Don Fenley is semiretired from a 45-year career as a journalist. His news blog — Core Data — focuses on local housing data and localized reports about the core elements of the Northeast Tennessee economy.
Don Fenley is semiretired from a 45-year career as a journalist. His news blog — Core Data — focuses on local housing data and localized reports about the core elements of the Northeast Tennessee economy.
Don Fenley is semiretired from a 45-year career as a journalist. His news blog — Core Data — focuses on local housing data and localized reports about the core elements of the Northeast Tennessee economy.
The ground shifted under Tri-Cities home sellers’ feet in July. For the second month in a row, home sales slipped, and this time price reductions surged. They were at their highest level in seven months.
Of all the homes sold last month, 37% had a price reduction before finding a buyer. That’s not the biggest share we’ve seen this year, but the size of those reductions was a record: an average cut of $30,401. That’s well above the usual $20,000-and-under range.
Sellers are clearly adjusting to slower buyer activity and the reality that mortgage rate relief isn’t arriving anytime soon.
Sixty-one percent of July’s sales closed below the listing price. On average, sellers shaved $20,862 off asking prices to get deals done.
That’s a big change from the frenzy of recent years. Buyers are now negotiating with confidence — and walking away with real savings.
This isn’t a crash — it’s a recalibration signal. The market is shifting toward balance. But a balanced market doesn’t necessarily signal a shift to a buyers’ market.
The largest reductions were in the $180K prices range (6.6%). Reductions ranged from 4.99% to 2.85% in the $250K to $499K price range. Luxury listings in the $500K-plus price range average 1% reductions.
The evolving market landscape is sellers need to be sharper with pricing, while buyers, especially those with strong finances, now have leverage.
While sales volume is running 5.7% behind last year, prices aren’t tumbling. The median sales price in July was $10,000 lower than in June, but still 2.15% higher than a year ago. Prices have averaged a monthly appreciation average of 0.9% so far this year.
The fall and winter market performance will hinge on mortgage rates, inventory and buyer confidence. For now, the overheated, bidding-war market has cooled into one defined by patience, strategy and more give-and-take between buyers and sellers.
Agents report that “the phones are not ringing as often.â€
This report is based on human analysis of only local housing data from the Northeast Tennessee Association of Realtors® (NETAR) July housing report with AI assistance.
Don Fenley is semiretired from a 45-year career as a journalist. His news blog — Core Data — focuses on local housing data and localized reports about the core elements of the Northeast Tennessee economy.
