Your Guide to the Knoxville Housing Market (2021) | Nexus Homebuyers (2023)

Knoxville is one of the fastest-growing cities in Tennessee. With a population of over 188,085 people, Knoxville has seen an influx of families and young professionals looking for homes to call their own.

So whether you are considering buying your first home or are just curious about what’s happening with the housing market in 2021, this guide will give you everything you need to know!

Your Guide to the Knoxville Housing Market (2021) | Nexus Homebuyers (1)

What is it about Knoxville?

Knoxville, located in east Tennessee, is a growing city with plenty to do and see. Professionals and families are moving to the area for its affordability, southern charm, and outdoor activities. But is Knoxville a good place to live?

One way to answer that question is to learn some facts about Knoxville to help you decide if Knoxville is a place you and your family should call home.

Another way to learn more about the area is to research the housing market. It will show you if home values are holding steady, what the average home price is in Knoxville, and the best areas to live in. This will help you figure out if Knoxville is affordable and provide a good return on your investment in the future.

(Video) Are house prices dropping in Knoxville? Realtors explain latest trends

This guide will look at:

  • Average Home Price in Knoxville
  • High and Low Home Prices in Knoxville
  • Best Areas to Live in Knoxville
  • Sale-to-list Price Ratio in Knoxville
  • Average Days on Housing Market

>>Learn more about living in Knoxville, TN pros and cons

Average Home Price in Knoxville

As with many housing markets in 2021, Knoxville has seen a rise in home values, increasing the average home price in Knoxville. Currently, the average home price is $279.9k and the median price per sq/ft is $160. That is an 18% increase year-over-year.

Your Guide to the Knoxville Housing Market (2021) | Nexus Homebuyers (2)

*Data from Zillow.com

The typical home value of homes in Knoxville is $274,440. This value is seasonally adjusted and only includes the middle price tier of dwellings. Knoxville home values have gone up 25.1% over the past year.

The current data would indicate that the housing market is doing well, also that buying or selling real estate in the Knoxville market is favorable.

(Video) Realtor explains Knoxville housing market predictions

>> Learn more about the truth about real estate prices

High and Low Home Prices in Knoxville

Knoxville has a range of home prices. The highest home price currently on the market in Knoxville is $5.2 million. The lowest home price is around $60,000- for a home in livable condition. There are homes available for less than that but are fixer-uppers in need of significant repairs.

As mentioned above, the median list price is $279.9k, but the median home sold price is $284.1k. This could be due in part to the sale-to-list price ratio which we’ll cover more about later on.

  • Sequoyah Hills is the most expensive neighborhood in Knoxville, with a median listing price of $685,000.
  • Beaumont is the least expensive area, with a median listing value of $94.9K.

Best Areas to Live in Knoxville

In total, Knoxville consists of 69 neighborhoods currently. Below we’ll break down some of the best areas to live in Knoxville in different categories.

The Best Area to Live in Knoxville for Good Public Schools:

Farragut, TN, a suburb of Knoxville, has top-rated schools and is an overall good area to live in, but these other school districts come highly rated.

  1. Maryville City Schools- Maryville, TN
  2. Oak Ridge School District – Oak Ridge, TN
  3. Alcoa City Schools- Alcoa, TN

The Best Area to Live in Knoxville for Private Schools:

  1. Christain Academy of Knoxville- West Knoxville
  2. Grace Christain Academy- North West Knoxville
  3. Knoxville Adventist School- Sequoyah Hills

The Best Area to Live in Knoxville for Walkability:

  • Downtown Knoxville
  • The University of Tennessee area
  • Fort Sanders

Knoxville’s overall walkability score is 31.

