By DON FENLEY

The Tri-Cities housing market is firmly embedded in a more negotiated phase. New January data shows a growing share of home sales required price reductions and seller concessions.

Last month’s sales were up 2.4% from last year. The median sales price of $268,000 was down 3.41% from last year.

According to the Northeast Tennessee Association of Realtors (NETAR), 57% of homes sold in January had a price reduction. The original listing price of those homes had an average price cut of $29,851. This time last year, 39% of the homes sold had an average price reduction of $26,942.

The January figures reflect a broader trend that developed over the past two years, with roughly four to six out of every 10 Tri-Cities home sales involving a price cut before attracting a buyer. Average reductions frequently ranged from the mid-$20,000s to the upper-$30,000s. It’s a sign that buyers are less willing to pursue listings priced above market value.

Seller concessions have also become a standard part of transactions. In January, 67% of homes sold included seller-paid concessions, averaging $18,028 per sale. That level is nearly unchanged from January 2025 and consistent with patterns seen throughout last year, when concessions appeared in about six out of 10 sales.

Rather than relying solely on price cuts, many sellers are using concessions to offset affordability pressures by helping cover closing costs, buying down mortgage rates, or addressing inspection-related repairs.

The trend points to a shift away from the rapid, momentum-driven conditions that were the norm in recent years toward a more balanced environment shaped by negotiation and pricing discipline.

This isn’t a softening market. It’s a maturing one. Realistically priced homes that are paired with flexible terms are still selling.

NETAR officials said the January results highlight the importance of accurate pricing and strategic marketing as the region adapts to higher interest rates and elevated home prices.

Categories: REAL ESTATE