Knoxville Luxury Market Report: October 2026 by the Numbers

If you own or are shopping for a high-end home in Knoxville, you’ve probably heard mixed signals this fall. Mortgage rates are high and national consumer confidence is low, yet luxury homes in East Tennessee keep selling.

The latest numbers explain why. This report uses the most recent full month of MLS data released in October 2026 (September closings). It focuses on homes priced at $750,000 and above in Knox County and $1 million and above in Farragut. Here’s what the data says and what it means for your next move.

Key takeaways

• Knox County closed about 72 homes at $750K+ in September 2026, up roughly 29% from about 56 a year earlier.
• Luxury inventory is growing faster than sales: about 357 active $750K+ listings, up roughly 43% year over year.
• Farragut is still the fastest market in the region, with a median of just 15 days on market.
• Buyers have more choices, but homes priced right from day one still sell close to asking.

Knox County Luxury Sales: The Headline Numbers

The top of the market is doing better than the market as a whole. A September 2026 MLS analysis of single-family homes by 865 Real Estate (data pulled October 7, 2026) shows Knox County recorded:

For context, the county’s overall median sale price was $402,050, about flat year over year (-0.7%). The average sale price rose 6.2% to $516,726, which shows strength at the top of the market pulling the average up.

Inventory Is Growing, and So Is Demand

The biggest change this year is supply. Active luxury listings are up about 43%, while monthly luxury sales are up about 29%. At September’s pace, that’s roughly five months of $750K+ inventory (our calculation from the figures above). That’s more balanced than the county as a whole, which had 3.15 months of supply.

For buyers, this means more choice and more room to negotiate on overpriced homes. For sellers, it means more competition. Countywide, homes sold for 98.0% of their final list price but only 95.1% of their original list price. That gap is the cost of starting too high.

Farragut: Still the Tightest Market in East Tennessee

Farragut continues to stand apart. In September 2026, it had:

• 2.66 months of supply, down from 3.39 a year ago
• A median of 15 days on market, the fastest in the region
• A $712,206 median and $830,470 average sale price
• A 98.1% sale-to-list price ratio, the strongest in the region

In the $1 million+ range, Farragut has recorded 73 sales year to date, up from 64 last year (+14.1%). The $1.1M–$1.2M range led with 22 sales. Active $1M+ listings rose to 41 from 28, and the market keeps absorbing them.

Tellico Village and Loudon County: A Year of Tightening

Lakeside retirement and second-home buyers have kept Loudon County busy. Tellico Village’s supply fell from 5.12 months to 2.88 months over the past year, and active listings dropped from 163 to 99. Its median sale price rose 5.3% to $670,000. Loudon County overall posted a $600,000 median, up 3.9%.

Why Is Knoxville’s Luxury Market Holding Up With High Mortgage Rates?

Knoxville’s luxury market is holding up because many high-end buyers depend less on financing. Move-up buyers with equity, cash buyers, and professionals relocating from higher-cost cities feel mortgage rates less. Rates averaged 7.63% on a 30-year fixed loan as of October 7, 2026. Low local unemployment (3.2% in the Knoxville metro) also supports demand.

Is It a Buyer’s or Seller’s Market for Luxury Homes in Knoxville?

That depends on the area and price point. Farragut and Tellico Village are still clear seller’s markets, with under three months of supply. In Knox County’s $750K+ range, inventory has grown faster than sales, so conditions are closer to balanced. Buyers have more leverage on overpriced homes, but well-priced homes still sell quickly.

Frequently Asked Questions

What price counts as luxury in Knoxville?
There’s no single cutoff. Many local reports use $750,000+ for Knox County and $1 million+ for Farragut, where median prices run higher. Another useful marker is the conforming loan limit of $832,750. Above it, most buyers need a jumbo loan or a larger down payment.

How long does it take to sell a luxury home in Knoxville?
It varies by area. Farragut homes had a median of 15 days on market in September 2026, compared with 26 days for Knox County overall. Overpriced homes sit longer and usually sell below their original asking price.

Are luxury home prices falling in Knoxville?
Not based on recent data. Knox County’s average sale price rose 6.2% year over year, and Farragut’s year-to-date median is up 2.3%. Growing inventory may slow price gains, so pricing strategy matters more now than it did two years ago.

Is now a good time to relocate to Knoxville?
For buyers moving from higher-cost markets, Knoxville’s luxury range offers more choice than it has in years. Farragut and the lake communities are still competitive, so being ready to act on the right home still matters.

Next Steps

If you’re selling:

1. Get a pricing analysis based on recent luxury sales in your neighborhood, not county averages.
2. Price correctly at launch to avoid the roughly 3% gap between original and final list price.
3. Invest in presentation, since buyers have more homes to compare this year.

If you’re buying:

1. Line up jumbo or cash financing before you tour.
2. Check days on market. Homes listed longer may leave room to negotiate.

Conclusion

Knoxville’s luxury market isn’t slowing down; it’s getting more selective. Sales are up, inventory is up, and the gap between well-priced and overpriced homes is widening. In Farragut and Tellico Village, sellers still have the edge. In much of Knox County, buyers have more room than they’ve had in years. The right move depends on your neighborhood, price point, and timing.

Talk to a Local Luxury Specialist

Want to know what these numbers mean for your home or your search? Morrell Property Collective follows Knoxville’s luxury market month by month and can walk you through pricing, timing, and neighborhood trends for your situation. Call us at (615) 593-3103 to set up a conversation.