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

East Tennessee Real Estate Market Update – September 2025

As we move into the final months of the year, East Tennessee’s real estate market continues to show signs of balance. While new listings are beginning their usual seasonal slowdown, steady pricing and healthy inventory levels signal that the market remains strong and active.

Here’s a look at how things shaped up in September 2025.

New Listings

New listings were higher this September than in the same month of previous years, though a typical late-summer slowdown has begun. It’s common to see fewer new homes enter the market beginning in August, meaning buyers may have fewer “fresh” choices as the year winds down.

For buyers, this could mean two things: some may choose to wait until spring for more options, while others may face greater competition for available homes this fall. Interest rate trends will likely guide those decisions in the months ahead.

On the luxury side, listings in this category have remained fairly steady since June, indicating consistent seller confidence at the higher end of the market.

Active Listings

Active listings across East Tennessee remain noticeably higher than in 2024. This growth reflects a combination of strong listing activity and slightly longer time on the market for many homes.

Luxury properties priced at $800,000 and above have also increased steadily this year, giving buyers in that segment more choices than they’ve had in recent seasons.

Homes Under Contract

After a dip from July to August, the number of homes that went under contract in September rebounded slightly and outpaced the same month in recent years. That’s a positive sign for fall closings and suggests continued buyer engagement despite seasonal shifts.

In the luxury market, pending sales remained relatively steady from August to September—another indicator of a stable, balanced market.

Closed Sales

Because of the dip in pending contracts in August, September closings also experienced a slight drop. However, this mirrors the same pattern we’ve seen in previous years, reminding us that these fluctuations are seasonal and expected. The exceptions to that trend were the extraordinary pandemic years of 2020 and 2021, which don’t reflect typical market behavior.

Months of Supply

Inventory levels (measured by months of supply) tell an important part of the story. Homes priced between $650,000 and $800,000 saw a decrease in supply, while those priced above $800,000 saw an increase. That means more high-end homes are staying on the market longer, contributing to higher supply in that tier.

Overall, East Tennessee’s market is now sitting at just over six months of supply—historically considered a balanced market. While things may feel slower than in recent years, this level of activity is healthy and normal.

Median Sales Price

For homes priced above $800,000, the median sales price was just over $1 million in September. That suggests a strong concentration of sales in the true luxury range.

Across the broader market, median prices have held steady for an impressive 21 consecutive months. While national headlines may mention “falling prices,” much of that likely reflects inflated list prices being adjusted downward—our actual closing prices remain stable.

Days on Market

Luxury properties are taking longer to sell, with homes over $800,000 averaging more than 100 days on the market. Sellers in this price range should be prepared for a longer timeline and realistic expectations when listing their home.

What It All Means

As the East Tennessee market continues to normalize after several years of rapid change, buyers and sellers alike can take confidence in its stability. Pricing remains consistent, inventory is healthy, and opportunities exist on both sides of the table.

Whether you’re thinking about buying or selling, as your trusted Wallace Real Estate professional, I can help you navigate the market with expert insight and local knowledge.

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