August pending sales were down 0.1% from last year and the Northeast Tennessee Association of Realtors (NETAR) Pending Sales Index settled was flat for the fourth straight month.

Sellers accepted 798 new contracts, 36 more than the previous month, and one more than August last year, according to NETAR.  

Pending sales are a leading indicator of housing activity based on signed contracts for existing single-family home and condominium sales in the region monitored by NETAR. Since resales go under contract 30 to 60 days before they close, pending sales offer insight into the market’s direction.     

Activity continues to wane in the affordable market. While new contracts in the affordable market accounted for 34% of August’s pending sales, they were down 0.1% from last year.

There were 261 pending sales in the affordable market, down seven from last year.

The move-up market had 369 pending sales, up 58 from last year.

The luxury market had 101 pending sales, up 24 from last year.

A continued sales retreat toward a pre-pandemic level has allowed a slow increase in active inventory. Active inventory was up 38% last month, giving the region 3.1 months of inventory.

Realtors are reporting fewer multiple offers and more concessions for deals in the move-up and luxury market. Competition continues to be high in the affordable priced homes market.

This month’s 50 basis points interest rate cut will probably move the market – and prices – higher. Currently, the average rate for a 30-year mortgage is 6.09%, the lowest it has been so far this year.