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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, in July home prices 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, according to the National Association of REALTORS® (NAR). 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 21.0% 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 100.0% from July 2022 (15 days) to 30 days. Absorption rates were even with last year as Months Supply of Inventory remained flat at 2.0 months.
Regardless of where you live, when undertaking a process as potentially complex as real estate having an expert on your side is absolutely crucial. That’s why utilizing a REALTOR® is the best way to make sure that you get the most out of your most valuable investment. REALTORS® work for their clients and communities every day. That’s Who We R®.