East Tennessee’s booming real estate market is attracting out-of-town homebuyers.
That added competition for homes, combined with low inventory and an increase in home prices, is making it more difficult and expensive to buy a house in the Knoxville area.
According to the Freddie Mac Housing Price Index, Knoxville’s May home prices increased by 21.4% since May 2020 – a higher rate of increase than Chattanooga, Nashville, Tennessee and the United States.
While it’s true that many new Knoxvillians are coming from outside the city and state, real estate experts say what makes the market challenging isn’t out-of-town buyers — it’s a lack of available homes and other problems causing prices to go up.
And despite some community fears, the trend is unlikely to fundamentally change Knoxville.
“It feels like all the houses that are available are going to people who don’t love the city like the people who live here do. That’s what…