The Tri-Cities housing market is still moving forward despite higher borrowing costs and affordability concerns. Closing held steady at 764 in August, a modest gain over last year’s 720 sales.

What’s most notable about last month’s is the mix of sales. The $250K to $299,999 range led the pack with 115 closings, a sharp jump from last year’s 86. This price tier has been a backbone of the market in recent years, and August’s numbers reaffirm that middle-market homes remain in high demand.

At the same time, entry-level options under $200,000 continue to shrink. Only 197 sales closed under $200,000 in August, compared with 211 a year ago. While these homes are still critical for first-time buyers, supply is thin, and competition remains high.

The luxury side of the market ($500K and above) logged 60 sales, up slightly from 53 last year. This segment has been steadily expanding, reflecting both new construction at higher price points and a pool of buyers willing to pay for space, location, and amenities.

In short, August offered a familiar picture. There was steady demand, strong mid-market activity, a narrowing affordable pool, and slow but consistent growth in luxury.

Year-to-Date Trends: Flat but Balanced

Looking at the broader picture, year-to-date sales total 5,300, almost identical to the 5,305 closings at this point in 2024. That stability says a lot in a year when mortgage rates have hovered around 6–7% and affordability challenges are front-and-center.

The details show some shifting dynamics:

• Affordable homes ($200K and below): Down slightly year-over-year, reflecting limited supply and rising prices pushing many homes into higher brackets.
• Move-up homes ($200K–$499K): Still the largest share of the market, with nearly 2,700 year-to-date closings. Demand remains strong from families looking for more space.
• Luxury ($500K+): Up modestly year-over-year, with about 420 closings so far in 2025, underscoring how this once-niche segment has become a meaningful part of the regional market.

Overall, 2025 is a steady, balanced year, neither boom nor bust. Sales are tracking almost exactly with last year, giving buyers and sellers alike a sense of predictability in what has been a volatile national market.

August reaffirmed the Tri-Cities market’s resilience. While affordability remains a challenge, steady demand across the board. That is especially the case in the move-up and luxury ranges, suggesting the region’s housing market is holding firm as we head into fall.

This report is based solely on local data from the Northeast Tennessee Association of Realtors (NETAR). It’s a product of human analysis aided by AI.

Categories: REAL ESTATE