The Tri-Cities May Pending Sales Index (PSI) reached 112.8, a 12.8% increase from the base year of 2018. It signals a sustained improvement in regional housing market activity.

The index is based on data from the Northeast Tennessee Association of Realtors (NETAR). It reflects the number of homes under contract but not yet closed, offering a forward-looking indicator of near-term sales activity.

There were 827 pending sales last month up from 733 in 2018. While the rate of growth has varied year-to-year, the steady upward trajectory reinforces the underlying strength of buyer demand in the Tri-Cities housing market. It also underscores a continuing trend toward normalized but stable activity levels, with pending sales returning to pre-pandemic momentum and showing positive year-over-year performance.

If pending sales growth becomes more consistent price trends favor sellers in the $250K–$399K range, while the lower tiers remain underserved.

An analysis of the pending sales prices shows the local market continued reflecting price-sensitive buyer behavior with stronger activity concentrated in mid-to-upper price ranges. While overall pending sales showed mixed signals across price ranges, notable gains occurred in segments above $250,000. Year-to-date comparisons indicate a shift in demand away from the lowest tiers, with inventory pressure easing in several key brackets.

Top Performing Segments May 2025 v. May 2024:

• $300,000–399,999:
  Pending sales increased 35.7% from last year. It was the strongest growth among all price segments.
• $250,000–299,999:
  This price tier had a 19.4% increase from last year with 151 pending sales for the month.
• $200,000–249,999:
  This key affordable housing market price tier had 161 pending sales, up 15.8% from last year.

Lagging Segments

• Under $100,000:
  All brackets below $100K continued to shrink in share and sales activity. For example.
• $500,000–749,999:
  Despite a slight 5.3% increase the year-to-date total slipped 4.1%, suggesting erratic upper mid-level demand.

Categories: REAL ESTATE