Hamilton Herald Masthead


Front Page - Friday, September 23, 2022

Price growth expected to moderate in near-term

Summer 2022 has been a season of change for the U.S. real estate market. With housing affordability at a 33-year low, existing home sales have continued to soften nationwide, falling 5.9% month-to-month and 20.9% year-over-year as of last measure, the National Association of Realtors reports.

Pending home sales have also continued to decline, while new listings have steadily increased, with unsold inventory reaching 3.3 months’ supply at the start of August.

The pullback in demand has been particularly hard on homebuilders, causing new-home sales and construction to slow.

Inflation, higher interest rates and fears of a potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market.

But some experts, including NAR Chief Economist Lawrence Yun, believe the worst of inflation might be over. Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction.

New listings in the Chattanooga region decreased 3.8% to 1,334. Pending sales were down 7.1% to 1,108. Inventory levels grew 25.8% to 1,881 units. This is an increase of 386 properties over August 2021.

Prices continued to gain traction. The median sales price increased 11.1% over August 2021 to $300,000. For comparison, the median sales price for August 2021 was $270,000.

Days on market was down 5.9% to 16 days. Buyers felt empowered as months supply of inventory was up 28.6% to 1.8 months.

Only one thing is certain: Nothing stays the same. This is especially true in the real estate market. During this time of change, utilizing the expertise of a Realtor is critical if you’re looking to buy or sell.

Realtors have the tools and the data to help you make the most out of your investment. That’s Who We R.

Founded in 1912, Greater Chattanooga Realtors is a regional organization with more than 2,500 members servicing 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 that’s one of approximately 600 MLSs in the country and services more than 2,700 users.