Will home prices go down?

This question comes up constantly: Are home prices going to drop?

It’s a fair question. Buyers don’t want to overpay, and sellers want to know if they’ve missed the peak.

Here’s the reality: dramatic price crashes are unlikely in most markets. Why? Because we still don’t have enough homes for the number of people who want to buy them (economics 📊).

Housing inventory has been tight for years. Many homeowners locked in very low interest rates and aren’t eager to sell, which keeps supply limited. When supply stays low and demand stays steady, prices tend to hold.

That doesn’t mean prices will shoot up the way they did in 2021 and 2022. The market today is more balanced. In many areas, homes are appreciating more slowly, and some sellers are adjusting prices to meet the market.

That’s actually healthy.

For buyers, a steadier market means less chaos 🙏🏼 and more opportunity to negotiate. For sellers, it means pricing correctly and presenting the home well matters more than ever 🪧

Real estate is also hyper-local. What’s happening nationally may look very different from what’s happening in your specific neighborhood.

Some areas are still extremely competitive. Others are leveling out.

The key is understanding the Knoxville market, not the headlines.

Whether you’re buying or selling, the smartest move is working with someone who watches the numbers closely and isn’t afraid to tell you the truth about what the market is actually doing.

Because in real estate, strategy always beats speculation.

Photo: 426 Augusta National Drive- a home I sold Summer, 2025.