The housing market showed few signs of cooling off in August. School has started and the majority of students are reporting for in-person schooling. But the hot real estate market isn’t just limited to single-family homes; the rental market is quite hot, as well.
The booming U.S. housing market has spilled over to the rental market with demands for apartments and single-family rentals. This demand is a result of high sales prices and an inadequate supply of available inventory.
Increased demand for housing, along with an improving economy, has competition for rental units soaring, and landlords are taking note with the national median rent increasing 11.4% in 2021 so far, Apartment List reports.
In new construction, homebuilders continue to struggle to meet buyer demand, as housing starts nationwide dropped 7% last month, the Commerce Department reports.
Single-family home construction declined 4.5%, and multifamily home construction, which includes condos and apartment buildings, fell 13%.
Labor shortages, rising material costs and supply chain setbacks continue to challenge builders, with some projects temporarily paused due to availability and cost of materials.
So how have these factors affected housing in our area? New listings in the Chattanooga region increased 5.1% to 1,376. Pending sales increased 9.7% to 1,266. Inventory levels shrank 32.1% to 1,257 units.
Prices continued to gain traction. The median sales price increased 9.2 % to $270,000. Days on market was down 59.5% to 17 days. Sellers were encouraged as months supply of inventory was down 36.8% to 1.2 months.
Inventory continues to be an issue, which means it’s more important than ever to work with a Realtor to help navigate such a fast market. Regardless of the season, working with a Realtor will ensure your housing needs will be in good hands.
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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.