East Tennessee Housing Market Outlook – Fall 2025

As the crisp air of fall rolls into East Tennessee, the housing market is also shifting into a new season. With mortgage rates easing, inventory expanding, and steady buyer demand, this autumn is shaping up to be an interesting time for both buyers and sellers. Let’s take a closer look at where things stand and what it could mean for the months ahead.

Mortgage Rates Show Signs of Relief

As of early September 2025, the average 30-year fixed mortgage rate is hovering around 6.6%, a slight dip from midsummer highs. While still elevated compared to historic lows, this shift provides a bit more breathing room for buyers.

💡 Tip for Buyers: If you’re concerned about affordability, explore strategies like rate buydowns or adjustable-rate options. Many lenders are also offering low down payment programs, which can help you stay competitive.

Market Activity in East Tennessee

The Knoxville-area housing market has stayed resilient throughout the year. Home prices are up roughly 6% compared to 2024, with the median sold price around $330,000. Homes are still selling quickly, though buyers are showing more caution with negotiations.

• Homes sold above asking: ~13%

• Homes sold at asking: ~98%

• Homes sold under asking: ~32%

These numbers show that well-priced, move-in-ready homes continue to attract strong offers, while overpriced listings may linger.

💡 Tip for Sellers: Fall buyers tend to be serious and motivated—often moving for work or school schedules. Pricing your home strategically and ensuring it’s staged for the season (think cozy touches, warm lighting, and curb appeal with fall décor) can help you stand out.

Inventory and Buyer Demand

Inventory levels have grown compared to last year, giving buyers more options than they’ve had in recent seasons. At the same time, East Tennessee’s affordability and quality of life continue to attract new residents, keeping demand steady.

💡 What This Means: Buyers finally have more negotiating power than in the frenzy of recent years, but sellers still benefit from a market where homes hold strong value.

Looking Ahead to Winter

As mortgage rates trend down and inventory grows, the market is expected to stay active into late fall. Historically, winter brings a slowdown, but this year could be different as many buyers are eager to act before rates change again.

Key Takeaways

• For Buyers: Now is the best opportunity in years to shop with more choices and negotiate. Don’t wait too long—if rates dip further, competition could heat up again.

• For Sellers: Fall is a strategic time to list, with serious buyers in the market and prices holding strong. A polished presentation and smart pricing are key.

🍂 Whether you’re planning to buy or sell this fall, East Tennessee’s housing market is offering opportunities on both sides. If you’d like a personalized strategy for navigating this season, now’s the time to start the conversation.

Krista Freshour

Realtor

865-776-9608