July Tri-Cities home sales down, prices up

The Tri-Cities housing market cooled slightly in July, with 752 closings, down 2.3% from last year. Despite the dip in transactions, prices held steady. The median sales price rose to $285,000, a 2.1% year-over-year gain, reflecting continued buyer competition for well-priced homes.

July’s sales slowdown indicates buyers are still cautious amid higher mortgage rates, even as prices resist major declines. Even with fewer sales, the region’s median price increase shows sellers are holding firm, though buyers are finding opportunities in select markets.

Sales Momentum:

• • The biggest sales increase came in Church Hill, up 83.3% with 22 closings.
  • Blountville (+40.0%) and Bluff City (+35.7%) also posted strong increases sustaining those market’s recent hot market status.
  • On the downside, Gray saw the steepest decline, down 41.2% with just 10 sales.
  • Price Movement:
  • • The sharpest price gains were in Telford, where the median jumped nearly 37% to $437,500.
    • Bristol VA had a 29.9% increase, reaching $253,250.
    •  Mount Carmel recorded the steepest decline, with median prices falling 59.2% to $171,000.

If mortgage rates soften and as the FED is indicating, sidelined buyers may return for a late reason rally.  For now, the market continues on on transition pace, moving away from the frenzied pace of recent years toward a more balanced environment.