The Tri-Cities pending homes sales trend posted a double-digit gain over January 2019, according to the Northeast Tennessee Association of Realtors (NETAR) Pending Sales Report.
Pending sales are a leading indicator of housing activity based on signed contracts for existing single-family homes, condominiums, and townhomes in the region monitored by NETAR.
According to preliminary data from Realtor Property Resource (RPR), a little over 1,000 approved contracts from December and January are awaiting closing. That’s a 22.6% increase from January 2019.
Since resales go under contract before the sale is closed, pending sales typically lead existing-home sales by about two months. Up to 5% of contracts typically fall through, but that has increased recently due to an increase in contract contingencies.
A recent National Association of Realtors (NAR) survey found 70% of contracts face a contingency before making it to closing. The most common contract contingencies were for home inspections, obtaining financing, and an acceptable appraisal. The most common delays were obtaining financing, appraisal issues, home inspections or environment issues, and finally titling and deed issues.
The region had 4.8 months of inventory in January and a 3.1% increase in the active listings count. That is a small improvement over December’s inventory and active listings count.
“Strong market conditions are jump-starting the traditional spring buying and selling season,” said NETAR President Kristi Bailey.