Market Outlook

East Tennessee’s housing market experienced extraordinary growth over the past two years, culminating in booming home sales and home prices growing at the fastest pace on record. Much of that growth can be attributed to a substantial supply-demand imbalance and fundamental market forces, such as favorable demographic trends, migration and changing household composition. Other trends, such as pandemic-induced migration, fiscal stimulus, and ultra-low borrowing costs, were unique to the pandemic era, and their impact already is waning.