As we move into the final quarter of the year, housing market trends continue to evolve on both the local and national levels.
Recent data from the National Association of Realtors 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% 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 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%, 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 an impressive 15.5% to 893, indicating strong buyer interest and demand for homes in the region.
Perhaps most notable was the significant rise in inventory, which jumped 43.6% 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 moving forward.
The housing market continues to demonstrate robust growth, with the median sales price rising 11.1% 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% 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% 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 the NAR.
Even with improving supply and the slower sales pace, home prices have continued to rise nationwide, with the 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
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 that services more than 3,000 users. Local association membership is comprised of Realtors who are servicing the Greater Chattanooga area and specializing in a variety of disciplines, including 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.