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Temperatures are heating up, yet the U.S. housing market remains cooler than usual for this time of year due to a combination of low inventory and higher borrowing costs, which have restricted market activity going into the summer homebuying season. According to the latest data from the National Association
of REALTORS® (NAR), national existing-home sales climbed 0.2% from the previous month but were down 20.4% compared to the same time last year, as fluctuating mortgage rates and a near all-time low level of inventory continue to influence home sales.
Nationwide, total housing inventory increased 3.8% from the previous month, for a 3-month’s supply at the current sales pace. The shortage of homes for sale has kept prices high for remaining buyers, with a national median sales price of $396,100 as of last measure, a 3.1% decline from the same time last
year and the largest annual decrease since December 2011, according to NAR. As demand continues to outpace supply, properties are selling quickly, with the majority of homes listed for sale on the market for less than a month.
When looking locally in the greater Chattanooga area, New Listings in our area decreased 26.7% to 1,219. For comparison, in June 2022, there were 1,662 new listings. Pending Sales were down 7.2% to 975 from June of 2022 (1,051). Inventory levels shrank 6.7% to 1,778 units. This is a slight decrease from 1,905 in June of 2022. Prices continued to gain traction. The Median Sales Price increased 4.0% over ∆une 2022 ($326,900) to $339,950. Days on Market was up 130.8% over June 2022 (13 days) to 30 days. Buyers felt empowered as Months Supply of Inventory was up 11.1% to 2.0 months.
One thing that’s certain is that nothing stays the same, and this is especially true in the real estate market. We currently find ourselves in a time of change, and that’s why if you’re looking to enter the housing market, whether it’s to buy or sell, utilizing the expertise of a Realtor® is so critical. Realtors have the tools and the data to help make the most out of your most valuable investment. That’s Who We R®.