In years past, September home sales tended to reflect the changing temperatures this time of year. September usually starts hot, and by the end of the month, a shift in weather is usually a sign of fall’s arrival. Well, our current housing market has kept a similar trend with the temperature; locally, there are little signs of any cooling off period. A limited supply of housing and increased selling prices are keeping the market very hot indeed.
There are signs the market may be shifting more towards the favor of homebuyers, however. New listings have continued to hit the market, bucking seasonality trends commonly seen in the fall, a time when listing and sales activity typically slows as children return to school. Moreover, as inventory increases, competition for homes may soften, and could even bring some moderation in sales prices, which, after 114 months of year-over year gains, would be music to the ears of homebuyers throughout the country.
Nationwide, existing home sales were down slightly in August, falling 2% after two consecutive months of increases, according to the National Association of REALTORS®. The decline in existing home sales coincides with rising sales prices, which have continued to soar into fall, with the median sales price of existing homes up 14.9% compared to last year. Declining affordability has had a significant impact on homebuyers, many of whom have been priced out of the market and are choosing to wait for sales prices to ease before resuming their home search.
Locally, New Listings in the Chattanooga region increased 12.1% to 1,295. Pending Sales were up 13.1% to 1,216. Inventory levels shrank 27.2% to 1,258 units. Prices continued to gain traction. The Median Sales Price increased 10.9% to $265,000. Days on Market was down 61.5% to 15 days. Sellers were encouraged as Months Supply of Inventory was down 33.3% to 1.2 months.
Weather changes. The housing market changes. But something that won’t change is the importance of utilizing a Realtor to buy or sell. Realtors have the tools to make sure that whether you’re buying or selling, you will get the most for your largest investment. Caring for our community’s real estate needs, That’s Who We R.