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When you zoom out to get the big picture of real estate across the country, you’re going to see some pretty positive developments. The economy is improving, unemployment is falling, and the U.S. real estate market remains very strong. This news is positive as we head into the holiday season, a period when activity typically slows as people take time to travel, celebrate, and spend time with loved ones. Although the market is not as frenetic as we saw earlier this year, buyer demand is still high and bolstered by attractive mortgage rates and a low supply of inventory.
How much have prices changed in a year? The most recent data from the National Association of REALTORS® reports that the national median price for single-family existing homes rose 16% in the third quarter of this year to $363,700, with all four regions of the country experiencing double-digit price growth. In addition, in new construction, builder confidence increased in November, surpassing analyst expectations and rising to 83 on the National Association of Home Builders/Wells Fargo Housing Market Index, the highest level since spring, despite persistent labor and supply chain challenges and a shortage of available lots. So despite these challenges, the market nationally remains quite robust.
Locally, New Listings in the Chattanooga region increased 5.7% to 987. Pending Sales were up 16.4% to 1,014. Inventory levels shrank 37.2% to 1,012 units.
Prices continued to gain traction. The Median Sales Price increased 13.6% to $280,000, which is quite a jump from the $246,400 we saw in November 2020. Days on Market was down 48.6% to 18 days. Sellers were encouraged as Months Supply of Inventory was down 43.8% to 0.9 months, compared to November 2020’s 1.6 Months Supply of Inventory.
The housing market hasn’t slowed down all year, and it’s looking like the same may be true for 2022. In markets like these, it’s critical to work with a Realtor who knows how to navigate your real estate needs. In addition, Realtors are mostly small business owners who work to ensure buyers and sellers have the greatest access, transparency, and choice through independent, local broker marketplaces that level the playing field for all types and sizes of brokerages. This collaborative competition among Realtors makes the market work, as does working for our clients throughout the year – That’s Who We R.