Knox County, TN Real Estate Market Update – October 2026

The Knox County housing market continued to shift toward a more balanced, buyer-conscious environment in October 2026. While closed sales and pending contracts declined compared to last October, home prices remained strong, with both average and median sale prices posting notable year-over-year gains. Meanwhile, inventory climbed more than 10%, homes took longer to sell, and the list-to-sold price ratio held relatively steady at 95.3%.

Overall, October's numbers reflect a market where buyers have more options and greater negotiating opportunities, while sellers continue to benefit from resilient home values.

Market Overview

The absorption rate increased to 3.33 months in October, compared with 3.12 months in October 2025, representing a 6.7% year-over-year increase. Year-to-date, absorption averaged 2.86 months, up 7.5% from the same period last year.

While Knox County remains below the five-to-six-month supply often associated with a balanced market, the increasing absorption rate suggests that buyers are gaining additional flexibility.

Days on Market (DOM)

• Average DOM: 57 days, up from 48 (+18.8% YoY)

• Median DOM: 28 days, up from 19 (+47.4% YoY)

• YTD Average DOM: 47 days, up from 41 (+14.6%)

• YTD Median DOM: 20 days, up from 17 (+17.7%)

Homes are taking noticeably longer to sell compared with October 2025. The increase in median DOM is particularly significant, suggesting that longer marketing times are becoming more common across the market.

For sellers, accurate pricing, property condition, and effective marketing remain essential to attracting qualified buyers.

Pricing Trends

Home prices demonstrated notable strength in October, despite slower sales activity.

• Average Sale Price: $548,157, up 12.4% YoY

• Median Sale Price: $410,000, up 7.9% YoY

• YTD Average Sale Price: $499,057, up 3.6%

• YTD Median Sale Price: $400,000, essentially unchanged from 2025

• Average Active List Price: $565,378, up 2.9% YoY

• Median Active List Price: $405,900, down 2.2% YoY

October's increase in both average and median sale prices is encouraging for homeowners. However, the difference between the 12.4% increase in average sale price and the nearly unchanged year-to-date median suggests that higher-priced transactions may be influencing the monthly averages.

The broader market continues to demonstrate price stability, even as buyers become more selective and inventory expands.

Market Activity

Sold Listings

524 homes sold in October, compared with 605 during October 2025, representing a 13.4% year-over-year decrease.

Despite the monthly decline, 6,501 homes have sold year-to-date, up 3.4% from 6,285 during the same period last year.

Sales activity varied considerably by price range:

• $250K–$299K: Down 33.3%

• $300K–$349K: Down 20.4%

• $350K–$399K: Down 32.7%

• $850K–$899K: Up 55.6%

• $900K–$949K: Up 71.4%

The slowdown was particularly noticeable throughout several affordable and mid-priced segments, while portions of the luxury market experienced stronger sales activity.

Pending Listings

524 homes went under contract during October, compared with 639 in October 2025, representing an 18.0% decline.

Year-to-date pending contracts reached 6,644, remaining 3.0% ahead of 2025.

October's decline in pending sales is noteworthy because contracts typically precede future closings. This could indicate a slower pace of transactions heading into the final months of the year.

However, with year-to-date pending activity still ahead of last year, buyer demand remains present, even as purchasing decisions become more deliberate.

Active Listings

Knox County finished October with 2,139 active listings, compared with 1,931 last October, an increase of 10.8%. Year-to-date active inventory is running 5.7% above 2025 levels.

This expanding inventory provides buyers with more options, particularly in the $300,000–$400,000 range and portions of the higher-end market.

For sellers, increased competition reinforces the importance of strategic pricing and strong property presentation.

List-to-Sold Price Ratio

The Sold-to-List Price Ratio measured 95.3% in October 2026, compared with 95.0% in October 2025.

This slight improvement indicates that sellers are receiving a marginally higher percentage of their original asking price than a year ago. However, with the ratio remaining near 95%, negotiation continues to be a normal part of the transaction, reinforcing the importance of realistic pricing strategies.

What This Means for Buyers and Sellers

For Buyers: October's market conditions offer encouraging opportunities. Inventory increased more than 10%, homes are taking longer to sell, and pending contracts have slowed. These factors may provide buyers with additional negotiating leverage on purchase prices, repairs, closing costs, and other contract terms. However, rising sale prices demonstrate that desirable properties continue to maintain value.

For Sellers: Home values remain strong, with both average and median sale prices increasing significantly year-over-year. However, fewer closed sales, declining pending activity, and longer marketing times suggest buyers are becoming increasingly selective. Sellers who price competitively, prepare their homes properly, and implement effective marketing strategies will be better positioned to stand out in a growing inventory of available properties.

Conclusion

October 2026 delivered another month of shifting conditions in the Knox County housing market. Closed sales declined 13.4%, pending contracts fell 18.0%, and active inventory increased 10.8%. Meanwhile, average sale prices climbed 12.4%, median sale prices increased 7.9%, and the list-to-sold price ratio improved slightly to 95.3%.

Although year-to-date sales remain ahead of 2025, October's slowdown in transaction activity, combined with rising inventory and longer marketing times, suggests the market is continuing to normalize.

The biggest takeaway is that Knox County remains a market with resilient home values but increasingly price-sensitive buyers. Buyers have more choices and greater negotiating opportunities, while sellers must be more intentional about pricing, presentation, and marketing.

As we approach the final months of 2026, understanding these shifting conditions will be essential for anyone considering buying or selling a home in the Greater Knoxville area.