How Price Cuts And Inventory Shifts Are Changing Knoxville Home Prices

Price reductions swept through the Knoxville metro housing market during the week ending Nov. 7, 2025, with 51.9% of active listings carrying reduced asking prices, well above typical market conditions where cuts affect roughly 30-35% of inventory.

The Tennessee metro recorded 2,492 active single-family homes for sale, marking a 19.7% jump from 2,082 properties available during the same week in 2024. Despite the inventory buildup, buyers absorbed 293 homes during the week, representing a 33.8% increase from the 219 homes absorbed a year earlier.

Inventory accumulates amid aggressive repricing

Sellers responded to growing competition by cutting prices at unprecedented rates. Beyond the 51.9% of homes with reduced prices, another 1.9% of listings saw price increases, leaving nearly half the market holding firm on original asking prices. The median reduction magnitude data was not available in the dataset.

New listings entered at a measured pace, with 160 homes added during the week. The 2.1 months of supply indicates seller-favorable conditions persist, though the metric has shifted from the tighter conditions typical of recent years.

Properties required a median 63 days to sell, extending from 56 days during the same period in 2024. The 5.9% relisting rate suggests most sellers achieved successful transactions without needing to withdraw and relist their properties.

Home pricing adjusts downward across the metro

The median list price settled at $459,900, declining 6.1% from $489,900 a year ago. At $230 per square foot, Knoxville’s pricing exceeded both Tennessee’s statewide median of $219 per square foot and the national median of $212 per square foot.

The metro’s median list price also surpassed state ($435,995) and national ($432,980) medians by 5.5% and 6.2% respectively, maintaining Knoxville’s position as a relatively higher-priced Tennessee market.

Market dynamics favor sellers despite shifts

Knoxville’s housing market maintained seller-favorable conditions according to market balance indicators, though the aggressive repricing activity signals sellers recognize the need for competitive positioning. The 2.1 months of supply remains below the 2.5 months nationally and well under Tennessee’s 2.8 months statewide.

The combination of rising inventory, extended selling times, and widespread price cuts alongside increased buyer absorption illustrates a market in transition. Sellers who price competitively find buyers, as evidenced by the 33.8% year-over-year surge in weekly absorption.

Key metrics to monitor

Track the 51.9% price reduction rate as a leading indicator of seller sentiment. Monitor whether the 63-day median selling time extends further or stabilizes. Watch if weekly absorption maintains its elevated pace above 290 homes to gauge sustained buyer interest at current price points.

Use the 2.1 months of supply benchmark to assess market balance shifts. Track whether new listing volumes exceed or fall below the current 160 weekly pace. Monitor the $459,900 median price point for further adjustments as sellers compete for buyer attention.

HousingWire used HW Data to source this story. To see what’s happening in your own local market, generate housing market reports. For enterprise clients looking to license the same market data at a larger scale, visit HW Data.