Key Takeaways
- Montgomery County remained a buyer’s market in July. Homes lingered 73 days before selling, only 20% went under contract within two weeks, and 4.5 months of supply gave purchasers significant leverage.
- The median sale price edged up to $327,539, a 1.4% gain year over year—well below the 3.2% national increase and a modest recovery from June’s decline.
- Closed sales rose 5% year over year even as pending sales dropped 10%, meaning homes that went under contract earlier are closing while fewer new buyers are entering the market.
Montgomery County, TN Housing Market Snapshot
| Median Sale Price | Pending Sales | Active Listings | Days on Market | Sold Above List |
|---|---|---|---|---|
| $327,539 (+1.4% YoY) | 423 (-10.0% YoY) | 2,470 (+3.5% YoY) | 73 days (+10 days YoY) | 15.1% (+3.3 ppt YoY) |
Montgomery County’s housing market remained tilted toward buyers in July. The typical home took 73 days to sell, inventory stretched to 4.5 months of supply, and price growth barely kept pace with inflation at 1.4%. Sellers who priced realistically still found buyers, but the days of quick sales and aggressive bidding were long past.
Below is a detailed look at Montgomery County, TN’s July 2026 numbers, along with what buyers and sellers can do to succeed as we head into late summer.
U.S. Housing Market Snapshot
| Median Sale Price | Pending Sales | Active Listings | Days on Market | Buyer-Seller Balance |
|---|---|---|---|---|
| $407,730 (+3.2% YoY) | 335,051 (-0.7% YoY) | 1,462,921 (-0.6% YoY) | 49 days (0 days YoY) | Sellers outnumber buyers by 51.3% |
Nationally, home prices continued their steady climb at 3.2% year over year, while pending sales and active listings both held essentially flat. The typical U.S. home sold in 49 days, unchanged from a year ago. Montgomery County’s experience diverged noticeably: Local prices grew at less than half the national pace, homes took 24 days longer to sell than the U.S. median, and supply sat well above the national level of 3.9 months.
“The U.S. housing market continued its slow recovery in July, but again felt some bumps in the road,” said Chen Zhao, Redfin’s head of economics research. “Both supply and demand declined for the second month in a row, propping up prices and exacerbating the slow and expensive buyer’s market that has defined the post-pandemic period. Mortgage rate and economic volatility tied to the war in Iran and an unexpectedly hot job market has added a layer of uncertainty as well. Most buyers and sellers won’t see a much improved housing market, but economists are confident that affordability and normalcy will return in the coming years.”
Montgomery County Prices Inched Higher but Trailed the Nation
Montgomery County’s median sale price rose 1.4% year over year to $327,539 in July, a modest recovery after dipping in June but still growing at less than half the 3.2% national rate. The county has oscillated between $310,000 and $345,000 for more than two years without establishing a clear upward trajectory. The median price per square foot ticked up less than 1% to $183, indicating that the headline gain was driven by a slightly richer mix of homes closing rather than broad-based appreciation.
Price reductions affected about 21% of active listings, and the average home sold for 98.5% of its list price. About 15% of sales closed above asking, up 3 percentage points from a year ago but far below the national rate of 25%. Sellers who attracted early interest could still close near or above list; those who mispriced sat for months and eventually cut.
Homes Sat Longer as Buyer Urgency Faded
Just 20% of Montgomery County listings went under contract within two weeks in July, well below the 32% national rate (seasonally adjusted), and the slowest pace in over six months. The median home took 73 days to sell, 10 more than a year ago and 24 more than the national median of 49. Buyers had time to weigh options, tour multiple properties, and negotiate from a position of strength.
Despite that measured pace, closed sales actually rose 5% year over year to 460. That apparent contradiction—more closings but fewer new pendings—reflected deals from earlier months finally reaching the closing table. Pending sales fell 10% to 423, signaling that fresh buyer activity softened heading into midsummer. The slowdown in new contracts could translate to fewer closings in the months ahead.
