Knoxville Named a Top Housing Market for 2025

Exciting news! The National Association of Realtors® (NAR) has recognized Knoxville as one of the top 10 housing hot spots for 2025. This designation is based on strong market fundamentals, including housing affordability, job growth, and increasing migration to the area.

According to NAR’s latest report, home buyers can expect improved market conditions, including stabilizing mortgage rates around 6% and a gradual rise in inventory. While home prices are projected to increase by approximately 2%, these shifts are expected to create more opportunities for buyers and sellers alike.

What This Means for Buyers & Sellers

For buyers, the stabilizing rates and growing inventory mean more options and better affordability in comparison to recent years. As mortgage rates settle around 6%, approximately 6.2 million more households will qualify for homeownership. This provides a prime opportunity for those who have been waiting on the sidelines.

For sellers, Knoxville’s status as a top housing market signals strong demand and continued price appreciation, though at a more moderate pace. With increasing migration into the area and a favorable job market, homeowners can expect solid interest from prospective buyers looking to take advantage of Knoxville’s affordability and quality of life.

2025 Housing Market Outlook

The year ahead is poised to bring more opportunities as the housing market stabilizes. The Federal Reserve is expected to take a gradual approach to easing monetary policy in 2025, helping to keep borrowing costs more predictable. However, mortgage rates are unlikely to return to ultra-low levels, establishing a “new normal” around 6%.

NAR’s forecast anticipates:

• 4.5 million existing-home sales in 2025

• A median existing-home price of $410,700

• Housing starts approaching 1.45 million units

• Stabilized mortgage rates near 6%

While inventory remains below pre-pandemic levels, an increase in new construction and more homeowners listing their properties is expected to ease supply constraints over time.

Other Housing Hot Spots for 2025

Alongside Knoxville, the following cities are also positioned as top performers for 2025:

• Boston-Cambridge-Newton, MA-NH

• Charlotte-Concord-Gastonia, NC-SC

• Grand Rapids-Kentwood, MI

• Greenville-Anderson, SC

• Hartford-East Hartford-Middletown, CT

• Indianapolis-Carmel-Anderson, IN

• Kansas City, MO-KS

• Phoenix-Mesa-Chandler, AZ

• San Antonio-New Braunfels, TX

These markets share characteristics such as strong job growth, increasing migration, and favorable financing conditions, making them prime locations for real estate activity in 2025.

Key Housing Market Trends to Watch

• Job Growth & Migration: Areas with strong job growth and high in-migration will continue to see increased housing demand.

• Millennial Buyers: More Millennials entering homeownership will drive demand for starter homes.

• Inventory Growth: Increased listings and new construction will help ease supply shortages.

• Affordability Challenges: While rates are stabilizing, affordability remains a key concern, particularly in high-demand markets.

Looking Ahead
As 2025 unfolds, Knoxville’s thriving market offers exciting opportunities for buyers, sellers, and investors alike. With stabilizing mortgage rates, increasing inventory, and continued economic growth, now is the time to stay informed and prepared. Whether you’re planning to buy, sell, or invest, understanding these trends will help you make the most of the year ahead.

Ready to make your move in 2025? Contact me today to explore your best opportunities in Knoxville’s thriving market!

Krista Freshour

Realtor

Cell: 865-776-9608

Office: 865-238-0002

Information provided by National Association of Realtors