Tennessee’s real estate market is exhibiting signs of stabilization, with modest price growth, increased inventory, and extended time on the market. Here’s a comprehensive overview:
🏠 Statewide Market Overview
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Median Sale Price: In April 2025, the median home sale price in Tennessee was $391,600, reflecting a 0.9% increase compared to the previous year.
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Homes Sold: A total of 7,602 homes were sold in April 2025, marking a 6.1% decrease year-over-year.
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Median Days on Market: Homes spent an average of 57 days on the market, up by 5 days from the previous year.
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Inventory Levels: There were 41,914 homes for sale, a 16.5% increase compared to the previous year.
📊 Market Dynamics
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Homes Sold Above List Price: Approximately 16.8% of homes sold above their list price, a decrease of 2.2 percentage points year-over-year.
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Price Drops: 27.2% of homes experienced price drops, up from 24.0% the previous year.
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Sale-to-List Price Ratio: The average sale-to-list price ratio was 97.7%, indicating that homes are selling slightly below their listing prices.
🌆 Regional Highlights
Nashville
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Median Sale Price: The median sale price in Nashville was $460,900, a 5.0% decrease compared to the previous year.
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Median Days on Market: Homes in Nashville spent an average of 59 days on the market, up by 11 days year-over-year.
Knoxville
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Market Outlook: Knoxville is projected to be one of the top housing markets in 2025, driven by affordable housing inventory, higher income growth, and significant millennial homebuyer demographics.
🔮 Market Outlook
Tennessee’s housing market is expected to maintain its steady growth trajectory through the remainder of 2025. The combination of rising home values and increasing inventory suggests continued competition among buyers, particularly in urban centers like Nashville and Knoxville. However, the market remains relatively affordable compared to national averages, making it attractive for both first-time homebuyers and investors.