The Tennessee housing market in January 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has decreased by 2.6% year-over-year, settling at $383,400. In contrast, the Median List Price has risen by 4.9% to $416,700, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics show a moderate increase, with the median Price Per Square Foot up by 2.9% to $207, and the Median List Price per square foot rising by 4.2% to $225. This suggests a steady appreciation in property values, albeit at a slower pace than list prices.

Sales activity reflects a mixed scenario. The number of Homes Sold has increased by 2.4% year-over-year, reaching 5,055 units. However, Pending Sales have declined by 3.6%, totaling 6,892, which may indicate a slowdown in future transactions. New Listings have surged by 18.4%, amounting to 8,478, contributing to a 13.8% increase in inventory, now at 25,799 homes.

The Months of Supply have seen a significant rise of 50%, now standing at 5.1 months. This increase suggests a shift towards a more balanced market, potentially easing the competitive pressure on buyers. The Median Days on Market have increased by 7% to 75 days, reflecting a slower pace in sales.

The average sale to list ratio has slightly decreased by 0.2%, now at 97%, indicating that homes are selling closer to their list prices. The percentage of Homes Sold above list price has decreased by 1.5% to 13.7%, while Price Drops have increased by 5% to 24.3%, suggesting sellers are adjusting expectations to align with market conditions.

Finally, the percentage of homes going off market in two weeks has decreased by 1.5% to 25.4%, indicating a potential cooling in buyer urgency. Overall, the Tennessee housing market in January 2025 is characterized by a mix of rising inventory and list prices, alongside a slight decline in sales prices and Pending Sales, pointing to a market in transition.