Inventory Reached Its Highest Level Since Early 2019
Active listings climbed to 2,470 in July, a 3.5% year-over-year increase and the highest monthly count since before the pandemic. Supply stood at 4.5 months, well above the roughly 4-month threshold that typically marks a buyer’s market and meaningfully higher than the 3.9 months nationally. The buildup came from slow absorption rather than a wave of new supply: new listings totaled 544, down about 4% from a year ago.
The age of active inventory reached 69 days, and about 21% of listings carried a price reduction. Nationally, active listings dipped less than 1% to 1,462,921 and new listings edged down a similar amount to 375,149. Montgomery County’s elevated stock continued to distinguish it from the broader national picture, where supply constraints persisted in many markets.
Luxury Prices Jumped While Starter Homes Grew Steadily
| Price Tier | Median Price (YoY) | Sold (YoY) | DOM (YoY) | % Above List (YoY) |
|---|---|---|---|---|
| Luxury (top 5%) | $722,527 (+13.3%) | 74 (-18.7%) | 88 days (+4 days) | 10.8% (-0.2 ppt) |
| High (65th-95th%) | $420,944 (+4.4%) | 462 (-11.0%) | 84 days (+3 days) | 11.0% (+0.2 ppt) |
| Non-luxury (35th-65th%) | $317,795 (+3.4%) | 393 (-2.5%) | 71 days (0 days) | 18.1% (+2.7 ppt) |
| Starter (5th-35th%) | $244,584 (+3.7%) | 322 (+7.3%) | 70 days (+17 days) | 20.5% (+4.2 ppt) |
| Bottom (bottom 5%) | $132,096 (+2.5%) | 26 (+36.8%) | 45 days (+10 days) | 11.5% (+1.0 ppt) |
Redfin analysis of MLS data • Rolling three-month period (April-June 2026)
Luxury prices advanced 13% year over year to $722,527, though volume dropped nearly 19% and homes in this bracket took 88 days to sell. The high tier ($420,944 median) grew about 4% with stable market-speed metrics. In the middle, non-luxury homes appreciated 3.4% and saw the share sold above list climb nearly 3 percentage points, while starter homes ($244,584) gained about 4% but took 70 days to sell—17 more than a year ago.
The starter tier stood out for volume: Sales rose 7% even as nearly every other bracket contracted, and over 20% of transactions closed above asking. That relative strength suggested demand was concentrating at lower price points where affordability constraints were least binding. Across all tiers except the bottom, days on market exceeded 70, reinforcing that the county’s slowdown was broad rather than concentrated in a single segment.
How Buyers and Sellers Can Navigate Montgomery County’s Market
If you’re buying in Montgomery County, conditions favor patience and negotiation. With 4.5 months of supply, 21% of listings carrying price cuts, and only 20% of homes going under contract within two weeks, you can tour widely and submit offers below asking without risking losing the property to another buyer. Focus on homes that have sat for 60-plus days—those sellers are most likely to accept concessions on price or closing costs. The 10% drop in pending sales indicated competition was softening further, not intensifying.
If you’re selling, the data supported pricing at or below the most recent comparable sales from the outset. The average home sold for 98.5% of its list price, and one in five active listings had already cut its asking price. Homes that attracted early interest still moved; those that tested aspirational pricing joined the growing pool of stale inventory averaging 69 days on market. A well-positioned listing priced below $330,000 was more likely to attract the buyer activity currently concentrated at lower tiers.
Montgomery County, TN Market Data by City
Rolling three-month period (May-July 2026). Cities with 50+ sales shown.
| City | Median Sale Price (YoY) | Sold | New List. | Active | DOM | % Above | Supply |
|---|---|---|---|---|---|---|---|
| Clarksville | $314,842 (-0.1% YoY) | 1,038 | 1,212 | 2,467 | 71 | 15.7% | 4.3 |
This article has been generated, in whole or in part, using generative artificial intelligence (AI) technology, with input from Redfin head of economics research Chen Zhao. While efforts have been made to ensure the accuracy and reliability of this information, you should independently verify all data, facts, and citations contained in this article before relying on it for any purpose. This information is not a substitute for advice from a real estate agent, financial advisor, or other licensed professional. County-level data is not seasonally adjusted. Check the Redfin Data Center for additional in-depth housing market data.
