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Pending sales joined the jumbled January data report of a market struggling to find footing.

New contracts posted a small gain from December but lagged last year’s performance. Consumer demand also declined, while active inventory continued increasing.

Consumer demand has waned despite four weekly decreases in mortgage rates and increasing inventory. A decline in new listings in the affordable market ($100K to $250K) and a series of announcements of companies planning layoffs also contributed to softer housing demand.

Sellers accepted 205 contracts for homes in the affordable price range, down 24% from last year.

There were 243 contracts in the move-up market, an increase of 5% from last year.

The luxury market had 68 new contracts, up 41% from last year.

Pending sales are a leading indicator of housing activity based on signed contracts for existing single-family home and condominium sales in the region monitored by the Northeast Tennessee Association of Realtors (NETAR). Since resales go under contract 30 to 60 days before they close, pending sales offer insight into the market’s direction.

At mid-month, the median home sales price was $279,950, up 18.2% from last year, and there were 488 sales, up 17.6% from last year.

New listings are up 18% and dominated by a 71.4% increase in homes in the $500K-and-up luxury market. New listings in the move-up market are up 5%, while those in the affordable area are down 19%.

The region’s active inventory is 21% higher than last year. Based on last month’s sales pace, that’s 2.95 months of inventory.

A primary demand indicator, the time a property is on the market, has been steadily increasing. Last month, the median was 76 days, up from 63 days last year.