Knoxville, TN Metro Area Housing Market Analysis - September 2024
The Knoxville, TN metro area housing market in September 2024 presents a dynamic landscape with notable shifts in various metrics. The Median Sales Price has risen to $395,000, marking a 2.6% increase year-over-year (YoY). This upward trend in sales prices is complemented by a modest 0.2% YoY increase in the Median List Price, now at $400,925, indicating a relatively stable pricing environment.
Price Per Square Foot has seen a more pronounced rise, with the median Price Per Square Foot reaching $212.32, up by 4.5% YoY. Similarly, the Median List Price per square foot has increased by 6.1% YoY, now standing at $222.57. These figures suggest a growing demand for space, potentially driven by buyers seeking larger homes or more premium locations.
In terms of sales activity, the number of Homes Sold has increased by 3.6% YoY, totaling 1,007 transactions. Pending Sales have also shown a robust growth of 6.5% YoY, reaching 1,236. This indicates a healthy demand in the market, although the slight increase in New Listings by 0.9% YoY to 1,280 suggests that supply is beginning to catch up with demand.
Inventory levels have surged significantly, with a 27.6% YoY increase, bringing the total inventory to 3,685 homes. This rise in inventory has contributed to a substantial 70.0% YoY increase in the Months of Supply, now at 3.7 months. This shift suggests a transition towards a more balanced market, potentially easing the competitive pressure on buyers.
The Median Days on Market have increased by 9.0% YoY to 54 days, indicating that homes are taking longer to sell compared to the previous year. This could be a reflection of the increased inventory and the slight cooling of buyer urgency.
The average sale to list ratio has decreased slightly by 0.6% YoY, now at 98.0%, while the percentage of Homes Sold above list price has dropped by 9.7% YoY to 21.4%. These metrics suggest that sellers may need to adjust expectations as the market becomes less competitive.
Price Drops have become more common, with a 3.8% YoY increase, affecting 27.5% of listings. Additionally, the percentage of homes going off the market within two weeks has decreased by 12.8% YoY to 40.0%, further indicating a shift towards a more balanced market where buyers have more options and time to make decisions.
Overall, the Knoxville housing market in September 2024 reflects a period of adjustment, with increasing inventory and a slight cooling in buyer urgency. While prices continue to rise, the pace has moderated, suggesting a more sustainable growth trajectory. Buyers and sellers alike should be prepared for a market that is gradually moving towards equilibrium.
