Nearly half of homes that sold in December reduced their list price and about two-thirds of deals included seller concessions, according to 2025 market data from the Northeast Tennessee Association of Realtors (NETAR).

Sellers continued to rely on price reductions and concessions to close deals in a market where buyers remained active but increasingly selective.

In December, 44.8% of homes that sold had a price reduction. The average was $36,202. At the same time, 64% of December sales included concessions. The average was $19,401.

The December figures were broadly in line with the year’s overall negotiation pattern, but the size of price cuts stood out as one of the largest of the year.

Price reductions a steady feature of 2025

Across 2025, an average of 44.3% of homes sold had at least one price reduction. The average reduction was $29,810.

While the share of reduced-price sales stayed relatively stable across the year, several months showed sharper shifts. The highest levels occurred in March (57.7%) and July (60.5%), when more than half of homes sold had reduced their price before going under contract.

The largest average price reductions occurred later in the year, led by October ($38,546) and December ($36,202). That pattern suggests sellers who started above market value often needed larger adjustments to attract buyers, especially as the market moved into a more seasonal and competitive period.

What the data says about market conditions

The combined trends point to a market that continued to function normally but required more pricing discipline.

Price reductions appear to reflect a common seller strategy of listing high to preserve negotiation room, then adjusting downward to regain buyer attention.

The December data shows negotiation remained a standard part of the sales process, with price reductions and concessions both playing a central role in getting deals across the finish line.