05/29/2026
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The Northeast Tennessee housing market continued to hold its affordability advantage while posting one of the stronger growth rates in East Tennessee.
The region recorded 761 home sales, up 12.6% from a year ago. Median prices climbed to $288,000, a 4.73% increase that kept the region substantially below the median prices seen in Knoxville and Chattanooga.
The numbers suggest the Tri-Cities market remains in a balanced expansion phase. Sales growth outpaced price growth, which typically indicates buyers are still active and able to absorb inventory without triggering sharp price spikes.
Knoxville Losing Some Pricing Momentum
The Knoxville market remained the region’s highest-priced major metro at $369,500, but it was also the only market in the comparison posting a year-over-year price decline. Median prices slipped 1.47% even as sales increased 7.3%.
That combination points to a market normalization cycle after several years of rapid appreciation. Knoxville still has strong demand, but affordability pressures appear to be limiting how far prices can continue to rise.
Morristown Showing Fastest Growth
Morristown posted the strongest sales growth in the comparison with a 27.4% increase in transactions. Median prices rose 4.92% to $309,500.
The market’s relatively smaller size can amplify percentage swings, but the data still suggests buyers are increasingly looking toward secondary East Tennessee markets where pricing remains more attainable than Knoxville.
Chattanooga Expanding at a Slower Pace
Chattanooga continued to post steady but slower growth. Median prices increased 3% to $339,900 while sales rose 2.3%.
Compared to NETAR and Morristown, Chattanooga’s market appears to be moving into a more mature stage of the cycle where gains are still positive but no longer accelerating.
The Bottom Line
The latest comparison reinforces a familiar regional pattern:
• Knoxville remains the pricing leader but is showing signs of affordability fatigue.
• NETAR continues to benefit from its middle-market affordability position.
• Morristown is emerging as one of the fastest-growing smaller markets in East Tennessee.
• Chattanooga remains stable but is growing at a more measured pace.
For Northeast Tennessee, the combination of moderate prices and rising sales volume continues to separate the market from several peer metros. The region is still being driven primarily by workforce and middle-market buyers rather than luxury demand, which remains one of its biggest structural advantages going into the summer market season.
