Q1 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 Q1 2025 iteration of the survey was conducted online from April 1-21, 2025, and received a total of 211 responses.
Key Findings
- Despite a slow start to the year, buyer and seller traffic has increased in 2025. 38% of respondents reported seeing more seller traffic than this time last year, compared to just 20% in Q1 2024. Buyer traffic also increased with 25% of respondents reporting more seller traffic than this time last year, compared to 21% in 2024.
- REALTORS® expectations about buyer traffic over the next three months remained relatively even, but they expect more sellers to bring inventory to the market. Nearly half of respondents expect more seller traffic than 2024, and another 40% expect seller traffic to stay the same. Conversely, 33% of respondents felt buyer traffic should increase in Q2 and 40% expect it to stay the same.
- 42% of REALTORS® expect home sales to increase over the next year.
- 60% of REALTORS® expect home prices to continue to rise over the next year, with 19% expecting prices to remain the same.
- 91% of respondents said their most recent closing was an existing home, versus only 9% who sold a new home. This is a shift toward existing home inventory over 2024, and no respondent reported that their most recent sale was land.
- The typical home sold in Q2 2024 received an average of 1.9 offers, less than a year ago.
- The percentage of sellers willing to pay buyers’ closing costs jumped significantly, from 29% in Q1 2024 to 55% in 2025.
- 56% of buyers in the past three months waived at least one contingency in their purchase contract, down from 63% a year ago, but up from 53% in Q2 2024.
- Significantly more purchasers were moving into East TN from other states, at 47% of reported transactions versus only 35% in 2024.
- 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 concerns around the overall economy, possibility of recession and inflation woes are heavily influencing hesitation to buy.
| Market Outlook | Q1 2025 | Q1 2024 | ||
| Percent of respondents who expect a year-over-year increase in buyer traffic in next 3 months | 33% | 32% | ||
| Percent of respondents who expect a year-over-year increase in seller traffic in next 3 months | 44% | 34% | ||
| Percent of respondents who expect home sales to increase over the next year | 42% | 51% | ||
| Percent of respondents who expect home prices to increase over the next year | 60% | 69% | ||
|
Buyer and Seller Trends |
Q1 2025 | Q1 2024 | ||
| Percent of sellers moving somewhere else in current city/county | 52% | 40% | ||
| Percent of sellers moving somewhere else in Tennessee | 10% | 13% | ||
| Percent of sellers moving to a different state/outside of Tennessee | 38% | 48% | ||
| Percent of buyers moving due to relocation (such as for business or a job change) | 17% | 17% | ||
| Percent of buyers who were previously renting | 32% | 37% | ||
| Percent of buyers who are repeat homebuyers | 56% | 57% | ||
|
Other Market Indicators |
Q1 2025 | Q1 2024 | ||
| Percent of buyers who waived at least one contingency | 68% | 60% | ||
| 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 | 95% | 90% | ||
| 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 | 21% | 35% | ||
| PercPercent of first-time buyers | 16% | 18% | ||
| Percent of respondents currently working with 3+ clients actively/seriously looking to purchase | 34% | 29% | ||
|
Anecdotal responses (Edited for clarity) Affordability remains a challenge: "Affordability continues to be issue, and fears of recession concerns are on the top of buyers minds." Buyers are cautious due to overarching economic concerns: "Buyers seem to be moving only if they have to, less whimsy moves." "My sellers waited until after the election to see what would happen." |
||||
| 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® |