In the shifting sands of the U.S. housing market, the latest figures sketch a tale of cautious optimism. The National Association of Realtors’ January market report breaks down the contrast between the decline in existing home sales and the significant increase in pending sales and what that might mean for the housing market’s health and future trends.
U.S. existing-home sales slipped 1% month-over-month and were down 6.2% year-over-year as of last measure, while pending sales jumped 8.3% from the previous month, marking the largest gain since June 2020, according to the NAR.
Mortgage rates have dropped significantly from their peak last fall, and homebuyers are beginning to come out of the woodwork, with the NAR forecasting a 13% increase in existing-home sales this year compared to 2023.
New listings in the Chattanooga region increased 3.9% to 1,005. Pending sales were down 11.0% to 805. Inventory levels grew 7.8% to 2,020 units.
Prices continued to gain traction. The median sales price increased 10.4% to $320,000. Days-on-market was up 11.1% to 40 days. Buyers felt empowered as months-supply-of-inventory was up 20% to 2.4 months.
Despite tepid sales activity, the persistent shortage of housing supply has helped prop up home values nationwide, with the median existing-home price rising 4.4% year-over-year to $382,600, according to the NAR. Total unsold inventory was at 1 million units heading into January – an 11.5% decline from the previous month, for a 3.2 months’ supply at the current sales pace.
Nationally, listing activity has started to pick up, and with mortgage rates stabilizing and housing completions on the rise, inventory is expected to improve in the coming months.
The months ahead hold the key to whether these early indicators of recovery and resilience will develop into a sustained upward trend or if the market will continue to be characterized by its current patchwork of gains and losses. What remains clear is that the market is, for now, a checkerboard of contrasting dynamics, demanding a keen eye from buyers, sellers and investors alike. 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, 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.