Pending home sales slow, sellers’ market hangs on
Pending home sales dipped in October as monthly accepted contract activity declined while the year-over-year comparison continued increasing.
Pending sales are a leading indicator of housing activity based on signed contracts for existing single-family homes and condominiums sales in the region monitored by the Northeast Tennessee Association of Realtors (NETAR) Home Sales Report. Since resales go under contract 30 to 60 days before the sale closes, pending sales offer some insight about the direction existing home sales closing will take.
”There are signs the market is moderating, if only a little bit,” according to NETAR President Kristi Bailey. “Compared with a year ago, pending sales were up 14.5 percent, which shows the local market is retaining some of the strong growth activity of last year. The month-to-month declines are indicative of seasonal slowing,” she added.
Homeowners approved 958 contacts last month.
There are 1,317 homes on the market, giving the region 1.7 months of inventory. Balanced market conditions are five to six months of inventory.
The typical home that closed in October was on the market for 51 days – an increase of one day from the previous month. The time on the market has been flat or up every month since March. An increase in time on market signals demand is softening. A decrease is a signal that demand is increasing.
The average listing price last month was $345,183. The average sales price was $240,732, up 16.3 percent from last year.
As measured by the median sales price, the market’s middle point presents a more conservative market picture than averages which are skewed higher by the number of expensive home sales.
October’s median listing price was $230,000. The median sales price was $199,900. So far this year, the median sales price is 15.4 percent higher than the first 10 months of last year. Last month, it was up 14.2 percent from October last year.
NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee, Southwest Virginia region, representing over 1,600+ members and 100+ business partners involved in all aspects of the residential and commercial real estate industries. Weekly market reports and information for both consumers and members are available on the NETAR website at https://netar.us