As new pending sales for the local market rose in May, experts anticipate more significant growth in June and July. There were 881 new contracts at the end of the month – an upturn from 663 at the end of April and 12.3% higher than May 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.
“By mid-June, REALTORS® were seeing increases in consumer traffic and closings were also picking up,” according to NETAR President Kristi Bailey. “The most substantial problem holding the local market back is lack of inventory. Prices are up, interest rates are at record lows, and buyers are ready to buy,” she added.
Active listings at the end of May were up 430 compared to a year ago, and the region had three months of inventory. There were 821 new listings – a decline of 346 from last year’s total. May’s median listing price ($209,900) was up 14.7% from last year, while the median sales price ($159,450) was up 2.9%.
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.