New home prices in the Tri-Cities are 3.8% higher than last year and July sales are down 17.6%.

There were 56 sales last month and the median price is $365,588, according to the Northeast Tennessee Association of Realtors® (NETAR).  The average price rose even faster. It reached $403,651, up 3.9% from last year. The median marks the midpoint of all sales, where half sold for more and half for less.

Where buyers bought

The pullback did not hit every city the same way. Blountville led last month’s sales in the region with 13 closings. Johnson City followed with 11, Jonesborough with eight, and Kingsport with seven. The map looked different a year earlier. Johnson City dominated with 22 sales. Greeneville and Jonesborough tied for second in 2025 with 11 sales each.  City rankings include only markets with five or more sales.

More price cuts, deeper discounts

There were 24 sales after a price reduction, the same number as a year earlier. The average reduction grew to $19,012, up from $15,523.

Buyers also gained ground at the closing table. Thirty-four of the 56 homes sold below their final asking price. The average gap was $5,520. A year earlier, 32 of 68 homes closed below list, and the average gap was $7,717.

Size and price per foot

New homes were slightly larger this year. The average is 1,989 sq. ft. of finished living space, up from 1,930 last year. Cost per square foot edged up to $207.38, from $203.12.

Homeowners associations

Most new homes (37) came with a homeowners association.. The average fee was $337. A year earlier, 50 of 68 new homes carried an HOA, with a nearly identical average fee of $335.