Is East Tennessee Shifting to a Buyer’s Market? Here’s What You Need to Know

If you’ve been following the real estate buzz in East Tennessee lately, you may have noticed a subtle but significant shift: more homes are hitting the market, and buyers are starting to gain the upper hand. From Sevierville to Johnson City, the landscape is changing—and whether you’re buying or selling, you need to understand what that means.

Inventory Is Up—And That Changes Everything

Across much of East Tennessee—including popular markets like Sevier County, Morristown, and the Tri-Cities—housing inventory has jumped by as much as 25–33% compared to this time last year. More homes for sale means more competition for sellers and more options for buyers.

In April alone, closed home sales were down around 8% year-over-year across several counties. What does that mean? For sellers, it means it’s no longer enough to simply list a home and expect a bidding war. Pricing, presentation, and promotion matter more than ever.

New Construction & Townhomes Are Hot

While some existing homes are sitting longer, new construction—especially townhomes—are still moving. Areas like Hardin Valley, Powell, and Johnson City are seeing a rise in townhome development, thanks to buyer demand for low-maintenance, move-in-ready options.

For buyers, this opens the door to brand-new homes without the headache of major repairs or renovations.

Johnson City Is Booming with Out-of-State Buyers

Johnson City was just named the #1 relocation destination in the Southeast, according to Southern Living. And it’s no surprise—this vibrant community offers affordability, access to the outdoors, great healthcare, and a growing downtown.

Whether you’re relocating from Florida, California, or just moving within Tennessee, Johnson City (along with areas like Cosby and Morristown) are drawing interest for their lifestyle and cost of living advantages.

Mortgage Rate ‘Lock-In’ Is Starting to Break

For a long time, homeowners with low 2–3% mortgage rates stayed put—causing tight inventory. But as life changes and equity grows, more people are accepting today’s rates (hovering near 6%) and choosing to move anyway.

That’s why we’re seeing more listings come on the market now—and why we’re likely to see continued movement through the rest of 2025.

So… Is Now a Good Time to Buy or Sell?

If You’re a Buyer:
Yes! You’ve got more homes to choose from, a less frenzied pace, and more room to negotiate. But be smart—well-priced homes in great condition are still selling quickly. Be ready with financing and a local agent who knows how to win in this market.

If You’re a Seller:
You can still get great value for your home, but strategy matters more than ever. That means working with a local expert to price correctly, market effectively, and stand out from other listings.

Let’s Talk About Your Move

Whether you’re relocating, downsizing, investing, or upsizing, I’d love to help you navigate East Tennessee’s shifting real estate market. My job is to keep you ahead of the curve, whether that means finding the perfect mountain home or getting your property sold fast and for top dollar.

Call/Text: 865-896-1009
Email: Homes@LivingInGatlinburgTN.com
Learn More: www.LivingInGatlinburgTN.com