October new home sales were up 30% from last year while the median sales price was down 10.4%.

Builders closed on 64 new homes for a median price of $348,398.

The average new home that sold in October had a totable livable space of 1,850.4. This time last year the average was 2,180 square feet. Smaller homes have been the name of the game for a year since builders reduced the size to help make their product more affordable.

Johnson City saw the most new home sales (18) followed by Jonesborough with 14 sales. Blountville saw the biggest new home sales increase – six sales compared to one last year.

New home sales in the Tri-Cities, Tennessee, have increased due to several factors:

1. Rising Demand Amid Inventory Constraints: The region has seen limited housing inventory, especially in affordable price ranges. This scarcity has increased competition among buyers, prompting more new constructions to meet demand​
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3. Population and Economic Growth: The area is experiencing economic development, with more people moving in. This growth has bolstered demand for new homes, as existing homes are less readily available​
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5. Affordability Trends: While affordability challenges persist due to rising home prices and mortgage rates, the Tri-Cities remains more affordable compared to many other regions, attracting buyers who find similar housing unaffordable elsewhere​

Builders reportedly are planning 1,000 new homes across the regions. Some of those new homes will hit the market next year. Others – perhaps most of them – will be later due to permitting, financing and construction.

Another factor that could delay construction is whether the new administration will follow through on plans for new tariffs that would effect the cost of materials and the building trades supply chain.