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

East Tennessee Market Update: Steady Confidence as We Head Into the Holidays

As we move through the final months of 2025, the East Tennessee housing market continues to show balance and resilience. While activity naturally cools with the season, October’s numbers tell a story of renewed confidence among both buyers and sellers — and a market that’s finding its footing after several years of change.

New Listings: Sellers Staying Active

Sellers didn’t slow down heading into fall. October brought a steady stream of new listings, outpacing September and coming in only slightly below summer levels. Compared to last year, new listings are up — a clear sign that more homeowners are feeling confident enough to make a move despite higher interest rates.

In the luxury segment, listings held steady, though a seasonal decline is expected as the fourth quarter progresses.

Active Listings: More Choices for Buyers

Inventory continued to climb through October, with roughly 10,100 active listings across East Tennessee — up about 2% from September and nearly 22% higher than last October. That’s the most fall inventory we’ve seen since before the pandemic.

For buyers, this means more breathing room and less competition. For sellers, it means standing out matters more than ever — presentation, pricing, and preparation make a real difference in today’s market.

Higher-end listings (over $650,000) also saw a small increase in October, while those over $800,000 remained steady.

Sales Pending: Steady Demand Despite Rate Fluctuations

Pending contracts ticked up nicely in October, suggesting a solid close to the year ahead. Compared with last fall, pendings are holding firm — a reassuring sign that demand for housing in our region remains strong. Homes priced above $800,000 even saw a slight bump from September to October.

Closed Sales: More Deliberate Decisions

Closings dipped slightly from September, which is typical for the season, but still came in ahead of October 2024. Rather than a drop in demand, this reflects a more deliberate market. Buyers are taking their time, negotiating carefully, and ensuring that homes align with value and lifestyle needs.

In the luxury market, sales eased a bit — but higher inventory is giving buyers more leverage to be selective.

Months of Supply: Finding Balance

East Tennessee now has just over six months of supply — the amount of time it would take to sell all current listings. That keeps our region in light seller’s market territory, but it’s also the most balanced we’ve been in years.

Back in 2021, supply rarely topped two months. Today, the market feels more sustainable for everyone — buyers, sellers, and agents alike.

Median Sales Price: Holding Steady

Home prices have remained remarkably stable. The median sale price in October was nearly unchanged from September and just a few percent higher than last year, showing that price growth has leveled into a healthy, sustainable pattern.

In the higher price ranges, homes listed at $650,000 or more had a median sale price just above $800,000, and those listed above $800,000 sold around $1 million — reinforcing that the true luxury threshold in East Tennessee sits around that $800K mark.

Days on Market: A More Measured Pace

The average home spent about 64 days on the market in October — down slightly from September but almost double the pace we saw at the height of the pandemic market. That’s not a slowdown; it’s a sign of normalization. Buyers are taking a bit more time to make decisions, and sellers can expect a longer (but steadier) path to closing.

The Bottom Line

East Tennessee’s housing market has entered a new, more balanced phase. Sellers are gaining confidence, buyers have more choices, and prices are holding steady — all positive signs as we close out the year.

Whether you’re considering listing your home, making a move, or simply curious about your neighborhood’s trends, I can help you navigate the market with clarity and confidence.

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