37840
Knoxville, Tennessee

ZIP code 37840 shows a median sale price of $383,000 with an extraordinary 58.0% year-over-year increase, though market velocity has slowed considerably with homes averaging 110.5 days on market. No properties sold above list price in the most recent period, indicating buyer leverage has returned despite the steep annual appreciation. This disconnect between trailing price gains and current transaction dynamics suggests momentum shifted significantly in recent months as absorption rates declined.

Patient buyers hold the advantage in this cooling environment, with extended days-on-market providing negotiating room that didn't exist during the sharp price run-up. Sellers who purchased before the 58% appreciation window can still capture substantial equity, but those expecting bidding wars face a market where zero homes commanded premiums above ask. Investors seeking cash flow should recalculate yields against the elevated $383,000 basis and longer holding periods before tenant placement.

The PropIQ score of 51 signals caution, reflecting vulnerability after unsustainable appreciation rates. Markets that experience 58% annual gains historically face correction risk or extended consolidation periods as affordability constraints limit the buyer pool. Monitor absorption trends and list-to-sale price ratios closely—if days-on-market continues extending beyond 110 days while no homes achieve list price, downward price discovery becomes probable through 2026.