It’s hard to believe summer is just around the corner. While rising temperatures usually signal a “hot” real estate market is on its way, the housing market actually has not cooled off for the past couple of years.
The April market statistics show homes continue to sell at a very fast pace. However, a few national factors are starting to affect the real estate industry.
The average 30-year fixed rate mortgage exceeded 5% in April – the highest level since 2011, Freddie Mac reports.
The recent surge in mortgage rates has reduced the pool of eligible buyers and caused mortgage applications to decline. We’re seeing a significant impact on refinancing applications, which are down more than 70% compared to last year.
As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.
Affordability challenges limit buying activity – and early signs suggest this competition might cool the market. Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking five straight months of under contract declines, the National Association of Realtors reports.
Inventory remains low, with only a two-month supply at present, and home prices continue to rise, with the median existing home at $373,500 – a 15% increase from this time last year. However, homes are still selling quickly and multiple offers are common in many markets.
Locally, new listings in the Chattanooga region increased 12.1% to 1,401. Pending sales were down 2.6% to 1,143. Inventory levels shrank 3.2% to 1,060 units.
Prices continued to gain traction. The median sales price increased 20.5% to $302,500. Days on market was down 39.1% to 14 days. Absorption rates were even with last year as months supply of inventory remained flat at one month.
In a competitive market, consulting the expertise of a Realtor remains the best way to stay ahead.
Realtors have the tools and knowledge to give their clients every advantage in this fast market.
Realtors work tirelessly for their clients and communities to assist in their property buying needs. That’s Who We R.
Founded in 1912, Greater Chattanooga Realtors is a regional organization with more than 2,500 members servicing 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’s one of approximately 600 MLSs in the country and services more than 2,700 users.