Knoxville, TN Housing Market & Real Estate Update
Knoxville, TN – February 26, 2026 – Prices are edging up, listings are active, and mortgage rates near 6% are shaping negotiations heading into spring.
In Knoxville, TN, the market heading toward spring is still supportive of sellers on pricing, but it is also giving buyers more room to negotiate on terms. With mortgage rates near 6%, monthly payment sensitivity remains a major factor in how quickly homes move and what gets agreed to after inspections and appraisals.
Top takeaways
- Home values: Typical home values are about $361K (+0.7% year over year).
- Recent sales pace: January’s median sale price was about $314K (+2.5% year over year), with homes taking about 72 days to sell.
- Rates backdrop: Freddie Mac’s weekly survey put the average 30-year fixed rate at 6.09% (Feb. 12), keeping affordability and financing terms central to negotiations.
Market snapshot
Inventory remained active into late winter. Active for-sale inventory was listed around 1,895 homes at the end of January, with 426 new listings during the month. The median list price was about $400K, and the median time from list to pending was about 39 days.
On the rental side, average asking rent was about $1.7K. For households weighing whether to buy now or wait, the combination of price levels and borrowing costs continues to shape the buy-vs.-rent math.
What’s for sale nearby (no addresses)
- ~$369K: 3-bed, ~1,500 sq ft.
- ~$489K: 4-bed, ~2,400 sq ft.
What to watch
If rates stay near 6%, attention may shift to concessions (closing-cost help, rate buydowns, repairs) rather than large list-price cuts. In a market where timelines can vary, buyers may focus on total monthly cost and inspection outcomes, while sellers may focus on clean offers and reliable financing as much as headline price.