The Tri-Cities real estate market is heating up. The Northeast Tennessee Association of Realtors (NETAR) forward-looking indicator that’s based on contract signing rose 12.2% in April.
There were 918 new contracts last month, and sellers added 1,185 new listings as the prime home buying and selling season got under way in earnest.
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 NETAR. Since sales go under contract 30 to 60 days before they close, pending sales offer insight into the direction home sales will take.
New contracts in the affordable price tier led activity in raw volume. Buyers signed 380 contracts in that segment, up 8.9% from last year.
There was a 37.3% increase in contracts in the move-up tier. It was the strongest year-over-year gain of any tier. That outsized jump likely reflects pent-up demand from buyers who are re-engaging as market activity picks up.
New contracts in the luxury market (142) were up 12% from last year
Within individual price bands, the strongest momentum was at the higher end. Contracts on homes priced $400,000–$499,999 jumped 36.6%, and the $500,000-and-above segment rose 37.9%. The $200,000–$249,999 sector gained 24.6%, while the $250,000–$299,999 range slipped 2%.
Sellers listed 1,185 homes, up 7.8% from a year ago. Affordable-tier listings posted the largest gain. They totaled 466 homes, up 17.7%. The increase eased one of the most persistent supply bottlenecks in the market.
Move-up new listings were nearly flat. They totaled 317 listings, up 0.3%.
Luxury new listings reached 256, a 23.1% increase.
The combination of rising contracts and expanding inventory signals a market where both buyer demand and seller confidence are strengthening, particularly at the affordable and luxury ends of the price spectrum.
The affordable price tier accounts for homes in the $160,000 – $299,999 price range.
The move-up market includes homes in the $300,000 – $499,999 price range.
The luxury market price range is $500,000 or more.