July’s housing market showed some seasonal softening in July. Sales were flat and prices were down from June’s peak.

Remove the seasonality, and a more precise picture emerges. Prices are 1.05% higher than last year and sales are up 5.9%. Inventory and new listings show meager improvements, and the time a home is on the market before selling has also improved. Overall, it remains a seller’s market with a growth pattern slightly below its pre-pandemic benchmark, according to the Northeast Tennessee Association of Realtors (NETAR).

The affordable market led the gains

The affordable market posted the biggest year-over-year increase of the three price segments. Sales in the $160,000 to $299,999 range grew from 302 to 338 – an 11.9% gain. The increase suggests these buyers stepped back into the market as costs edged down, according to NETAR.

The move-up market grew steadily

The move-up market covers the widest span of prices. Sales in the $300,000 to $999,999 range rose from 326 to 349. That’s a gain of 7.1%.

Luxury sales held steady

Luxury sales matched last July’s total. There were 10 sales of homes priced at $1 million and above each year. The steady numbers show the market’s high-end moves on its own set of drivers. In mid-Aug. there were 124 active listings for properties in the $1 million plus price range.

Buyers focused on the middle of the market

Most of July’s activity landed in a narrow band of prices. Five price ranges carried more than three-quarters of all sales. The busiest was the $300,000 to $399,999 range, with 166 sales. Next came the $200,000 to $249,999 range at 134 sales. The $250,000 to $299,999 range followed with 121. The $500,000 to $999,999 range had 100 sales. The $400,000 to $499,999 range had 83. Together these ranges form the core of the Tri-Cities market.

The market’s center shifted higher

The mix of sales moved up the price scale over the past year. Most affordable ranges gained ground. The $180,000 to $199,999 range grew from 38 to 48 sales. The $160,000 to $179,999 range rose from 28 to 35. At the same time, the lowest-priced homes lost ground. Only 35 homes sold below $100,000 this July, down from 45 a year earlier. Sales in the $140,000 to $159,999 range fell from 33 to 27. This shift is not a sign of weak demand at the low end. It reflects rising prices that push homes into higher ranges. It also reflects a short supply of the least expensive homes.