March usually signals the beginning of the homebuying and selling season. On a national level, existing home sales jumped 14.5% month-over-month in February, which was the first monthly gain in 12 months.
This is the largest monthly increase since July 2020, according to the National Association of Realtors. The sudden uptick in sales activity stems from contracts signed toward the beginning of the year, when mortgage rates dipped to the low 6% range, which caused a surge in homebuyer activity.
Pending sales have continued to improve heading into spring, increasing for the third consecutive month, according to NAR.
Monthly sales might have been even higher if not for the limited inventory nationwide. At the current sales pace, there was just a 2.6 months’ supply of existing homes at the beginning of March, which is far below the four to six months’ supply of a balanced market.
Inventory remains suppressed in part because of mortgage interest rates, which nearly hit 7% before falling again in recent weeks. Higher rates have continued to put downward pressure on sales prices, and for the first time in more than a decade, national home prices were lower year-over-year, according to NAR, breaking a 131-month streak of annual price increases.
Locally, new listings in the Chattanooga area in March decreased 12.8% to 1,170. However, the total available housing inventory grew 42.6% over March 2022 (1,079) to 1,539 units. Pending sales were down 7.3% to 1,031.
Prices continued to gain traction. The median sales price increased 5% over March 2022 ($300,000) to $315,000. Days on market was up 89.5% to 36 days. Buyers felt empowered as months supply of inventory was up 70% to 1.7 months.
No matter the time of year, and no matter the market, utilizing the knowledge and expertise of a Realtor is key to helping navigate the complex process of buying or selling a property. Realtors provide valuable insight into the local market, help negotiate offers and ensure all legal and financial requirements are met.
Realtors work for their clients and communities every day. 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 MLS users. Local association membership consists of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines, including appraisal, commercial, industrial, land, multifamily, property management and residential. Affiliate members who represent related industries work alongside these Realtors, including mortgage lenders, home inspectors, title and closing services, pest inspection and control services and insurance providers.