More Homes, Lower Prices, but Fewer First-Time Buyers: Is the Housing Market Leaving Some Buyers Behind?
November 9, 2026 | By Shane O'Hare, REALTOR® | RE/MAX Checkmate Realtors
Something unusual is happening in the housing market.
Mortgage rates have fallen for three consecutive weeks, more homes are available, and asking prices are declining. You might expect first-time buyers to be celebrating.
Instead, new research reveals that first-time buyers are struggling to enter the market, while homeowners with accumulated equity are enjoying a considerable advantage.
Here in Northeast Tennessee, this changing dynamic creates opportunities—but also some important decisions for buyers and sellers.
Mortgage Rates Improve, but Affordability Remains Challenging
According to Freddie Mac's November 5 mortgage survey, the national average 30-year fixed mortgage rate declined to 7.18%, down from 7.24% the previous week.
That's the third consecutive weekly decline, although rates remain substantially higher than the 6.22% recorded a year earlier.
For perspective, financing $250,000 over 30 years at 7.18% produces a principal-and-interest payment of approximately $1,693 monthly, excluding taxes and insurance.
That's a significant expense for households already managing rising living costs.
First-Time Buyers Face a Growing Disadvantage
One of the week's most revealing housing headlines comes from the National Association of REALTORS® 2026 Profile of Home Buyers and Sellers.
As reported by Realtor.com on November 5, first-time buyers represented just 22% of home purchases nationallyduring the July 2025–June 2026 survey period.
Historically, that figure averaged approximately 40% before 2008.
Even more surprising, the median age of first-time buyers reached 40, while 10% purchased their homes entirely with cash.
Meanwhile, repeat buyers accounted for 78% of purchases.
The explanation? Homeowners who have accumulated substantial equity often enjoy a financial advantage over buyers purchasing their first property.
This is becoming a market where existing equity can make an enormous difference. Realtor
National Inventory Climbs Nearly 9%
The Realtor.com November 5 Weekly Housing Trends Report provides another important development.
For the week ending October 31, national active housing inventory increased 8.8% compared with the same week in 2025.
The median asking price declined 2.1% to $410,000, while homes spent a median of 65 days on the market.
Interestingly, new listings declined 5.2%.
That suggests inventory is accumulating partly because buyers are taking longer to make decisions.
For qualified buyers, additional inventory may create opportunities to negotiate purchase prices, repairs, and closing-cost assistance.
Northeast Tennessee: More Choices, Steady Sales
The latest available Northeast Tennessee Association of REALTORS® September 2026 Home Sales Report offers encouraging regional perspective.
Across NETAR's reporting area, including Northeast Tennessee and Southwest Virginia, September produced 717 closed sales, increasing 0.7% compared with September 2025.
Available inventory increased 7% to 2,880 homes, while new listings rose 5.1% to 984.
The median selling price declined 1.69% to $290,000, and median days on market increased from 70 to 74.
NETAR's October analysis, More Homes, More Choices, reinforces the importance of understanding these changing conditions.
Our regional market is maintaining relatively steady sales while offering buyers additional choices.
That's encouraging, particularly when compared with some national trends.
Tennessee's Statewide Market Shows Similar Changes
According to Tennessee REALTORS® September 2026 market statistics, statewide residential sales declined 2.6% compared with September 2025.
Listings increased 5.9%, while the statewide median selling price declined just 0.1%.
Months of inventory increased 3.8% year over year.
These statewide figures cover single-family homes and condominiums and use a different reporting methodology from NETAR. Tennessee REALTORS® includes active and pending properties in its listings measure.
The comparison is noteworthy: NETAR's regional sales increased slightly while Tennessee's statewide sales declined.
What Does This Mean for You?
First-time buyers: Don't assume you need a 20% down payment. Explore available loan programs and potential assistance while carefully evaluating your monthly budget.
Current homeowners: Existing equity may help finance your next purchase, but consider your current mortgage rate before deciding to move.
Sellers: Buyers have more alternatives. Competitive pricing, thoughtful preparation, and flexibility with concessions can make a meaningful difference.
Whether you're considering a home in Johnson City, Kingsport, Bristol, or surrounding Northeast Tennessee communities, remember that local comparable sales matter more than national averages.
The Bottom Line
Today's housing market increasingly rewards financial preparation and realistic expectations.
More inventory creates opportunities, but understanding how to use those opportunities is what makes the difference.
Follow Shane O'Hare on Facebook and Instagram for Northeast Tennessee housing-market insights and practical guidance covering the ins and outs of buying and selling—from understanding Tennessee purchase and sales agreements to knowing what to watch for when touring homes.
For current listings or a personalized home valuation, visit www.shaneoharerealtor.com.
Shane O'Hare | RE/MAX Checkmate Realtors
Helping Northeast Tennessee Buyers and Sellers Make Confident Real Estate Decisions