Low inventory, elevated sales prices and decades-high interest rates continue to weigh on the housing market, causing sales of existing homes to fall to their slowest pace since August 2010.
U.S. existing-home sales declined 4.1% month-over-month and 14.6% year-over-year as of the last measure, the National Association of Realtors reports. It seems prospective buyers, faced with rising homeownership costs, are waiting for mortgage rates and home prices to drop.
Inventory remains at historically low levels nationwide, with only 1.15 million homes for sale heading into November, a 5.7% decline compared to the same time last year, for a 3.6 months’ supply at the current sales pace. The shortage of available properties for sale has kept pressure on home prices, which have continued to climb despite the slowdown in sales.
The U.S. median existing-home sales price increased 3.4% from a year ago to $391,800, an all-time high for the month, with annual price gains reported in all four regions of the country, NAR reports.
Interestingly, recent data from the past two weeks show what might be a possible shift in our market due to slightly decreasing mortgage rates. Mortgage rates fell to 7.22% for the last week in November 2023, which was a decrease over five consecutive weeks. This reduction in mortgage rates led to a 2.8% increase in mortgage applications and a 14% rise in refinance activity.
New listings in the Chattanooga region increased from November 2022 (872 properties) 9.6% to 956.
Pending sales were up 4.2% from November 2022 (663 properties) to 691.
Inventory levels shrank 3.6% from November 2022 (2,266 units) to 2,184 units.
Prices continued to gain traction. The median sales price increased 1.5% from November 2022 ($299,000) to $303,605.
Days-on-market was up 12.9% from November 2022 (31 days) to 35 days.
Buyers felt empowered as months-supply-of-inventory was up 8.3% from November 2022 (2.4 months) to 2.6 months.
As the housing market continues to change all over the country, the role of a Realtor becomes even more important. With variables like shifting interest rates and fluctuating inventory levels, Realtors offer crucial expertise, guiding clients through complex transactions with ease.
A Realtor not only understands the nuances of our current market, but also provides strategic advice tailored to each person’s needs. Whether buying or selling, clients can navigate these challenging waters with a knowledgeable and trusted Realtor. 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/board of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a Multiple Listing Service (MLS), which is one of approximately 600 MLSs in the country and services more than 3,000 MLS users. Local Association membership consists of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines – appraisal, commercial, industrial, land, multifamily, 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.