Tennessee’s real estate market is leaning in favor of sellers as we move through 2025, but the dynamics are shifting. While the red-hot pandemic-era boom has cooled, demand remains strong in many areas, and inventory is still relatively tight. Whether you’re thinking of selling or just want to understand what’s happening across the state, here’s a deep dive into what makes this a seller’s market—and where things could be heading.
Now for those who are unsure of what a seller’s market is in real estate, this is a market that happens when demand for homes exceeds the supply — meaning there are more buyers than available homes for sale. This gives sellers the upper hand, often leading to:
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Higher home prices
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Faster sales
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Multiple offers or bidding wars
📊 Statewide Snapshot: Demand Still Outpacing Supply
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Median Sale Price: As of early 2025, Tennessee’s median home price sits around $383,500, up 5.3% year-over-year despite higher mortgage rates (Redfin).
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Inventory Levels: Inventory has grown by 17.1%, yet the market still only has about 3-4 months of housing supply, which falls short of the 6 months considered balanced. This keeps sellers in a strong position (Redfin).
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Buyer Activity: Roughly 13.8% of homes are selling above list price—an indicator of continued competition, though slightly down from peak 2021-2022 levels (Redfin).
📍 Regional Breakdown: Which Cities Are Most Competitive?
Nashville
Nashville remains one of Tennessee’s hottest markets. Though the market is cooling slightly due to rising interest rates, inventory remains tight, keeping it favorable for sellers.
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Current Supply: ~4 months of inventory (Norada)
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Buyer Trends: Still drawing transplants from high-cost states like California and New York.
Knoxville
Knoxville is among the strongest metros for home appreciation.
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Annual Growth: Home prices are up 8.2% year-over-year, significantly outpacing the state average (MTSU Housing Report).
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Why It’s Hot: Affordability, job growth, and outdoor lifestyle appeal to both young families and retirees.
Memphis
While Memphis is more affordable, it’s showing signs of balancing out.
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Inventory & Demand: More homes are coming on the market, which may slightly temper seller power.
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Price Increases: Steady but moderate—good for long-term owners, but less dramatic gains compared to East Tennessee.
🧐 What Does This Mean for Sellers?
1. You Still Have Leverage—but Price Smart
Overpricing homes could lead to extended time on the market. Pricing realistically (not optimistically) based on neighborhood comps is key to generating multiple offers.
2. Presentation Still Matters
Buyers are choosier now. Homes that are staged, well-maintained, and move-in ready are still the ones attracting strong offers and minimal negotiation.
3. Time on Market Is Increasing
Even in a seller’s market, homes are taking a bit longer to sell. The median time on market statewide has risen to about 75 days, up from 68 days last year (Norada).
🔚 Conclusion: Seller’s Market with Signs of Shifting
While Tennessee is still a seller’s market in early 2025, the scales are starting to level out. Homes are selling, but not at the breakneck pace of previous years. If you’re considering listing your home, you still have the advantage—but you’ll need to be smart about your strategy. With higher interest rates limiting buyer budgets, sellers should expect more negotiation and focus on preparation.
📚 Sources
💬 We’d Love to Hear From You!
Are you thinking of buying or selling a home in Tennessee this year? Share your thoughts or experiences in the comments below! If you have questions about your local market or need personalized advice, drop us a message — we’re here to help you navigate every step of the way. Don’t forget to subscribe for more updates on Tennessee’s real estate trends!
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Partners Realty Group
(865) 789 – 6677
“List with confidence—Tennessee’s still your market to move.”
