East Tennessee home sales showed a marked decline in September, with total sales falling both month-over-month and year-over-year. However, rising inventory and sustained price growth reflect a complicated market where buyers face longer waits and tougher competition for affordable options.
Home sales in East Tennessee dropped nearly eight percent from the previous month and fell by one percent compared to the same period last year. Despite a slowdown in activity, the median sale price increased, reaching $371,250—a nine percent rise from last year. This price appreciation underscores the demand that remains, even as some buyers may be holding back due to higher borrowing costs and economic uncertainty.
Adding to the market’s complexity is a significant increase in housing inventory, which rose by 38.3 percent from last year. This expanded selection may provide more choices for potential buyers, though high prices and slower transaction speeds indicate challenges still exist. The median days on the market have increased, with half of all homes taking 20 days or less to go under contract, up from just 11 days a year ago.
In terms of pricing dynamics, 40.55 percent of homes sold at or above the asking price, with 18.77 percent going above the list price. Furthermore, eight percent of homes sold for at least $10,000 over asking.
New construction also accounted for a noteworthy share of sales, making up 12.36 percent of all transactions. This trend suggests ongoing demand for modern amenities and updated properties, even as builders contend with increased material and labor costs.
Overall, East Tennessee’s housing market shows signs of balancing, as rising inventory provides options but heightened prices keep affordability challenges in play.
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