If you are looking for a great place to live, Tennessee is the perfect state. The housing market in Tennessee offers a wide variety of homes and neighborhoods that will suit any family’s needs. In this blog post, we will discuss what it’s like to buy a house in TN and how to make your investment in real estate pay off by purchasing in the best areas possible.
The Tennessee housing market has seen considerable growth and fewer foreclosures. However, with low-interest rates and great mortgage rates, homes are selling quickly. This current trend and low inventory of available houses would indicate that the Tennessee housing market is experiencing a seller’s market.
>> Related Article: Find Out The Average Cost Of Living In Tennessee
Are you curious about the Tennessee housing market? Wondering what the average prices are and how much it costs to sell a house? In this blog post, we will provide an in-depth overview of the Tennessee housing market in 2022. We will discuss all aspects of the market data, from average house prices to realtor fees. By the end of this post, you will have a good understanding of what to expect when selling or buying a home in Tennessee!
Tennessee Housing Market
The Tennessee housing market has thrived over the last decade, and 2022 is no exception. In addition, more and more out-of-state residents are moving to the Tennessee area, which has made the supply and demand for housing units increase.
The real estate markets in areas like Nashville, Chattanooga, Knoxville, and Memphis are doing well and show an increase in home values year-over-year.
But what is attracting people to Tennessee? Maybe it’s the four-season weather, no state income tax, low unemployment rate, or the affordability of real estate prices compared to cities like New York, Austin, Dallas, and LA. Whatever it may be, the Tennessee housing market is a great place to buy or sell a home. The prices are affordable, and the market is stable.
If you’re looking for a great place to invest in real estate, Tennessee is definitely worth considering!
Real Estate in Tennessee
Since Tennessee has seen an increase in people moving to the state, real estate in The Volunteer State has become a hot commodity. As a result, some cities see home sales get multiple offers and sell for over asking price, while others sell for less than asking price with longer days on market.
If you’re thinking about buying a home or selling your Tennessee property, it’s important to learn more about the real estate in TN and market trends.
Below, we’ll look at the four largest cities in TN and their current real estate trends.
- Nashville: Is currently experiencing a buyer’s market, which means that the number of homes is greater than the demand for homes.
On average, homes in Nashville sell after 34 days on the market compared to 43 days last year during the pandemic.
Some of the best neighborhoods in or around Nashville, Tennessee, are Green Hills, Inglewood, Murfreesboro, and West Meade. Consider buying or renting a home in one of these popular middle Tennessee neighborhoods.
- Chattanooga: Is currently experiencing a buyer’s market, which means that the supply of homes is greater than the demand for homes.
The average homes sell for around list price and go pending in approximately 43 days.
Some of the best neighborhoods in or around Chattanooga, Tennessee, are Brainerd, North Chattanooga, and Downtown Chattanooga. Consider buying or renting a home in one of these popular neighborhoods.
- Knoxville: Is currently experiencing a seller’s market, which means that more people are looking to buy, but there is a low inventory of available homes.
On average, homes in Knoxville sell after 43 days on the market compared to 48 days last year.
Some of the best neighborhoods in or around Knoxville, Tennessee, are Fountain City, Sequoyah Hills, and South Haven. Consider buying or renting a home in one of these popular metro area neighborhoods.
- Memphis: Is currently experiencing a buyer’s market, which means that the supply of homes is greater than the demand for homes.
On average, homes in Memphis sell after 33 days on the market compared to 36 days last year.
Some of the best neighborhoods in or around Memphis, Tennessee, are Sea Isle Park, Central Gardens, and Hickory Hill. Consider buying or renting a home in one of these popular neighborhoods.
Average Home Price in TN
A good way to find out how the housing market is doing in an area is to check out the average home price in TN. The typical property value of homes in Tennessee is $247,815. This value is seasonally adjusted and only includes the middle price tier of homes. So far Tennessee’s home values have gone up 19.1% over the past year. However, those are the values for the entire state.
*Data from Zillow.com
Although we’ve seen a considerable increase in home values and positive market trends, Tennessee has the 16th least expensive real estate.
The three hottest markets are seeing even higher average home prices. Below we’ll take a look at how well the housing market is doing in these key areas of the state.
- Nashville Housing Market
The median price for a residential single-family home was $414,853, up 19.2 percent from last year. Likewise, the median sales price for a condominium was $298,000, up 21.6 percent from last year. Thus, despite the pandemic-led economic slowdown, there was healthy demand to purchase homes in the Nashville real estate market.
