Mortgage Rates Jump Again — But Johnson City’s Housing Market Is Giving Buyers Something They Haven’t Had in Years: Time
If you’re thinking about buying or selling a home this fall, two national housing trends deserve your attention: mortgage rates have moved sharply higher, while buyers are gaining negotiating power.
Freddie Mac reported on October 1 that the average 30-year fixed mortgage reached 7.28%, up from 7.03% just one week earlier and 6.34% a year ago. It was the largest weekly increase in four years and the highest average since late 2023. Freddie Mac
That increase matters. A buyer who qualified comfortably at 6.5% may need to reconsider the price range at 7.28%. But higher rates are creating another effect that buyers shouldn't overlook: sellers are becoming more willing to negotiate.
According to Realtor.com's September Housing Report, 20.8% of U.S. listings had a price reduction in September, the highest September share since 2018. National active inventory climbed 5.4% from a year ago to more than 1.16 million homes, while the number of homes under contract fell 4.1%. The national median list price was $419,250, down 1.4% from last year. Media | Move, Inc.
In plain English: buyers are paying more to borrow money, but they're increasingly able to negotiate the price and terms of the house itself.
Johnson City: A More Balanced Market Than the National Headlines Suggest
This week I'm focusing on Johnson City, where we're seeing an interesting combination of rising values and a more deliberate buying process.
Realtor.com's September data puts Johnson City's median listing price at about $400,000, up 1.3% year over year. There are approximately 448 homes currently listed, with a median market time of 56 days. Most importantly, Realtor.com characterizes Johnson City as a balanced market—meaning supply and demand are relatively close to equilibrium. Realtor
That's very different from the frenzy buyers experienced a few years ago.
Actual closed-sale data also show that Johnson City isn't simply following the national price-cut story. Redfin's Johnson City market data shows a median sale price of roughly $330,000 for the three months ending August, up 9.9% year over year. However, the number of homes sold declined 14.5%. Homes took about 41 days to sell, and the average property sold for roughly 2% below its asking price. Redfin
Those numbers aren't contradictory. They tell us that good homes are still commanding strong prices, but buyers are becoming more selective.
For buyers, that can create opportunities. Instead of concentrating solely on getting a seller to knock $10,000 off the price, it may make sense to negotiate closing costs, repairs, a rate buydown or other concessions that improve the overall economics of the purchase.
For sellers, today's market makes accurate pricing even more important. Starting too high and making multiple reductions later can cost valuable momentum during the first few weeks on the market.
And for both sides, this is exactly why national headlines should be treated as context—not as a substitute for understanding the neighborhood, the comparable sales and the individual property.
Follow Shane O'Hare on Facebook and Instagram for Northeast Tennessee market insights and the practical ins and outs of real estate—from Tennessee purchase and sales agreements to what you should be watching for while touring a home.
For current listings or a home valuation, visit www.shaneoharerealtor.com.