area Housing Market Analysis - August 2024
The Knoxville, TN metro area housing market in August 2024 presents a complex landscape with varying trends across different metrics. Below is a detailed analysis of the key data points.
Price Metrics
The Median Sales Price for homes in the Knoxville metro area stands at $385,000, reflecting a slight decrease of 1.3% year-over-year (YoY). Similarly, the Median List Price has also seen a decline, albeit a smaller one, at 1.0% YoY, bringing it to $405,000. Despite these declines, the median Price Per Square Foot has increased by 3.4% YoY to $212.98, and the Median List Price per square foot has risen by 6.6% YoY to $222.66. These figures suggest that while overall home prices have slightly decreased, the value per square foot has appreciated, indicating a potential shift in buyer preferences towards smaller, more affordable homes.
Sales and Inventory
The number of Homes Sold in August 2024 has increased by 7.7% YoY, reaching 1,175 units. Pending Sales have also seen a significant rise of 13.3% YoY, totaling 1,379 units. New Listings have surged by 12.7% YoY to 1,434, contributing to a substantial increase in inventory, which is up by 31.8% YoY to 3,628 units. The Months of Supply metric, which indicates how long it would take to sell all current listings at the current sales pace, has jumped by 60.0% YoY to 3.10 months. This increase in supply suggests that the market is becoming more balanced, moving away from the seller's market conditions seen in previous years.
Market Dynamics
The Median Days on Market for homes in Knoxville is now 53 days, a 6.0% increase YoY. This indicates that homes are taking slightly longer to sell compared to last year. The average sale to list ratio has decreased by 0.8% YoY to 98.3%, meaning homes are selling for slightly less than their list prices. The percentage of Homes Sold above list price has dropped by 9.0% YoY to 23.6%, further indicating a cooling market. Additionally, the percentage of Price Drops has increased by 5.8% YoY to 29.1%, suggesting that sellers are adjusting their expectations to align with current market conditions. The percentage of homes going off the market within two weeks has decreased by 12.1% YoY to 41.8%, indicating a slower pace of sales activity.
Conclusion
Overall, the Knoxville, TN metro area housing market in August 2024 shows signs of cooling, with slight declines in median sales and list prices, longer days on market, and a higher inventory. However, the increase in Price Per Square Foot and the rise in New Listings and Pending Sales suggest that buyer interest remains strong, albeit with a shift towards more affordable options. Sellers may need to adjust their pricing strategies to align with the current market dynamics, while buyers could find more opportunities as the market becomes more balanced.
