May 2025 Real Estate Market Update: What You Need to Know

East Tennessee Real Estate Market Update: A Balanced Spring Bring Opportunity for Buyers and Sellers

As we moved into the heart of spring, May 2025 delivered encouraging signs that East Tennessee’s real estate market is settling into a healthier rhythm. While homes are still selling, the breakneck pace of recent years has eased, creating a more balanced environment for buyers and sellers alike.

Here’s a quick look at how the market performed in May:

New Listings: Fresh inventory continues to hit the market, with nearly 2,900 new listings added in May. This is great news for buyers who faced tighter choices last year, and a reminder for sellers that presentation and pricing matter more than ever.

Active Listings: Inventory is growing. With nearly 9,500 homes on the market, buyers are seeing more options than they’ve had in years. Sellers should expect more competition and work closely with their agent to stand out.

Sales Pending: Pending sales held steady at 2,013, showing that buyers are still making offers—but doing so with more care and intention. Homes in desirable areas and well-prepared listings continue to attract strong interest.

Closed Sales: Just under 1,800 homes closed in May—a solid pace, though buyers are clearly taking more time to make decisions. Sellers should be prepared for longer timelines and more negotiation.

Months of Supply: At 5.4 months of inventory, East Tennessee has returned to a balanced market. Buyers have more leverage and negotiating power, while prices remain stable—a win for both sides.

Median Sales Price: Home prices remain strong, with the median sale price holding steady just over $372K. Buyers can feel confident about long-term value, and sellers can be reassured about pricing stability.

Average Days on Market: Homes are now spending an average of two months on the market—reflecting a more thoughtful, less pressured buying process.

What It Means for You: The East Tennessee market today is smart, steady, and increasingly strategic.

• Sellers: Prepare, price, and market wisely. Today’s buyers are informed and deliberate.
• Buyers: You’ve got more leverage than in recent years. Use it to make confident offers that reflect current market conditions.

If you’re considering a move, this is a great time to work with a trusted real estate professional and approach the market with clarity—not urgency.

As always, working with a knowledgeable real estate professional can help you navigate the nuances of this dynamic market. Whether you’re looking for your first home, selling your current one, or simply curious about market trends, I’m here to help you navigate this evolving market.

*Stats provided with permission from the East Tennessee Realtors Multiple Listing Service. As reported by Claudia Stallings, Wallace Real Estate COO.