Despite some hesitancy, the Tri-Cities luxury housing market is back on track with upward momentum for the first half of 2025. There were 10 sales of $1 million plus homes in June, bringing the six-month total to 40. That’s four more than this time last year.

Buyers in 2025 are spending more per square foot, signaling a demand for premium finishes and locations, even as average home size decreased by over 600 square feet. Fewer cash purchases suggest a slight return of financing among high-end buyers.

Washington Co. Tenn. Is the undisputed leader in this top end housing market segment with 25 sales. 

With momentum restored, the high-end market is on track to surpass 2024’s luxury sales totals. Rising cost-per-square-foot and resilient buyer activity suggest confidence in the region’s high-end market despite interest rates and economic headwinds persist.

June’s top sale was a four-bedroom, six-bath, 5,174 sq. ft home in Abingdon with 65.6 areas. The home sold for $2.2 million.

An en-suite master bath was recently added, along with a new pool area and an outdoor kitchen. The property includes a well-appointed horse barn that is equipped with stalls, tack room, and storage space. There’s also a riding ring with three types of sand and pulverized rummer material.

The property is located five miles from downtown Abingdon.

Moving past the top end of the market, the $700K to $1 million market segment shows a mix of stability, efficiency, and shifting demand patterns. June was slower than last year with a 3.7% drop (18 sales) but the year-to-date numbers tell a more nuanced story.

So far this year, 105 homes in this price range have sold, down from 109 this time last year. The median sales price is $822,500, up from $800,000 last year.

Buyers this year are paying more per square foot, up 18.5%, despite a smaller footprint for the homes that have sold.

Johnson City is the regional leader for homes in this luxury class with 35 sales so far this year, followed by Kingsport with 11 sales.

The median days on the market in June was 53.5 days. Last yer it was 52 days. The nearly identical time on the market suggests buyer urgency and listing competitiveness are holding steady even with fewer June closings.