(Video) Tips for buying a home amid record housing market

The Best Area to Live in Knoxville for Affordability:

  1. Oak Ridge – The Oak Ridge area is considered an affordable neighborhood to live in. It has a median income of $52,000, with home prices averaging between $250-$300,000. This suburb of Knoxville is home to almost 30,000 people, many of which are families. It is also an area that is known for its public schools and is listed in the Top 10 School Districts in the state of Tennessee. In addition, Oak Ridge is considered the suburb with the easiest commute to the city center.
  2. Maryville– This suburb of Knoxville has a median income of $52,120 with an average home price of $253,200. This suburb of Knoxville is home to almost 29,950 people. Maryville public schools are above average. Commute times to Knoxville aren’t great, but employment in Maryville is abundant. Maryville is more affordable, with older homes ranging in the low $100k’s and newer homes averaging $200k’s +. Maryville is considered the best suburb for buying your first house.
  3. Sevierville– This suburb of Knoxville is considered the best suburb when your family is ready to scale up. The median income is $34,167, and the median home price is $283,000. This suburb of Knoxville is home to 18,426 people. Home appreciation is up 22.1% in the last 12 months, and the public schools in this district have shown improvement every year and are rated above average for the region. Furthermore, the crime rate in Sevierville is one of the best in the Knoxville metro area.

The Best Area to Live in Knoxville for Safety:

  1. Loudon- Based on violent and property crime rates, Loudon was given a score of B.
  2. Kingston– Based on violent and property crime rates, Kingston was given a score of B-.
  3. Norris– Based on violent and property crime rates, Norris was given a score of B+.

Sale-to-list Price Ratio in Knoxville

The sale-to-list price ratio is the percentage of the original list price of homes that sell. Typically, this number is any number below 100% – meaning that the property sold for less than the list price. The sale-to-list price ratios can change depending on factors like whether it’s a distressed sale, the length of time the home has been “on” the market, and other variables.

As of September 2021, Knoxville’s sale-to-list ratio is right at 100%, meaning homes in Knoxville, TN, sold for approximately the asking price on average.

Furthermore, Knoxville, TN, is experiencing a seller’s market, which means that more people are looking to buy than there are homes available. So if you are a Knoxville homeowner that would like to relocate, downsize, or upsize, now would be a good time to see a positive return on your investment.

For someone looking to buy a home in the Knoxville area, this means competition may be fierce, so you’ll want to be ready to make an offer quickly or possibly submit an offer above the asking price.

Your Guide to the Knoxville Housing Market (2021) | Nexus Homebuyers (3)

Average Days on Housing Market

As we enter the fall and winter seasons, the housing market tends to slow down. Fewer prospective buyers mean longer days on market.

(Video) SEPTEMBER 2022 Knoxville TN Housing Market Update - Homes for sale in East Tennessee

On average, homes sell after 46-days on the market but can range anywhere from 40-70 days.

So that’s 46-days to receive an offer, then you’re looking at 35-days to close if all goes well. So from listing to closing, you’re looking at approximately 81 days.

But average days on the housing market can change. For example, the best month to sell a house for speed in Knoxville is August which will close 9-days faster on average.

The slowest month is February, which can add 13 more days to closing.

Final Takeaways

The Knoxville housing market is expected to be in high demand, so it’s important that you learn where the best areas are for your needs. Whether you want a house or condo with plenty of space and amenities or something more urban-oriented closer to downtown Knoxville—you can find what you need! We hope these tips help make finding your perfect home easier than ever before.

If you’re a homeowner looking to sell but are concerned your home is too outdated, or in need of some major renovations, well, we buy homes in Tennessee and could make you a cash offer for your property no matter its condition.

(Video) Knoxville Real Estate Market Update | August 2022

We’re cash home buyers in Knoxville that purchase real estate in Tennessee, Alabama, and Georgia. Besides single-family homes, we also buy duplexes, triplexes, and apartment complexes. And if you’re looking for someone to “buy my house in Nashville,” we’d be happy to make you an offer for that too.

We’re one of the top home buying companies in Tennessee and are a BBB accredited business with an A+ rating and 4.9/5 star Google reviews.

Feel free to contact us or visit our website- Nexus Homebuyers, to learn more about how it works or to request a cash offer today!

FAQs

Is the housing market slowing down in Knoxville TN? ›

However, the Knoxville Area Association of Realtors said their MLS data showed that the number of closed units was down by around 9.5% year-over-year. They also said total home sales in September 2022 were down 9.5% from 2021, and 9.6% from 2020. They were up by 8.8% compared to 2019.

