The Greater Chattanooga area experienced a thriving real estate market in May, showcasing significant growth and dynamic changes. The latest data from the National Association of Realtors shows the local market continues to be influenced by the interplay of supply and demand, with an increase in home sales despite rising prices.
This robust performance highlights this area’s resilience and attractiveness, even as broader national trends show a slight cooling in existing home sales due to higher interest rates and escalating prices.
U.S. existing-home sales fell for the second month in a row, sliding 1.9% month over month and 1.9% year over year, the NAR reports. Sales were down in all four regions of the country. Higher borrowing costs and accelerating home prices continue to weigh on demand, pushing some prospective buyers to the sidelines and causing market activity to slump ahead of summer.
New Listings in the Chattanooga region increased 25% to 1,466. Pending Sales were up 13.1% to 986. Inventory levels grew 28.4% to 2,398 units.
Prices continued to gain traction. The Median Sales Price increased 7.2% to $344,000. Days on Market were down 17.1% to 29 days. Buyers felt empowered as months supply of inventory increased 33.3% to 2.8 months.
Home prices have continued to climb nationwide, despite an uptick in inventory this year. Nationally, the median existing-home price reached $407,600 as of last measure, a 5.7% increase from the same period last year and a record high for the month, NAR reports.
Meanwhile, total inventory heading into May stood at 1.21 million units, a 9% increase month-over-month, and a 16.3% increase year-over-year, for a 3.5 month’s supply at the current sales pace.
As we move further into the year, the real estate landscape in the Greater Chattanooga area is expected to remain dynamic. Buyers should stay prepared for competitive conditions, while sellers can take advantage of the strong market demand.
It’s essential for both buyers and sellers to stay informed and work closely with a knowledgeable Realtor who can provide expert guidance tailored to their specific circumstances.
Whether you’re looking to buy your dream home or sell your current property, understanding the latest market trends and conditions will be crucial for making informed decisions in the months ahead. 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/board of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a Multiple Listing Service (MLS), which is one of approximately 600 MLSs in the country and services more than 3,000 MLS users. Local Association membership is comprised of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines – appraisal, commercial, industrial, land, multifamily, 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.