Home sales, prices, rent all up in the Knoxville area
Living is expensive, no matter if you're buying or renting. The Knoxville Area Association of Realtors breaks down the latest housing data in the area in this month's Market Pulse.
Everything costs more and that isn’t changing any time soon, especially as it relates to the Knoxville area housing market.
Home sales are up, home prices are up, rent prices are up, mortgage rates are up, everything is up according to the latest Market Pulse report from the Knoxville Area Association of Realtors (KAAR).
So who’s buying and renting these places? KAAR explains that data shows fewer people are choosing to leave Knoxville.
Knoxville was among the top 5 U.S. metros whose shoppers were less interested in other markets, according to Realtor.com‘s 2022 Q4 Cross-Market Demand Report. Forty percent of Knoxville homebuyers in Q4 2022 were looking to move to other metros, compared to 44.7 percent in Q4 2021, suggesting local shoppers showed less interest in homes outside the Knoxville area.
Renters also appear to be staying put. Only 27.7 percent of renters actively searching for a place to live were looking to move outside the Knoxville metro – the 7th lowest outbound migration rate in the U.S. – according to a new Apartment List report.
That report also sheds light on where renters in Knoxville are moving to and from. Of renters moving to Knoxville, the top 3 origin cities were Nashville, Atlanta, and Chattanooga, while the top 3 destinations for renters leaving Knoxville were Nashville, Charlotte, and Atlanta.
Here are more data points related to buying, selling, and renting from the report:
- Home sales in the Knoxville Area increased in January – up 1.8 percent from the previous month but down 23.6 percent from a year ago.
- According to Redfin analysis, the total value of Knoxville’s housing market rose 17.7 percent year-over-year in 2022 – the third-largest increase in the country.
- Total housing inventory remains elevated – up 95 percent from a year ago but still more than 40 percent below pre-pandemic levels.
- Half of the homes sold were under contract in 25 days or less, up from 16 days the previous month.
- 18 percent of homes sold for more than the asking price, down from 23 percent the previous month, with 7 percent selling for at least $10,000 over asking and 2.5 percent selling for at least $25,000 over asking.
- Effective rents in the Knoxville metro area were up 12.72 percent year-over-year in January 2023, outpacing the 4.99 percent growth nationally.
- Knoxville’s rental occupancy rate remains among the highest in the nation at 96.5 percent, compared to 94.8 percent nationally.
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