Good news for homebuyers: recent data shows that the white-hot real estate market may be cooling off a bit.
This is good news as it's giving buyers who were thwarted earlier in the year the chance to finally win a bid on their dream home. If you’ve kept up with the real estate market over the last year, you already know — the competition among buyers has been stiff.
A combination of COVID-19-related factors and economic shifts created a super-heated housing market that took everyone by surprise. As buyers struggled to outbid the competition amid a rapidly dwindling inventory, 2021’s first and second quarter housing reports fueled fears of a bubble. However, it looks like the market may be healthier — and stronger — than we previously thought.
If you’re interested in buying a home in Tennessee, now’s the time. As inventory increases and mortgage rates remain low, buyers have a unique opportunity in score in the popular Tennessee real estate market.
Keep reading to learn about the different Tennessee real estate submarkets and their distinct offerings.
Tennessee Real Estate Submarkets
It’s a well-known fact — people love visiting Tennessee. People from all over the world come to the Volunteer State to bask in its natural beauty, rich cultural heritage and sleek, modern cities. It’s no wonder that tourism ranks as Tennessee’s number two industry, right behind music and entertainment.
However, in recent years, Tennessee has become more than just a popular vacation destination; it’s become an extremely popular moving destination as well. In fact, a study conducted by U-Haul found that more people moved to Tennessee than any other state in 2020.
Unlike many states, Tennessee doesn’t just have one or two desirable cities for moving; it contains many unique, booming cities, spanning from its eastern border on the Mississippi River to its western border in the Appalachian Mountains.
Each city is a submarket of Tennessee’s real estate market, and larger cities contain submarkets of their own.
Want to relocate to Tennessee, but aren’t sure where? That’s not a problem. A trusted Tennessee real estate company can help you figure out what Tennessee submarket would best suit your needs.
Knoxville Real Estate Market
Knoxville, Tennessee, is a foggy mountain gem located about 180 miles east of Nashville and nestled into the Great Smoky Mountains. It’s always been a popular vacation destination, but in recent years, more people — and companies — have been relocating to Knoxville from all over the country.
In 2021 Knoxville became one of the hottest housing markets in Tennessee, experiencing record-fast home sales, a spike in median selling price 60% less inventory in April 2021 (as compared year over year). Recently, the Knoxville real estate market has cooled, and houses are staying on the market for longer, allowing buyers to bid with less competition.
The 2021 real estate boom hasn’t just affected larger cities; many smaller real estate submarkets in Tennessee have experienced tremendous growth. The Knoxville real estate market is comprised of the following 13 submarkets:
- Anderson County
- Bearden/Papermill/W Town
- Blount County
- Campbell Station/Farragut
- Cedar Bluff/Walker Springs
- Loudoun County
- North/Emory Road
- Union County
Nashville Real Estate Market
Nashville is an iconic American city known all around the world for its music legends, honky-tonk nightlife, exceptional universities and entrepreneurial spirit. In recent years, it’s earned a new reputation as a start-up-friendly tech town that could rival Silicon Valley. In fact, a recent report found that Nashville has the most economic growth of anywhere in the U.S.
Although Nashville’s real estate market has been booming for about 10 years, the current real estate boom has resulted in a 15% increase in home prices from June 2020 to June 2021, as well as a 60% decrease in inventory. Luckily, July 2021 housing trends show a slight increase in inventory and slight decrease in price, indicating that the Nashville real estate market is slowly working its way back to normal.
As the most populous city in Tennessee, Nashville has many submarkets. The following 26 submarkets comprise the larger Nashville real estate market:
- Airport North
- Airport South
- Cannon County
- Cheatham County
- Christian County
- Cool Springs
- Dickson County
- Green Hills/Music Row
- Hickman County
- Macon County
- Maury County
- Metro Center
- Montgomery County
- Robertson County
- Rutherford County
- Smith County
- Stewart County
- Trigg County
- Trousdale County
- West End
- Wilson County
Looking to buy real estate in Nashville? You need a trusted Nashville real estate company to guide you. Whether you want to live in the heart of the action or outside city limits in a quiet community like the Brentwood area, Reliant Realty can help you.
Memphis Real Estate Market
If you’re interested in the Tennessee real estate market, it would be a mistake to discount Memphis. Located on the western border of Tennessee on the Mississippi River, Memphis is a culturally rich city with a history of social justice movements and musical innovation.
Although not quite at the fever pitch level of Nashville’s market, Memphis has also experienced a booming housing market. Reports show that in June 2021, the median sale price for homes hit $223,000 — a 19.6% increase from June 2020. However, July 2021 brought some cooling in the market, with inventory of unsold homes rising 7.3% from June 2021. Homebuyers enticed by ultra-low mortgage rates may face less competition for their Memphis dream home in coming months.
Memphis is the second most populous city in Tennessee and has the following 14 distinct submarkets:
- 385 Corridor
- Crittenden County
- DeSoto County
- Fayette County
- Marshall County
- Tate County
- Tipton County
- Tunica County
Chattanooga Real Estate Market
Chattanooga sits near the southern border of Central Tennessee, nestled between the Tennessee River and foothills of the Appalachian Mountains. This once unassuming town is now known for being an extremely clean, high-tech city with scenic views and cultural attractions.
Like many other cities across Tennessee, the Chattanooga real estate market is still reeling from a major boom. At the end of May 2021, houses were spending an average of 22 days on the market, about half the time they spent on the market in May 2020. However, experts say its not a bubble; rather, the Chattanooga real estate market has been overdue for a price increase. New home inventory rose 5.5% from June 2021 to July 2021, meaning buyers may see new opportunities for purchasing homes in the coming months.
