KNOXVILLE, Tenn. — Housing prices continued increasing across East Tennessee over the spring, according to a new report by the East Tennessee REALTORS group.
It said the median home sale price in the Knoxville area was around $354,450 in April, up by around 10% compared to the previous year. It also said East Tennessee home sales increased by 14% compared to the previous month, and half of the homes sold were under contract within 16 days or less.
"The National Association of REALTORS data shows that the affordability crisis continues in Knoxville to the point that those making the median household income in Knoxville, reported by the Knoxville Chamber as being $62,911, can only afford a fraction of the listings in the area," the report said.
It also said the total housing inventory across the Knoxville area increased by around 3% in April, compared to March, and was up by around 35.2% compared to the previous year. The report said around 46.3% of homes sold for the asking price or above.
Around 12.7% of the homes sold in the Knoxville area were also newly built, the realtor group said.
"After home sales slowed in March as strong economic and job growth figures pushed up mortgage rates, April saw the greatest number of home sales in 2024. Despite mortgage rates remaining high, home sales saw a resurgence," the report said. "Although still low by historical standards, inventory levels are considerably higher than a year ago."
In Knox County specifically, there was a 20.7% increase in home sales — higher than the overall East Tennessee region. The report also said mortgage rates surpassed 7% in April, with the 30-year fixed mortgage rate averaging at 7.03% for the week ending May 30, 2024.
Around this time last year, the mortgage rates averaged around 6.6%.
The report also found that the occupancy rate in East Tennessee rentals decreased to 95.7%, compared to its peak of 98.9% in the fourth quarter of 2021. Over the next four quarters, the realty group expects 1,564 units to come online.
"Although we have seen a slight decline in apartments currently under construction we are still seeing historic levels of building," the report said.
It found the average rent in the Knoxville area was around $1,448 per month, an increase of 55% compared to before the COVID-19 pandemic.