What is the housing market like in Knoxville TN? ›

Knoxville, TN Housing Market

In September 2022, the median listing home price in Knoxville, TN was $365K, trending up 28.1% year-over-year. The median listing home price per square foot was $193. The median home sold price was $327K.

Will house prices ever go down? ›

This could in turn push average mortgage rates upwards of 8% (while still historically low, that is more than double the 1.6% rate recorded at the end of 2021) Based on this data, Capital Economics has forecast house prices to rise throughout 2022, before falling by 5% in 2023.

Will house prices go down in 2023? ›

House prices are expected to fall by up to five percent next year, according to Zoopla. Senior Journalist, covering the Credit Strategy and Turnaround, Restructuring & Insolvency News brands.

Will house prices fall in 2022? ›

It said house prices will have risen 6 per cent by the end of 2022 but that they will fall 5 per cent in 2023 and a further 5 per cent in 2024 as a result of the sudden spike in mortgage rates caused by the government's fiscal plans.

Why are people moving to Knoxville? ›

Knoxville is one of the best mid-size cities in the U.S., thanks to its affordable cost of living, which is 17% lower than the national average and 6% lower than the Tennessee average. And the affordability doesn't stop there—the median home value in Knoxville is $120,300, and the median monthly rent is $766.

Are Tennessee home prices going down? ›

Tennessee is currently a seller's market, with homes selling quickly and for more than they are worth. According to Zillow, the typical home value (or ZHVI) in Tennessee is $303,453. Tennessee home values have gone up 26.1% over the past year.

Will home prices drop in Tennessee? ›

NASHVILLE, Tenn. (WZTV) — The housing market was booming in 2022. However, home prices in Nashville are projected to fall by 20%, according to a recent report by Moodys Analytics.

Why is rent so high in Knoxville TN? ›

The total amount of rental units in Knoxville is around 8,300. That lack of availability allows landlords and apartment managers to raise the price of rent, which maximizes their profit.

Is it smart to buy a house right now? ›

Based on data, now is a good time to buy a house — and first-time buyers agree. According to Fannie Mae's National Housing Survey, more than 60% of renters would buy a home if their lease ended. Most expect rents to rise sharply in the next 12 months. The housing market may favor Fall home buyers.

What happens when the housing market crashes? ›

During a housing market crash, the value of a home decreases. You will find sellers that are eager to reduce their asking prices. Sellers may be more motivated to bargain on price or make concessions to buyers.

What makes house prices go down? ›

The main factors that cause a fall in house prices involve: Rising interest rates (making mortgage payments more expensive) Economic recession / high unemployment (reducing demand and causing home repossessions). Fall in bank lending and fall in availability of mortgages (making it difficult to buy).

Will construction costs go down in 2024? ›

In 2023 and 2024, CBRE expects annual increases will return to historical averages between 2% and 4%. The report says: “Overall cost inflation for materials is expected to begin cooling by the end of 2022 and largely return to typical levels by mid-2023.

How much did house prices drop in 2008? ›

During the financial crisis, house prices fell by a total of 26.4 percent - from a high of 10.8 percent in June 2007, to a low of a -15.6 percent in February 2009. But the largest drop in annual house price growth in a month during this time period was 2.5 percent - half of that recorded for May to June this year.

Is now a good time to buy a house Martin Lewis 2022? ›

Martin Lewis has issued a fresh warning to home buyers as rates are expected to rise 6% in 2023. The Money Saving Expert founder has advised that first time buyers should not be buying a house right now unless they are prepared and plan to live in the home for the long term future.

What happens to my mortgage if house prices fall? ›

However, if house prices were to fall since you initially bought your home, you may owe more money on your mortgage than your house is currently valued at. This could be bad news as you may still end up owing your lender money even after they have repossessed and sold the property.

Is buy to let worth it 2022? ›

The simple answer to this is yes! Done well, buy-to-let can deliver excellent returns, but the first thing you have to appreciate is that this won't always happen quickly. Realising good returns for buy-to-let versus other financial investments will typically take longer as the costs to invest are higher.

Will interest rates drop next year? ›

When Will Interest Rates Go Down? We expect the Fed will pivot to easing monetary policy in mid-2023 as inflation falls back to its 2% target and the need to shore up economic growth becomes a top concern. The full analysis is detailed in our 2022 U.S. Interest Rate & Inflation Forecast. Interest-rate forecast.

