Are you curious about the Tennessee housing market? Wondering what the average prices are and how much it costs to sell a house? In this blog post, we will provide an in-depth overview of the Tennessee housing market in 2022. We will discuss all aspects of the market data, from average house prices to realtor fees. By the end of this post, you will have a good understanding of what to expect when selling or buying a home in Tennessee!

Tennessee Housing Market

The Tennessee housing market has thrived over the last decade, and 2022 is no exception. In addition, more and more out-of-state residents are moving to the Tennessee area, which has made the supply and demand for housing units increase. 

The real estate markets in areas like Nashville, Chattanooga, Knoxville, and Memphis are doing well and show an increase in home values year-over-year. 

But what is attracting people to Tennessee? Maybe it’s the four-season weather, no state income tax, low unemployment rate, or the affordability of real estate prices compared to cities like New York, Austin, Dallas, and LA. Whatever it may be, the Tennessee housing market is a great place to buy or sell a home. The prices are affordable, and the market is stable. 

If you’re looking for a great place to invest in real estate, Tennessee is definitely worth considering!

Real Estate in Tennessee

Since Tennessee has seen an increase in people moving to the state, real estate in The Volunteer State has become a hot commodity. As a result, some cities see home sales get multiple offers and sell for over asking price, while others sell for less than asking price with longer days on market. 

If you’re thinking about buying a home or selling your Tennessee property, it’s important to learn more about the real estate in TN and market trends. 

Below, we’ll look at the four largest cities in TN and their current real estate trends. 

• Nashville: Is currently experiencing a buyer’s market, which means that the number of homes is greater than the demand for homes. 

On average, homes in Nashville sell after 34 days on the market compared to 43 days last year during the pandemic.

Some of the best neighborhoods in or around Nashville, Tennessee, are Green Hills, Inglewood, Murfreesboro, and West Meade. Consider buying or renting a home in one of these popular middle Tennessee neighborhoods.

• Chattanooga: Is currently experiencing a buyer’s market, which means that the supply of homes is greater than the demand for homes.

The average homes sell for around list price and go pending in approximately 43 days.

Some of the best neighborhoods in or around Chattanooga, Tennessee, are Brainerd, North Chattanooga, and Downtown Chattanooga. Consider buying or renting a home in one of these popular neighborhoods.

• Knoxville: Is currently experiencing a seller’s market, which means that more people are looking to buy, but there is a low inventory of available homes.

On average, homes in Knoxville sell after 43 days on the market compared to 48 days last year. 

Some of the best neighborhoods in or around Knoxville, Tennessee, are Fountain City, Sequoyah Hills, and South Haven. Consider buying or renting a home in one of these popular metro area neighborhoods.

• Memphis: Is currently experiencing a buyer’s market, which means that the supply of homes is greater than the demand for homes.

On average, homes in Memphis sell after 33 days on the market compared to 36 days last year. 

Some of the best neighborhoods in or around Memphis, Tennessee, are Sea Isle Park, Central Gardens, and Hickory Hill. Consider buying or renting a home in one of these popular neighborhoods.

Average House Prices in Tennessee

Another indication of how well a real estate market is doing is to check the average house prices. Not only will this help you to see if home values are stable or on the rise but also to see how affordable it is to buy a home. 

Let’s take a look at the average house price in Tennessee cities and compare them to national averages.

The national average home value is $320,662, while the average home value in Tennessee is only $263,989. 

This means that you can buy a larger home for less money in Tennessee than in other states. 

However, keep in mind that real estate prices vary depending on the city and neighborhood you choose to live in. 

For example,

• Nashville: The average sales price for a home in Nashville is $410,000. Nashville home prices were up 22.6% compared to last year.
• Chattanooga: The average sales price for a home in Chattanooga is $300,000. Chattanooga home prices were up 27.7% compared to last year.
• Knoxville: The average sales price for a home in Knoxville is $269,950. Knoxville home prices were up 16.1% compared to last year.
• Memphis: The average sales price for a home in Memphis is $190,000. Memphis home prices were up 18.0% compared to last year.

Average House Sizes in Tennessee

Curious what the average house size in TN is? According to Business Insider, Nashville, TN came in 12th out of 15 cities with the largest single-family homes in the country.

The average house size in Tenn is roughly 2,598 square feet.  House sizes in TN have gone up 6.5% over the past year. 

Of course, the average house sizes in Tennessee vary depending on the city. 

• Nashville: The average size for a home in Nashville is 3,050 square feet.
• Chattanooga: The average size for a home in Chattanooga is 2,746 square feet.
• Knoxville: The average size for a home in Knoxville is 2,549 square feet.
• Memphis: The average size for a home in Memphis is 1,814 square feet.

Average Costs to Sell a House in TN

What is the average cost to sell a house in Tennessee? Well, that all depends! While your total out-of-pocket costs will vary based on your situation, you should expect 12.0% or more of your home’s final sale price to go towards selling costs. If you sell your home for $263,989. — the median home value in Tennessee — you’ll likely spend $31,678!

Here’s how much you can expect to pay at different price points based on the average cost to sell a house in Tennessee.

Common Expenses for Home Sellers in TN

Below is a breakdown of some of the most common expenses homeowners in TN can expect to help you prepare for the most and least costly aspects of selling your house. 

Keep in mind these expenses are highly variable- for example, the home and relocation expenses. Talk to a real estate professional for a more tailored and accurate estimate of your costs vs. final sale price. 

*Based on a $263,989 home — a typical home value in Tennessee, (Zillow, December 2021)

Some of these expenses like repairs, closing costs, and relocation expenses might be out of your control; however, that also depends on how you sell your home in TN. 

You can save some money on realtor fees/ a brokerage by selling by owner, or you can save on agent fees, repairs, and closing costs by selling to cash home buyers in Tennessee. 

Selling to a “We buy houses Knoxville” company is the best option if you’d like to sell your house fast and save money upon the sale of your home. 

Realtor Fees in Tennessee

If you’re interested in selling your home, one way to do so is to hire a listing agent. However, you’ll want to keep in mind the cost of realtor fees. 

The average realtor fee in Tennessee is 5.6%, which is higher than the national average of 5.49%.  

That means, to sell an average Tennessee house worth $263,989, you’ll pay about $14,800. 

Agent commissions are usually the largest cost you will face when selling a house- but you don’t have to pay the full 5.6%. 

Selling to a” Buy my house Nashville” company like Nexus could help you save thousands on commissions. Nexus Homebuyers doesn’t charge realtor commissions and even buys houses in as-is condition. 

Final Takeaways 

So, what have we learned about the Tennessee housing market?  Firstly, prices are on the rise with a 27.7% increase from last year. Second, the average house size is around 2,598 square feet and has increased by 6.5%. Third, selling costs (including realtor fees) range from 12%- depending on your home’s final sale price. Finally, it’s important to remember that these averages can vary greatly depending on the city- so be sure to do your research before selling or buying real estate. 

If you would like to save money when selling a property in TN, consider working with the top home buyer in TN – Nexus Homebuyers!