- Chattanooga Housing Market
The typical property value of homes in Chattanooga is $229,042. This value is seasonally adjusted and only includes the middle price tier of dwellings. Chattanooga’s home values have gone up 21.9% over the past year.
- Knoxville Housing Market
The typical home value of properties in Knoxville is $274,440. This value is seasonally adjusted and only includes the middle price tier of dwellings. Knoxville home values have gone up 25.1% over the past year.
Average House Sizes in Tennessee
Curious what the average house size in TN is? According to Business Insider, Nashville, TN came in 12th out of 15 cities with the largest single-family homes in the country.
The average house size in Tenn is roughly 2,598 square feet. House sizes in TN have gone up 6.5% over the past year.
Of course, the average house sizes in Tennessee vary depending on the city.
- Nashville: The average size for a home in Nashville is 3,050 square feet.
- Chattanooga: The average size for a home in Chattanooga is 2,746 square feet.
- Knoxville: The average size for a home in Knoxville is 2,549 square feet.
- Memphis: The average size for a home in Memphis is 1,814 square feet.
Best Areas to Live in TN
If you’re thinking about calling middle Tennessee home or would like to relocate to the Tennessee area, we’ve come up with a list of the best metro areas to live in TN for you to scope out. Below are the six best areas to live in TN that you might be interested in calling home.
#1 Best Areas to Live in TN: Brentwood, TN
Brentwood has been on the top of several best areas to live in TN lists. Over the years, it’s also been awarded as “The #1 Best Place to Live in Tennessee” and the “21st Best Place to Live in America.” With a current population of approximately 42,000 individuals, this Nashville suburb is growing at a rapid rate. While real estate in Brentwood is the most costly in Tennessee, it does come with some benefits and drawbacks. Since this city in Williamson County is so desirable and sought after, if you choose to live in Brentwood, you could become neighbors with a celebrity. Several country music artists are known to live in Brentwood due to the short distance to Nashville, aka Music City.
While this may be seen as the “7th Richest Small City in America,” Brentwood is safe and clean while maintaining a tight social bond. You and your family will be able to get a first-hand look at the natural beauty of Tennessee. With over a dozen parks in the area with open fields, walking, and cycling trails, you’ll be able to enjoy it firsthand. Brentwood is prized for its excellent school district and public library, which are both well worth the money. With easy access to the Nashville International Airport (BNA) and a walkable commercial area, residents love living in Brentwood.
#2 Best Areas to Live in TN: Franklin, TN
Franklin, founded in 1799, is located just south of the downtown Nashville area and was named after Benjamin Franklin. The area provides residents with a suburban feel while housing prices are 9% lower than the national average and 10% lower in utility prices. Franklin was the location of one of the deadliest battles in the Civil War, the Battle of Franklin, where over 9,500 soldiers lost their lives or were wounded. In addition, Franklin has several other historical landmarks like the Carnton Plantation, which served as the largest field hospital in the area, and The Carter House, which thousands of visitors visit every year.
Franklin is considered the “4th Best Places to Live” by Money Magazine in 2017, “8th Fastest-Growing City” in the Nation by the U.S. Census 2017, and “3rd Safest City in TN” by Backgroundchecks.org in 2016. Over the years, Franklin has seen considerable growth with over 200+ dining establishments, art galleries, a farmers market, festivals and parades, local antique and boutique stores, a charming downtown area, and Victorian-style architecture. The area is also home to companies like Dave Ramsey, Nissan, and CKE Restaurants, to name a few. Besides that, Franklin is located in Williamson County, which is known for its excellent public school system.
#3 Best Areas to Live in TN: Farragut, TN
Farragut is a suburb of Knoxville, TN, and has been voted the #1 Best Places to Retire in Tennessee, #2 Best Places to Raise a Family in Tennessee, and #2 Best Places to Buy a House in Tennessee. The median household income is $108,511, which is significantly above the national average of $62,843.
Farragut has an A rating based on employment, job and business growth, and cost of living. In addition, living in Farragut offers residents a rural feel and an A rating for the public school system. Currently, Farragut is home to over 22,631 residents, has over 15-miles of greenway trails, four parks, the Turkey Creek Shopping Center, as well as numerous sports, shopping, and dining options.
>> Related Article: Is Knoxville a good place to live?
#4 Best Areas to Live in TN: Lookout Mountain, TN
Located only minutes from Downtown Chattanooga is the affluent town of Lookout Mountain. Set against breathtaking mountain views, this beautiful suburb offers residents great public schools, pristine neighborhoods, and attractive shopping opportunities. Nature and sports are popular with residents here, and local attractions include Ruby Falls, Rock City, and Incline Railway.
