Tennessee
Housing Market
The landscape of Tennessee’s housing market constantly evolves with shifting home prices and demand. Houzeo’s housing market report tracks these changes in supply and demand across Tennessee. Our report offers real-time insights to help you make informed decisions.
Overview
Supply
Demand
Buy or Sell
Market Insights
MigrationTennessee Housing Market Overview
House prices in Tennessee show a 5.3% YoY growth as of January 2025. This consistent growth in home prices indicates the strength of the housing market. The median home price in Tennessee is $383,700 at present. Moreover, the number of homes sold has increased by 3.5% YoY.
You can also check the market competitiveness through median days on the market. Homes in Tennessee now spend 75 days on the market before going under contract. All these metrics collectively indicate changes in the Tennessee housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
You can also check the market competitiveness through median days on the market. Homes in Tennessee now spend 75 days on the market before going under contract. All these metrics collectively indicate changes in the Tennessee housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: Real estate in Tennessee holds promising opportunities for home buyers. While prices rose 5.3%, homes now stay on the market for as long as 75 days. This selling period, up 7 days from last year, strengthens your negotiating position. The slower pace lets you carefully evaluate each property. A 2.7% increase in the number of Tennessee homes sold indicates a market that’s in your favor.
- If You're a Seller: Though the median home value increased to $383,700, homes now take an average of 75 days to sell. This extended selling time may require you to make price adjustments. While the market moved 5,111 homes this January, Tennessee home buyers have more leverage at the moment. Your success depends on competitive pricing and appealing property presentation.
Tennessee Housing Supply
Tennessee housing supply will only grow as new construction expands and mortgage rates stabilize. Experts predict moderate inventory gains in 2025 if interest rates fall to 6%. TN homes for sale increased by 16.8% year over year in January 2025. There are 34,733 houses for sale in Tennessee. The Tennessee market currently leans towards buyers with a 5-month supply period.
What Does It Mean for Home Buyers and Sellers?
If You're a Buyer: The housing market in Tennessee shows increased purchase options. A healthy 5-month supply indicates a balanced market for buyers. Available TN housing inventory has grown substantially, marking a 16.8% increase from last year. The market received 8,520 new listings this January, an impressive 18.4% YoY rise. These conditions create a favorable environment for your negotiations and decision-making. If You're a Seller: Your property enters a market that increasingly favors buyers. The 5-month supply signals even longer selling times ahead. A substantial 16.8% increase in TN housing inventory means heightened competition for buyer attention. The surge of 18.4% in new homes for sale in Tennessee further intensifies the competitive landscape. Strategic pricing and property presentation should be your focus in this buyer-friendly market.
What Does It Mean for Home Buyers and Sellers?
Tennessee Housing Demand
The percentage of properties sold above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline suggests more supply. Tracking this trend helps you gauge Tennessee's real estate market competitiveness.
13.8% of homes in Tennessee sold above the list price in January 2025. Price reductions increased 4.5 points from last year, with 23.8% of homes with price drops. The 97% sale-to-list price suggests fewer bidding wars and increased flexibility for buyers.
What Does It Mean for Home Buyers and Sellers?
If You're a Buyer: Good news, the Tennessee real estate market has shifted in your favor. Only 13.8% of Tennessee houses now sell above their asking price, a clear decline from last year. Almost a quarter of sellers have reduced their prices, up significantly from 19% last January. The sale-to-list price ratio has decreased to 97%, which gives you stronger negotiating power. These trends confirm that sellers need to compete for your interest. If You're a Seller: The Tennessee housing market now calls for strategic price adjustments to attract buyers. Above-list sales have dropped by 1.4 points to just 13.8%, which limits your pricing opportunities. 23.8% of Tennessee houses needed price adjustments to match buyer expectations. The 97% sale-to-list ratio indicates that TN home buyers often secure below-asking prices. You should lock in competitive initial prices to avoid future adjustments.
13.8% of homes in Tennessee sold above the list price in January 2025. Price reductions increased 4.5 points from last year, with 23.8% of homes with price drops. The 97% sale-to-list price suggests fewer bidding wars and increased flexibility for buyers.
What Does It Mean for Home Buyers and Sellers?
Is it a Buyer’s or Seller’s Market in Tennessee?
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Buyer
Balanced
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Buyer’s Market
Seller’s Market
Buyer: Supply exceeds demand, and homes stay listed on the market for longer, pushing sellers to offer concessions.
Is it a Buyer’s or Seller’s Market in Tennessee?
