Recent Economic Forecasts Point to Brighter Days Ahead for Buyers and Sellers could be the title of the next best seller for our area!
The real estate market may have felt a bit sluggish over the past few years, but new data and economic forecasts suggest change is on the horizon — especially here in Tennessee.
At a recent Tennessee Realtors industry event held in Knoxville, leaders from across the state gathered to hear from top economists and policy experts, including Dr. Lawrence Yun, chief economist for the National Association of Realtors, and Dr. Marianne Wanamaker, dean of the School of Public Policy at the University of Tennessee.
Their insights painted an encouraging picture:
- Tennessee continues to shine. Since 2000, the state has added over 600,000 new jobs and is outpacing the national average in employment growth.
- More Americans are working. Nationally, there are 7 million more people employed than before the pandemic.
- Wages are rising faster than inflation. This trend is helping rebuild buyer confidence and financial readiness.
- Policy changes could unlock opportunity. Possible adjustments to capital gains taxes may incentivize more homeowners to sell, freeing up much-needed inventory.
- Tennessee is attracting new residents. A continued surge in domestic migration — especially from high-cost areas like California — is fueling demand across East Tennessee.
Together, these factors point to significant pent-up demand in the housing market. While home sales have been slower for the past three years, forecasts from Dr. Yun predict a 3% increase in existing home sales this year, followed by a strong rebound of up to 14% in 2026.
What does that mean for East Tennesseans?
If you’ve been holding off on buying or selling, it may be time to revisit your options. Interest rates are expected to ease in the months ahead, and many families are already rethinking their housing needs — whether due to job changes, growing families, a return to the office or simply a desire for something different.
As always, real estate is local — and cyclical. That’s why it’s important to stay connected with a trusted professional who understands the market and can help you make informed decisions, no matter the season.
At Wallace Real Estate, we’re proud to have 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.
Kate Spears is the social, media and events specialist for Wallace Real Estate and can be reached at kate@wallacetn.com.
When you need real estate support, contact Wallace Real Estate , the leader in the business.
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