Tennessee Housing: What Comes Next

Tennessee’s housing market posted mixed Q2 results but stayed stable overall, with home closings rising in the state’s 3 major metros and inventory expanding.
Knoxville recorded the strongest gains quarterly and yearly, while statewide home prices were nearly flat in Q2 and up ~3% yearly overall.
Tennessee’s homeowner vacancy rate edged lower in Q2, while residential construction strengthened as multifamily permits jumped ~16% and total permits increased ~6%.
Housing-related tax collections strengthened in Q2, statewide, with Real Estate transfer taxes ↑~13% and mortgage tax collections ↑~25% from the prior quarter.
Mortgage delinquencies increased quarterly and yearly, but foreclosure activity improved in Q2, with the rate edging lower and remaining slightly below year-ago levels.