News
May 20, 2019

April pending home sales up for the 20th straight month

April local pending home sales up for the 20th straight month

April’s new approved contracts for existing home sales were barely better than March, but it was enough to set another record, according to the Northeast Tennessee Association of Realtors (NETAR).

There were 854 new approved contracts in April – up five from March. The preliminary total for all active, pending sales increased to 1,240 – up 210 from March. Both are records, according to Realtor Property Resource (RPR) reports.

Pending sales are forward-looking indicators based on new contract signings.

“Mortgage rates were down for the third straight week thru May 16, and mortgage applications are up. The lower rates are doing two things: giving buyers extra incentive to lock in at the lower rate and reducing the total monthly mortgage payment.  These incentives are balancing some of the pressure higher prices have put on affordability,” NETAR President Karen Randolph said.

The average 30-year fixed rate was 4.07 percent for the week ending May 18.

The new pending sales trend has been positive for 20 months. In April the moving aveage was  9.2 percent better than April last year.

A home sale is listed as pending when a contract has been signed, but the transaction has not closed. Pending sales usually move to closings in 30 to 45 days. Not all contracts in the pipeline will move to closing. It is normal for as many as 5 percent to fall through and the fall-through rate has been higher recently due to the number of contingency contracts.

NETAR is the voice for real estate in Northeast Tennessee - is the largest trade association in Northeast Tennessee, Southwest Virginia region representing over 1,200 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 .

 

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