Pending home sales increase for a 2020 sellers’ market
Tri-Cities pending homes sales posted a small increase over November’s total while year-over-year and the moving average trend surged, according to the Northeast Tennessee Association of REALTORS® (NETAR) latest report.
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 Trends Report. Since resales go under contract typically 30 to 60 days before the sale is closed, pending sales typically lead existing-home sales by about two months. Under current conditions, five percent of the contracts fall through due to contract contingencies.
Pending sales, record-low mortgage rates, and a growing job market point to a strong start for the 2020 housing market, which looks to continue as a solid sellers’ market, said NETAR President Kristi Bailey.
According to preliminary data from REALTOR® Property Resource (RPR), 935 approved contracts were awaiting closing last month as compared to 913 in November and 593 in December. The long-term, moving average trend was up 13.9 percent from December last year. The Tri-Cities pending sales trend continues increasing despite the lowest inventory level in the 11-county region since NETAR began its monthly Trends Report in 2008, said NETAR Data Analyst Don Fenley.
December’s active listings were 22 percent lower than in 2018.
The region had 3.8 months of inventory in December – a small improvement from 3.2 months of inventory in November.