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East Tennessee Real Estate Market Update – March 2025
As we head into the heart of the spring market, East Tennessee is seeing some encouraging signs of growth and movement in residential real estate. From increased inventory to a rise in pending and closed sales, this March brought several promising indicators. Here’s a closer look at how our local market is shaping up.
New Listings: A Return to Pre-Shift Levels
March brought a surge of new listings—the highest we’ve seen since March 2022. Two years ago, we were in the midst of a historic market, driven by migration into our area, ultra-low interest rates, and sky-high buyer demand. While today’s market is more balanced, homeowners seem to be recognizing the substantial equity they’ve built and are ready to make a move. With more options available, that once-daunting question of “where would we go if we sold?” is becoming easier to answer. It’s a self-fulfilling cycle: more listings create more choices, which inspires more sellers to enter the market.
Active Listings: More Time, More Opportunity
Compared to last year, we have a noticeably higher number of active listings. Not only are more homes being listed, but they’re also staying on the market a bit longer—giving buyers more time to explore and giving agents more time to market strategically.
Sales Pending: Gaining Momentum
While we’re not quite back to the pending sales highs of 2021 or 2022, we’re trending ahead of both 2023 and 2020. After a slow start to the year, the number of homes under contract is gaining steam. That momentum typically translates into stronger closing numbers in the months ahead, suggesting a healthy spring season is taking shape.
Closed Units: A Sharp Turnaround
Closings in February hit a multi-year low, but March quickly reversed course. We’re now back in line with last year’s numbers, a reminder that the spring selling season often brings a surge in finalized transactions. The upward swing in closed sales is a reliable indicator of renewed buyer activity.
Months of Supply: Seller’s Market Holds Steady
Despite more homes hitting the market, demand is keeping pace. Our months of supply dropped to just over five—still squarely within a seller’s market. It’s worth noting that while this is the broad picture for our region, conditions can vary significantly from one neighborhood to the next. Local expertise continues to be invaluable.
Median Sales Price: Slow and Steady Growth
In March, the median sales price reached a new high at $375,000. Although price growth is slower than it was during the peak frenzy of recent years, we are still seeing upward movement. What some may perceive as price “drops” are often simply reductions from an initially over-ambitious list price—not true declines in market value.
Average Days on Market: A Seasonal Shift Ahead
Homes averaged about 65 days on the market in March, the highest we’ve seen for early spring in several years. However, this figure typically begins to decline in April as the market picks up speed. A drop to 45–55 days on market would be a reasonable expectation as we move further into spring.
What This Means for Buyers and Sellers
Whether you’re considering selling, buying, or both, today’s East Tennessee market presents real opportunities. Sellers can take confidence in rising home values and buyer activity, while buyers benefit from a growing selection of homes and slightly more breathing room than in recent years.
As always, working with a knowledgeable real estate professional can help you navigate the nuances of this dynamic market. Whether you’re looking for your first home, selling your current one, or simply curious about market trends, I’m here to help you navigate this evolving market.
*Stats provided with permission from the East Tennessee Realtors Multiple Listing Service. As reported by Claudia Stallings, Wallace Real Estate COO.
