As the real estate landscape continues to evolve in the Greater Chattanooga area, the recent drop in mortgage rates presents a potentially transformative scenario for the housing market. This rate decrease could catalyze a resurgence in existing home sales in the coming months.
U.S. existing-home sales rose from a 13-year low, climbing 0.8% from the previous month and breaking a five-month streak in which sales declined, the National Association of Realtors reports.
Despite the increase, sales declined 7.3% compared to last year as affordability challenges continued to hinder prospective buyers. Most of this period’s closed sales went under contract in October, when mortgage rates were at a two-decade high.
With rates having dropped more than a full percentage point since then, existing home sales might continue to pick up in the months ahead.
New listings in the Chattanooga region increased 6.6% to 754. Pending sales were down 3.2% to 613. Inventory levels grew 0.8% to 2,044 units.
Prices continued to gain traction. The median sales price increased 1.1% to $303,275. Days-on-market was up 9.4% to 35 days. Buyers felt empowered as months-supply-of-inventory was up 9.1% to 2.4 months.
Low levels of inventory continue to impact U.S. home sales, offering few options for aspiring buyers. Going into December, there were 1.13 million units for sale, down 1.7% from the previous month but up 0.9% from the same period last year, for a 3.5 months’ supply at the current sales pace.
As a result, sales prices remain high nationwide, with NAR reporting the median existing-home price rose 4% annually to $387,600 as of last measure – the fifth consecutive month of year-over-year price gains. Homebuyer demand is picking up, and without a significant increase in supply, experts believe home prices will likely remain elevated for some time to come.
The coming months will be crucial in determining whether this trend will solidify and lead to a more robust and dynamic housing market. Employing a Realtor is the most effective strategy for maneuvering through the present housing market.
Our possession of cutting-edge tools and access to the most recent market data positions us ideally to cater to the home purchasing requirements of our community. That’s Who We R.
Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga Realtors serves Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. The association is one of approximately 1,100 local associations and boards of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a multiple listing service that is one of approximately 600 MLSs in the country and services more than 3,000 users. Local association membership is comprised of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines – appraisal, commercial, industrial, land, multi-family, property management and residential. Working alongside Realtors are our affiliate members, who represent related industries in sympathy with the objectives of the association. Our affiliate members include mortgage lenders, home inspectors, title and closing services, pest inspection and control and insurance.