Those of us who are close to the real estate market have no doubt been keenly aware that mortgage rates have approached 7% in recent months, which continues to lead many prospective buyers to put their home purchase plans on hold temporarily.
But these higher rates have also kept many existing homeowners from listing their homes for fear of giving up the low-rate mortgages they locked in a few years ago, when rates were significantly lower, and the national and local housing markets reflect this.
Despite a drop in existing-home sales, home prices in July remained near record highs, with a national median sales price of $410,200 as of last measure – 0.9% below the all-time high of $413,800 recorded in June 2022, the National Association of Realtors reports.
Affordability constraints have continued to limit homebuying activity this summer, with existing-home sales falling 3.3% month-over-month nationwide as of last measure, according to NAR. With only 3.1 months’ supply heading into July, the lack of inventory has boosted competition among buyers and put upward pressure on sales prices, especially in more affordable markets, where competition for homes remains particularly strong.
Speaking of local housing inventory, new listings in the Chattanooga region decreased 21% from July 2022 (1,412) to 1,115, while pending sales were down 5.5% from July 2022 (1,045) to 988. Inventory levels shrank 14.2% to 1,779 units.
Prices in our area continued to gain traction. The median sales price increased 4.9% from July 2022 ($309,900) to $325,000. Days-on-market was up 100 from July 2022 (15 days) to 30 days. Absorption rates were even with last year as months-supply-of-inventory remained flat at two months.
Regardless of where you live, when undertaking a process as potentially complex as real estate, having an expert on your side is crucial. That’s why utilizing a Realtor is the best way to make sure you get the most out of your most valuable investment.
Realtors work for their clients and communities every day. That’s Who We R.
Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga Realtors serves Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. The association is one of approximately 1,100 local associations and boards of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a multiple listing service, which is one of approximately 600 MLSs in the country and services more than 3,000 users. Local association membership consists of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines – appraisal, commercial, industrial, land, multifamily, property management and residential. Working alongside Realtors are our affiliate members, who represent related industries in sympathy with the objectives of the association. Our affiliate members include mortgage lenders, home inspectors, title and closing services, pest inspection and control and insurance.