Despite higher mortgage rates, affordability concerns, and constant headlines about the housing market, people are still buying and selling homes every day.

In fact, while national housing activity has slowed compared to previous years, many East Tennessee families continue making major housing decisions because of one simple reality:

Life doesn't stop just because mortgage rates are higher.

According to Knoxville real estate expert Ryan Coleman of Hometown Realty, the biggest misconception in today's market is that everyone is waiting on the sidelines for rates to fall before making a move.

The truth is that real-life circumstances continue driving housing decisions across Knoxville and East Tennessee every day.

Why People Are Still Moving Despite Higher Mortgage Rates

Many homeowners today are holding mortgage rates in the 3% to 4% range and understandably hesitate to give them up. However, Ryan Coleman says waiting isn't always an option.

Families continue relocating because of:

• Job transfers and career opportunities
• Growing families needing more space
• Empty nesters looking to downsize
• School district changes
• Desire for acreage and privacy
• Retirement plans
• Divorce, marriage, and other life transitions

While affordability remains a major concern, life events often create a timeline that doesn't align with interest rate forecasts. As Ryan Coleman explains, many homeowners would prefer to wait, but sometimes the reasons for moving become more important than the timing of the market.

The Knoxville Housing Market Is Changing — But It Hasn't Stopped

Housing activity across the country has slowed compared to the peak years of the pandemic boom.

Recent market data discussed on Real Estate with Ryan showed home sales down year-over-year, yet buyers and sellers continue entering the market because their personal situations require it.

In East Tennessee, we're seeing:

• More inventory entering the market
• Longer decision-making periods for buyers
• Increased negotiation opportunities
• More selective home shoppers
• Greater focus on affordability

This doesn't mean the market is crashing. Instead, it reflects a transition toward a more balanced housing environment. For both buyers and sellers, strategy has become more important than ever.

Affordability Is the Biggest Challenge Facing Buyers Today

One word continues to dominate nearly every real estate conversation in 2026:

Affordability.

Homeowners who would otherwise move are often asking themselves a simple question:

"Where would I go next?"

Many Knoxville-area homeowners have significant equity in their current homes, but when they begin shopping for replacement properties, they quickly discover higher home prices and mortgage rates can make upgrading difficult.

For example:

• A homeowner may want more acreage
• A family may need a larger home
• Buyers may want to escape HOA restrictions
• Parents may be seeking a different school district

Yet the cost to move can feel overwhelming.

That affordability pressure is keeping some inventory off the market, even though many homeowners would prefer to make a move.

Why Waiting Doesn't Always Solve the Problem

A common belief among buyers and sellers is that waiting will automatically create a better opportunity.

But Ryan Coleman notes that waiting doesn't always improve affordability.

While mortgage rates may fluctuate, many housing decisions are driven by circumstances that cannot be postponed indefinitely.

Research cited during the show highlighted that:

• Many buyers will purchase regardless of market conditions
• The average homeowner moves every five to seven years
• Millions of Americans experience major life changes every two years

Those life events often include:

• Career changes
• Births and growing families
• Marriage
• Divorce
• Retirement
• Relocation

When those events occur, housing decisions become less about market timing and more about lifestyle needs.

Buyers Have More Negotiating Power Than They've Had in Years

One of the biggest advantages for today's buyers is increased leverage.

Just a few years ago, buyers across Knoxville and East Tennessee were competing in multiple-offer situations, often waiving inspections and contingencies simply to secure a home.

Today's market looks very different.

According to Ryan Coleman, buyers now have opportunities to:

• Negotiate repairs
• Request concessions
• Explore more inventory options
• Take additional time during due diligence
• Avoid the bidding wars that dominated recent years

While affordability remains a challenge, today's buyers may actually have more control over the purchasing process than they have had in a long time.

Home Prices in Knoxville Remain Resilient

Some buyers continue waiting for major price reductions. However, Ryan Coleman believes many expectations are unrealistic. While the market has become more balanced, East Tennessee continues benefiting from:

• Population growth
• Strong employment
• Relocation demand
• Limited housing supply compared to demand

As Ryan Coleman puts it, a $400,000 home in Knoxville is unlikely to suddenly become a $350,000 home simply because buyers are waiting.

Price growth may be slower than during the pandemic years, but significant price declines remain unlikely in many East Tennessee markets.

What Buyers Need to Know Right Now

Buyers Should:

• Focus on monthly affordability rather than chasing perfect rates
• Explore recast and future refinance options with lenders
• Take advantage of increased inventory
• Negotiate where opportunities exist
• Prepare financing before shopping

Today's market offers more flexibility than many buyers have seen in years.

What Sellers Need to Know Right Now

Sellers Should:

• Understand buyers are more price-sensitive
• Prepare homes carefully before listing
• Work with experienced professionals
• Price homes realistically from day one
• Have a plan for their next move before listing

The homeowners achieving success in today's market are those who prepare early and understand current buyer expectations.

Why East Tennessee Continues to Attract Buyers

Despite national affordability concerns, East Tennessee remains one of the most desirable regions in the Southeast.

Buyers continue relocating to Knoxville and surrounding communities because of:

• Strong quality of life
• Lower taxes compared to many states
• Outdoor recreation
• Growing job opportunities
• Relatively affordable housing compared to larger metropolitan areas

These long-term fundamentals continue supporting the Knoxville housing market.

The Bottom Line

The real reason people are still moving right now has very little to do with mortgage rates. People move because life changes. Families grow. Careers evolve. Retirement arrives. Priorities shift. While affordability remains a challenge, waiting indefinitely rarely solves the underlying reason someone needs to move.

In today's Knoxville housing market, buyers have more negotiating power, sellers still have opportunities, and those who make informed decisions continue finding success. If you're considering buying or selling in East Tennessee, understanding your options today may be more valuable than waiting for tomorrow. For expert guidance, market updates, and available homes throughout East Tennessee, visit RyanColeman.org or contact the Hometown Realty team today.

Watch the full episode below.