As the real estate landscape continues to evolve in the Greater Chattanooga area, the recent drop in mortgage rates presents a potentially transformative scenario for the housing market. This rate decrease could catalyze a resurgence in existing home sales in the coming months.
U.S. existing-home sales rose from a 13-year low, climbing 0.8% from the previous month and breaking a five-month streak in which sales declined, according to the National Association of REALTORS® (NAR). Despite the increase, sales were down 7.3% compared to last year, as affordability challenges continue to hinder prospective buyers. Most of this period’s closed sales went under contract in October when mortgage rates were at a two-decade high. With rates having dropped more than a full percentage point since then, existing home sales may continue to pick up in the months ahead.
New Listings in the Chattanooga region increased 6.6 percent to 754. Pending Sales were down 3.2 percent to 613. Inventory levels grew 0.8 percent to 2,044 units.
Prices continued to gain traction. The Median Sales Price increased 1.1 percent to $303,275. Days on Market was up 9.4 percent to 35 days. Buyers felt empowered as Months Supply of Inventory was up 9.1 percent to 2.4 months.
Low levels of inventory continue to impact U.S. home sales, offering few options for aspiring buyers. Going into December, there were 1.13 million units for sale, down 1.7% from the previous month but up 0.9% from the same period last year, for a 3.5 months’ supply at the current sales pace. As a result, sales prices remain high nationwide, with NAR reporting the median existing-home price rose 4% annually to $387,600 as of last measure, the fifth consecutive month of year-over-year price gains. Homebuyer demand is picking up, and without a significant increase in supply, experts believe home prices will likely remain elevated for some time to come.
The coming months will be crucial in determining whether this trend will solidify, leading to a more robust and dynamic housing market. Employing a Realtor is the most effective strategy for maneuvering through the present housing market. Our possession of cutting-edge tools and access to the most recent market data positions us ideally to cater to the home purchasing requirements of our community. That’s Who We R®.