KAAR’s latest “Market Pulse” report shows slight month-over-month decline
The monthly “Market Pulse” report for May from the Knoxville Area Association of Realtors has been released, and it shows that seasonally adjusted home sales in the Knoxville Area decreased 3.8 percent from April to May. Despite the month-over-month decline, the pace of home sales pace was up 5.3 percent compared to a year ago.
Other key highlights include:
- The median home sales price was $334,000 in May — up more than 25 percent from the previous year.
- Even after the home price growth of the past two years, Knoxville remains affordable compared to the U.S. overall largely because of its low cost of living and relatively affordable home prices. The May median sale price of $334,000 was around 20 percent lower than the national average of $408,000.
- The typical home sold in May was 1,776 square feet with three bedrooms and two bathrooms.
- Total housing inventory continued trending upward – up 40 percent from a year ago but still more than 65 percent below pre-pandemic levels.
- Half of the homes sold in May were under contract in four days or less.
- Fifty percent of homes sold for over asking price, compared to 53 percent the previous month, with 34 percent selling for at least $10,000 over asking and 17.5 percent selling for at least $25,000 over asking.
- New construction represented 9.4 percent of total home sales in May, though move-in-ready new homes accounted for less than two percent of total sales.
Other highlights from the report included:
- A new report from Realtor.com ranked Knoxville among the top five U.S. metro areas with the fastest-growing down payments. The median down payment in Knoxville increased from $11,000 in 2019 to $27,000 in Q1 of 2022.
- Higher mortgage rates are placing even more pressure on Knoxville’s rental market. In May, effective rents in the Knoxville metro area (MSA) were up 20.06 percent from the previous year, significantly higher than the 14.86 percent growth rate nationally.
