As we review 2025 and look ahead to 2026, the East Tennessee real estate market continues to recover. The market has stabilized nationally and locally, and the years of skyrocketing home prices are behind us.

Single-family home sales this fall have been especially reactive to mortgage rates, and as of this writing the weekly average 30-year fixed rate has reached a 2 month low of 6.18%. Combined with recent wage growth in some sectors, this is expected to boost home buying power going into the new year.

This month, the National Association of REALTORS® announced a 3-year high in pending sales for November. At the same time, pending sales in the East Tennessee REALTORS® MLS were up nearly 30% over November 2024.

The national economic outlook may be mixed with on jobs and inflation concerns, but this backdrop has put a spotlight on the need for rates and monetary policy to boost financial health - potential good news for housing.

Continued interest in the East Tennessee region, stable assessments and a strong sale to list price ratio indicate that local home values will hold up in 2026.