Looking at January's performance, East Tennessee home sales are already showing vast improvement over last year. This is likely due to a recent jump in affordability for homebuyers, thanks to a continued drop in mortgage rates.

Rates fell below 6% at the end of February for the first time in more than three years; both mortgage applications and home sales were up month-over-month and year-over-year. Inventory challenges remain, as the group of consumers empowered by rate changes are seeking affordability.

If rates remain at or under 6% through the spring busy season as more inventory becomes available, East Tennessee home sales will be poised for the largest recovery since 2022.