A national housing analysis this spring, highlighted by WSMV, put three Tennessee metros on a list most buyers would rather avoid: the country’s most overpriced housing markets. In short, list prices in parts of the state are running well ahead of what local benchmarks say those homes are actually worth.
According to MoneyLion, analysts compared 2026 average home values with 2026 median list prices across the 200 largest U.S. housing markets, then pulled out the 50 metros where listings most outpace valuations. The May breakdown shows a strong regional tilt, with 45 of the 50 overpriced markets in Southern states and percent gaps that run from the high teens to more than 60% in the most extreme cases.
Which Tennessee Cities Made the List
MoneyLion placed Kingsport at No. 16, Knoxville at No. 34 and Chattanooga at No. 40 among the 50 metros where median asking prices exceed typical values. In Kingsport, the median list price came in around $315,248 versus an average home value of $243,902, roughly 29.3% higher. Knoxville’s median list price was about $433,340 against an average value of $362,760, about 19.5% higher. Chattanooga’s listings averaged about $378,211 compared with a $321,191 home value, about 17.8% higher.
“The average home value in the United States is around $367,000, while the median list price is about $400,000,” MoneyLion wrote.
Local market snapshot
Zillow’s April 2026 home-value pages line up with the broader pattern. In Knoxville, typical home values sit in the low to mid $360,000s while median list prices often hover near $400,000. Chattanooga shows average values around $320,000 with median listings around $375,000. Kingsport is cheaper overall but tells the same story on a percentage basis, with Redfin and Zillow putting average values in the mid $200,000s while many listings creep into the low $300,000s. That spread is exactly what feeds the “overpriced” label in MoneyLion’s ranking. For neighborhood-level snapshots, see Zillow for Knoxville, Zillow for Chattanooga and Redfin for Kingsport.
What buyers should watch
For buyers on the ground, the takeaway is not panic, it is perspective. Treat the list price as an opening bid, not a verdict. Dig into recent comparable sales, insist on inspections and keep financing contingencies front and center in any offer. In markets where asking prices are stretched, patience and discipline, plus a clear read on neighborhood comps, usually beat emotional bidding that chases the sticker.
WSMV also ran a local summary of MoneyLion’s ranking, including Tennessee-specific tables and a rundown of the company’s methodology.
.jpg){kind=link}