Another Positive Housing Signal : The Number Of Knoxville Homes Under Contract Increase
1st Time Knoxville Home Buyers
Are out there buying homes right now. We are seeing alot more pending sales in the $200,000 price range and below. That is a VERY good thing for our market. Because it helps those Knoxville Home Sellers be able to buy up in price range. Which should help move some of the current inventory homes.
The number of homes under contract to sell is rising, another signal that the housing market may be regaining its footing.
As reported by an industry trade group, the Pending Home Sales Index gained 2 percent in February. The report measures MLS-listed homes in “pending” status — sold but not yet closed.
Pending Home Sales is not a perfect statistic, though, by any means.
For one, the Pending Home Sales Index doesn’t account for non-MLS listed homes including For Sale By Owner properties and mass foreclosure auctions. In certain markets nationwide, these two categories represent a large percentage of the overall transaction volume.
Secondly, Pending Home Sales samples just 20 percent of all MLS-based transactions — hardly a complete listing.
But most importantly, a “pending” home sale is not the same as a closed home sale. A lot of things can go wrong between the time a home goes under contract and the supposed closing date. For example, the home inspection could fail, the contract could fall apart, and/or the buyer’s financing could be denied in underwriting.
All things equal, though, Pending Home Sales is a fair forward-looking indicator for the housing market as a measurement of buy-side demand for homes.
When Pending Home Sales rise, it’s tells us that buyers and sellers are matching up, clearing out market inventory. And actual home sales often follow “pending” ones — 80 percent of Pending Home Sales will close within 60 days.
If you are thinking about getting into the market to buy or sell please feel free to contact me. If you are a Knoxville Home Seller and want to see what homes are selling for in your neighborhood. You can go to The Big Orange Press and fill out the Market Snap Shot on the left hand side to get all the latest home sale in your area.
Searching for homes is easy on my site you can go to and look for all types of Knoxville Real Estate. If you want to have homes emailed to you daily that may be of interest to you. All you have to do is register and save you search criteria.
If you have any question or need help with buying or selling a Knoxville Real Estate call me at 865-696-9002 or email Rick@TheBigOrangePress.com