Q2 2025 Market Pulse Survey Results
The Market Pulse Survey is a poll of licensed real estate professionals and members of the East Tennessee REALTORS®. The Q2 2025 iteration of the survey was conducted online from July 8-25, 2025, and received a total of 158 responses.
Key Findings
Buyer and seller traffic continues to increase for our members in 2025. 35% of respondents reported seeing more seller traffic than this time last year, compared to just 26% in Q2 2024. The number of members seeing increased buyer traffic also improved, with 22% of respondents reporting more seller traffic than this time last year compared to 15% in 2024.
It's still generally a seller's market with competitive conditions for buyers, but a mismatch in inventory and what buyers want is making listings sit on the market. The percentage of respondents reporting waived contingencies, first-time buyers and purchases of second homes have dropped from 2024, with affordability remaining a challenge.
REALTORS® are feeling more optimistic this year than in Q2 2024. 74% of respondents expected seller traffic to stay the same or increase, compared to just 59% in 2024. 59% expect buyer traffic to remain steady or increase, compared to 51% in 2024.
81% of respondents said their most recent closing was an existing home, versus only 12% who sold a new home. This was a slight increase in the sale of new homes over 2024. Only 7 respondents reported that their most recent sale was land.
The number of first time homebuyers reported decreased for the second quarter in a row.
Favorable sales markers have improved over 2024, with metrics such as on-time closings, respondents working with 3+ serious clients and listed properties per REALTOR® all increasing.
Open-format responses about customer feedback indicate that the buildup of inventory is due to hesitant buyers, who are waiting for lower interest rates or struggling to understand the current dynamics of home prices. Many members feel their buyers are more frugal this year than last year.
| Market Outlook | Q2 2025 | Q2 2024 | ||
| Percent of respondents who expect a year-over-year increase in buyer traffic in next 3 months | 27% | 20% | ||
| Percent of respondents who expect a year-over-year increase in seller traffic in next 3 months | 35% | 27% | ||
| Percent of respondents who expect home sales to increase over the next year | 44% | 44% | ||
| Percent of respondents who expect home prices to increase over the next year | 58% | 55% | ||
|
Buyer and Seller Trends |
Q2 2025 | Q2 2024 | ||
| Percent of sellers moving somewhere else in current city/county | 46% | 46% | ||
| Percent of sellers moving somewhere else in Tennessee | 14% | 25% | ||
| Percent of sellers moving to a different state/outside of Tennessee | 39% | 29% | ||
| Percent of buyers moving due to relocation (such as for business or a job change) | 11% | 15% | ||
| Percent of buyers who were previously renting | 28% | 26% | ||
| Percent of buyers who are repeat homebuyers | 80% | 77% | ||
|
Other Market Indicators |
Q2 2025 | Q2 2024 | ||
| Percent of buyers who waived at least one contingency | 62% | 61% | ||
| Percent of buyers who waived inspection contingency | 6% | 13% | ||
| Percent of buyers who waived appraisal contingency | 17% | 12% | ||
| Percent of contracts where appraised value met or exceeded the contract price | 97% | 92% | ||
| Percent of contracts in the past 3 months that were terminated | 0% | 5% | ||
| Percent of contracts in the past 3 months that had delayed settlement | 14% | 18% | ||
| Percent of contracts in the past 3 months that closed/settled on time | 86% | 75% | ||
| Percent of respondents who have worked with an investor buyer in the past three months | 26% | 44% | ||
| Percent of first-time buyers | 20% | 23% | ||
| Percent of respondents currently working with 3+ clients actively/seriously looking to purchase | 34% | 29% | ||
|
Anecdotal responses (Edited for clarity) Buyers can't find what they need, and are willing to wait for the perfect home: "Buyers want move-in ready homes with little to no renovations required." "Seems to be a lot of buyers coming back to the market but they are slow to offer. I anticipate a reduction in interest rates will create a Q3 sales push." "Buyers seem willing to move quickly for the perfect house, but do not seem to be in a hurry to make a purchase. Overall, it feels like sellers are accepting less than in the recent past."
|
||||
| Source: East Tennessee REALTORS® | ||||
| Note: Estimates based on East Tennessee REALTORS® quarterly Market Pulse Survey and MLS data. | ||||
| For questions about the survey or its contents, please contact Maria McHale at maria@etnrealtors.com. | ||||
About the Survey
- The Market Pulse Survey gathers on-the-ground information about local market conditions from members of East Tennessee REALTORS® based on their client interactions and real estate transactions in the previous three months.
- The Market Pulse Survey is provided by East Tennessee REALTORS® solely for use as a reference. Reproduction, reprinting or retransmission in any form is prohibited without written permission.
- Media inquiries about the survey should be directed to communications@etnrealtors.com.
Data Attribution: You are welcome to use or reproduce this survey data for your own purposes, but we ask that you attribute any full or partial use of the data to East Tennessee REALTORS® and include the time period when the survey was conducted.
| Copyright © 2025 EAST TENNESSEE REALTORS® |