Report: Pending Tri-Cities home sales continue at record pace

Zach Vance • Aug 31, 2017 at 8:51 AM

Although the Tri-Cities housing market experienced typical seasonal slowing in July, pending sales continued booming at a record pace, according to the latest Northeast Tennessee Association of Realtors report. 

The total number of accepted contracts not yet closed increased by 90 in July compared to June, NETAR President Eric Kistner said in the report, while the number of new pending home sales remained flat.

New contracts on single-family homes reached 785 in July, down just one from the 786 recorded in June, according to NETAR’s Pending Sales Report and Realtor Property Resource data. Combining July’s pending offers with the number of new contracts totaled 1,100 transactions. 

Kistner said pending sales usually move to closing within a month to six weeks, and it’s typical for 4 percent of pending transactions to fall through. 

"We've seen the number of single-family (homes), townhome, and condominiums with accepted offers increase at the rate of 700-plus a month since March," Kistner said. 

July’s pending sales reached a 13-month high, making it 21 percent higher than the same point last year. 

"The rate those offers have moved to closing has slowed in the past couple months due to several factors,” Kistner said. “Some of those factors include more contingency offers, appraisal delays and the sheer number of deals in the pipeline. And then there are the new regulations that have slowed down what used to be the normal process.”

Year-to-date pending home sales are 10.2 percent higher than the first seven months of last year, while the total of active pending sales are up 7.3 percent from last year. 

"When you compare that to the new listing trend you quickly see that the sales pace continues to exceed the number of new listings coming onto the market, and that has driven prices higher," Kistner said.

Through the first seven months of the year, the average listing price for a home in the 11-county Tri-Cities region increased from $218,606 last year to $238,638 this year, a 9.2 percent difference. The median listing price also increased from $155,995 to $166,771. 

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