The 2025 top sale was a 6,667 sq. ft. 7-bedroom, 7-bath Kingsport 21-acre estate that sold for $2,950,000. It was on the market for 54 days. One Ridge Estate is a gated sanctuary that includes the home, a private rock quarry, and a spring-fed stream. It has a high-security custom gate, a multi-layer 24-7 monitored security system. The home is a mix of formal and informal living areas with high-end finishes.

By DON FENLEY

At first glance, the $1 million + market for 2025 looks simple: more luxury homes sold in 2025 than in 2024. But beneath the surface is a more instructive story about how buyers are recalibrating value, and how the luxury market is maturing.

More Closings, Different Shape

Luxury sales volume rose meaningfully in 2025. There were 91 sales, up from 70 in 2024. The 30% sales increase isn’t the only noteworthy data point. Total dollar volume topped $122.6 million. It was $98.6 million the year before.

Yet the typical luxury transaction softened slightly. The average sold price dipped from roughly $1.41 million in 2024 to $1.35 million in 2025. The median slipped modestly too. This wasn’t a demand problem. It was a mix shift.

2024 featured more extreme trophy outcomes, but in 2025 deals were clustered in the $1.0–$1.5 million range. That’s where liquidity is strongest and buyer depth is widest.

The Pivot: Size Down, Value Up

Perhaps the clearest signal of buyer intent comes from finished square footage.

In 2024, the average luxury home sold with about 5,060 finished square feet. In 2025, that figure fell to roughly 4,800 square feet.

But here’s the key: price per finished square foot didn’t fall. It edged slightly higher -about $281 per square foot in 2025 versus $278 in 2024.

Luxury homes in 2025 also sold faster, with median days on market dropping to roughly 60 days, down from 85 days in 2024. Pricing discipline improved as well. The sold-to-original-list ratio climbed above 94%, compared with sub-90% the year before.

That combination matters. Faster absorption and tighter negotiation bands signal a market where buyers are decisive when a property aligns with expectations.

In short: less noise, fewer resets, better alignment.

What Didn’t Change Why That Matters

2025 $1 million-plus home sales

Despite the shifts, the luxury market retained remarkable consistency year over year.

• Product type remained stable: luxury in this region is overwhelmingly single-family residential.
• Geography stayed anchored: Washington and Sullivan counties continued to account for the majority of activity, underscoring where luxury demand is structurally rooted.
• Age profile held steady: the median luxury home in both years was built around 2007, confirming that buyers are still targeting modern-era construction rather than legacy housing stock.

2026 Outlook: A Market That Knows What It Wants

Looking ahead, the 2025 year-over-year data signals point to a clear path for 2026.

Expect continued strength in the $1.0–$1.5 million band, where liquidity is deepest and outcomes are most predictable. The ultra-high end will see some eye-catching sales, but the market is dependent on unique inventory and timing rather than a steady flow.

Categories: REAL ESTATE