Tri-Cities area pending home sales down 10 percent

Published 1:55 pm Wednesday, July 27, 2022

Local pending homes declined for the third straight month in June. Sellers accepted 851 new contracts, down 27 from May and 10% fewer than June last year. Pending sales are a leading indicator of housing activity based on signed contracts for existing single-family homes and condominium sales in the region monitored by the Northeast Tennessee Association of Realtors (NETAR). Since resales go under contract 30 to 60 days before they close, accepted contracts offer insight into home sales’ direction.

“Although there has been a slow increase in new listings, the inventory crunch combined with declining affordability is sidelining more local buyers,” NETAR President Rick Chantry said. “So far, declining sales have not spurred local sellers to begin reducing prices as it has in some large metro areas. But that may change as we move into the fall and winter market.”

At mid-month the region had 1,104 properties on the market. That’s a little over a month’s inventory. “It’s the best number we’ve had so far this year, but only by a little over 100 homes in a market averaging 28 sales a day.”

The typical home that sold in June was on the market for 44 days before it closed, up one day from May. Time on the market is a demand indicator. When it increases, demand is softening. When it declines, demand is increasing.

The average listings went under contract in 14 days last month.