The National Association of REALTORS® just released their latest Pending Homes Sales Index and it showed that homes going into contract in February increased to their highest level since June 2013.
The Pending Home Sales Index is based on pending sales of existing homes and is a great indicator of the current market. A sale is considered pending when a contract has been signed but the transaction has not closed yet. Typically the sale is finalized within 1-2 months of signing.
The report shows the Pending Home Sales Index is now 12% above February 2014. This is the highest level it has achieved since June 2013, and it has increased year-over-year for 6 months straight. The current level is above what is considered “the average level of activity” – for the 10th month in a row.
Pending Home Sales in Farragut TN and Knoxville
Knoxville area pending sales were up 13.5% year to date and the monthly numbers are up 20% compared to March of last year. Pending sales in Farragut are up 8.5% year to date and the March numbers are up 5.9%. I feel that the Farragut numbers would be higher if we weren’t experiencing a shortage of homes for sale, as active homes for sale in Farragut are down 13.8% year to date, and down 24% for the month of March. The current Absorption Rate in Farragut (months of inventory) is at only 4.22 months, when a normal amount of inventory is considered 6 months.
Here is a visual showing the National Pending Sales numbers:
What does this mean for you?
If you are considering selling a home in Farragut or Knoxville this is a clear signal that now is the time to put your home on the market. When inventory is low you can expect to sell your home faster and for closer to your asking price (provided it is priced correctly in the first place). If you are considering buying a home in Farragut or Knoxville, expect stiff competition. This isn’t the market it was a few years ago when you went in and made lowball offers. Today that will just result in someone else getting the house you love. It’s important to have a professional to guide you in the process, to help you determine if the home you like is priced correctly and assist you in negotiating a win-win scenario for you and the seller. If you are either looking to buy or sell a home in Farragut or Knoxville, contact me, Troy Stavros with Gables & Gates, REALTORS at 865-999-0925 via phone or text. I’d love to sit down and discuss your goals, so together we can formulate a plan to help you achieve them. I’m here to serve you! I look forward to talking soon.