Knox County Real Estate Market Report — March 2026
Published April 10, 2026 · Single-family residential · Knox County, Tennessee · CENTURY 21 Legacy
Knox County's housing market has shifted measurably from the softer conditions of fall 2025. Every leading indicator in March 2026 is pointing in the right direction — pending sales are at a 12-month high, inventory is declining for the fifth consecutive month, and price reductions are shrinking. Here is a full breakdown of where the market stands and what it means heading into spring.
March 2026 Market Snapshot
Active Listings
1,509
+11.4% vs Mar 2025Months Supply
2.78
+35.6% vs Mar 2025Pending Sales
815
+14.1% vs Mar 2025Closed Sales
543
-17.6% vs Mar 2025Median Sale Price
$390K
-1.0% vs Mar 2025Avg Days on Market
56
+33% vs Mar 2025The 12-Month Story
Knox County spent the first half of 2025 in a gradual shift — inventory building, days on market extending, and buyer negotiating power quietly increasing. By fall, the market reached its softest point. November 2025 posted 3.62 months of supply and the weakest sale-to-original-list ratio of the period at 95.0%. Sellers who entered the market overpriced absorbed significant reductions before closing.
The picture is measurably different entering spring 2026. Inventory has declined five consecutive months from the October peak of 1,930 active listings to 1,509 in March. The more telling signal is pending sales: 815 contracts in March 2026 — the highest count in the full 12-month dataset and up 14.1% year over year. Buyer demand is active and the pipeline is filling.
Price reductions are also improving. Sellers are taking smaller cuts (-5.20% average vs -6.92% a year ago), indicating that well-priced listings are meeting the market rather than chasing it down. Days on market have pulled back from the February peak. The direction on every leading indicator is favorable.
Full 12-Month Data
| Month | Active | New | Pending | Closed | Mos Supply | Med Sale | Avg DOM | Med DOM | Sale/Orig List |
|---|---|---|---|---|---|---|---|---|---|
| Mar 2025 | 1,354 | 931 | 714 | 659 | 2.05 | $394,035 | 42 | 16 | 97.2% |
| Apr 2025 | 1,521 | 1,039 | 749 | 610 | 2.49 | $399,900 | 42 | 12 | 97.2% |
| May 2025 | 1,656 | 1,017 | 724 | 735 | 2.25 | $399,900 | 35 | 11 | 97.1% |
| Jun 2025 | 1,754 | 871 | 706 | 735 | 2.39 | $413,400 | 38 | 12 | 97.1% |
| Jul 2025 | 1,842 | 916 | 694 | 724 | 2.54 | $395,000 | 38 | 18 | 96.4% |
| Aug 2025 | 1,842 | 804 | 623 | 743 | 2.48 | $390,000 | 41 | 21 | 95.7% |
| Sep 2025 | 1,891 | 784 | 560 | 583 | 3.24 | $405,000 | 47 | 21 | 95.8% |
| Oct 2025 | 1,930 | 850 | 642 | 601 | 3.21 | $380,000 | 43 | 18 | 96.0% |
| Nov 2025 | 1,876 | 603 | 555 | 518 | 3.62 | $390,000 | 49 | 28 | 95.0% |
| Dec 2025 | 1,767 | 468 | 441 | 616 | 2.87 | $385,000 | 49 | 29 | 94.5% |
| Jan 2026 | 1,637 | 726 | 621 | 488 | 3.35 | $385,000 | 59 | 33 | 94.6% |
| Feb 2026 | 1,510 | 644 | 562 | 513 | 2.94 | $385,000 | 63 | 38 | 95.8% |
| Mar 2026 | 1,509 | 961 | 815 | 543 | 2.78 | $390,000 | 56 | 29 | 96.1% |
Market Analysis
01 — Inventory
Inventory is normalizing, not collapsing
Active listings peaked at 1,930 in October 2025 and have declined to 1,509 in March — the fifth consecutive monthly decrease. Months of supply has eased from a 3.62 peak to 2.78. Buyers currently have more options than a year ago, but available inventory is narrowing as spring demand absorbs supply.