The public schools that serve Lookout Mountain are highly ranked in Tennessee, and a third of the households have school-aged children. In addition, this Chattanooga suburb has a population of 1,930, a median household income of $120,900, and median homes for sale cost $570,000. With all that Lookout Mountain has to offer, it’s no surprise this suburb is considered one of the best places to live in Tennessee.
#5 Best Areas to Live in TN: Oak Ridge, TN
Located roughly 22-miles northwest of Knoxville is Oak Ridge. Built in the 1940s by the government, Oak Ridge was once called “The Secret City” because it originated with the intention to develop technology to end World War II. Today, visitors or locals can learn more about this secret project before the area was developed into a civilian city at the Manhattan Project National Historical Park.
Now Oak Ridge is home to over 29,000 people and offers low crime rates, low real estate prices, affordability, and close proximity to Knoxville for employment. Other local employment options include the Department of Energy or the Oak Ridge National Laboratory. In addition, Oak Ridge offers residents over 16 beautiful parks and the 5th Best School Districts in Tennessee by Niche. The average price of homes for sale in Oak Ridge is $225k.
>> Check out these 5 Tips to Get The Best Price On Your House in Oak Ridge Tennessee
#6 Best Areas to Live in TN: Signal Mountain, TN
If you love mountain views, you’re in for quite a treat over at Signal Mountain. Signal Mountain, located on Walden Ridge, is known for its breathtaking views of the valley and the Tennessee River, especially from Signal Point.
This lively Chattanooga suburb offers residents who enjoy golfing the private Signal Mountain Golf Club, which lets members enjoy the country club lifestyle. In addition to its outdoor amenities, Signal Mountain also features the Mountain Arts Community Center, Signal Mountain Playhouse, and local restaurants.
Signal Mountain is currently in a hot seller’s market. The median home value in Signal Mountain is $409,545. Home values here have gone up 21.3% since 2020. The median price of homes currently listed in Signal Mountain is $449k. For residents who prefer renting to buying, the average renter pays $2,909 per month.
>>Bonus: Best Areas to Live in Tenn that didn’t quite make our top six list but are worth checking out are Murfreesboro, located in Rutherford County, and metro Memphis situated in Shelby County.
Average Costs to Sell a House in TN
What is the average cost to sell a house in Tennessee? Well, that all depends! While your total out-of-pocket costs will vary based on your situation, you should expect 12.0% or more of your home’s final sale price to go towards selling costs. If you sell your home for $263,989. — the median home value in Tennessee — you’ll likely spend $31,678!
Here’s how much you can expect to pay at different price points based on the average cost to sell a house in Tennessee.
|Sale Price||Cost to Sell|
Common Expenses for Home Sellers in TN
Below is a breakdown of some of the most common expenses homeowners in TN can expect to help you prepare for the most and least costly aspects of selling your house.
Keep in mind these expenses are highly variable- for example, the home and relocation expenses. Talk to a real estate professional for a more tailored and accurate estimate of your costs vs. final sale price.
|Common Expenses||Estimated Cost*|
|Prepping for Sale||$5,100-$9,900|
|Total||$19,200 – $32,700|
*Based on a $263,989 home — a typical home value in Tennessee, (Zillow, December 2021)
Some of these expenses like repairs, closing costs, and relocation expenses might be out of your control; however, that also depends on how you sell your home in TN.
You can save some money on realtor fees/ a brokerage by selling by owner, or you can save on agent fees, repairs, and closing costs by selling to cash home buyers in Tennessee.
Selling to a “We buy houses Knoxville” company is the best option if you’d like to sell your house fast and save money upon the sale of your home.
Realtor Fees in Tennessee
If you’re interested in selling your home, one way to do so is to hire a listing agent. However, you’ll want to keep in mind the cost of realtor fees.
The average realtor fee in Tennessee is 5.6%, which is higher than the national average of 5.49%.
That means, to sell an average Tennessee house worth $263,989, you’ll pay about $14,800.
Agent commissions are usually the largest cost you will face when selling a house- but you don’t have to pay the full 5.6%.
Selling to a” Buy my house Nashville” company like Nexus could help you save thousands on commissions. Nexus Homebuyers doesn’t charge realtor commissions and even buys houses in as-is condition.
