Knoxville Area Home Sales Decline in November

Key Highlights

  • Home sales decreased in November — down 6% from the prior month, but up 22% from one year ago.
  • The median home sales price was $242,500 in November — 17.4% more than in November 2019.
  • Total housing inventory declined for the eighth consecutive month, down 16% from the prior month, enough to last 1.28 months at the current sales pace.
  • More than 6 in 10 homes sold in November were on the market for less than one month.

KNOXVILLE, Tennessee (December 29, 2020) — Home sales in the Knoxville area declined in November, according to the Knoxville Area Association of Realtors® (KAAR). Despite taking a step back in terms of month-over-month growth, the Knoxville area still experienced significant year-over-year growth in home sales. 

Existing-home sales—completed transactions including single-family homes, townhomes, condominiums, and co-ops—decreased 6 percent from the prior month but remained 22 percent higher than one year ago.

“Notwithstanding pandemic-related challenges, the demand for homeownership is still very high,” said Hancen Sale, Governmental Affairs and Policy Director for KAAR. “With low mortgage rates and persisting demand, there is good reason to think 2021 will be a strong year for the Knoxville housing market.”

Nationally, existing-home sales in November fell to 6.69 million — down 2.5 percent from the prior month, but up 25.8 percent from one year ago.

“Home sales in November took a marginal step back, but sales for all of 2020 are already on pace to surpass last year's levels,” said Lawrence Yun, NAR’s chief economist. "Given the COVID-19 pandemic, it's amazing that the housing sector is outperforming expectations."

The median home sales price in the Knoxville area was $242,500 in November — down 2 percent from the prior month, but up almost 25 percent from one year ago.

“Most of the monthly change in median sales price can be attributed to a slowdown in purchases of homes at the upper end of the price range,” said Sale. “Overall, homeowners have seen huge equity gains within the last year and home prices in the Knoxville area still trending upward.”

Total housing inventory declined in November for the eighth consecutive month — active listings were down 16 percent from the prior month and 30 percent from one year ago. Months of inventory1 declined 1.28 in November while the absorption rate2 increased to 78 percent.

“Very limited inventory and quick turnaround remains an issue for Knoxville,” said Sale. “With so few homes available, potential sellers are having a hard time finding a new home, so they decide to stay put until more options are available.” 

More than 6 in 10 homes sold in November were on the market for less than one month, and 84 percent of homes sold in the past month were on the market for 120 days or less.

“The Knoxville housing market is on track for another strong year in 2021, but there are still significant challenges ahead,” Sale said. “Meeting the rising demand and bolstering our supply of housing is paramount if Knoxville is to remain the affordable oasis it is today.”

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The Knoxville Area Association of Realtors® is a trade association, representing around five thousand members involved in all aspects of the residential and commercial real estate industries. KAAR tracks home sales in the Knoxville area each month. Monthly housing market reports and multiple listing services (MLS) data are generated around the 15th of each month for sales in the previous month.

 

Media Contact

Hancen Sale

hancen@kaarmls.com

865-588-6350


1 Months of inventory denotes the number of months it would take to exhaust active listings at the current sales rate.

2 The absorption rate represents the percentage of current inventory sold per month.