EAST TN Home Sales Report

[Cory King]

• East Tennessee home sales in August saw a healthy 2.1% increase over July, and a 7.4% increase over August 2024.
• The median sale price was $376,200 — up 3% from the previous year.
• Total housing inventory has increased 31.4% from the previous year.
• Half of the homes sold were under contract in 28 days or less, up from 20 days a year ago.
• 39% of homes sold for the asking price or above, with 18.3% selling for more than the asking price. 7.9% sold for at least $10,000 over asking and 2.7% sold for at least $25,000 over asking price.
• 5.5% of all homes sold in August sold for more than $1 million, a new high mark for the year.
• The sale-to-list price ratio lowered slightly to 98.6%, still up from 97.6% a year ago.
• New construction was 11.9% of total home sales.
  
  August sales saw a boost over July, outperforming the prior year and bringing the year-to-date total up by nearly 4%. While a slight August increase is a seasonally expected trend, last month's sales also benefitted from lending rate optimism and an increase in applications as 30-year fixed mortgage rates eased to mid-6%. However, all the conversation about mortgages has also made some buyers continue to hold out in hopes of a rate miracle.
  
  Buyers are more selective than ever, wanting extra amenities in exchange for today's high market prices. The sale-to-list ratio has dropped slightly, and overall days on market continues to tick up each month. Buyers push back on small tradeoffs, say no to DIY work and want extra perks for their dollars.
  
  It's not yet a "buyer's market," but the increased inventory available and skittish buyers means that a good pricing strategy is more important than ever. 39% of homes sold for asking price or above in August, the lowest percentage since the surge began in early 2021. Historically, an average of 28-30% in recent years would have been considered normal. This is just one of the indicators we have seen in 2025 that shows the East Tennessee market is stabilizing, while still growing.