November pending home sales trend increases despite lagging inventory
Tri-Cities pending homes sales posted an 8.9% seasonal decline November after increased in October, according to the Northeast Tennessee Association of Realtors’ (NETAR) latest report. The year-over-year contract signing short-term trend (three-month moving average) was 29.3% higher than November last year. During the same period, the long-term trend (12 months moving average) was up 12.5%.
Pending sales are a leading indicator of housing activity based on signed contracts for existing single-family homes, condominium, and townhome resales in the 11-county area monitored by the NETAR’s Trends Report. Since resales go under contract a month or two before the sale is closed, pending sales typically lead existing home sales by about two months. Currently, it is not unusual to see up to 5 percent or more of the contracts fall through due to contract contingencies.
The local pending sales trend continues increasing despite the lowest inventory level the 11-county region monitored by NETAR’s Trends Report, said NETAR Data Analyst Don Fenley.
November’s active listings were 24.2% lower than they were in November last year. New approved contracts are matching or exceeding the number of new listings that come on the market each month.
The region had 3.2 months of inventory in November.