Tri-Cities pending home sales are signaling a market shifting toward higher price points. Demand stayed strong in May even as new supply barely grew.

Pending sales are up 10% from May last year, according to the Northeast Tennessee Association of Realtors (NETAR). Buyers accepted 845 contracts, up from 768 in May 2025.

The luxury market drove the gains. Pending sales of homes priced at $500,000 and above jumped nearly 49%, climbing to 137 contracts. That price band now makes up 16.2% of all pending sales. A year ago, it was 12%.

Pending sales matter because they signal where the market is headed. A pending sale is a contract that buyers and sellers have signed but have not yet closed. Most closings take 30 to 60 days. That means today’s pending sales preview the activity that will show up in the weeks ahead. A steady rise points to growing demand and a market with momentum.

Affordable homes priced from $160,000 to $299,999 are still the volume leader. That segment posted 339 contracts, or 40.1% of the market. Move-up homes priced from $300,000 to $499,999 grew more slowly, rising 2.6% for the month. Together, the affordable and move-up tiers still make up the backbone of the local market.

New listings told a quieter story. Sellers brought 1,118 homes to market, up just 1.9% from a year ago. Move-up listings fell 10.8%. Luxury listings rose 17.6%. Fewer move-up homes are reaching the market even though buyers still want them. That squeeze is worth watching.

Homes priced below $140,000 kept thinning in both contracts and listings