37871
Knoxville, Tennessee

ZIP 37871 posted a $385,000 median sale price as of February 2026, marking a substantial 20.3% year-over-year increase that outpaces typical appreciation rates. However, market momentum shows signs of cooling, with homes averaging 80 days on market and only 11% of sales closing above list price. This combination of strong trailing appreciation but weakening competitive dynamics suggests the market has transitioned from last year's heated conditions into a more measured pace.

The current environment favors patient buyers willing to negotiate, as the 80-day marketing period and limited bidding competition create room for price discovery that didn't exist during the sharper appreciation phase. Sellers who purchased before the 20.3% run-up can still capture meaningful equity, but new entrants face timing risk given the deceleration signals. Investors should approach with heightened caution, as the PropIQ score of 65 indicates material risk factors that could pressure returns if appreciation continues moderating.

The 65 PropIQ rating warrants close monitoring of inventory levels and days-on-market trends through Q2 2026, as further increases in either metric would confirm a buyer's market shift. The divergence between strong backward-looking price gains and forward-looking caution indicators suggests the market is repricing expectations. Watch for changes in the percentage selling above list and any movement in the PropIQ score, as deterioration below 60 would signal heightened downside risk.