Tri-Cities sales of homes priced at $1 million were up in the first half of this year, but they took about two months longer to sell. Sales rose to 48 between January and June. The pace this time last year was 42 sales. There were 19 closings in June, up from 11 last year.

Prices moved very little between the two periods. The median sales price during the first half of the year was $1.3 million. Last year it was $1.2 million. The growth came from a larger number of transactions rather than from higher prices. Sellers also gave up more ground on the way to closing, according to the Northeast Tennessee Association of Realtors (NETAR). Almost every home that sold so far this year sold for less than the owner first asked.

Sellers are still finding buyers at the mid-year level, but they are no longer setting all the terms. Almost every home that sold so far this year sold for less than the owner first asked, and nearly half needed a price reduction to get there, according to NETAR’s Market Pulse Report.

A $3.5 million Piney Flats home led the region

The region’s highest sale so far this year was made last month. The 7,178-square-foot house sits on 2.68 acres. It was an off-market, private transaction. Last year’s top sale was a $2.45 million home in Limestone in Greene Co. Two homes sold above $2 million this year. Last year there were five.

Volume grew faster than price

The mid-year median sale price was $1.3 million, up from $1.22 million. The average sale price was close to $1.38 million both years.

Homes sat on the market two months longer

Homes averaged 143 days on market, up from 93. Nearly 29% took six months or longer to sell, compared with 12% last year.

Sellers cut asking prices twice as often

Almost half (45%) of this year’s sales had the asking price reduced. Last year’s share was 22.5%. The average reduction was $127,000. About 88% of the sales closed below the final asking price, up from 78% last year. The average difference was roughly $97,000. Six homes sold at the full asking price. None sold above it.

More buyers wanted acreage, but smaller tracts

Sixteen sales included 10 acres or morel. So far this year the median price for those homes as $1.43 million. Last year it was $1.65 million. The median price for homes on less than 10 acres held near $1.24 million.

Johnson City had most sales

Johnson City led with 13 sales, up from 10. Jonesborough had six, down from eight. Blountville, Gray, Kingsport, and Piney Flats each had three.

Southwest Virginia was the exception to the regional gain. The Virginia side of the market recorded one sale of $1 million this year.

Conventional loans led. Cash bought higher and waited longer.

Conventional financing was used in 26 sales. Cash accounted for 20 sales. VA loans accounted for two. The median cash purchase was $1.41 million. The median conventional purchase was $1.25 million.

In mid-July there were 129 active listings for properties priced at $1 million or more in the Tri-Cities.