02 — Demand
Pending sales signal strong buyer demand
815 contracts were pending in March 2026 — the highest count in the full 12-month dataset and up 14.1% year over year. This is a leading demand indicator. Closed sales are running below last year's pace because the market softened in fall 2025, not because buyers have pulled back.
03 — Pricing
Home values are holding
Average sale price is up 3.9% year over year. Median sale price is essentially flat at $390,000 versus $394,035 a year ago. Knox County did not experience a price collapse — values have remained stable through the inventory transition.
04 — List price accuracy
Accurate pricing determines outcomes
Sale-to-original-list hit 94.5% in December 2025, meaning sellers who entered the market overpriced were discounting an average of 5.5% from original ask before selling. On a $400,000 listing, that represents a $22,000 reduction before negotiations. The trend is improving — sellers who price correctly from the start are closing closer to ask.
05 — Days on market
Timelines have extended and are improving
Average days on market is 56 in March 2026, up from 42 a year ago. Median days on market has risen from 16 to 29 over the same period. Both metrics peaked in February 2026 and are now pulling back, consistent with a seasonal spring recovery in activity.
06 — Spring 2026
Spring 2026 momentum is building
March 2026 shows alignment across every leading indicator. Pending sales are at a 12-month high. Inventory is declining. New listings are up 3.2% year over year. Price reductions are shrinking. Days on market are retreating from the February peak.
What This Means for Buyers and Sellers
For sellers
The conditions that produced the softest outcomes — peak inventory, elevated days on market, and the lowest sale-to-list ratios — are behind us. Spring 2026 presents a more favorable environment. Accurate initial pricing remains the most significant factor in determining how close a sale comes to asking price and how quickly it closes.
For buyers
Inventory is still elevated compared to a year ago, but it is declining. Buyers currently have more selection than they will likely have later in the season. The rise in pending sales indicates that well-priced homes are moving. Extended days on market allow for a more measured decision process, but well-positioned listings are not sitting indefinitely.
Frequently Asked Questions
What is the median home price in Knox County TN in 2026?
The median sale price for single-family homes in Knox County was $390,000 in March 2026 — essentially flat compared to $394,035 in March 2025. The average sale price is $479,909, up 3.9% year over year, with upper-price-point homes outperforming the median.
Is Knox County a buyer's market or seller's market in 2026?
Knox County is transitioning from a buyer's market back toward balance in spring 2026. Months of supply stands at 2.78 — down from a peak of 3.62 in November 2025. Pending sales reached a 12-month high of 815 in March 2026, signaling strong buyer demand. Conditions are more favorable for sellers than they were in fall 2025, but buyers still have more selection than a year ago.
How long does it take to sell a home in Knox County TN?
In March 2026, the average days on market was 56 days, with a median of 29 days. Both metrics peaked in February 2026 and are improving. For comparison, average days on market was 42 and median was 16 in March 2025. Well-priced homes are moving faster than the average suggests.
Are home prices dropping in Knoxville TN?
No. Knox County home values have remained stable through the inventory increase of 2025. The average sale price is up 3.9% year over year. The median sale price is down just 1.0% from a year ago. The data does not support a narrative of price decline.
How many homes are for sale in Knox County TN?
As of March 2026, there were 1,509 active single-family residential listings in Knox County — down from a peak of 1,930 in October 2025. Inventory has declined for five consecutive months as spring demand absorbs available supply.
What does months of supply mean and what is it in Knox County?
Months of supply measures how long it would take to sell all current active listings at the current pace of closed sales. Knox County is at 2.78 months as of March 2026. Under 3 months generally indicates a seller's market, 3 to 6 months is balanced, and over 6 months favors buyers. Knox County peaked at 3.62 months in November 2025 and has been declining since.
Data source: MLS Market Trends, Knox County TN, single-family residential, downloaded April 10, 2026. Data reflects reported market activity and is subject to revision as transactions finalize.
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