Important points
Montgomery County moved firmly into buyer’s market territory in June. Prices fell, homes remained on the market far longer than the national median, and only about 11% closed above list price. The median sales price fell 4% year over year to $330,069, in stark contrast to the national growth of 2%. Pending sales rose 10% year over year, an early sign that buyers may be taking advantage of more flexible pricing and greater bargaining power.
A snapshot of the Montgomery County, Tennessee housing market.
Median Sales Price Pending Sales Active Listing Days Days on Market Sold on List $330,069 (-4.2% YoY) 482 (+10.3% YoY) 2,459 (+3.3% YoY) 71 Days (+10 Days YoY) 10.8% (-1.0 ppt YoY)
Montgomery County’s housing market turned decisively toward buyers in June. Prices fell, the typical home took 71 days to find a buyer, and 4.3 months of supply gave buyers room to negotiate. Sellers faced a market with fewer bidding wars and more discounts than a year ago.
Below are details on the June 2026 numbers for Montgomery County, Tennessee, as well as tactical advice for buyers and sellers as we head into late summer.
A snapshot of the US housing market
Median Sales Price Pending On Sale Active Listing Days Balance of Buyers and Sellers on Market $408,776 (+2.2% YoY) 349,254 (+4.5% YoY) 1,496,490 (+0.8% YoY) 49 Days (+1 Day YoY) Number of sellers outnumber buyers by 48.5%
Nationwide, home prices rose about 2%, pending sales rose about 5% and inventory remained roughly flat. Montgomery County went in the opposite direction of the country. Local prices fell while national prices rose, homes stayed on the market 22 days longer than the U.S. median price, and supply ballooned to 4.3 months, well above the national average of about 3 months.
“June marked a crossroads in the continued recovery of the housing market,” said Chen Zhao, head of economic research at Redfin. “Prices rose faster than in recent months, with economic uncertainty related to the Iran war and rising mortgage rates spooking some home buyers and sellers.On the bright side, home sales are trending upwards and wages have risen faster than prices, helping There are areas of competition in the Midwest, Northeast, and Gulf Coast regions, but in general, consumers are still weathering a difficult period. Still, economists expect the market to improve gradually over the next few years.”
Montgomery County prices fall as national prices rise
Montgomery County was one of the few markets where prices actually fell in June, dropping about 4% while much of the country was still on the rise. The median sales price fell to $330,069, down about 4% from a year ago, compared to a 2.2% increase nationally. The county peaked at nearly $345,000 in May, but has since fallen back, staying in a narrow range between $310,000 and $345,000 for more than two years. The median price per square foot was $182, down less than 1% year over year, suggesting that the decline in overall prices partly reflects a change in the mix of homes sold, rather than pure depreciation.
Price reductions affected 18% of active listings, with the average home selling for 98.7% of list price. Only about 11% of sales closed for more than the requested amount, down 1 percentage point from the previous year and well below the national rate of 29%. Sellers who set competitive asking prices still moved their homes. Companies that tested the market with aggressive pricing faced cuts.
Homes stayed on the market 22 days longer than the national median price.
Buyer caution defined demand conditions in Montgomery County in June. Only 26% of properties went under contract within two weeks, lower than the national rate (seasonally adjusted) of 31%. This slower pace means the median time it takes for a home to sell is 71 days, 10 days more than a year ago and 22 days more than the national median of 49 days. Buyers had time to compare their options, and most exercised patience rather than rushing to make offers.
Despite the measured pace of individual sales, total pending sales increased 10% year over year to 482 sales. This increase, combined with the approximately 3% decline in closed sales, suggested that there was an increase in deals in the pipeline that had not yet closed. Buyers appear to be re-entering at lower price points, drawn by lower asking prices and less competition. Although there is still no urgency, demand is stabilizing.
The number of listings exceeds sales and inventory accumulates.
