By DON FENLEY

Tri-Cities home prices are on track to hold steady through the end of 2026. Most of this year’s price gains happened in the first half. Inventory is increasing but still lags pre-pandemic levels. Sales and prices are performing at record highs. High mortgage rates and cautious buyers now limit how much further prices can climb. Well-priced, move-in-ready homes still hold their value. Overpriced and fix-up listings are sitting longer.

The first half did the heavy lifting

Kingsport-Bristol has already reached most of what forecasters expect for the full year. That leaves little room for more gains before December.

Johnson City ran even hotter. Its first half jump passed every full-year forecast on the board. A first-half gain that size rarely holds its pace through a full year. The rise should cool, and prices should settle.

Higher rates put a lid on prices

The Federal Reserve held its benchmark rate steady at its last meeting. Three members wanted an increase. That signals no rate relief is coming soon. Steady-to-higher borrowing costs keep a lid on price growth.

Buyers are choosy. Sellers are adjusting.

Buyers are taking their time. They are passing on homes that are overpriced or need work. Move-in-ready homes with fair prices still sell well.

What it means for the rest of 2026

Expect prices to stay near where they are now through year-end.

Sellers should price right from the first day. An inflated price wastes weeks and often ends in a cut anyway. Move-in-ready condition matters more than ever.

Buyers face less bidding pressure than in recent years. Even so, the best-priced homes still move fast. Waiting for a broad price drop this year is unlikely to pay off.

Categories: REAL ESTATE