June home sales ticked up nearly 13% over 2024, realizing some of the pent-up demand. A promising sign, this brought the year's sales so far to a very slight 0.4% increase over the first half of 2024.

Our quarterly Market Pulse Survey revealed that member experiences closely reflect what the data is telling us: The market is still very competitive, and an inventory mismatch is causing a buildup of listings. Buyers are interested but aren't finding what they need, whether it be location, move-in ready status or price.

Buyers are also waiting in the hopes of lower interest rates. National experts debate the possibility of a fall "spring" for housing if rates fall even slightly, but this is not expected to happen until September.

In the meantime, the market continues to slowly improve and members are optimistic about the future.

The East Tennessee REALTORS® released the 2025 State of Housing report, an annual high-level analysis of housing, economic data and trends intended to help REALTORS®, industry stakeholders, and policymakers better understand what to expect and navigate the evolving market. We dive into takeaways below.