Montgomery County had 4.3 months of supply in June, well above the standard of about four months that usually signals a buyer’s market. The number of active listings reached 2,459, an increase of approximately 3% year over year, and the active inventory period was extended to 65 days. Approximately 18% of active listings have reduced prices, indicating that sellers are adapting to reduced absorption capacity. This increase was not due to a rush of new inventory, but rather to sluggish sales; the number of new listings totaled 538, which was about the same as the same period last year (less than 1% decrease).
The supply imbalance reflects softness on the demand side rather than a surge in listings. Buyers had more time and more options, and many exercised both. Nationally, active listings increased 0.8% to 1,496,490, new listings increased 0.2% to 395,154, and months of supply remained at 3.7 months, well below Montgomery County levels. Increased inventory in the county has strengthened buyer’s market conditions as seen in pricing and pacing indicators.
While the prices of luxury homes are soaring, the valuation of starter homes is moderate.
Median price tier (YoY) Sold (YoY) DOM (YoY) Listing rate (YoY) Luxury (top 5%) $691,143 (+10.8%) 63 (-17.1%) 108 days (+7 days) 9.5% (-2.3 ppt) High price (65th – 95%) $415,690 (+4.5%) 415 (-0.7%) 96 days (+1 day) 11.3% (-0.4 ppt) Non-premium (35-65%) $316,479 (+3.8%) 382 (-2.3%) 85 days (+7 days) 19.4% (+3.5 ppt) Starter (5-35%) $241,446 (+2.5%) 280 (-3.1%) 75 days (+17 days) 21.1% (+5.5 ppt) Bottom (bottom 5%) $137,036 (+15.7%) 28 (+154.5%) 33 days (-15 days) 14.3% (-13.0 ppt)
Redfin Analysis of MLS Data • Rolling 3-month period (March-May 2026)
Luxury prices rose nearly 11% from a year ago to $691,143, but sales volume fell about 17% and homes in this tier took 108 days to sell. The cap (median $415,690) rose about 5% with minimal change in pace. In the interim, non-luxury homes rose about 4% and saw slightly more activity than listings, while starter homes ($241,446) rose just 2.5% but took 75 days to sell, an increase of 17 days from a year ago.
The lowest tier stood out. On a very small base of 28 transactions, prices increased by approximately 16% and sales volume increased by 155%. This spike likely reflects unusually high sales in a few narrow segments rather than an overall trend. All tiers, except the lowest tier, were on market for more than 70 days, confirming that Montgomery County’s economic slowdown is widespread and not isolated to a single price point.
How buyers and sellers can navigate the Montgomery County market
When buying in Montgomery County, the numbers are in your favor. With 18% of listings already discounted, a supply period of 4.3 months, and a median time on market of 71 days, there is room to negotiate aggressively. We focus on homes that have been listed for more than 60 days. These sellers are most willing to accept below-list offers or cover closing costs. A 10% rise in pending sales suggests that competition is gradually returning, so it may be advantageous to act while conditions remain soft.
When selling, realistic pricing can be the difference between making a deal and waiting a few months. The average home sells for less than list price, and nearly 1 in 5 active listings have already been reduced in price. The list price is based on recent comparable sales, not last year’s peak value. Houses that attracted early interest were still relocated. Those that sat for more than 60 days were far more likely to require one or more price reductions before finding a buyer.
Montgomery County, Tennessee Market Data by City
Rolling three-month period (April to June 2026). Displays cities with 50 or more sales.
New sales listings for the city’s median sales price (year-over-year). Active DOM exceeds supply % Clarksville $314,829 (0.0% YoY) 975 1,197 2,442 74 15.9% 4.4
This article was created in whole or in part using generative artificial intelligence (AI) technology with input from Chen Zhao, Head of Economic Research at Redfin. While efforts have been made to ensure the accuracy and reliability of this information, you should independently verify all data, facts, and quotes contained in this article before relying on the information for any purpose. This information is not intended to substitute for advice from a real estate agent, financial advisor, or other qualified professional. County-level data are not seasonally adjusted. For more detailed housing market data, check out the Redfin Data Center.
