Knoxville housing market continues to see strong increase in pricing
By Kailyn Lamb, Marketing Content Writer and Editor, PYA
As Knoxville’s population continues to grow, so does the need for housing. Teknovation Weekend readers will remember our recent interview with Hancen Sale, Government Affairs and Policy Director at the Knoxville Area Association of Realtors (KAAR). Various national reports on moving have placed Knoxville and East Tennessee as top destinations. Low stock and high demand are causing prices to rise.
Earlier this month, Redfin released its rankings for the value of the U.S. housing market. In December, the total value of U.S. homes soared 19 percent for year-over-year numbers. The report said this was the largest annual gain seen in December since 2001. Nashville ranked #11 with a year-over-year value change of 28 percent. Knoxville was not far behind at #18, with a 24.4 percent value change. Memphis also made the list with a 16.9 percent value change. Read the full report here.
In the January “Economic Conditions Outlook” (ECO) report from the Knoxville Chamber, financed by First Horizon Bank, it was noted that 37 percent of homes were sold for over asking price in December in Knoxville. Although the number of home sales fell compared to November in both the Knoxville Metropolitan Statistical Area (MSA) and Knox County, the “ECO” stated there were more home sales in December 2021 than any other December on record. The median home sale prices in both the Knoxville area and Knox County are up 21.3 percent and 23.9 percent respectively compared to last year. The report also said that housing inventory both locally and nationally is at historic lows. In the Knoxville area, active listings are down 26 percent compared to last year. Half the homes on the market sell in seven days or less. Sale said in the “ECO” report that he expects these trends to continue:
“Knoxville’s housing market continues to outpace the U.S. overall, as home sales and home prices remain high,” Sale said. “Barring unforeseen economic conditions, I expect these trends to continue with robust home price growth, particularly in the first half of 2022. According to KAAR’s annual housing market forecast for the Knoxville area released in December, I expect to see 0-3 percent home sales growth and 5-8 percent home price growth in 2022.”
Read our teknovation.biz article on the rest of the “ECO” report here. Find the full report from the Chamber here.