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As we get into 2025, the East Tennessee real estate market is showing early signs of growth and movement. January’s numbers reveal a higher number of new listings, a steady median sales price, and longer days on market, signaling a shift toward a more balanced market. While some metrics indicate a slower pace compared to past years, the overall outlook remains positive for buyers and sellers alike.
Here’s a breakdown of January 2025’s key trends and what they mean for you.
New Listings: A Stronger Start Than in Years Past
This January, we saw 2,029 new listings hit the market—a large increase over December and significantly higher than last January. This is an encouraging sign that sellers are beginning to make moves rather than hold on to their low-interest mortgages.
- Luxury Market: Approximately 400 new luxury listings entered the market, showing continued movement in the high-end segment.
What this means for you:
Sellers: More inventory means greater competition, so pricing and marketing must be on point to stand out.
Buyers: More listings give you better selection and more negotiating power than in previous years.
Active Listings: More Homes Available Than in Recent Years
The number of active listings in January 2025 was higher than in past Januarys, indicating a continued shift toward a more balanced market. This metric tracks all homes that held an active status at any point during the month.
- Total Active Listings: 7,000
- Luxury Market: 1,750 luxury homes were active in January—accounting for 25% of the total inventory.
What this means for you:
Sellers: More homes on the market means you’ll need a competitive strategy to attract buyers.
Buyers: More inventory gives you room to negotiate and take your time choosing the right home.
Sales Pending: A Slightly Slow Start, But an Upward Trend
Despite the increase in new listings and active homes, pending sales in January were still slow compared to typical market trends. However, they were higher than January 2024, showing a step in the right direction.
- Luxury Market: Fewer than 200 luxury homes went under contract in January.
Market uncertainty—particularly economic and political changes—can cause hesitation among buyers. But historically, the early months of the year tend to be slower, with activity picking up in spring.
What this means for you:
Sellers: Buyers are taking longer to make decisions, so patience and the right strategy will be key.
Buyers: With slower movement, you have more room to negotiate pricing and terms.
Closed Sales: A Slight Increase Over Last Year
January saw 1,125 total homes sold, which is slightly more than last year but still a slower start overall. The market is adjusting to new conditions, and experts predict sales will increase between 5-9% by the end of 2025 as buyers and sellers acclimate.
- Luxury Market: 155 luxury homes closed in January.
What this means for you:
Sellers: Be prepared for longer time on the market and potential negotiations.
Buyers: If you’re ready to move, now is a great time to buy before competition picks up in the spring.
Months of Supply: A Market Moving Toward Balance
For the first time in several years, the months of supply has risen above 6 months—a sign that the market is transitioning away from a seller’s market toward a more balanced environment.
- Luxury Market: The luxury supply sits at over 11 months, meaning high-end homes are taking longer to sell and there is more competition among sellers.
What this means for you:
Sellers: Homes are taking longer to sell, so be prepared to adjust pricing or marketing strategies if needed.
Buyers: The higher supply gives you more time and more negotiating power—especially in the luxury market.
Median Sales Price: Holding Strong Despite Market Shifts
The East Tennessee median sales price for January was $363,900, which represents a slight drop from December but remains the highest of any previous January.
- Luxury Market: The median price for homes listed at $650,000+ was $820,000.
This consistent price stability over time suggests that while demand may fluctuate, home values are continuing to appreciate.
What this means for you:
Sellers: Pricing remains strong, but overpricing could lead to longer days on market.
Buyers: Prices remain steady, but with more inventory, you may find better deals in certain areas.
Average Days on Market: Listings Make Take A Bit More Time to Sell
The average days on market for January was 55 days, which is significantly higher than where we started in 2024.
A new metric—Cumulative Days on Market (CDOM)—has also been introduced for 2025. This number tracks the total time a property spends on the market, even if it was previously listed and withdrawn before selling. However, so far, CDOM is not significantly different from the standard Days on Market measurement.
- Luxury Market: Luxury homes take a few days longer to sell compared to the overall market.
What this means for you:
Sellers: Homes aren’t selling as quickly as they did in past years, so marketing, pricing, and presentation are crucial.
Buyers: Homes that have been on the market longer may provide great negotiation opportunities.
What to Expect in the Coming Months
With more listings, a rising supply of homes, and steady prices, the real estate market is moving toward a more balanced pace. The days of bidding wars and extreme seller advantages are behind us, and both buyers and sellers need to adapt to this new environment.
- Sellers should expect longer days on market and be prepared to adjust strategies to attract buyers.
- Buyers should take advantage of increased inventory and negotiating power while market conditions favor them.
With spring approaching, we expect activity to pick up, making now the perfect time to prepare for your next move.
Thinking About Buying or Selling? Let’s Talk!
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. Let’s make 2025 a successful year for your real estate goals!
*Stats provided with permission from the East Tennessee Realtors Multiple Listing Service. As reported by Claudia Stallings, Wallace Real Estate COO.
