The Tri-Cities closed 790 home sales in May 2026 at a median price of $299,750 — up 4.84% from a year ago. Sales volume was essentially flat (789 in May 2025), which means all of the growth is happening in price, not in the number of homes changing hands. The market is moving, sellers are still conceding a few thousand dollars at the table, and inventory remains tight enough to keep prices headed upward. Data from NETAR, as reported by Don Fenley (CoreData); the read below is mine.
The numbers at a glance
| Metric | May 2026 | May 2025 | Change |
|---|---|---|---|
| Closed sales | 790 | 789 | +1 (flat) |
| Median sale price | $299,750 | — | +4.84% |
| Average sale price | $344,698 | — | +3.7% |
| Median days on market | 62 | 94 (Jan baseline) | Fastest pace of the year |
| Homes sold after price cut | 36% | 57% (Jan) | Lowest cut rate of the year |
| Months of inventory | <4 months | <4 months | Held steady all year |
Source: NETAR data, as reported by Don Fenley, CoreData (June 11, 2026); market context from Fenley, June 8, 2026. Commentary mine.
Where the growth is — and where it isn't
May's price gains weren't spread evenly. The $400,000–$499,999 band posted the biggest year-over-year jump, adding 22 closings. The $300,000–$399,999 range added 11. Meanwhile, the $250,000–$299,999 band dropped by 16 sales — the largest single-band decline — as fewer homes in that range exist to buy.
The lower end of the market keeps thinning. Homes under $200,000 made up less than one-fifth of May sales, down from 22.4% a year ago. Entry-level (under $100,000) is now less than 4% of closings — it was 26% in May 2019. That isn't the market getting more expensive in the short term; it's a seven-year structural shift that has largely played out.
What does that shift look like in aggregate? The average sale price has nearly doubled since May 2019, from $176,072 to $344,698. The median has done the same, rising from $154,000. The move-up segment ($300k–$999k) grew from 10% of sales in 2019 to 35.8% today. Luxury (above that tier) went from 2% to 14.2%, or from 16 homes to 112 in a single month.
Market conditions: firm, not frenzied
This is a market where sellers still have the upper hand, but buyers aren't running out of room to negotiate. Homes are selling in 62 days at the median — down from 94 days in January, a clear sign the spring buying season arrived. Only 36% of closed sales involved a price reduction, the lowest rate of the year (it was 57% in January), and the average cut was about $30,500. That's a seller giving a little ground, not a market in distress.
About two-thirds of all sales still close with the seller contributing roughly $18,000 toward the buyer's costs. Inventory has stayed below four months all year — enough for buyers to have some choice, not enough for prices to retreat.
The headline: this is a price-appreciation story, not a volume story. Sales are flat. Prices keep rising. Demand is real, supply is constrained, and nothing in the data points to a correction.
New construction: a separate (and more expensive) market
For buyers considering new builds, the picture is sharply different. Fenley's data shows 86 new construction sales in May 2026 — identical to May 2025 — but the median new home price jumped 20.6% to $387,932, and the average reached $423,326. Part of that gain reflects larger homes: the median finished square footage grew 115 sq ft year-over-year, and price per square foot rose 11.4%.
Johnson City led the region with 29 new home sales. New builds are taking 118 days at the median to close from listing — much longer than resale, often because homes are listed before completion. If you're budgeting a new construction timeline, factor that in.
New construction data: Don Fenley, CoreData, June 22, 2026.
What this means if you're buying
A $299,750 median changes the math depending on your loan program. With VA (zero down), that's roughly $8,700 in estimated closing costs to plan for — no down payment required. With FHA at 3.5%, you're looking at about $10,500 down plus closing costs. Conventional at 3% is similar on the down payment but structures mortgage insurance differently. And in many parts of Washington, Carter, and Sullivan counties, USDA is still zero down.
As prices push toward and above $300,000, the loan program you choose — and the rate you lock — starts to swing the monthly payment meaningfully. That's a free call, and the earlier we run the numbers, the more runway you have before you're competing for a specific house.
For agents
Use any of these figures with your buyers and sellers however helps. If you'd like the monthly read as it comes out, here's how I work with agents.