The Tri-Cities new-home market remained resilient through the first half of 2025, delivering solid sales performance despite higher interest rates and rising construction costs. While the pace of growth has moderated, mid-year numbers show a market that is maturing, recalibrating, and leaning into efficiency.

After a few years of volatility, builders and buyers have found middle ground: right-sized homes at smart prices, with just enough demand to keep the market moving without overheating. Faster construction cycles and more efficient designs have helped hold the absorption rates steady, according to data from the Northeast Tennessee Association of Realtors® (NETAR).

The second half of 2025 will likely continue steady, selective growth in a market that’s learning to prioritize value, livability, and location over sheer size.

2025 v. 2024 Mid-Year Comparison

	2025	2024	Change
Homes sold	401	382	+5%
Median sales price	$342,132	$331,695	+3%
Avg. price per sq. ft.	$201.40	$192.84	+4.4%
Median sq. ft.	1,775	1,829	-3%
Avg. days on market	137	139	Down 2 days

Reshuffled Leaderboard

• D.R. Horton remains the regional volume leader with over 180 closings across Washington, Sullivan, and Greene counties. Their emphasis on entry-level and mid-range homes has cemented their role as a regional workhorse.
• Property Executives Johnson City held onto the premium tier, averaging over $485,000 per home, though total sales dipped 25% year-over-year as buyers leaned toward more budget-conscious options.

County Highlights

• Washington County remained dominant in sales volume. The county had 177 closing, up 6% from the first half of last year. The median price of $370,235 was down 1.7%.
• Sullivan County had the largest sales increase, up13.8%, driven by competitive pricing and broad geographic coverage. The median price of $335,608 was up 4.5%.
• Greene County showed the strongest price-per-foot growth with a 15% increase to $194. The county’s market was catching up to demand with faster closings and leaner inventory.

Outlook

As we enter the latter half of 2025, here’s what to watch:

– Builder Adjustments: Expect more streamlined floor plans, especially under 1,800 sq ft, and continued pressure to keep per-foot pricing stable even as material costs fluctuate.

– Local Migration & Demand: Washington and Sullivan will remain the growth corridors, but Greene and Unicoi counties could see a bump from buyers chasing value and space.

– Financing & Affordability: Mortgage rates remain the wildcard. Any downward movement could unlock sidelined demand.

– Inventory Management: With most builders keeping specs lean and lot releases phased, don’t expect oversupply soon. This should support stable pricing through year-end.

County-Level New Home Performance

Each county is carving out a distinct path. Here’s how the key NE TN counties compare at mid-year:

Washington – Stable, Steady, Softer

• Sales rose modestly from 167 to 177 units.
• Median price dipped slightly from $376K to $370K.
• Price per square foot held flat at $215.
• Days on market increased by two weeks.

 Washington remains the region’s anchor, but the slight pricing decline and slower absorption suggest mild saturation or greater buyer price sensitivity, particularly in the $350K–$450K range.

Sullivan – High Velocity, Gaining Value

• Sales jumped 14%, from 123 to 140.
• Median price climbed to $336K (from $321K).
• Price per sq ft surged from $168 to $183.
• Homes took slightly longer to sell, up to 154 days on market.

 Sullivan is emerging as the growth leader, with increased demand and steady price appreciation, especially in metro zones around Kingsport and Blountville.

Greene – Underdog Catching Up

• Sales were nearly flat at 58 compared to 60 last year.
• Median price ticked up to $309K.
• Price per sq ft spiked by 15%, from $169 to $194.
• Days on market dropped dramatically from 183 to 127.

 Greene is no longer the overlooked bargain. Builders sold fewer but faster homes at higher per-foot prices, indicating improving buyer interest and potential lot scarcity.

Carter – Pricing Pullback, Faster Absorption

• Sales dropped slightly from 11 to 10.
• Median price fell sharply (–10%) to $328K.
• Price per sq ft dropped slightly, but days on market improved to just 86 days.

 Likely a shift toward more affordable inventory. Carter is selling smaller homes more quickly but at lower price points, perhaps capturing first-time or downsize buyers.

Unicoi – Fewer Luxury Plays, Faster Sales

• Volume flat at 10 units, year-over-year.
• Median price dropped 14%.
• Price per foot held steady around $218.
• Days on market improved significantly, from 216 to 90.

 Big drop in price likely reflects product mix change rather than demand loss. Unicoi moved inventory faster in 2025, possibly helped by spillover from Washington County.