The housing market is showing signs of healthy activity, according to the latest report for February 2024. Existing home sales have seen a notable increase, marking the most energetic pace since the previous August. The National Association of Realtors attributes this surge to dropping interest rates and a boost in inventory.
Chattanooga's real estate market, in particular, has witnessed a substantial rise in new listings indicating an influx of properties available for sale. Pending sales have also increased, a sign that more transactions are in the pipeline.
U.S. existing-home sales grew 3.1% month-over-month to a seasonally adjusted annual rate of 4.00 million, exceeding economists’ expectations and marking the strongest sales pace since August 2023, according to the National Association of REALTORS® (NAR). Falling interest rates late last year, coupled with a recent uptick in inventory, helped existing-home sales to climb following last month’s decline, with monthly gains reported in the Midwest, South, and West regions.
New Listings in the Chattanooga region increased 27.0 percent to 1,201. Pending Sales were up 7.5 percent to 935. Inventory levels grew 15.7 percent to 2,053 units.
Prices continued to gain traction. The Median Sales Price increased by 3.3 percent to $306,000. Days on Market was up 5.0 percent to 42 days. Buyers felt empowered as Months Supply of Inventory was up 26.3 percent to 2.4 months.
Total inventory heading into February stood at 1.01 million units, a 2% increase from the previous month and a 3.1% increase from the same time last year, for a 3 months’ supply at the current sales pace, according to NAR. Although buyers may find additional options in their home search, inventory remains below the 5-6 months’ supply of a balanced market, and demand is exceeding supply. As a result, existing-home sales prices have continued to rise, climbing 5.1% year-over-year to $379,100.
While the market is not yet balanced, the trends suggest buyers feel empowered and have more options, even as prices continue to climb. This is a critical time for buyers and sellers to engage with the market, as the dynamics continue to evolve. With the local housing market moving in a positive direction, we are keeping our eyes on the horizon for a successful 2024. That’s Who We R®.