At the halfway point of the year, the housing market continues to slowly normalize. Inventory and pending sales continue to climb, with mortgage originations also ticking up. Sales have yet to follow at a similar pace, lagging behind the typical busy season.

Local realities have closely reflected national trends so far in 2025, supporting the theory that external macro challenges contributed substantially to sluggish home sales. While our region economically outperforms others, we also remain in the top three markets nationally for home price appreciation as of Q1 2025.

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.