Knoxville Area Housing Market Finishes Strong in 2020

Key Highlights

  • Home sales increased in December — up 5.2% from the prior month and 30.1 percent from a year ago.
  • The median home sales price was $241,00 in December — down 1.6% from November but up 15% from one year ago.
  • Total housing inventory declined 34% in 2020 and months’ supply fell to 1.24 months — a 24-month low.
  • Half of homes sold in December were on the market for less than 8 days.

KNOXVILLE, Tennessee (January 28, 2021) — Home sales in the Knoxville area rose in December according to the Knoxville Area Association of Realtors® (KAAR), a fitting conclusion to a record-setting year for the Knoxville housing market.

Existing-home sales—completed transactions including single-family homes, townhomes, condominiums, and co-ops—increased 5.2 percent from the prior month. Sales in total rose year-over-year, up 30.1 percent from a year ago.

Total homes sales for 2020 as a whole were up 6.9 percent compared to 2019.

“There is no doubt 2020 was a tremendous year for the Knoxville housing market,” said Hancen Sale, Governmental Affairs and Policy Director for KAAR. “With Knoxville continuing to grow and attract new residents from across the country, I don’t expect the housing market to slow down any time soon.”

Nationally, existing-home sales rose to a seasonally-adjusted annual rate of 6.76 million in Decmeber — up 0.7 percent from November and 22.2 percent from one year ago.

"Home sales rose in December, and for 2020 as a whole, we saw sales perform at their highest levels since 2006, despite the pandemic," said Lawrence Yun, NAR's chief economist. "What's even better is that this momentum is likely to carry into the new year, with more buyers expected to enter the market."

The median home sales price in the Knoxville area was $241,000 in December — down 1.6 percent from the prior month, but up more than 15 percent from one year ago.

“While certainly still elevated compared to previous years, home prices appear to be stabilizing,” said Sale. “But with more buyers entering the market this spring and a pre-existing supply shortage, home prices are likely to continue rising, though probably not as rapidly as they did in 2020.”

Total housing inventory declined in December, and for 2020 as a whole, active listings declined by more than 34 percent. Months of inventory1 declined 1.24 in December — a two year low — while the absorption rate2 increased to 81 percent.

According to KAAR data, half of the homes sold in December were on the market for 8 days or less.

“The inventory is extremely limited right now,” said Sale. “This supply-side constraint underscores the importance of boosting Knoxville’s housing stock, as meeting the rising demand will be a defining challenge for our city in 2021.”

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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.