Tri-Cities pending home sales down for fourth month

Published 1:28 pm Wednesday, September 21, 2022

One of the primary forward-looking monthly housing reports is down for the fourth straight month. Sellers accepted 868 new contracts, down 20 from July and 102 fewer than August 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.

“The housing market roll-over from last year’s all-time highs is underway and moving at a snail’s pace,” NETAR President Rick Chantry said. “Buyers are beginning to get a little more bargaining power and some sellers are doing more negotiating before accepting a contact. But it’s still a sellers’ market and given all the current indictors will be that way for a while. The typical sales price has been flat for the last three months. It’s at an all time high and on track for another annual double-digit price appreciation.”

At mid-month, the region had 977 properties on the market. That’s a little over a month’s inventory, and down from last month’s and last year’s totals. “It’s down because sellers with the resources snapped up some of the new listings coming on the market and took advantage of sellers’ willingness to come off their asking price.”

The typical home that sold in August was on the market for 45 days before it closed, up one day from July. This time last year it was 49 days, so current demand is actually a little stronger. 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 about two weeks last month.