February 2020 was the last month of “normal” activity for most of us last year. Who could have known our collective lives would be turned upside down in March?
Over the next few months, it will be interesting to compare the current market conditions to those of only one year ago.
As my fellow Realtors can attest, home sales took off after some slower months in March and April. This housing rebound has shown that Realtors will work tirelessly for their clients, even when precautions must be taken.
Nationally, mortgage interest rates rose slightly higher last month yet remain below their February 2020 levels.
Interest rates might rise a bit more in the coming weeks, according to Freddie Mac chief economist Sam Khater, who says, “While there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3% range for the year.”
With rates still at these historically low levels, home sales are unlikely to be seriously affected. Higher sales do impact affordability, however.
In the Chattanooga region, new listings decreased 2.7% from February 2020 to 1,011. Pending sales were up 18.3% over February 2020 to 1,042. Inventory levels shrank 63.0% to 893 units.
Prices continued to gain traction. The median sales price increased 10.2% over February 2020 to $237,443.
Days on market was down 36.1% from February 2020 (61 days) to 39 days. Sellers were encouraged as months supply of inventory was down 65.4% to 0.9 months.
Government agencies are continuing efforts to help homeowners who are struggling due to the pandemic. The Federal Housing Finance Agency announced it will allow homeowners with loans backed by Fannie Mae and Freddie Mac to receive an additional three months of forbearance, extending total payment relief to up to 18 months. Qualified homeowners must already be in a forbearance plan as of the end of February.
Last year showed us all how quickly our lives can change. It’s rarely because of a global pandemic, but “life’ happens to us all. People change jobs, loved ones need different living arrangements and familial status changes.
No matter what your needs are, consult a Realtor. He or she will work with you to make sure your housing needs are taken care of. 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 service 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.