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Market Pulse Survey - Q4 2022

The Market Pulse Survey gathers on-the-ground information about local market conditions from members of the Knoxville Area Association of REALTORS® based on their client interactions and real estate transactions in the previous three months.

Key Findings

  • Both buyer and seller traffic declined in the fourth quarter. 68% of respondents reported seeing less buyer traffic than usual, while 57% of respondents reported less seller traffic than usual.
  • REALTORS® expect buyer traffic to remain suppressed over the next three months, with 44% of respondents expecting lower-than-usual buyer traffic. Expectations about future seller traffic were split, with 39% of respondents expecting seller traffic to stay about the same and 37% expecting seller traffic to be less than usual.
  • Respondents reported receiving an average of 2.2 offers on homes sold in Q4 2022, down from 2.5 offers in Q3 and 6 offers in Q1.
  • 56% of REALTORS® expect home sales will decrease over the next year, down from 58% the previous quarter. 27% expect home sales will stay about the same, and 17% expect home sales will increase.
  • Industry expectations regarding home prices remain relatively strong. 57% of respondents said they expect home prices will either stay the same or increase over the next year, up from 56% in the previous quarter.
  • All-cash sales represented 28% of all home sales in Q4 2022, up from 26% the previous quarter.
  • Out-of-town buyers as a share of all home sales have declined precipitously over the past year. Buyers relocating from another area represented just 8.5% of all home sales, compared to 24% of sales in the first quarter of 2022.
  • REALTORS® reported fewer problems with appraisals. Only 7.4% of homes sold in the past three months had an appraised value that was less than the purchase price, down from an average of 17% in the first half of 2022.
  • 47% of buyers in the past three months waived at least one contingency in their purchase contract, with 20% waiving the appraisal contingency.

"The housing market slowed considerably in response to the rapid rise in mortgage rates, evidenced by the high share of REALTORS® reporting lower buyer and seller traffic," said Hancen Sale, KAAR's Government Affairs and Policy Director. "Still, REALTORS® remain cautiously optimistic about the local market and a strong majority expect home prices to hold on in 2023. Overall, the latest survey results suggest we are returning to a more normal market – a positive sign for buyers and sellers alike."

About the Survey

  • The Market Pulse Survey gathers on-the-ground information about local market conditions from members of the Knoxville Area Association of REALTORS® based on their client interactions and real estate transactions in the previous three months.
  • The Q4 2022 Market Pulse Survey was conducted online from December 7-13, 2022, and received a total 213 responses from REALTORS® in the Knoxville area.
  • The Market Pulse Survey is provided by the Knoxville Area Association of REALTORS® (KAAR) solely for use as a reference. Resale of any part of this data is prohibited without KAAR’s prior written consent.
  • Media inquiries about the survey should be directed to Hancen Sale at hancen@kaarmls.com.

Data Attribution: You are welcome to use or reproduce this survey data for your own purposes, but we ask that you attribute any full or partial use of the data to Knoxville Area Association of REALTORS® and include the time period when the survey was conducted.