As we step into 2025, one of the biggest questions on everyone's mind is: Will this be a good year to buy or sell a home? Whether you're considering listing your house or planning to make your first purchase, understanding which way the market is leaning can help you make smart, informed decisions.

Let’s dive into what we’re seeing so far in 2025 and what that could mean for buyers and sellers across Tennessee and beyond.

Current Market Snapshot

2024 saw a shift toward stabilization after several years of highs and lows. Interest rates began to level out, home prices started to soften in some areas, and inventory slowly increased. As we begin 2025:

• Mortgage rates are still higher than pre-pandemic levels, but they’ve steadied, giving buyers a little more predictability.
  

• Inventory is improving, but still lower than historical averages—good news for sellers, but a challenge for buyers.
  

• Home prices remain strong, especially in sought-after areas like Middle and East Tennessee, though bidding wars have cooled.

So… Buyer’s Market or Seller’s Market?

Honestly, 2025 is shaping up to be a bit of a mixed bag—with some local markets favoring sellers and others leaning more toward buyers. Here's how it breaks down:

Seller’s Market?

If you're in a high-demand neighborhood or a city like Knoxville, Murfreesboro, or Chattanooga, you may still experience strong interest from buyers, especially if your home is move-in ready and priced right. Limited inventory continues to work in sellers’ favor.

Buyer’s Market?

On the flip side, buyers are starting to gain more leverage in suburban and rural areas, where inventory is more plentiful. With less competition and longer days on market, buyers can negotiate more on price, contingencies, and repairs.

What Should You Do?

• Sellers: If you’re thinking of listing, don’t wait for a “perfect market.” Focus on making your home shine with small updates, proper staging, and strategic pricing.
  

• Buyers: This could be your year! Take advantage of softening prices and be ready to act when the right opportunity appears. Having a trusted agent and lender lined up will give you a big edge. 

Bottom Line

2025 isn’t clearly a buyer’s or seller’s market—it really depends on your local area and personal goals. That’s why it’s so important to work with a real estate team that understands the market on a hyper-local level.

Here at the Jeff LaRue Team, we’re keeping a close eye on the shifts and trends so we can guide our clients every step of the way. Whether you're thinking about buying, selling, or just exploring your options, we're excited to help. 

Disclaimer:

This information is for general knowledge and informational purposes only and does not constitute financial, tax, or legal advice. We are not lawyers, financial advisors, accountants, loan officers, or mortgage brokers. Please consult with a qualified professional to understand your specific needs.