As I mentioned last week – and as many others expected – September’s housing statistics show signs of the market beginning to slow. This national decrease in activity comes as rising consumer prices and higher mortgage interest rates squeeze homebuyer budgets and cool activity.
With inflation showing little sign of abating, the Federal Reserve implemented another 75-basis-point hike in September, marking the third such rate increase this year.
The cost of borrowing has reached multiyear highs on everything from credit cards to auto loans in 2022 as mortgage interest rates topped 6% for the first time since 2008, causing existing home sales to decline for the seventh consecutive month.
Due in part to these higher interest rates, affordability challenges have priced many buyers out of the market. Buyers who do succeed in purchasing a home are finding that the costs of homeownership have increased significantly, with monthly mortgage payments more than 55% higher than a year ago, according to the National Association of Realtors.
From a nationwide perspective, housing inventory remains lower than normal, and as the market continues to shift, experts project homes will begin to spend more days on market and price growth will slow in the months ahead.
Many of these national predictions apply locally, with new listings in the Chattanooga region down 8.9% to 1,194. However, housing inventory levels grew 32.7% to 1,972 units. This shows that while there were fewer houses listed in September, there is still increased inventory from previous weeks.
Pending sales were down 18.3% to 957. Prices continued to gain traction. The median sales price increased 15.7% to $306,625. For comparison, the median sales price in September 2021 was $265,000.
Days on market was up 53.3% to 23 days. Buyers felt empowered as months supply of inventory was up 35.7% to 1.9 months.
So, yes, we’re in a shifting market, which makes this a good time to rely on the expertise of a Realtor. Realtors are bound to a strict code of ethics, which means we must always put the needs of our clients ahead of any financial interest, whether we’re working for a buyer or seller.
Rely on our expertise when you’re looking to enter into a real estate transaction. That’s Who We R.
Founded in 1912, Greater Chattanooga Realtors is a regional organization with more than 2,500 members servicing 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’s one of approximately 600 MLSs in the country and services more than 2,700 users.