The Tri-Cities housing market continues to produce steady sales activity, but January’s data show transactions increasingly depend on sellers meeting buyers in the middle. It’s a hallmark of a normalized housing market.

Last month’s sales were up 2.4% from last year. The median sales price of $268,000 was down 3.41% from last year.

According to the Northeast Tennessee Association of Realtors® (NETAR), 57% of homes sold in January closed after a price reduction, up from 39% last year. The average adjustment was $29,851. This time last year it was $26,942.

The January figures reflect a broader trend that developed over the past year, with roughly four to six out of every 10 home sales involving a price cut before attracting a buyer. Average reductions ranged from the mid-$20,000s to the upper-$30,000s.

Seller concessions have also become a standard part of transactions. In January, 67% of homes sold included seller concessions. The average was $18,028 per sale. That level is nearly unchanged from January 2025 and consistent with patterns seen throughout last year, when concessions appeared in about six out of 10 sales.

Rather than relying solely on price cuts, some sellers are using concessions to offset affordability pressures by helping cover closing costs, buying down mortgage rates, or addressing inspection-related repairs.

The data points to a shift away from the rapid, momentum-driven conditions seen in past years toward a more balanced environment shaped by negotiation and pricing discipline.

NETAR officials said the January results highlight the importance of accurate pricing and strategic marketing as the region adapts to the 2026 market.