Local housing market sees robust April pending sales
If you liked April’s home sales numbers, look for more of the same in May and June.
Homeowners accepted 985 offers for single-family and condo resales in April, setting the stage to continue a strong prime home buying and selling season. April’s accepted offers – also called pending sales – are the highest monthly total in six years, but only by two pending sales. March’s total was 983.
Pending sales are a leading indicator of housing activity based on signed contracts for existing single-family homes, condominiums, and townhome resales monitored by the Northeast Tennessee Association of Realtors (NETAR) Home Sales 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. They are one of the few housing market leading indicators.
“Both the short and long-term pending sales trend lines show demand continues to increase despite the inventory crunch,” NETAR President Kristi Bailey said. “Buyers are aggressively in the market, and there are no signs of a near-term market correction.”
There were 998 active listings at the end of April. That’s a little more than half of what we had time last year, she added. Balanced market conditions are five to six months of inventory. The Tri-Cities region had 1.3 months of inventory last month. Some city markets had less than a month’s supply of homes on the market. The average listing price last month was $324,424, up 20.9 percent from last year, and the average sales price was $235,061, 22 percent higher than last year.
NETAR is the voice for real estate in Northeast Tennessee. It’s the largest trade association in the Northeast Tennessee – Southwest Virginia region representing over 1,400 members and 100 affiliates involved in all aspects of the residential and commercial real estate industries. Pending sales, monthly Trends Reports, and the regional market analytics can be found on the NETAR websites at https://netar.us/voice-real-estate-northeast-tennessee .