Knoxville, TN Overview of Market Trends - November 2024

The Knoxville, TN metro area housing market in November 2024 presents a complex landscape with varying trends across different metrics. The Median Sales Price has decreased by 1.2% year-over-year, settling at $395,000. In contrast, the Median List Price has increased by 2.5% to $410,000, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot

The median Price Per Square Foot has risen by 4.7% year-over-year, reaching $209.99. Similarly, the Median List Price per square foot has seen a more significant increase of 6.4%, now at $221.66. These figures suggest a growing valuation of property on a per-square-foot basis, despite the overall decline in the Median Sales Price.

Sales and Inventory Dynamics

Home sales have experienced a modest increase of 2.9% year-over-year, with 958 Homes Sold. Pending Sales have also risen by 6.1%, totaling 1,042. New Listings have seen a slight uptick of 0.9%, amounting to 1,085. However, inventory has surged by 18.7%, reaching 3,603 homes, contributing to a significant 50% increase in the Months of Supply, now at 3.8 months. This rise in inventory and supply suggests a shift towards a more balanced market, potentially easing the competitive pressure on buyers.

Market Speed and Pricing Strategies

The Median Days on Market have increased by 11% to 61 days, indicating a slower pace in the market. The average sale to list ratio has slightly decreased by 0.7%, now at 98%, while the percentage of Homes Sold above list price has dropped by 6.9% to 22.4%. These trends suggest that sellers may need to adjust their pricing strategies to align more closely with market conditions.

Price Adjustments and Off-Market Activity

The percentage of Price Drops remains unchanged at 22.9%, indicating that sellers are maintaining their pricing adjustments from the previous year. Meanwhile, the percentage of homes going off the market within two weeks has decreased by 7.1%, now at 36.9%, reflecting a potential cooling in buyer urgency.

Conclusion

Overall, the Knoxville housing market in November 2024 exhibits a mix of rising inventory and supply, alongside a decline in Median Sales Prices and a slower market pace. These dynamics suggest a shift towards a more balanced market, with opportunities for both buyers and sellers to navigate the evolving landscape effectively.