What are the cons of living in Knoxville Tennessee? ›

The Pros and Cons of Living in Knoxville, TN
  • PRO: Living in Knoxville, TN is Affordable. ...
  • CON: Crime is a Problem in Knoxville, TN. ...
  • PRO: Knoxville, TN has Great Public Schools. ...
  • CON: Public Transportation is Lacking. ...
  • PRO: The Weather in Knoxville is Mild Most of the Year. ...
  • CON: Summers in Knoxville Are Sweltering.
12 Nov 2021

Where are most people moving to in Tennessee? ›

Data shows most are choosing Chattanooga -the city seeing 300 moves in for every 100 out.

Where are New Knoxville residents coming from? ›

Where are new Knoxville residents coming from? Heard all those anecdotes about the people moving from California to Knoxville? There's been a fair number – nearly 16.3% from Los Angeles, San Diego or the Bay area – but nearly 1 in 4 new arrivals came from either New York City or Chicago.

Is now a good time to buy a house in Tennessee? ›

It might not be a good time to buy a house in Tennessee right now. Listing prices are higher than normal, and there aren't a lot of properties on the market to choose from. If you really need to buy, then work with a real estate agent to help you find the perfect property for your budget.

Is Tennessee a buyers market? ›

Difference Since October 2021

Since last year, Nashville has remained a Seller's Market.

Why are people moving to Tennessee? ›

A study conducted by Bankrate found Tennessee to be the third best state in the U.S. for retirees and the most affordable. Its low cost of living, small tax burden, and pleasant weather are a few of the many reasons retired people move to Tennessee.

Why is real estate so high in Tennessee? ›

This has multiplied the demand for housing. High demand and low inventory are causing home prices in Nashville to rise at a rapid pace. Nashville home prices are rising due to low-interest rates, low inventory, and changing demographics in larger cities.

What does marry the house date the rate mean? ›

The idea is relatively straightforward. You buy a home you really want, regardless of available financing terms. And the mortgage rate you receive, even if high today, isn't your forever rate because you can always refinance down the road. But is it truly that simple?

Is Nashville real estate cooling down? ›

A year ago, the Greater Nashville area had one of the hottest housing markets in the country, with prices skyrocketing and homes being snatched up faster than anywhere else in the U.S. Now, though, things are cooling off, according to a new study from SmartAsset, a financial information service.

What is a good salary for Knoxville TN? ›

The average salary in Knoxville is $45,990. A good hourly wage in Knoxville is $18.75 per hour. That works out to a good weekly wage of $750 per week and a good monthly wage of $3,250 per month.

How much do you need to make to live comfortably in Knoxville? ›

Typical Expenses
1 ADULT2 ADULTS (1 WORKING)
0 Children3 Children
Required annual income after taxes$26,699$64,578
Annual taxes$4,328$10,469
Required annual income before taxes$31,027$75,047
7 more rows

What is the average household income in Knoxville TN? ›

Table
Population
Transportation
Mean travel time to work (minutes), workers age 16 years+, 2016-202022.3
Income & Poverty
Median household income (in 2020 dollars), 2016-2020$59,250
54 more rows

Will 2023 be a better time to buy a house? ›

Despite housing prices expected to drop in 2023, it will become more expensive to purchase a home. According to a new projection from Freddie Mac, the for-sale cost of a home is expected to drop . 2% in 2023.

Why You Should Sell Your house in 2022? ›

Fall 2022 and beyond could be a great time for sellers, or more of a market equilibrium may develop. Rather than trying to play the market, consider the cards you currently have in your hand: you know now is a good time to sell because competition is high and inventory is low.

How do you negotiate an overpriced house? ›

How to Make an Offer on a House That Is Overpriced
  1. Hire an Experienced Real Estate Agent.
  2. Find Out if the Home Is Really Overpriced.
  3. Present Evidence to Show That the Home Is Overpriced.
  4. Know Your Seller.
  5. Make Your Offer as Appealing as Possible.
  6. Be Ready to Negotiate Back and Forth.
  7. Be Ready to Walk Away.
  8. The Bottom Line.
12 Feb 2021

Will the housing bubble burst in 2023? ›

We expect home price growth to stall completely, averaging 0% in 2023,” Goldman strategist and economist Jan Hatzius wrote in a memo to clients. “While outright declines in national home prices are possible and appear quite likely for some regions, large declines seem unlikely.”

