Tri-Cities’ new home market didn’t grow in size in May; it grew in price.
The median price for a new construction home was $387,932 That’s up 20.6% from last year. The average price rose 17.9% to $423,326. Both gains are large for a region where sales volume did not change.
There were 86 sales last month. The same as May last year, according to the Northeast Tennessee Association of Realtors.
Here’s how the new home market compares to the all-sales market. The median price for all home sales ($300,000) was up 4.8% and sales were 1.3% better than this time last year.
New home sales at a glance
| Metric | May 2026 | May 2025 | Change |
| Closed sales | 86 | 86 | Flat |
| Median sold price | $387,932 | $321,725 | +20.6% |
| Average sold price | $423,326 | $359,075 | +17.9% |
| Median list price | $389,720 | $324,302 | +20.2% |
| Sold-to-list ratio (median) | 99.4% | 99.6% | -0.2 pt |
| Sold above original list | 15% | 17% | -2 pt |
| Average price per sq. ft. | $212.03 | $198.95 | +6.6% |
| Median price per sq. ft. | $204.96 | $183.99 | +11.4% |
| Median finished sq. ft. | 1,864 | 1,749 | +115 |
| Mean days on market | 137 | 137 | Flat |
| Median days on market | 118 | 123 | -5 days |
| Homes with an HOA | 64% | 69% | -5 pt |
| Average HOA fee | $326 | $280 | +16.5% |
Part of the new home price gain came from larger homes. Buyers paid more for the space. The median new home sold was 1,864 square feet last month. That’s 115 square feet more than a year earlier. The median price per square foot rose 11.4% to $204.96 from $183.99.
Builders did not need to discount to close sales. New homes sold for 99.4% of their list price, nearly the same as a year ago.
The sharpest change came at the lower end of the market. In May 2025, one in five new homes sold for less than $250,000. Last month, only 6% did. Over the same period, homes priced at $500,000 and up grew from 13% of sales to 20%.
New homes also sold slightly faster than last year. The median time on market was 118 days, down from 123 last year. New homes are routinely on the market longer than resale homes because builders often list a home before it is finished.
Buyers who chose a managed community paid more in fees. The average HOA fee rose 16.5% to $326 a year. Slightly fewer homes carried an HOA this year, 64% compared with 69%.
Johnson City led the region again with 29 sales. That is more than a third of the total. Greeneville and Jonesborough tied for second with 11 each. Bluff City and Kingsport rounded out the busiest markets.
The most current metro-level reports on single-family new home building permits show a slight slump in the Johnson City market and an increase in Kingsport-Bristol. During the first four months of the year, there were 284 Johnson City metro permits, down from 310 last year. The Kingsport-Bristol total this year is 278 permits, up from 221 last year.
Categories: REAL ESTATE
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