By DON FENLEY

There were 49 new home sales in January, down from 70 a year earlier, according to the Northeast Tennessee Association of Realtors (NETAR).

Despite fewer closings, the median new home price rose nearly 10% year over last year to  $389,000.

January pricing behavior confirms builder discipline is improving, but only after larger upfront corrections. Compared to January 2025, last month saw slightly more homes reducing price. The average reduction jumped 32% to $27,035. And over half of January closings still required concessions. The average was $8,703. That signals that buyers remain price sensitive.

The average price per square foot increased from January 2025, even as homes became slightly smaller on average. Last month’s average home that sold was 1,909 sqft, down from 1,955 sqft last year. The average price was $212.18, up from $209.29 last year.

Homes governed by homeowners’ associations accounted for 60% of the new home sales, and the average monthly fee was $203, down from $205 last year.

Market pace showed little change. Median days on market stood at approximately 108 days. Last year it was 109 days. The days on market for overall sales last month were 94 days.

Johnson City, Kingsport, and Jonesborough accounted for most of January’s activity, with Johnson City increasing its share of new-home closings compared with last year. DR Horton continues to lead sales volume.

While sales volume softened, market fundamentals point to stabilization rather than contraction, with pricing holding firm.

Categories: REAL ESTATE