Is the US housing market headed for a crash? ›

Heading forward, the investment bank now expects U.S. home prices to fall 7% by the end of 2023. On one hand, that's far smaller than the 27% peak-to-trough decline the country experienced between 2006 and 2012. On the other hand, it's twice as large as the 3.1% peak-to-trough decline posted in the early '90s.

Are houses cheaper when the market crashes? ›

Do home prices go down in a recession? Home values tend to fall during a recession. So, if you're searching for a home, you're likely to find: Homeowners who are willing to lower their asking prices. Homeowners doing short sales to get out from under their mortgages.

What is the most likely cause for falling housing prices? ›

What would most likely cause housing prices to fall? a sharp increase in interest rates - An increase in interest rates. More expensive financing reduces the size of the buyer pool able to purchase. Less demand = lower prices.

What happens when the housing bubble bursts? ›

Once speculators recognize that housing prices are on the rise, they enter the market as well, further driving up demand. The phenomenon is called a bubble because inevitably, at some point, it will burst. Typically, it bursts when interest rates start to rise again, wiping out demand.

What is the future of the housing market? ›

California Housing Forecast

C.A.R.'s “2022 California Housing Market Forecast” predicted a 5.2% decline in existing single-family home sales to 416,800 units, down from the projected 2021 sales estimate of 439,800 units. Their forecast for California median home prices was for a rise of 5.2% to $834,400 in 2022.

Are new builds overpriced? ›

There are many advantages to a new build-property, which is also why they are more expensive. They come with lower maintenance costs and these homes are generally far more energy efficient which means gas and electricity bills are also lower.

Will 2024 be a good time to buy a house? ›

Another 24% predicted that the housing market shift would come in 2024. 13% expect the market to favor home buyers in 2025. While just 8% expect that to happen by sometime in 2026 or sometime in the next five years. Metros in the South and Midwest are the least likely to see price declines over the next year.

Is 2022 a good time to renovate? ›

Homeowner demand could taper

Last year, remodeling spending rose 9% year over year, and it's projected to rise 17% this year, according to Will. Historical average annual growth is about 5%.

Will there be a recession in 2022? ›

The U.S. has already experienced two consecutive quarters of negative GDP growth in 2022, which some people consider to be a recession. But others are waiting for the National Bureau of Economic Research to make the final call—and it has yet to do so.

Will housing market crash again? ›

Actually, economists do not think it will. Housing economists point to five main reasons that the market will not crash anytime soon: low inventory, lack of new-construction housing, large amounts of new buyers, strict lending standards and a drop in foreclosures.

What will happen to house prices in 2022? ›

It said house prices will have risen 6 per cent by the end of 2022 but that they will fall 5 per cent in 2023 and a further 5 per cent in 2024 as a result of the sudden spike in mortgage rates caused by the government's fiscal plans.

Will house prices go down in 2023? ›

House prices are expected to fall by up to five percent next year, according to Zoopla. Senior Journalist, covering the Credit Strategy and Turnaround, Restructuring & Insolvency News brands.

What's happening with right to buy? ›

Right to Buy latest

The Government has proposed to extend the Right to Buy to Housing Association tenants. The National Housing Federation is currently working with the Government to establish how this will work in practice.

Are mortgage rates coming down? ›

Predictions fall between 4.5% and 8.75% for the 15-year fixed mortgage rate. Averaged together, mortgage rate forecasts call for 30-year fixed rates at 7.0% and 15-year fixed rates at 6.42% in 2023. But a number of factors could lead to unexpected rate movements in the coming year.

Will house prices go down in Tennessee? ›

APPRECIATION RATE was 5.06% between 2021 Q4 and 2022 Q1. Prices have risen by 36.15% in the last two years and 160.71% since 2000. Here's Zillow's forecast for some of the metro areas in Tennessee. None of these MSAs of Tennessee is predicted to see a home price decline in 2023.

