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Pending home sales in Northeast Tennessee continued to signal resilient local buyer interest despite ongoing affordability challenges and tight inventory. The year-over-year volume has softened slightly, as has the overall market. The month-over-month increase suggested that seasonal trends remain intact and buyer activity is holding firmly — especially in the mid-price segments.

Buyers accepted 875 new contracts last month. Those contracts were up from last year in all price ranges except the $100K–$179,999 range. Pending sales in the affordable market, $180K–$299K, were up 2.2%. The move-up market, $300K–$499,999, 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 homes in the $200K–$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 homes 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 Greene saw modest declines in the 5%–7% range. Inventory shortages, instead of buyer retreat, were the primary driver of those declines.

An uptick in new home pending sales suggests builders are capturing some of the unmet demand from the existing home market.

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.