As of January 2025, Tennessee home buyers have an advantage due to increased housing inventory and median days on the market. A 16.8% increase in the total homes for sale, as well as a median of 75 days on the market, gives more leverage to buyers. However, the current mortgage rates of 6.21% to 6.99% may reduce buying power.
23.8% of homes experienced price drops in January 2025, up 4.5 points YoY. With an 18.4% rise in new home listings, Tennessee home buyers are spoilt for choice. But these trends could vary within Tennessee's diverse real estate markets.
Tennessee Housing Market Insights
The average home price in Tennessee climbed 5.3% above last year's levels in January 2025 — surpassing the national average increase of 4%. Yet buyers found relief thanks to a 16.8% increase in Tennessee houses for sale. The surge in available homes shifted power toward potential buyers. The extended 75-day selling timeline reinforces this market transition into a buyer’s market.
Recent price trends suggest signs of market cooling. Sellers reduced prices on 23.8% of homes for sale in Tennessee in January 2025. This rate exceeded the national price reduction level of 18.8%. The market now accepts offers at 97% of list prices. These factors signal prime opportunities for Tennessee home buyers.
Recent price trends suggest signs of market cooling. Sellers reduced prices on 23.8% of homes for sale in Tennessee in January 2025. This rate exceeded the national price reduction level of 18.8%. The market now accepts offers at 97% of list prices. These factors signal prime opportunities for Tennessee home buyers.
Nationwide Migration Trends
Tennessee attracted significant inbound migration during winter 2024-2025's peak moving season. Over 9,000 residents searched for in-state homes from Nov '24 to Jan '25. New homebuyers arrive from New York, California, and Illinois. The zero state income tax and pleasant climate draw families to Tennessee real estate markets. Cities like Nashville, Clarksville, and Lebanon welcome the most new residents.
This migration pattern reflects the broader cost of living index trends. Tennessee's index is nearly 10% lower than the national average.
This migration pattern reflects the broader cost of living index trends. Tennessee's index is nearly 10% lower than the national average.
Frequently Asked Questions
How is the housing market in Tennessee?
The state's housing market landscape is robust and currently favors buyers, despite increasing mortgage rates. Homes for sale in Tennessee have strong demand. Statewide prices rose 5.3% YoY in January 2025. Markets like Nashville and Clarksville saw a significant boom in home buyers coming from other metro cities.
Which are the cheapest cities in Tennessee?
If you're moving to Tennessee from expensive states like New York or California, you'll pay at least 41% less to buy or rent a house. Rockwood ($189k) and La Follette ($194k) have the lowest median home price, and offer the most affordable housing in Tennessee. Read on to know more about the cheapest places to live in Tennessee.
Should I wait for some time before buying houses in Tennessee?
As a Tennessee home buyer, you can get a great deal due to the extended median days on the market and growing inventory of Tennessee homes. The average home price in Tennessee is currently $383,700. If you plan on buying a home in Tennessee, consider getting a mortgage pre-approval. You will also need to budget for a down payment of up to 10%.
How can I list my property for sale in Tennessee?
You can list your home for sale with a Flat Fee MLS Tennessee listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the average mortgage rate for Tennessee home buyers?
The average mortgage rate for Tennessee home buyers fluctuates between 6.21% and 6.99%. When you apply for a mortgage, make sure to check your credit score and the current mortgage rates with lenders.
How does the Tennessee housing market compare to the national market?
The Tennessee housing market is outperforming the national market, with more substantial price growth and increased demand due to relocation from other states. Tennessee’s cost of living is about 10% lower than the US average, which attracts more buyers to the state.
Is now a good time to buy or sell a home in Tennessee?
It depends on the current trends in housing prices and inventory in your city. Sellers generally benefit from low months of supply and rising prices. However, if mortgage rates stay stable with more than 6 months of supply, it's the best time to buy a house in Tennessee.
When will housing prices drop in Tennessee?
The average house price in Tennessee has consistently risen over the past years, driven by strong demand. Prices show an annual increase of 5.3%, with some regions seeing double-digit percentage growth. It stands to reason that this trend will continue for the near future. You can check your home's fair market value with our free home value estimator to know where you stand.
When will the Tennessee housing market crash?
As per 2025 housing market predictions for Tennessee, it’s highly unlikely that the market will crash. Prices are projected to experience sustained growth through 2025. Home prices in Tennessee will grow along with the housing demand.
What is the cost of living in Tennessee?
Tennessee ranks tenth among America's most affordable states to live in. This rank stems from Tennessee’s average cost of living index of 90.4. You can calculate the cost of living in Tennessee to track expenses in your area.
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