As we move into the final quarter of the year, housing market trends continue to evolve on both national and local levels. Recent data from the National Association of REALTORS® (NAR) shows a shift in buyer activity. In the Chattanooga region, however, the market is experiencing steady growth in new listings and inventory, creating both opportunities and challenges for buyers and sellers alike.
U.S. existing-home sales unexpectedly slipped 1.0% month-over-month and 3.5% year-over-year to a seasonally adjusted annual rate of 3.84 million, the lowest level in more than a decade, according to the National Association of REALTORS® (NAR). Prospective buyers have pulled back in recent months, despite lower mortgage rates and more home choices compared to the same time last year.
New Listings in the Chattanooga region saw a healthy increase of 12.3 percent, reaching 1,292 homes. This boost in new listings provides more options for prospective buyers and reflects growing activity within the local market. Additionally, Pending Sales rose by an impressive 15.5 percent to 893, indicating a strong buyer interest and demand for homes in the region. Perhaps most notable is the significant rise in Inventory, which jumped 43.6 percent to 3,006 homes. This expanded inventory offers a broader selection for buyers while also suggesting a shift toward a more balanced market, giving both buyers and sellers more flexibility as we move forward.
The housing market continues to demonstrate robust growth, with the Median Sales Price rising by 11.1 percent, from $314,900 to $350,000. This notable increase reflects both the ongoing demand for housing and the value appreciation within the area, making it a promising market for sellers. The Days on Market metric increased by 31.4 percent to an average of 46 days, suggesting that homes are taking a bit longer to sell as inventory rises, providing buyers with more time to explore their options. Furthermore, the Months Supply of Inventory saw a substantial increase of 40.0 percent to 3.5 months, a positive sign toward a more balanced market that could ease some of the competition for buyers while still benefiting sellers.
There were 1.39 million homes for sale heading into October, a 1.5% increase from the previous month and a 23% increase from the same period last year, for a 4.3-month supply at the current sales pace, according to NAR. Even with improving supply and the slower sales pace, home prices have continued to rise nationwide, with NAR reporting a median existing-home price of $404,500 as of last measure, a 3% increase from one year ago.
These latest trends highlight the dynamic nature of the Chattanooga housing market as we approach the year’s end. With increased inventory and a steady rise in median prices, both buyers and sellers can find opportunities to meet their real estate goals. Whether you're looking to buy, sell, or simply stay informed, working with a trusted Realtor can help you navigate these changing market conditions and make the most of your real estate journey. #ThatsWhoWeR