KNOXVILLE, Tenn. — The East Tennessee REALTORS group released its monthly report in late April, analyzing data and trends in the regional housing market. For several months including the most recent report, it noted the Knoxville area has stayed among the top ten U.S. cities for rising home prices.
The Federal Housing Finance Agency said home prices in Knoxville increased by 11.7% compared to the previous year in the fourth quarter of 2023. Quarter-over-quarter, it increased by around 2.3%. The city ranked higher than areas like West Palm Beach in Florida and Syracuse in New York The Miami, Florida, area ranked at the top of the list.
The local realty group's report found that the median home sales price in March 2024 was $350,497 — up by around 8.5% compared to the previous year. It also said housing inventory remained up compared to 2023, an increase of around 32.7%.
Just under a quarter of all homes sold in the Knoxville area went for more than the asking price. Around 14.7% of all homes sold in East Tennessee were newly built, the report said.
"After a strong showing in February, home sales slowed in March as strong economic and job growth figures pushed up mortgage rates, which weighed on buyer demand. Despite higher mortgage rates and the slowdown in home sales, pending listings are up 5.5% from the previous year across the region. Although still low by historical standards, inventory levels are appreciably higher than a year ago," the report said.
It also said home sales specifically in Knox County increased by around 4.5% compared to the previous year — the second month of year-over-year increases in sales.
The report also discussed results from a survey by the East Tennessee REALTORS group which asked real estate workers about their expectations for the housing market over the next year. It found that around 51% of realtors expect home sales to increase over the next year, and around 69% expect home prices to increase.
The survey also found the typical home sold in the first quarter of 2024 got an average of 2.2 offers, unchanged from a year ago. All-cash sales also represented around 29% of all sales in the first quarter of 2021, down by 37% compared to last year, according to the report.
The report said mortgage rates surpassed 7% in April. According to Freddie Mac's Primary Morgage Market Survey, the average interest rate for a 30-year fixed loan was 7.17%.
The report also said rent prices across the Knoxville metro area increased by 1.3% compared to the previous year, a possible indication that rent growth continued to moderate in March 2024.