Knoxville, Tennessee

In Knoxville, Tennessee there are a greater number of realtors in the area than houses to be sold. There are 4000 properties listed and 4,500 realtors. The median household income in Knoxville is $33,494 annually. Clearly, this has created a very strong seller’s market and not as fortunate for most buyers. This environment supports prices of homes to continue to climb.

Another result is a feeding frenzy of multiple offers coming in, and many offers are more than the listed price of the home. This creates a big problem for house purchasers wanting to get a loan. Home loans are based on the appraised value of the homes. A solution for some people – pay cash for the home. Of course, this works for some, but most people need a home loan. In all price ranges, the market for homes is strong throughout Knoxville. This includes high-end homes above $500,000.

Even though there has been quite a bit of new construction in the last several years, the number of local seekers of homes has been exceeding the number of houses for sale. This dissuades a number of current homeowners from selling their home because they are not certain of their ability to find a new residence once they would sell their current home.

The good news is that for first time home buyers, house prices are lower in comparison to prices in similar and even larger cities. There are 3 tiers of home prices – starter houses, trade up homes for people who have increased their wealth, or have or want bigger families, and premium homes at the high end of the real estate market. But in Knoxville, the premium market is getting bigger, and the bottom two tiers have gotten smaller. The starter house market is the smallest tier, making it even more difficult for first time home buyers to enter the market. Again, the good news is that home prices are lower than in the rest of the country.