Montgomery County, TN Housing Market Update: August 2026

Key Takeaways

• Montgomery County was a buyer’s market in August: sales plunged 22.5% year over year to just 357 homes, the sharpest volume decline among the counties tracked this month.
• At $335,776, the median price dipped less than 1%—but with 5.6 months of supply and homes sitting 60 days, affordability did not translate into urgency.
• New listings rose 7.9% while demand cratered, pushing months of supply up about 35% and shifting pricing power decisively to buyers.

Montgomery County, TN Housing Market Snapshot

Montgomery County’s housing market experienced a sharp demand contraction in August. Sales volume fell more than 22%, the steepest decline among the markets covered this month, even as prices barely moved. The county’s relative affordability—at $335,776, median prices sit well below both the state and national figures—was not enough to counteract a pullback in buyer activity that sent months of supply soaring. For buyers willing to act, the conditions have rarely been more favorable.

Learn everything you need to know about the Montgomery County, TN housing market as we head into fall, and what buyers and sellers can do to succeed.

U.S. Housing Market Snapshot

Nationally, home prices rose 2.0% and sales were roughly flat. Montgomery County’s price decline was small at less than 1%, but its sales drop of about 23% far exceeded the national trend. Homes sat 60 days on market versus 50 nationally, and months of supply reached nearly 6 compared to about 4 for the U.S. The county’s affordability advantage (median price about 14% below the nation) did not generate proportional demand.

“The U.S. housing market faced some hurdles in August, as inflation and an AI-fueled economy kept mortgage rates high and weighed heavily on homebuyers, sellers, and investors,” said Chen Zhao, Redfin’s head of economics research. “Until recently, affordability and activity had been slowly improving for months, helping the market recover. But now, economic uncertainty and rising prices are keeping more people on the sidelines and slowing the market further. For buyers who need to buy, now is a great time because there’s less competition and a bit more inventory—for sellers, pricing competitively is key to attract attention.”

Montgomery County Prices Barely Budged Despite a Demand Collapse

The median sale price in Montgomery County held at $335,776 in August, slipping just 0.7% from a year ago, a far milder correction than the 2.0% national gain might suggest. Price per square foot was essentially flat at $181. At roughly $336,000, Montgomery County offers one of the lowest entry points in the counties tracked this month, and that floor appears to have limited the price decline even as every demand metric weakened.

The typical home sold for 98.4% of its asking price, and about 19.2% of active listings carried a price reduction. Above-list sales accounted for 17.2% of transactions, up 2.3 percentage points from a year ago—an unexpected bright spot driven by competition in the starter and non-luxury tiers where military and first-time buyers remained active.

Sales Plunged 23% in the Steepest Drop Among Tennessee Markets

Homes sold fell 22.5% year over year in Montgomery County to 357, by far the largest decline among nearby counties. Pending sales dropped 10.6%, signaling that the slowdown has further to run. The median home took 60 days to sell, down 11 from a year ago, suggesting that the homes that did trade were priced aggressively enough to attract offers quickly.

Nationally, closings were roughly flat. Montgomery County’s steeper decline likely reflected the county’s military-heavy buyer base, which is sensitive to relocation cycles and interest-rate changes. Fort Campbell’s influence on Clarksville—the county’s dominant city—means that demand can shift abruptly with deployment schedules and PCS orders.

Supply Rose to Over 5 Months as Sales Plunged 23%

Active listings barely changed, up just 0.2% to 2,367, but new listings rose about 8% to 550. With sales volume cratering, months of supply jumped to nearly 6, up about 35% from a year ago. Nationally, supply stood at about 4. Montgomery County’s surge in relative supply was driven almost entirely by the demand collapse rather than a flood of new inventory.

At nearly 6 months of supply, the county sits in buyer’s market territory. The fact that inventory itself barely grew while supply metrics deteriorated so dramatically underscores how much the demand pullback, rather than a listing surge, drove the shift. If sales volume stabilizes, months of supply could improve quickly—but that requires buyers to return to the market.

Starter Homes Saw the Most Activity; Luxury Volume Fell

Redfin analysis of MLS data • Rolling three-month period (May-July 2026)

The starter tier (5th–35th percentile, median $249K) posted 4.8% price growth and a 10% volume increase. The non-luxury tier ($319K median) saw prices rise 2.8% with flat volume. Both segments attracted first-time and military buyers drawn by monthly payments well below the national average. Above-list rates in these tiers exceeded 17%.

Luxury homes ($716K median) saw prices jump 8.6%, but volume fell 14%—consistent with a thin market where a few high-value closings skewed the median. The high tier ($419K median) experienced price growth of 2.3% alongside a 4% volume decline and 81-day marketing times. The bottom tier saw the fewest sales at just 33 homes over the rolling three-month period, though prices rose nearly 5%.

How Buyers and Sellers Can Navigate the Montgomery County, TN Housing Market

If you’re buying in Montgomery County, conditions strongly favor you. Homes sat 60 days, months of supply reached nearly 6, and the median home sold below asking. At $335,776, this is one of the most affordable markets in the region. Take advantage by requesting closing-cost credits, negotiating on price, and insisting on thorough inspections. Starter homes under $250,000 offered the best combination of activity and value.

If you’re selling, adjust expectations. Sales fell over 22%, and while prices held up better than volume, the market’s direction favors buyers. Price competitively from day one: homes that lingered past 60 days often required multiple reductions. Consider incentives like rate buydowns or home warranties to attract the military and first-time buyer pool that drives Clarksville’s market. Presentation matters more than ever when buyers have nearly 6 months of options.

Montgomery County, TN Market Data by City

Rolling three-month period (June-August 2026). Cities with 50+ sales shown.

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.