Tri-Cities pending sales slowed in December. They were down 14% from November as the market moved into its typical late-year cooldown. But the month still finished stronger than last year. Pending contracts were up 18% year over year. That shows demand remained intact even as activity became more seasonal.

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). Because resales typically go under contract 30 to 60 days before closing, pending sales provide insight into the direction future closings will take. In other words, today’s pending numbers point to tomorrow’s sales trends.

Affordable Price Range Still The Anchor

The affordable market ($160,000–$299,999) remained the backbone of December demand, posting pending sales gains across every price segment.

The strongest lift came from the $200,000–$249,999 range, where pending contracts climbed were up 41.5%. The $250,000–$299,999 tier also strengthened. It was up 28.8%.

Even the lower slices of the affordable market improved. Pending contracts in the $160,000–$179,999 range were up 38.9%, while the $180,000–$199,999 range was up 17.6%.

Move-Up Market Holds Steady

The move-up market ($300,000–$499,999) remained stable in December, with modest year-over-year growth and a clear concentration of activity in the lower portion of the tier.

Pending sales in the $300,000–$399,999 segment were up 15%, keeping this range positioned as the market’s primary step-up lane. The $400,000–$499,999 tier was  essentially flat with an increase of 3.9%.

The takeaway is that the move-up segment continues to function, but December’s momentum was more measured than November’s breakout pace because the market shifted to a winter pattern rather than accelerating into year-end.

Luxury Zone Quietly Resilient

The luxury market ($500,000-plus) remained steady in December. It was up 5.7%.

Luxury market activity often reflects relocation strength, cash-heavy buyers, and discretionary confidence. While the influx of newcomers has slowed these factors appear to be holding firm even as the broader market cools seasonally.