Buyers accepted 875 new contracts last month. Those contracts were up from last year in all price ranges except the $100K- $179,999 ranges. Pending sales in the affordable market $180K-$299K were up 2.2%. The move-up market, $300K-$499,999K, was up 22.1% and the $500K and up market was up 17.2%.
Pending sales are a leading indicator of housing activity based on signed contracts for existing single-family homes and condominium sales in the region monitored by the Northeast Tennessee Association of Realtors (NETAR). Since sales go under contract 30 to 60 days before they close, pending sales offer insight into the market’s direction.
Mid-tier home in the $200-$400K price range had the strongest activity. They accounted for over 55% of the accepted contracts.
The $500K and up market had a slight dip, possibly because of elevated borrowing costs and a consumer shift toward value-seeking.
Entry-level home remained constrained by limited listings, especially in the core Johnson City and Kingsport markets.
Washington County saw a 4.7% increase driven by new construction offerings and strong relocation demand. Sullivan was down 2.8%, but still higher than pre-pandemic norms. Carter and Green saw modest declines in the 5%-7% ranges. Inventory shortages instead of buyer retreat was the primary driver of those declines.
An uptick in new home pending sales suggests builders are capturing some of the unmet demands from the existing home markets.
Pending sales are likely to follow seasonal patterns and continue increasing this month and into June. The April data supports the picture of steady, cautious demand in the Tri-Cities region that remains under supplied but not in decline.