If you're thinking about buying a home in Knoxville or the surrounding areas this year, you might be wondering: Is now the right time to buy? With interest rates, home prices, and inventory constantly shifting, navigating the housing market can feel overwhelming. But don’t worry—we’re here to break down the key factors that matter most to buyers in East Tennessee right now.

1. Interest Rates: Will They Drop?

Mortgage rates have been a hot topic over the past few years. While rates are still higher than they were during the record lows of 2020-2021, experts predict we may see slight decreases throughout 2025. This means if you’re waiting for the “perfect” time to buy, it’s important to balance waiting for lower rates with the reality that home prices may continue to rise.

What You Can Do:

• Get pre-approved now so you're ready to move when the right home becomes available.
• Consider rate buy-down options or adjustable-rate mortgages (ARMs) if you need flexibility.
• Work with a knowledgeable local agent to time your purchase strategically.

2. Knoxville’s Inventory: More Homes, More Choices

One of the biggest challenges for homebuyers in recent years has been low inventory. However, in 2025, we’re seeing a slight increase in homes hitting the market, giving buyers more choices. New construction is also ramping up in areas like Hardin Valley, Powell, and Maryville, providing more opportunities for those looking for move-in-ready homes.

What You Can Do:

• Stay on top of new listings with real-time alerts from your agent.
• Be open to exploring different neighborhoods to maximize your options.
• Consider new construction or slightly older homes that may offer more value.

3. Home Prices in East Tennessee: A Market Cooling, but Still Strong

While home prices aren’t dropping dramatically, the rapid appreciation we saw over the last few years has slowed. This means buyers have a better chance of negotiating, especially in certain price points or with homes that have been on the market for a while.

What You Can Do:

• Don’t be afraid to negotiate—sellers are more open to concessions now.
• Look at homes that have been on the market for a few weeks; you may find a great deal.
• If you’re a first-time buyer, consider programs that offer down payment assistance.

4. The East Tennessee Advantage: Why This Market Stands Out

Knoxville and the surrounding areas continue to be a top destination for those relocating from other states, thanks to affordability, job growth, and quality of life. With no state income tax and access to outdoor recreation, it’s no wonder people are choosing East Tennessee over other markets.

What You Can Do:

• If you’re moving from out of state, work with a local expert who understands Knoxville’s market trends.
• Take advantage of Tennessee’s lower cost of living compared to other regions.
• Research property tax rates and HOA fees, which vary by county and neighborhood.

Final Thoughts: Is Now the Right Time for You?

The best time to buy a home is when you’re financially ready and have found a home that fits your needs. The 2025 Knoxville market presents great opportunities for buyers who are prepared and working with the right real estate team.

If you're thinking about making a move this year, let’s connect! At Luxe Property Group, we specialize in helping buyers navigate the East Tennessee market with confidence. Contact us today to start your home search!