R
ecent economic forecasts suggest a brighter future for the East Tennessee real estate market. After a few sluggish years, new data and expert insights indicate a shift towards growth.

    At a recent industry event in Knoxville, top economists and policy experts shared their views on the state's economy. Dr. Lawrence Yun, chief economist for the National Association of Realtors, and Dr. Marianne Wanamaker, dean of the University of Tennessee's School of Public Policy, presented an encouraging picture:

    Tennessee has added over 600,000 new jobs since 2000, outpacing the national average in employment growth. Nationally, there are 7 million more people employed than before the pandemic. Wages are rising faster than inflation, helping rebuild buyer confidence and financial readiness.

    Policy changes could unlock opportunity by adjusting capital gains taxes, incentivizing homeowners to sell and free up much-needed inventory. Tennessee is attracting new residents, particularly from high-cost areas like California, fueling demand across East Tennessee.

    These factors point to significant pent-up demand in the housing market. Forecasts predict a 3% increase in existing home sales this year, followed by a strong rebound of up to 14% in 2026. If you've been holding off on buying or selling, it may be time to revisit your options.

    As interest rates are expected to ease, many families are rethinking their housing needs due to job changes, growing families, or simply a desire for something different. Stay connected with a trusted professional who understands the local market and can help you make informed decisions.

    At Wallace Real Estate, we've supported East Tennessee homebuyers and sellers since 1936. As our region continues to grow, we're here to guide you every step of the way.