Most people wouldn’t think of the Chattanooga real estate market as being large enough to encompass many submarkets, but it is. Chattanooga has the following 11 submarkets:
- Catoosa County
- Dade County
- Marion County
- Outlying Chattanooga
- Outlying Hamilton County
- Sequatchie County
- Walker County
Clarksville Real Estate Market
Clarksville sits on the Kentucky-Tennessee border, about 50 miles north of Nashville. This riverfront town offers a kid-friendly atmosphere and plenty of outdoor activities for people looking for a quiet place to raise a family that is still relatively close to the big city. It’s also home to a large Army division.
The Clarksville real estate market is unique in that it caters to many military personnel and their families. As of May 14, 2021, there were only 116 established houses on the market, which sent military families rushing to make bids.
Although the inventory of available houses rose from 624 in June 2021 to 743 in July 2021, Clarksville is still a competitive market, with houses averaging a mere eight days on the market. It’s military division and proximity to the jobs-rich city of Nashville mean it will likely only become more popular. Due to its relatively small size and proximity to Nashville, Clarksville doesn’t encompass distinct submarkets.
If you’re interested in entering the Clarksville real estate market, make sure you have a trusted Clarksville realtor on your side from Reliant Realty. Our realty experts can help you navigate a fast-paced market to find your forever home.
Murfreesboro Real Estate Market
About 35 miles southeast of Nashville lies Murfreesboro, a centrally-located, quintessentially Tennessee town known for its Civil War history, barbeque and music festivals. It’s also home to one of Tennessee’s largest universities, Middle Tennessee State University.
Murfreesboro is in Rutherford County, one of the hottest housing markets in Tennessee. In June 2021, the median sale price for a home was $272,000, up from $254,900 in June 2020. Despite the moderate increase in price, experts say that the low cost of living still makes Murfreesboro a good place to buy. As part of the Greater Nashville area, Murfreesboro doesn’t have its own submarkets.
Considering buying a home in Murfreesboro? Don’t do it alone — let a Murfreesboro real estate agency help. No matter what type of real estate you’re interested in, Reliant Realty can help you find a quality home at an affordable price.
Franklin Real Estate Market
Even closer than Murfreesboro, Franklin is only about 20 miles southwest of Nashville. An ideal travel destination for people interested in a taste of the country life, Franklin offers modern amenities and attractions with a rural backdrop. Historic architecture, live music, couples’ getaways and culinary treasures draw visitors from all over the state.
As part of the booming Middle Tennessee real estate market, Franklin is a hot place to buy. Reports show that Franklin homes are selling at about five percent over listing price in an average of 12 days. Despite hitting their second all-time low in April 2021, house inventory is leveling out, suggesting that if you’ve been waiting for a lull in the Franklin real estate market, now might be your chance.
When it comes to buying in competitive housing markets, it doesn’t make sense to go at it alone. An experienced Franklin realtor from Reliant Realty can help you capitalize on the seasonal slow-down and find the home of your dreams.
Jackson Real Estate Market
About 85 miles northeast of Memphis lies Jackson, a historic town that’s rediscovering its economic vitality. Not many people outside of Tennessee have heard of Jackson, but this city has it all: Civil War history, arts and culture, musical heritage and plenty of outdoor recreation. In 2017, Jackson ranked as the ninth cheapest city to live in the U.S, largely because of its low rent prices.
Home prices in Jackson have been mostly unaffected by the market boom. Reports indicate that Jackson homes’ median list price only rose from $213,000 in August 2020 to $215,000 in August 2021. However, homes are spending significantly less time on the market, about 22 days in August 2021 compared to about 65 days in August 2020. That means that with the help of the right realtor, you can buy your dream home for much cheaper than Tennesseans living in larger metropolitan areas.
Johnson City Real Estate Market
Johnson City is a gorgeous mountain town located in the northeast corner of Tennessee. People travel from all over the state to get an authentic taste of Appalachian culture with a modern twist. Visitors are met with an active nightlife of breweries, fine dining and concert venues, as well as a plethora of outdoor adventures.
Johnson City is experiencing an extremely hot housing market, with housing prices reaching a 40-year record high. The city is also experiencing an increased demand for higher-priced homes, with the market for homes over $500,000 up 164% from July 2020. However, July brought a brief cooling-off period for the Johnson City real estate market, a reprieve that experts say homebuyers should take advantage of, as they expect the market to stay hot for a few years.
TN Homes for Sale: Reliant Realty
As the Tennessee housing market boom continues, it’s important that buyers looking for their dream home ask for help. The experienced team at Reliant Realty knows the Tennessee real estate market — and its submarkets — inside and out. Whether you’re looking to buy in the Nashville market or a more subdued market in rural Tennessee, we know the strategies to help you secure the home of your dreams at a realistic price.
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Additional Resources if You're Moving to Tennessee
Searching for a house can be both exciting and stressful. Here are online resources to help you plan your move.
- The Nashville Chamber of Commerce "Getting Established" page is a great resource for information on a variety of topics and is a great place to start.
- Department of Motor Vehicles instructions to re-register your out of state driver's license and vehicle.
- Check out the neighborhood! Read up on Nashville's eclectic neighborhoods and find your ideal vibe.
- Have kids? Learn about schools and their ratings before you move.