Sale-to-list Price Ratio in Tennessee
Another indication if a real estate market is doing well is to check out the sale-to-list price ratio. For a buyer, if the sale-to-list price ratio is high, that would indicate that homes are being sold right at the asking price or above the asking price. For a seller, a high sale-to-list price ratio would suggest that now is a great time to sell your home since sellers are either getting the asking price or above the asking price for their home.
To clarify, the sale-to-list ratio is the final sale price (what a buyer pays for the home) divided by the last list price expressed as a percentage. If it’s above 100%, the home sold for more than the list price. If it’s less than 100%, the home sold for less than the list price. Looking at sale-to-list percentages can help buyers and sellers get a sense of how to negotiate on pricing.
Currently, Tennessee’s sale-to-list ratio is 100.4%. 42.5% of homes sold above list price and 9.4% sold after price drops.
To give you a sense of the top three hottest Tennessee markets sale-to-list price ratios, here they are:
- Nashville Market (Davidson County) – Currently, the average Nashville home sells for about 1.3% above the list price, but homes in hot areas can sell for 5% above the list price.
- Chattanooga Market (Hamilton County)– The average Chattanooga home sells for around list price, with the houses in trendy areas can sell for about 4% above list price.
- Knoxville Market (Knox County)– The average Knoxville home sells for about 1% above the list price, and those houses located in popular areas can sell for about 5% above the list price.
Average Days on Housing Market
In 2021, the average time it takes to sell a home in Tennessee — from listing through closing — is approximately 75 days. That’s 40 days to get an offer, plus the typical 35-day closing period.
This is approximately 12.8% faster than the national average. However, keep in mind that these are annual averages, and the numbers will vary by month and/or season.
To give you a sense of the top three hottest Tennessee markets average days on the housing market, here they are:
- Nashville Market (Davidson County) – Currently, the average Nashville home sale will take approximately 64-days. That’s 29-days to get an offer, plus the typical 35-day closing period. Of course, these averages vary by month and/or season.
- Chattanooga Market (Hamilton County)– The average Chattanooga home sale will take approximately 76-days. That’s 41-days to get an offer, plus the typical 35-day closing period. Bear in mind that these averages change by month and/or season.
If you need to sell your Chattanooga home quickly, contact this cash home buyer in Chattanooga- Nexus Homebuyers.
- Knoxville Market (Knox County)– The average Knoxville home sale will take approximately 77-days. That’s 42-days to get an offer, plus the typical 35-day closing period. Again these averages change by month and/or season.
If you need someone to “buy my house Knoxville” and can’t wait 77+ days to sell, then contact this cash home buyer in Knoxville.
Average Cost of House Repairs in Tennessee
Homeownership comes with many regular costs, including property taxes, monthly HOA’s, utilities, insurance, and home maintenance. With 45% of homeowners underestimating the cost of home maintenance, a good rule of thumb is to budget 1% to 3% of your home’s value a year for home maintenance.
From a leaky faucet to needing a new roof, house repairs can add up quickly, especially if you haven’t maintained your home. The average cost of house repair in Tennessee ranges from $3,947-$20,341.
Here is an idea of the most common major repairs costs:
|Major Repair Type||Average Cost|
|Roof Replacement||$5,570- $11,415|
|Septic System Repair||$629-$2,885|
|Termite Damage Repair||$3,000|
|Water Damage Repair||$3,000|
Examples of Minor Home Repairs
Minor repairs and improvements cost less than $500 each project on average, and they may often be completed by a handyman, general contractor, or even a homeowner with some DIY experience. Tightening a leaky faucet, caulking a window, installing weatherstripping around a door frame, unclogging a toilet, or repainting a room are all examples of minor repairs.
Home repairs and maintenance are vital parts of maintaining the value of your property. So if you’re hoping to sell your Tennessee residence for a profit, make sure to check out the improvements to boost a home’s value before putting your home on the market.
If you’re overwhelmed with all the repairs or improvements your home needs before putting it on the market, you can always sell your house as-is instead and avoid the hassle and out-of-pocket expense.
Tennessee is a great place to live if you’re looking for a competitive housing market with low unemployment rates and affordable homes. Tennessee has an average number of days on the housing market of 75, which means it’s 12.8% faster than the national average. The state also offers plenty of opportunities in major job sectors like healthcare, education, banking/finance, transportation & logistics, among others.
If you’re ready to call one of the best areas in Tennessee home, you’ll want to work with an expert when it comes to buying or selling real estate. A local realtor can help you narrow down your home search, while one of the companies that buy houses in Tennessee can make your home sale run smoothly.