As the weather warms and COVID-19 restrictions ease across much of the country, the U.S. housing market shows little sign of cooling.
You might think I’m starting to sound like a broken record, but robust buyer demand, fueled by low mortgage rates, continues to outpace supply, which remain near historic lows.
Nationwide, inventory remains much lower than it was at this time last year, and sales prices are surging as a result.
With such a limited supply of existing homes to purchase, all eyes are on homebuilders to provide a much-needed boost of inventory to the market to help meet buyer demand. However, increasing material and labor costs, along with supply chain challenges, have contributed to significantly higher construction costs, with builders passing these costs on to homebuyers.
And while the warmer temperatures, rising sales prices and the reopening of the economy might draw more sellers to the market, historically low levels of homes for sale are likely to continue for some time.
In May, new listings in the Chattanooga region increased 3% to 1,280. Pending sales were down 4.8% to 1,143. Inventory levels shrank 58.4% to 934 units. For comparison, May 2020 saw 2,245 properties for sale.
Prices continued to gain traction. The median sales price increased 17.6% to $260,000. Again, in May 2020, the median sales price was $221,000. That’s an increase of $39,000.
Days on market was down 47.6% to 22. This data point calculates the average number of days a property is on sale before it’s under contract. In May 2020, days on market was 42 – 20 days longer than last year.
Sellers were encouraged as months supply of inventory was down 64.0 % to 0.9 months.
I’ve said it before, but this hot market shows little signs of cooling off anytime soon. When properties are being sold this quickly, it’s absolutely crucial to work with a Realtor who knows the ins and outs of the market.
Realtors help their clients work fast to get the home they desire. That’s Who We R.
Greater Chattanooga Realtors is The Voice of Real Estate in Greater Chattanooga. A regional organization with more than 2,400 members, Greater Chattanooga Realtors is one of 300 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.