Home sales across the Tri-Cities region rose 9.3% in the first quarter of 2026, with growth concentrated in the affordable and move-up price segments while entry-level and luxury tiers lost ground, according to data from Tennessee and Virginia Realtors MLS.

Agents closed 1,696 transactions in Q1 2026, up from 1,552 in the same period a year earlier. But the headline gain masked a significant reshuffling of where buyers are active.

Affordable Market Leads in Volume

The affordable segment — homes priced between $160,000 and $299,999 — remained the region’s largest market tier, accounting for 43.2% of all Q1 2026 sales, up from 41.6% a year earlier. Volume in that range climbed to 733 transactions from 645, a 13.6% year-over-year increase.

Move-Up Market Posts Strongest Growth

The move-up segment, covering homes priced between $300,000 and $499,999, posted the quarter’s strongest growth, rising 18.3% to 543 sales. That tier’s share of total transactions expanded to 32.0% from 29.6% in Q1 2025. Together, the affordable and move-up segments accounted for 75.2% of all regional sales in the first quarter, up from 71.2% a year ago.

Entry-Level Contracts

Transactions below $160,000 declined across all three sub-segments. Sales in the under-$100,000 range slipped to 81 from 82, a 1.2% drop, while the $100,000-$119,999 band fell 9.7% to 28 transactions. The $120,000-$159,999 segment posted the steepest entry-level volume decline, falling to 127 sales from 138, an 8.0% decrease.

Collectively, entry-level homes priced below $160,000 represented 14.0% of Q1 2026 sales, down from 16.2% in Q1 2025 — a two-percentage-point erosion in market share in a single year.

Luxury Tier Pulls Back

Sales in the luxury segment — homes priced at $500,000 or more — fell 6.6%, dropping to 184 transactions from 197. That tier’s share of total sales contracted to 10.8% from 12.7%, the largest share decline of any segment in the quarter.

Takeaway

The data points to a regional market where demand is consolidating in the affordable and move-up segments, compressing both the entry-level and luxury tiers. Rising prices likely account for part of the entry-level contraction, as homes that would have sold in lower bands a year ago may now be priced into higher categories. The luxury pullback may reflect affordability resistance at upper price points as mortgage rates remain elevated.

Data: Northeast Tennessee Association of Realtors. Analysis by CoreData/donfenley.com and AI.