New pending sales increased in June. It was a small increase from May’s total, but it was a clear signal the market is not cooling off.
There were 889 new contracts (pending sales) at the end of the month – up from 881 in May. The moving average trend was 12.8 percent higher than June last year.
Pending sales are a leading indicator of housing activity based on signed contracts for existing single-family homes, condominium, and townhome resales in the area monitored by the Northeast Tennessee Association of REALTORS® (NETAR) Trends Report. Since resales go under contract 30 to 60 days before the sale is closed, pending sales typically lead existing-home sales by about two months.
June’s pending sales reinforce June’s market performance as a banner month for closings and prices. It was the first time since the Trends Report began tracking the local market that closings broke the 800 a month mark. The average residential resale price of $207,699 was also a record high.
“The biggest – and most frustrating challenge – for buyers is the region’s continued lack of inventory,” said NETAR President Kristi Bailey.
“There were 886 new listings in June. But it was not enough to keep up with buyer demand and didn’t provide any overall relief,” Bailey added. “Active listings at the end of June were down 36.8% from June last year.”
June’s median listing price ($206,336) was up 13.3% from last year, while the median sales price ($173,200) was up 8.3%.
NETAR’s Trends Report capsules housing market conditions in Carter, Greene, Hawkins, Johnson, Sullivan, Unicoi, and Washington counties in NE Tenn. and Scott, Lee, Washington, and Wise counties in SW Va.