37801
Knoxville, Tennessee

The 37801 ZIP code shows modest appreciation with a median sale price of $400,000, up 2.4% year-over-year, tracking below national inflation rates. Market velocity has slowed considerably, with homes averaging 86 days on market, suggesting reduced buyer urgency compared to recent years. Only 11% of properties sell above list price, indicating sellers hold limited pricing power and bidding competition has largely dissipated in this segment.

These conditions favor patient buyers willing to negotiate, particularly those seeking entry into the $400,000 price tier without facing multiple-offer scenarios. The 86-day absorption period provides time for thorough due diligence and inspection contingencies that were uncommon during tighter market phases. Sellers face a longer marketing timeline but can still achieve incremental gains if properties are priced within 2-3% of comparable sales rather than testing peak valuations.

The PropIQ score of 61 signals caution, reflecting market dynamics that could compress further if days-on-market extends beyond 90 days or if the percentage of above-ask sales drops into single digits. Price appreciation below 3% annually in a normalized interest rate environment suggests limited speculative upside through 2026. Monitor weekly inventory changes and any movement in the above-list percentage as leading indicators of whether this market stabilizes or softens into the next quarter.