December 26, 2018

New pending home sales index up 7.6% in November

The number of new approved contracts for single-family residential sales in November was down from October and 49 higher than November last year in the 11-county area monitored by the Northeast Tennessee Association of Realtors (NETAR).

NETAR’s New Pending Home Sales Index (PHSI), a forward-looking indicator based on new contract signing reported by Realtor Property Resource (RPR), was up by 0.5 percent from October and 7.6 percent higher than November last year.

There were 552 new approved contracts in November compared to 703 in October and 512 last year, said Aaron Taylor NETAR President. Lower mortgage rates are balancing the traditional slower sales as we move into the holidays, and the market is on track for its eight-straight year of annual sales increases," he added.

November's new pending sales index was 124.4 up from 123.7 in October and almost 9 points higher than November last year. The PHSI is a leading indicator for the housing sector based on pending sales of existing homes, condos and townhomes. The benchmark of 100 for the index is the 2015 annual average for new approved contracts. A sale is listed as pending when a contract has been signed, but the transaction has not closed. Sales are typically finalized in a month or two after signing. But it's not uncommon to see as many as 5 percent fall through. Lately, that fall-through rate has been a higher due to more sales of a current home and financing contingencies.

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 .