February’s numbers show the housing market is showing signs of healthy activity. Existing home sales have seen a notable increase, marking the most energetic pace since August. The National Association of Realtors attributes this surge to dropping interest rates and a boost in inventory.
Chattanooga’s real estate market has witnessed a substantial rise in new listings, indicating an influx of properties available for sale. Pending sales have also increased – a sign that more transactions are in the pipeline.
U.S. existing-home sales grew 3.1% month-over-month to a seasonally adjusted annual rate of 4 million, exceeding economists’ expectations and marking the strongest sales pace since August 2023, the NAR reports. Falling interest rates late last year, coupled with a recent uptick in inventory, helped existing-home sales to climb following last month’s decline, with monthly gains reported in the Midwest, South and West regions.
New listings in the Chattanooga region increased 27% to 1,201. Pending sales were up 7.5% to 935. Inventory levels grew 15.7% to 2,053 units.
Prices continued to gain traction. The median sales price increased by 3.3% to $306,000. Days-on-market was up 5% percent to 42 days. Buyers felt empowered as months-supply-of-inventory was up 26.3% to 2.4 months.
Total inventory nationwide heading into February stood at 1.01 million units – a 2% increase from the previous month and a 3.1% increase from the same time last year, for a three-month supply at the current sales pace, according to the NAR.
Although buyers might find additional options in their home search, inventory remains below the five- to six-month supply of a balanced market and demand is exceeding supply. As a result, existing-home sales prices have continued to rise, climbing 5.1% year-over-year to $379,100.
While the market is not yet balanced, the trends suggest buyers feel empowered and have more options, even as prices continue to climb. This is a critical time for buyers and sellers to engage with the market, as the dynamics continue to evolve.
With the local housing market moving in a positive direction, we’re keeping our eyes on the horizon for a successful 2024. That’s Who We R.
Greater Chattanooga REALTORS is The Voice of Real Estate in Greater Chattanooga. A regional organization with nearly 3,000 members, Greater Chattanooga Realtors is one of some 1,200 local boards and associations of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors services Hamilton and Sequatchie counties in southeast Tennessee, and Catoosa, Dade and Walker counties in northwest Georgia. For more information, visit www.gcar.net or call 423 698-8001.