How’s the Real Estate Market in August 2026? Here’s What Buyers and Sellers Need to Know

If you’ve been wondering, “How’s the real estate market in August 2026?”, the answer is a little more complicated than simply saying it’s a buyer’s market or a seller’s market.

The latest numbers show something important happening in the Tri-Cities real estate market: buyers have more negotiating power than they’ve had in recent years, but that doesn’t mean the market is in trouble.

In fact, there are signs of a healthier, more balanced market where buyers have more choices and sellers have to be more strategic.

Buyers Are Negotiating More

According to local market data reported by Don Fenley in his August 9, 2026 report, buyers received some type of seller concession in 64.5% of Tri-Cities home sales in July.

That is a significant number.

Seller concessions can include things such as money toward closing costs, repairs, prepaid expenses, or other negotiated credits. For buyers, these concessions can make a meaningful difference in the amount of cash they need to bring to closing.

The average concession reported for July was approximately $16,700.

That doesn't mean every buyer is getting $16,700 from a seller. It does mean that negotiations are playing a much larger role in today's market.

And that's an important distinction.

Price Reductions Are Still Happening — But Less Frequently

Another interesting piece of the July data is the number of homes experiencing price reductions.

Approximately 37.4% of Tri-Cities home sales involved a price reduction in July.

That might sound high, but there's an important trend behind that number.

Earlier in the year, price reductions were much more common. In January, the figure was approximately 57%.

So while buyers have more negotiating leverage than they did during the peak of the seller's market, sellers are also getting better at pricing their homes correctly from the beginning.

That is a good thing for the overall market.

What Does This Mean for Buyers?

For buyers, August 2026 may be presenting some opportunities that simply weren't available a few years ago.

There are more situations where you can negotiate—not just on the purchase price, but on things like:

• Closing costs
• Repairs
• Home warranties
• Interest-rate buy-downs
• Inspection items
• Other seller concessions

But there's an important warning:

Don't assume every home is negotiable.

A well-priced home in a desirable location can still receive strong interest and multiple offers. The key is knowing which properties have negotiating room and which ones don't.

This is where having an experienced local agent can make a big difference.

What Does This Mean for Sellers?

For sellers, today's market requires a little more strategy.

The days of simply putting a home on the market at an aggressive price and waiting for multiple offers may not work in every situation.

Buyers have more information. They have more choices. And they're paying attention to how long a home has been on the market.

That makes pricing correctly from day one extremely important.

A home that is priced well can still attract strong interest.

A home that is overpriced may sit on the market, require a price reduction, and ultimately give buyers even more negotiating leverage.

In other words, today's sellers don't necessarily need to be afraid of the market—but they do need to respect it.

Is the Tri-Cities Market in Trouble?

I don't think the data supports that conclusion.

One of the encouraging pieces of information in Don Fenley's report is that the number of July home sales increased compared with the same period last year.

That's important.

We're not simply looking at a market where buyers have stopped buying. Instead, we're seeing a market where buyers have more choices and sellers are having to compete for those buyers.

That's a very different situation.

I'd describe the current market as more balanced and more negotiation-driven than the market we experienced several years ago.

And honestly, that's not necessarily a bad thing.

A balanced market can create opportunities for both sides of a transaction.

The Bottom Line for August 2026

If you're thinking about buying or selling a home in the Tri-Cities, here's what I'd take away from the latest numbers:

Buyers: You may have more negotiating power than you've had in years. Don't be afraid to ask for concessions or negotiate—but understand that good homes can still command strong offers.

Sellers: You can absolutely still sell your home, but pricing and presentation matter. The better your home compares to the competition, the stronger your position will be.

Everyone: Don't rely on national headlines to tell you what's happening in Johnson City, Kingsport, Bristol, or the surrounding communities. Real estate is local, and what's happening in one neighborhood can be very different from what's happening five miles away.

One More Thing...

The statistics referenced in this article come from Don Fenley, a local market researcher and economist who regularly analyzes real estate trends in the Tri-Cities.

His August 9, 2026 report, “Buyers Negotiate Lower Price in Two of Every Three Home Sales,” provides the underlying market data discussed here.

You can read his full report here:

Don Fenley’s full August 2026 market report

Thinking About Buying or Selling?

The market is changing—and that makes having a strategy more important than ever.

If you're considering buying or selling in Johnson City, Kingsport, Bristol, or anywhere in Northeast Tennessee, I'd be happy to help you understand what the numbers actually mean for your specific situation.

The market isn't the same everywhere. Your neighborhood matters. Your price range matters. And your goals matter.

Let's talk about what the market looks like for you.