The good news continued for East Tennessee's housing market leading into summer, with another robust month of sales in May. Pending sales were up 15% over last year, indicating that the trend will continue in June.

While eager buyers have finally emerged, demand and unbalanced residential inventory have kept the options tight this spring and pushed the median sale price up. With nearly half of homes selling at asking price or above, it's certainly not a "buyer's market" yet.

Over on the rental side, the commercial market has given mixed signals. The Knoxville-Knox County Planning 2025 Development Activity Report cited a record number of permitted multifamily units, but less than half of the permitted units are making it to the rental market each year. Rent remains flat, for now, and added supply is sorely needed, especially for units affordable to the area median income or below.

In welcome news, several Class A commercial office spaces are under construction - the first major additions in several years. Occupancy is still tight with vacancies at around 3% for office space, 2% for retail and 2% for industrial spaces.

All in all, East Tennessee real estate remains in high demand.