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Before we get too far into 2025, lets take a moment to look at the East Tennessee real estate market trends for December. The numbers tell an interesting story: while the market is no longer as frenzied as we saw during the pandemic years, it’s finding a rhythm that feels steady—and, in many ways, familiar. Here’s a breakdown of what we’re seeing and what it means for buyers and sellers as we head into 2025.
📋 New Listings: A Seasonal Slowdown (and That’s Normal!)
December saw fewer new listings hitting the market compared to last year, but don’t be alarmed—this is a completely normal seasonal trend. The holidays tend to bring a slowdown in listings, and this year’s numbers are nearly identical to what we saw in December 2019. As we move past the holiday season, we expect to see more properties hitting the market in the coming months.
What it means for you:
- Sellers: If you’ve been waiting for less competition, now’s the time to get ready to list.
- Buyers: Fewer new listings might mean you need to act quickly when you find the right home, but more inventory is likely on the way.
🏡 Active Listings: Buyers Are Getting More Choices
The number of active listings on the market was down from November, but it’s still the highest December inventory we’ve seen in six years. After years of record-low inventory, buyers are finally seeing more options. However, this doesn’t mean we’re in a buyer’s market just yet—it’s more of a balanced market, where buyers have a bit more breathing room to make decisions.
What it means for you:
- Buyers: You now have more time to consider your options and even ask for concessions or repairs, which wasn’t the case during the peak of the market frenzy.
- Sellers: While homes are still selling, it’s important to price your property competitively and be prepared for a bit more negotiation.
🔑 Sales Pending: Returning to Pre-Pandemic Normalcy
The number of homes under contract in December mirrored the levels we saw in 2019, the last “normal” year before the pandemic-driven real estate boom. It’s a sign that buyers and sellers are gradually adjusting to higher interest rates, recognizing that life changes—like job relocations or growing families—continue to drive the need to buy or sell homes.
What it means for you:
The market is steady, and despite higher interest rates, buyers are still making moves. If you’re waiting for rates to drop dramatically, you may be waiting longer than expected. It’s better to focus on finding the right home or buyer rather than waiting for the perfect rate.
📈 Closed Units: Steady Sales, Reflecting Typical Year-End Trends
December saw more closed sales than last year, with activity remaining steady from November to December. Historically, this trend is common, with similar sales activity between these two months. It’s a reassuring sign that the market is maintaining momentum even as we head into the slower winter months.
What it means for you:
The market isn’t slowing down dramatically, which is good news for both buyers and sellers. Whether you’re thinking of listing your home or making a purchase, the demand is still there.
⏳ Months of Supply: Nearing a Balanced Market
The months of supply—the measure of how long it would take to sell all the current inventory—dropped slightly in December, largely due to fewer listings during the holiday season. However, we’re slowly inching closer to a balanced market. While it still slightly favors sellers, the shift toward balance is welcome news for buyers.
What it means for you:
- Buyers: You’ll have more negotiating power than you’ve had in recent years.
- Sellers: Homes are still moving, but pricing matters more than ever in this evolving market.
💰 Median Sales Price: Holding Steady at $370,000
Throughout 2024, the median sales price has remained in the range of $350,000 to $375,000, ending the year at $370,000. This stability shows that while buyers have more negotiating power, prices haven’t dropped drastically—another sign that we’re not in a true buyer’s market just yet.
What it means for you:
If you’re buying, don’t expect massive discounts, but you do have more room for negotiations. If you’re selling, focus on presenting your home well and pricing it appropriately to attract buyers.
🕒 Average Days on Market: A Seasonal Spike
The average days on market saw a noticeable jump from November to December, but this isn’t a cause for concern. With Thanksgiving and Christmas packed into a short timeframe, many closings were delayed by holiday schedules and vacations.
What it means for you:
Sellers should keep in mind that homes may take a bit longer to sell during the holidays, but this is temporary. As we move into the new year, expect the timeline to shorten again.
What to Expect in 2025
Looking ahead, the market is showing signs of stability. We’re no longer in the frenzy of the pandemic years, and both buyers and sellers are adjusting to the new normal. With more inventory, steady prices, and balanced conditions, East Tennessee is shaping up to be a solid real estate market as we head into 2025.
If you’ve been waiting for the right time to make your move, this year could be it!
If you have questions about how these trends might affect your personal real estate goals, our team at Wallace Real Estate is here to help. We’re always monitoring the latest market data, ensuring that when you’re ready to move, you have the insights and guidance you need.
*Stats provided with permission from the East Tennessee Realtors Multiple Listing Service. As reported by Claudia Stallings, Wallace Real Estate COO.
