The Tri-Cities new home market closed Q1 2026 with fewer sales but higher prices. There was also a sharp change in where those homes are being built.

Volume fell to 169 closings, down from 180 a year ago (−6.1%). The median new home sale price hit $388,000, up 9.3% from $355,000 last year. The average price rose 4.7% to $392,313, according to the Northeast Tennessee Association of Realtors (NETAR)

When the median price growth outpaces average growth, it’s a signal that price pressure is building in the middle of the market.

New homes also got larger. Average finished square footage increased 7.3% to 1,998 sq ft. At the same time, price per square foot dipped slightly to $202.02, down 1.4% from $204.98.

The typical home sold faster this year. The median days on market improved to 114 from 119.

Where the sales are happening

Johnson City had the highest sales volume in Q1. Sales jumped from 24 to 47. Kingsport surged from 14 to 33. Greeneville added four sales to reach 24.

Markets with fewer new home sales were:

–      Jonesborough fell from 39 to 22 closings

–      Bristol dropped sharply from 24 to five

–      Blountville eased from 21 to 15.

The remaining sales were in county markets.

Conventional loans remained dominant at 54.4% of closings. FHA share rose to 13.0% (from 10.0%), while VA fell to 10.1% (from 15.6%). THDA made its first appearance in the Q1 data with two closings.

HOA-attached homes accounted for 63.3% of Q1 2026 sales, down from 70.6% a year ago. Among HOA communities, average monthly fees rose 10.9% to $316.