Are house prices dropping in Tennessee? ›

The Nashville area saw the most significant drop (4.3%), while the Knoxville and Memphis areas recorded closing increases (1.7% and 2.9%, respectively). Year-over-year changes were most significant for Nashville (-5.64%).

Why is rent so high in Knoxville? ›

The total amount of rental units in Knoxville is around 8,300. That lack of availability allows landlords and apartment managers to raise the price of rent, which maximizes their profit.

What is the average cost per square foot to build a house in East Tennessee? ›

In 2022, hard costs in Knoxville average from $135 to $300 per square foot, depending on the level of construction. A standard-grade home can cost anywhere from $100 to $130, a premium-grade home ranges from $135 to $300, and a luxury-grade home is $300 to $345 or more.

Will house prices go down in 2022 in TN? ›

Nashville home prices will keep rising in 2022 as buyers continue to compete for a limited number of homes for sale, Greater Nashville Realtors president Steve Jolly predicted. In 2021, the median sales price of a Nashville home rose 22.4 percent from $339,000 to $414,900.

Is now a good time to buy a house in Tennessee? ›

It might not be a good time to buy a house in Tennessee right now. Listing prices are higher than normal, and there aren't a lot of properties on the market to choose from. If you really need to buy, then work with a real estate agent to help you find the perfect property for your budget.

Is Tennessee a buyers market? ›

Difference Since October 2021

Since last year, Nashville has remained a Seller's Market.

Why are people moving to Tennessee? ›

A study conducted by Bankrate found Tennessee to be the third best state in the U.S. for retirees and the most affordable. Its low cost of living, small tax burden, and pleasant weather are a few of the many reasons retired people move to Tennessee.

Will rent go down in 2022? ›

Year-over-year rental price growth will rise from 5.8%, as of June 2022, to 8.4% as of May 2023, according to a Federal Reserve Bank of Dallas forecast that uses data from the federal government's consumer price index.

Is the real estate market slowing down? ›

The housing market is slowing down across the country. But as an investor, this might be the perfect time to get your foot in the door.

What is a good salary for Knoxville TN? ›

The average salary in Knoxville is $45,990. A good hourly wage in Knoxville is $18.75 per hour. That works out to a good weekly wage of $750 per week and a good monthly wage of $3,250 per month.

How much do you need to make to live comfortably in Knoxville? ›

Typical Expenses
1 ADULT2 ADULTS (1 WORKING)
0 Children3 Children
Required annual income after taxes$26,699$64,578
Annual taxes$4,328$10,469
Required annual income before taxes$31,027$75,047
7 more rows

What is the average household income in Knoxville TN? ›

Table
Population
Transportation
Mean travel time to work (minutes), workers age 16 years+, 2016-202022.3
Income & Poverty
Median household income (in 2020 dollars), 2016-2020$59,250
54 more rows

Is it cheaper to build or buy a house in Tennessee? ›

As a rule of thumb, it's cheaper to buy a house than to build one. Building a new home costs $34,000 more, on average, than purchasing an existing home. The median cost of new construction was $449,000 in May 2022.

What is the most cost effective house to build? ›

1. Ranch Homes. Ranch homes are the most popular home style in the U.S. They're another rectangular-shaped house, though they come in “T” or “L” shapes, too. A home with a simple and concise layout is the cheapest type of house to build.

How much does it cost to build a 2500 square foot home in Tennessee? ›

A 2,500-square-foot home will cost between $300,000 and $500,000 to construct, not including site work, land, and other fees. Listed below is the price breakdown of each construction work: Site Work: $4 to $42 per square foot.

Videos

1. Houses flying off the market amid real estate boom in Knoxville area
(WBIR Channel 10)
2. "Wild, wild west": Knoxville Housing Market
(WATE 6 On Your Side)
3. Knoxville home buying trends: March 2022
(WBIR Channel 10)
4. Knoxville Real Estate Market Update | October 2021
(Ben Barredo)
5. Knoxville Real Estate Market Update | December 2021
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6. Will Home Prices Drop in 2022? The facts. - East Tennessee/Knoxville TN Edition
(Troy Stavros at Doorbell Real Estate)
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